Hapvida Participacoes e Investimentos (HAPV3) investor relations material

Executive summary

• New CEO and Board implemented a turnaround plan emphasizing governance, operational discipline, customer experience, and technology-driven improvements.

• Focus on restoring credibility, rational growth, and high performance through decentralization and data-driven management.

• Initiatives underway to modernize technology, improve user experience, reduce litigation, and revamp commercial and operational strategies.

• Net revenue reached R$7.9 billion, 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.

Financial highlights

• Net revenue reached R$7.9 billion, up 5.2% year-over-year but down 0.3% sequentially, mainly due to prior quarter member losses and higher average ticket size.

• Adjusted EBITDA was R$803 million, up 12.5% sequentially and 42% excluding one-offs, 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, with net cash generation of R$478 million.

• CapEx reduced to R$190–191 million from R$419 million in Q4 2025; full-year CapEx expected up to R$700 million.

Outlook and guidance

• Focus on scaling turnaround initiatives, optimizing geographic footprint, and accelerating deleveraging.

• CapEx for 2026 reiterated at up to R$700 million, with no significant new unit openings planned.

• Management highlighted ongoing focus on operational intelligence, capital discipline, and customer retention.

• Continued caution on healthcare costs due to higher utilization in March and April, but encouraged by Q1 performance.

• Ongoing review of asset portfolio, with potential for further divestments and closures to optimize capital allocation.