Brazil Stock Guide – Qualicorp (QUAL3) reported an adjusted net profit of R$19.7 million in the third quarter of 2025, up 8.8% from the previous quarter, supported by a rebound in cash generation and stable commercial performance. Net revenue rose 4.3% to R$372.6 million, driven by concentrated price adjustments across the administered portfolio.
The portfolio continued to shrink, but at a slower pace. The administered base ended the quarter with 570,5 thousand lives, down 2.7%, marking the smallest third-quarter loss since 2021. Churn improved to 10.3%, the lowest third-quarter level since 2020. Adjusted EBITDA reached R$144.2 million, a 2.6% decline from 2Q25, with margin slipping to 38.7%. EBITDA after CAC fell 9.6% to R$106.9 million, reflecting higher sales investments.
Portfolio Trends
Despite the net loss of 16 thousand lives, gross additions increased to 44.2 thousand, supported by new products and exclusivity agreements. Qualicorp launched 256 new products in the quarter and 340 year-to-date, reinforcing competitiveness in regional and national markets. Revenue from the administered portfolio rose 4.5% to R$373.2 million, while recurring loading revenues reached R$354.9 million. Agenciamento revenue climbed 22.8%, reflecting stronger commercial momentum.
Costs and Provisions
Operating expenses increased 9.2% to R$228.4 million, driven by higher spending on third-party services and consulting. Provisions remained one of the biggest sources of margin pressure: contingencies and judicial expenses rose 45%, driven by a still-high stock of legal cases related to unilateral cancellations in 2Q24.
Non-recurring effects totaled R$11.7 million, linked to provisioning for contract discussions with operators whose commercial ties have weakened. The financial result showed a R$48.1 million net expense, up 32%, after 2Q25 benefited from a one-off gain tied to an option involving Uniconsult.
Cash and Leverage
Recurring free cash flow strengthened sharply to R$101.8 million, helped by improved working capital. Reported free cash flow reached R$95.9 million. Capex totaled only R$10.1 million, or 2.7% of net revenue, driven largely by annual license and software renewals.
Net debt fell 5.1% to R$881.2 million, with leverage stable at 1.53x EBITDA LTM. After the quarter closed, Qualicorp issued R$400 million in debentures (QUAL18) to reinforce liquidity ahead of a major amortization scheduled for June 2026.
Leave a Reply