Hapvida Participacoes e Investimentos (HAPV3) investor relations material

Executive summary

• Implemented a turnaround plan focused on customer experience, operational efficiency, and financial discipline, emphasizing rational growth, high performance, and technology-driven improvements.

• Net revenue reached R$7.9 billion, up 5.2% year-over-year and nearly flat sequentially, driven by health plan contract adjustments.

• Adjusted EBITDA was R$803 million (10.2% NOR), up 12.5% sequentially but down 20% year-over-year.

• Adjusted net income totaled R$244 million, a 208.9% increase from 4Q25 but a 41.4% decrease year-over-year.

• Free cash flow generation was R$443 million, supporting operational and investment needs.

Financial highlights

• Health plan net revenue rose 5.2% year-over-year to R$7.79 billion; dental plan revenue grew 5.4% year-over-year to R$222 million.

• Cash Medical Loss Ratio (MLR) improved to 72.2%, down 330bps sequentially and 38bps year-over-year.

• Administrative and selling expenses increased to R$1.25 billion (15.9% NOR), up 240bps year-over-year.

• Net debt stood at R$5.17 billion, with leverage at 1.38x LTM EBITDA.

• Free cash flow conversion was 81.1% for the quarter.

Outlook and guidance

• Management highlighted ongoing focus on operational intelligence, capital discipline, and customer retention.

• Sequential improvement in corporate health plan channel, especially in São Paulo and South regions.

• SME segment showed positive developments across most regions, reflecting commercial initiatives.

• Individual and affinity channels faced net reductions due to seasonal factors and competing household expenses.