Hapvida Participacoes e Investimentos (HAPV3) Q1 2026 earnings summary

Executive summary

• New CEO and Board of Directors in place, emphasizing governance, operational discipline, and a data-driven culture.

• Turnaround plan underway, focusing on decentralization, local market adaptation, customer experience, and operational optimization.

• Senior leadership team revamped, with new VPs in key areas including HR, customer experience, technology, and legal.

• Emphasis on rational growth, high performance, and technology-driven improvements.

• Clean quarter with no non-recurring effects, providing clearer operational visibility.

Financial highlights

• Net revenue reached R$7.9 billion in Q1 2026, up 5.2% year-over-year and nearly flat sequentially, driven by health plan contract adjustments.

• Adjusted EBITDA was R$803 million, up 12.5% sequentially but down 20% year-over-year.

• Adjusted net income was R$244 million, up 208.9% from 4Q25 but down 41.4% year-over-year.

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

• CapEx reduced to R$190–191 million in Q1 2026.

• Net debt stood at R$5.165 billion, with leverage at 1.38x EBITDA.

Outlook and guidance

• Continued focus on margin protection, cost efficiency, deleveraging, and capital discipline.

• CapEx for 2026 expected to be up to R$700 million, with no significant new unit openings.

• Cautious outlook on healthcare costs due to higher utilization and competitive pressures.

• Ongoing review of asset portfolio, with potential for further divestments and operational streamlining.

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