Telefônica Brasil (VIVT3) Q4 2025 earnings summary

Executive summary

• Achieved above-inflation revenue growth for the fourth consecutive year in 2025, with record-high access base, robust financial performance, and lowest churn rates in history (1.0% postpaid, 1.5% fiber).

• Mobile postpaid accesses expanded 6.5% YoY to 70.8 million, representing 69% of the mobile base; total mobile accesses reached 103 million.

• Fiber footprint reached 31 million homes, with 7.8 million homes connected (+12% YoY); 5G coverage expanded to 716 cities, reaching 67% of the population.

• New and digital businesses contributed 12.1% of total revenues, with strong growth in financial services, health, entertainment, and B2B solutions.

• ESG leadership recognized by top sustainability indices, with expanded social and environmental initiatives, including Amazon reforestation.

Financial highlights

• Q4 2025 total revenues rose 7.1% YoY; full-year net operating revenue reached R$59.6 billion (+6.7% YoY).

• EBITDA grew 8.1% YoY in Q4 and 8.5% YoY for the year, with margin up to 42.9% (Q4) and 41.7% (full year).

• Net income for 2025 was R$6.17 billion (+11.2% YoY); EPS reached R$1.91 (+13.4% YoY).

• CapEx for the year was R$9.27 billion (15.6% of revenue), with CapEx/revenue ratio reduced.

• Free cash flow for 2025 was R$9.15 billion (+11.4% YoY); free cash flow yield at 8.6%.

Outlook and guidance

• Committed to distributing at least 100% of net income in 2026, with R$6.99 billion already approved, including capital reduction and interest on capital.

• Plans to accelerate network expansion, especially 4G/5G and fiber, and monetize legacy assets (R$4.5 billion expected from copper and real estate sales).

• Focus on digital ecosystem growth, AI integration, and ESG initiatives.

• Price increases planned for mobile and fiber segments in 2026, following inflation and value-added strategies.

• Ongoing CapEx optimization and leadership in infrastructure, aiming to further improve CapEx/revenue ratio.