Rede D'Or São Luiz (RDOR3) Q3 2025 earnings summary

Executive summary

• Revenue reached BRL 15.6 billion in Q3 2025, up 10.6% year-on-year, with EBITDA at BRL 2.9 billion, a 15.6% increase, and net income at BRL 1.5 billion, nearly 20% growth year-on-year.

• Achieved record patient-day volume of 784,000 in Q3 2025, up 10.1% year-on-year, and a record 157,000 surgeries, up 21.3% YoY and 15.0% sequentially.

• SulAmérica added over 70,000 clients in Q3, with net revenue at BRL 8.5 billion, up 10.8% YoY, and improved consolidated loss ratio.

• Net revenue for the nine months ended September 30, 2025, was R$41.3 billion, up from R$37.7 billion year-over-year, with net income attributable to controlling interests at R$3.52 billion, a 20% increase.

• The group expanded its hospital network to 76 hospitals in operation and over 30 projects under development.

Financial highlights

• Gross revenue for hospital services in Q3 was BRL 9.4 billion, up 16.2% year-on-year; average ticket rose 5.6%, and patient days increased over 10%.

• Oncology segment gross revenue in Q3 was BRL 1.55 billion, up 28.1% year-on-year; average ticket up 10.4%, volume up 16%.

• SulAmérica Q3 net revenue was BRL 8.5 billion, up 10.8% year-on-year; adjusted EBITDA up 68.1% year-on-year.

• Operational cash flow for the first nine months was BRL 6 billion, up 22.6% year-on-year.

• Administrative expenses for hospital services down 17.2% year-on-year in Q3, representing 2.7% of gross revenue.

Outlook and guidance

• Management expects continued efficiency gains from system integration, automation, and productivity improvements.

• Over 30 organic expansion projects underway, expected to deliver 3,203 beds between 2025 and 2028.

• Ongoing ramp-up of JV hospitals is delivering margin expansion faster than projected, with further room for growth.

• No specific margin guidance provided, but operational leverage and efficiency initiatives are expected to support future margin expansion.

• Membership evolution showed a 10.1% YoY increase, totaling 5.7 million beneficiaries in health and dental portfolios.