Hapvida Participacoes e Investimentos (HAPV3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$7,674 million in Q2 2025, up 7.3% year-over-year and 2.3% sequentially, driven by health plan price adjustments and beneficiary growth.

• Adjusted EBITDA, excluding a R$202 million non-recurring SUS/ReSUS impact, was R$905 million (11.8% margin); reported EBITDA was R$703 million (9.2% margin).

• Adjusted net income was R$299 million, while reported net income was R$149 million, both impacted by extraordinary items.

• Beneficiary base grew by 57.7k in health plans and 91.5k in dental plans during the quarter, with growth across corporate, individual, group, and affinity plans.

• Operational improvements included a 41% reduction in Preliminary Intermediation Notifications (NIP) since Jan 2024 and expansion of proprietary network units.

Financial highlights

• Health plan revenue rose 7.7% year-over-year to R$7,524 million, with an 8.2% increase in average ticket to R$289.4.

• Dental plan revenue increased 7.0% year-over-year to R$230 million, with a 6.0% rise in average ticket to R$11.0.

• Hospital services revenue declined 12.1% year-over-year to R$217 million due to increased verticalization.

• Cash Medical Loss Ratio (MLR) was 73.9%, up 2.1 p.p. sequentially and 0.4 p.p. year-over-year, but would have been 72.8% excluding judicialization effects.

• Free cash flow was R$570 million, with operating cash generation of R$872 million (86.4% of adjusted EBITDA).

Outlook and guidance

• Management expects continued organic growth in H2 2025, with robust corporate pipeline, retail segment momentum, and ongoing cost control and operational efficiency.

• Anticipate more moderate average price readjustments in 2025, up to two percentage points lower than 2024.

• MLR expected to remain near annualized targets, with cost discipline and verticalization.

• Margin recovery strategies and new product launches to support growth amid medical inflation and competitive pressures.