Qualicorp Consulting and Insurance Brokerage (QUAL3) Q1 2026 earnings summary

Executive summary

• Focused on building a consistent operational flywheel through product design, pricing, and underwriting, resulting in lower churn and higher customer satisfaction.

• Churn rate improved to 9.4% for the quarter and 39.2% LTM, reflecting better retention and operational consistency.

• Managed portfolio ended at 519,200 members, down 2.6% quarter-on-quarter but up 10% year-over-year, with gross additions of 36,000 members.

• Management remains confident in long-term strategy, emphasizing sector consolidation, operational improvements, and commercial alignment.

• Net revenue for 1Q26 was R$333.0 million, down 5.7% sequentially and 6.6% year-over-year, reflecting operational challenges.

Financial highlights

• Adjusted EBITDA margin expanded to 41.1%, up 1.7 p.p. year-over-year, with Adjusted EBITDA - CAC margin at 32.2%.

• Net revenue was R$333.0 million for 1Q26; managed portfolio revenue was R$349.5 million.

• Fixed and variable expenses declined year-over-year, with fixed expenses at 26.9% and variable at 32.0% of net revenue.

• Operating cash flow and recurring free cash flow reached R$126.3 million, up 144.0% sequentially.

• Net debt decreased 8.9% sequentially to R$777.9 million, with leverage at 1.34x LTM Adjusted EBITDA.

Outlook and guidance

• Management expects continued portfolio stabilization and eventual expansion, with an inflection point anticipated soon.

• Focus remains on operational improvements, automation, and commercial alignment to support retention and sales.

• Continued deleveraging and financial flexibility are expected to support strategic execution.

• No significant regulatory changes expected in the near term; Gama's cash flow contribution anticipated from Q3 onward.