CM Hospitalar (VVEO3) Q2 2026 earnings summary

Executive summary

• Net revenue grew 3.4% year-over-year in 2Q26 to R$2.91 billion, led by Hospitals and Clinics, despite the lowest CMED price adjustment in 20 years and challenging macroeconomic conditions.

• Adjusted EBITDA reached R$216.7 million in 2Q26, up 21.8% year-over-year, with margin expansion to 7.4%, the highest since 2023.

• Adjusted net loss narrowed to R$21.3 million in 2Q26, a 52% improvement year-over-year.

• Free cash flow in 2Q26 was R$124.8 million, with a cash conversion cycle of 53 days, down 4 days year-over-year.

• Major debt renegotiation and capital increase of up to R$869.8 million were announced to strengthen the balance sheet and support deleveraging.

Financial highlights

• Consolidated net revenue reached R$2,910 million in 2Q26 and R$5.74 billion in 1H26, up 2.5% year-over-year.

• Gross profit rose to R$484 million in 2Q26, with gross margin expanding to 16.6%, the highest since 2Q23.

• Adjusted EBITDA for 1H26 was R$424.8 million, up 25.9%, with margin at 7.4%.

• Free cash flow for 1H26 reached R$170.3 million, up 36.6% year-over-year.

• Leverage ratio at 3.73x in 2Q26, with net debt of R$2.92 billion.

Outlook and guidance

• Focus remains on operational efficiency, cash generation, and disciplined capital allocation, with continued deleveraging as a priority.

• Capital increase of up to R$869.8 million is expected to reduce leverage to 3.19x (minimum) or 2.64x (maximum) post-transaction.

• Gradual improvements in management and operations are anticipated over the next quarters.