By Brazil Stock Guide – Hapvida (HAPV3) shares jumped on Thursday after the Brazilian health insurer posted its second-quarter 2025 earnings. According to InfoMoney, the stock closed up 8.29% at R$37.77, leading gains on the Ibovespa.
The company reported an adjusted net profit of R$148.9 million for the quarter, down 69.6% from a year earlier due to weaker operating performance. Still, investors reacted positively to signs of a recovery in membership growth and upbeat guidance from management.
Mixed but Encouraging Signals
Bradesco BBI described the quarter as “mixed to slightly positive,” highlighting a net addition of 57,000 lives — a turnaround from the loss of 70,000 in the first quarter and well above the bank’s forecast for flat growth. Adjusted EBITDA came in at R$845 million, 2% below expectations, while adjusted financial results of R$345 million were 3% ahead of estimates.
Net revenue rose 7.3% year-over-year, though the adjusted EBITDA margin fell to 11% from a year earlier, pressured by higher provisions for reimbursements to Brazil’s public health system (SUS). Hapvida now expects these provisions to represent 1.2% to 1.5% of revenue going forward, above BBI’s projection of 1.1%. Cash generation totaled R$148 million, weighed down by increased judicial deposits.
XP Investimentos called the results neutral, citing the impact of one-off factors and cost reclassifications following the integration of NDI, which raised the company’s pro forma medical loss ratio compared to previous quarters.
Strong Growth Expectations
In its earnings call, Hapvida reiterated strong expectations for beneficiary base expansion, supported by an enhanced product portfolio and closer ties with insurance brokers. Itaú BBA noted that “key concerns before the results — beneficiary growth, cash MLR and the impact of civil lawsuits — were addressed by both the results and management’s discussion,” helping fuel the sharp rebound in the stock.
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