Fleury (FLRY3) Q1 2025 earnings summary

Executive summary

• Gross revenue in Q1 2025 reached BRL 2.2 billion, up 6.5% year-over-year, driven by strong B2C, regional, and diversified brand performance.

• EBITDA grew 5.9% to BRL 547.6 million, with a stable margin of 27.2%; net profit increased 6.7% to BRL 179.3 million, net margin at 8.9%.

• ROIC improved to 16.9%, up 320 bps from Q1 2023, marking the eighth consecutive quarter of growth.

• Digital scheduling initiatives expanded, now accounting for up to 45% of bookings in some brands, reducing costs and improving customer satisfaction.

• Operational efficiency, disciplined capital allocation, and digital transformation supported resilience in a challenging macroeconomic environment.

Financial highlights

• Gross revenue reached BRL 2.2 billion, up 6.5% year-over-year; LTM revenue at BRL 8.5 billion.

• Mobile service revenue grew 11.4%, now 7.8% of total revenue and 11.4% of B2C revenue.

• B2B revenue contracted 1.9% due to contract loss and tough prior-year comparison.

• New Links/Novos Elos segment revenue increased 17.9%, driven by high-cost medication and specialty services.

• Operating cash flow was BRL 322.3 million, up 46.5% year-over-year; cash conversion at 58.8% of EBITDA.

Outlook and guidance

• Confident in continued growth for 2025, with positive trends in B2C, intermediary, and digital segments.

• Margin expected to remain healthy, with ongoing efficiency gains from digital initiatives and disciplined cost control.

• Ongoing investments in digitalization, AI, and self-scheduling to drive further efficiency and customer satisfaction.

• High-cost medication in Novos Elos segment is unpredictable but company is prepared for demand.

• M&A focus remains on diagnostic medicine, with a disciplined approach due to the challenging macro environment.