Good afternoon, ladies and gentlemen. Welcome to the earnings release call of Dasa to discuss the data from the first quarter, 2026. This call is being recorded and replay can be accessed through the company's website, www.dasa3.com.br. The presentation will be available for download as well. We would like to let you know that all participants will be in listen-only mode during the presentation. It will be followed by a question-and-answer session when further instructions will be provided. We would like to highlight that the information and forward-looking statements that may be made during this conference call with respect to business prospects, forecasts, operational and financial goals of Dasa are all based on beliefs and assumptions of the executive board of the company, as well as on currently available information. Forward-looking statements are no guarantee of performance.
They involve risks and uncertainties since they relate to future events and therefore depend on circumstances which may or may not occur. Investors should understand that general economic conditions, the market and other operational factors may affect the future performance of Dasa. Let me now hand it over to Mr. Rafael Lucchesi, who's going to start the presentation. Mr. Lucchesi, you have the floor.
Good afternoon, everyone. It's a pleasure to be here with all of you again. I have here Rafael Bossolani, our CFO and IRO, and our IR team. I'm going to start by giving you an overview of the first quarter, and then I'm going to hand it over to Bossolani who's going to provide additional results about the financial information. Slide 3. We closed this period with consistent growth in results, real improvement in volume, revenues, expansion of margin, and in one more consecutive quarter.
This is a result of the improvements we've made throughout 2025, and the consolidation of the new strategic positioning of the company. Through the past 12 months, we've been through a relevant change with organizational simplicity, focused on our core discipline in capital allocation. As a result, we started 2026 as a faster, more efficient company which has better operational financial predictability, prepared to continue growing profitably. This new level can be shown in the results of the quarter, reinforcing our positive trend. In diagnostics, we operate with a much leaner, more efficient structure with significant gains of productivity, better use of our installed capacity and more discipline in expenses and costs, which have sustained the good margins in the period. Cash generation and capital structure strengthening are still our strategic priorities.
We have evolved in free cash generation, supporting deleveraging and strengthening our financial robust position. Finally, we have a very competitive position and good scale. We have a national platform with leading diagnostic brands in different regions of the country, very good distribution in service centers and technical operational centers, an d installed capacity that provides additional growth without needing additional capital investments, supporting a new cycle of growth which is more efficient with significant market share, margins expansion and sustainable values. For 2026, we are going to have a focus on our core strict control of costs and expenses and moving on with digitalization and use of AI. Always focused on providing better experience to our users and at the same time showing more efficiency. Slide 4.
You probably have seen that in this quarter, we included in the comparison. Despite seasonality of the first quarter, and we're going to hear more about that, and significant reduction of leverage. I apologize, the microphone is being muted. Let me move on. We've had a technical difficulty. Now going back with the highlights of slide 4. An increase in revenues, EBITDA increase of 35.8%, an increase of margins as opposed to last year, 2.7 % base points, a positive cash generation despite seasonality of the first quarter, and a reduction of leverage over the same period last year. The short-term earnings are very good, positive, but w e are always focusing on long term.
We have here a number of structuring initiatives in different areas, preparing the company for the next cycle of growth in an environment that is very different from what it used to have in previous years, especially when we talk about technology and AI. Finally, I would like to highlight a fact and thank our team. Professionals who have been with us for a long time, very knowledgeable of our businesses, the best guardians of our culture, a nd people who joined us last year who have contributed very relevantly to our evolution. It's great to see the level of competence, energy and engagement. Let me now hand it over to Bossolani, who's going to go in details about the results.
Thank you, Lucchesi. Good afternoon, everyone. Thank you very much for joining us in the earnings release call of the first quarter, 2026.
Lucchesi has made the key highlights of the quarter so I'm going to go into the operational financial highlights of the company. The main take home message is that we started 2026 with consistent evolution of our results. Looking to the quarter, we've seen an increase in revenues, margin, improved cash generation, continued to reduce our leverage. Everything showing a fully aligned period according to our best strategies. Talking about national diagnostics, or domestic diagnostic in slide 5, we had a quarter which was very consistent. We had an increase of our revenues over 15% over the first quarter 2025. Growth has resulted because of an increase in volume, especially lab to lab, our B2B operation, also home services and the premium segment. On top of that, we've been growing with an increase in efficiency.
Our growth margin increased the basis points, showing better installed capacity, reduction of fixed costs, and w e maintained a number of initiatives in terms of operation, standardized operation. The growth has come without requiring additional capital, reinforcing one of the main attributes of the business of diagnostics, the fact that we have a platform scale, capillarity, well-installed infrastructure to keep on growing with good return levels. Going into slide 6, we have the results of hospitals and oncology Northeast represented by Hospital da Bahia and Clínica AMO. The quarter showed a very important evolvement of the operation. We had 2% increase in revenue. Profitability really attracted our attention. We had an extension of 3.2 % base points our growth margin.
It showed improvement in our procedure mix, also reduction of cost of services and optimization of our operational structure, especially in managing active beds. We have better occupancy rates and operational efficiency at the hospital. Much more than speeding up growth at any cost, the focus is on having growth with discipline and improved on return rates. This is what the quarter shows, more balanced, efficient operation with better profitability. Going into the results of Rede Américas, slide 7. Before the figures, I would like to talk about the comparability. Rede Américas was created as of the second quarter last year, so we decided to have no comparison over the same period last year, as the current statements reflect the consolidation of different operations which could have led significant distortions in the analysis of our businesses.
Said that, Rede Américas has had a number of operational financial initiatives to improve efficiency, capturing synergy and improve cash generation. All the initiatives are concentrating on obtaining synergy in procurement and optimization of structures, it contributes to improving profitability of our operations. In addition, there are some structuring initiatives which are ongoing to improve the digital journey of patients, there are some actions to review some of our venues and some other elements related with the revenues. We would like to highlight our program of process review, system standardization, which will improve our levels of refusals and also improving our payment terms. Here we have the gross revenue of BRL 3.4 billion. We've had an improvement in operating cash generation. The result was BRL 495 million.
We had much better management of our bed turnover, and we've had a gradual increase of our productivity initiative and also captured more synergy. Our EBITDA reached BRL 438 million in the period with EBITDA margin of 14.2%. Net profit was BRL 38 million. 50% of which can see in the Dasa result as a result of equity method. As I said, operating cash generation was very solid, BRL 495 million in the quarter. Free cash flow of BRL 459 million after the investment of BRL 36 million. Our net financial debt closed the period in BRL 2.6 billion, and financial leverage went down to 1.66x the EBITDA, as opposed to 2.08x in the fourth quarter of 2025.
In general, the quarter reinforced the potential of a gradual progression of our business with profitability and cash generation. Now, going into slide 8 for selling, general, and administrative expenses. SG&A reached BRL 300 million in the first quarter of 2025, which meant 5.8% increase over the first quarter of 2025. Also considering, of course, our current scope. This variation was due to impairment loss on accounts receivable, which amount to BRL 31 billion in the quarter as opposed to BRL 18, s howing some pressure over the receivables during the quarter. In general, we've been seeing a very well-controlled dynamic of our expenses. Concerning our net revenue, we had a reduction over the total amount, showing the dilution of costs and operational dilution of the indicator.
SG&A remained stable over the same period last year, showing cost control, gain of efficiencies and positive results in a number of initiatives. Commercial expenses also followed the operational expansions of the company. The lines of others, we have a BRL 7 million positive in the quarter compared with the same period last year. In other words, very positive results. We still are highly disciplined in expenses, capturing efficiencies even while we expand our operations. Now, EBITDA, slide 9. Consolidated EBITDA of the company was BRL 570 the first quarter, 2026, 28.5%, as opposed the first quarter of 2025, considering the current scope, 25.8% increase, a variation in our margin. It shows continued capture of gain efficiency, productivity, and also cost dilution throughout the last semesters. Now going to slide 10, as considering our investment.
Consolidated investments amounted to BRL 24 million in the quarter, over 38% reduction compared the first quarter of 2025. The reduction is a result of a more discipline in capital allocation at the beginning of the year, combined with fewer projects implemented in the quarter, prioritizing initiatives that have a better return and focusing on preserving the strategic assets of the company. We expect a normalization of our investments amounts in upcoming quarters. In the first quarter, we had investments primarily focused on technology and monetization of our operational structure, BRL 13 million, whereas maintenance and expansion amounted to BRL 11 million. Looking segment by segment, investments were more concentrated in diagnostics and corporate initiatives concerning technology, productivity, and digitalization.
It's important to highlight that part of the investments in our operational technical centers and service centers have been done through strategic partnerships, and it results in the need of having our own capital. We are maintaining the revamping of our units, but with less capital. We've been investing with focus, focusing on priority, adding value, but preserving and maintaining the level of services of our businesses. Slide 11 for operating cash generation. It was positive, BRL 21 million in the quarter, which was BRL 64 million improvement compared to the first quarter of 2025, when we ended up losing BRL 43 million. The first quarter of the year historically is subject to a lot of pressure, especially working capital because of the receivables from operation.
In this slide, the variation of working capital showed why we have had an increase in accounts receivables and the expansion of businesses, in addition to payment of BRL 48 million, which was an installment of indemnification, which was part of our association agreement with Amil. Despite that, we've observed an improvement in cash conversion, working capital, reducing by 11 days compared to the same quarter 2025. In this line of free cash flow, there was even more relevant performance. We went from consumption of BRL 96 million in the first quarter 2025 to positive free cash generation of BRL 5 million, BRL 101 million improvement in the period. This is a result of the recovery of operating cash generation combined with the investment discipline, as I pointed out in the previous slide.
The quarter reinforced our cash generation, which is sustained by an operational model which is leaner, more efficient and less capital-intensive. Now moving on slide 12 about capital structure of Dasa. Our gross financial debt was BRL 7.2 billion, averaged debt term of 3.5 years, average debt cost CDI plus 2.09%. Our position was BRL 1.7 billion cash and cash equivalents, or 1.4 times the debt due by the end of 2026, which reinforce a comfortable position of liquidity for the company. Our net financial debt after acquisitions payable, advances on receivables closed the 5.6. The indicator was 2.99 times below the 4.17 times observed in the first quarter 2025, maintaining a consistent path of reduction throughout the past 12 months.
Concerning the fourth quarter of 2025, the variation does not indicate any operational deterioration. It is probably due to the calculation of EBITDA LTM with the gradual exclusion of the comparison base, basis for the hospitals which migrated to Rede Américas and the operations that were disinvested throughout 2025. This is an effect that is expected in upcoming quarters until LTM EBITDA reflects really the new operational reality of the company throughout 2026. We have also observed period-over-period to have a consistent financial performance. The leverage index closed the 2.88 times, comfortably below our 4 time limit that are expected in all the debt covenants. Finally, we have a very positive perspective and keep on working on deleveraging the debt of the company, improving our cash position, well balanced, cash position, focusing on the growth of the company.
We've been actively working on managing our asset. In February, used part of the sales of São Domingos proceeds to pay debentures , reducing something that had been planned for the year of 2026 amounting to BRL 800 million. In other words, we've started the year with a very solid position with profitability, cash generation, everything working hand in hand. Said that, we would like now to start our question and answer session. Thank you.
We are going to start our Q&A session now for investors and analysts. If you have a question, please raise your hand. If your question has been answered, you can lower your hand. If you want to ask a question in writing, please use the Q&A field, followed by your name and company's name. Please wait while we gather the questions. First question by Mauricio Cepeda with Morgan Stanley. Please unmute your mic.
Hello, good afternoon. Thank you very much for the opportunity. I have two questions. First, CapEx. We can see it's helping in your cash flow, but it was lower in this quarter. You said that this is going to be resumed throughout the year, but thinking long term, we can still see a lower level of CapEx than throughout the previous quarters. Do you expect that this line will speed up in the midterm? Do you think that lower CapEx can have some risk in attracting clients or impacting your NPS? How well are you managing the risk of selections of your devices? Finally, premium segment. You and your main competitor have been talking about gaining share. Sometimes we wonder, what's going on with this premium segment at large? Has it been really growing?
Or are you going into some specific tiers offering premium services? It would then explain more users in your premium brands such as Alta.
Hi Cepeda, it's Lucchesi speaking here. CapEx. I think that you've shared exactly the way we think. It's not going to be at the same level as this first quarter. It requires some increase. We know that what we are doing has no impact on the quality of services, and we are renewing our devices. We think that in the midterm, there would be a need to step things up, and this is probably going to get normalized by upcoming quarters. We still have an installed capacity, and we can keep on growing, and we've been using more our current structure. One of the main CapEx that we had were large pieces of device such as MRI.
With new technology, we have AI, and it has increased the number of tests per machine. The slots are shorter, so that's great. We can think ahead the need to speed up the use of CapEx. Also in square meters, if the growth proves to be as quick as we've been observing, especially for the end of the year and beginning of next year. We manage it daily, but always focusing on growth throughout time. Concerning the premium segment, our premium segment is growing more than the general industry. You probably can understand that this has been putting up our growth. We see healthcare insurance companies focusing on a premium segment, launching new products, trying to position themselves competitively. We haven't been seeing less premium healthcare services using Alta. No, that's not the case.
We just have an increase in market share for more premium products launched by the healthcare insurance companies. We realize that Alta, our brand, has been growing more than the competitors. This is something consistent throughout time, and it's an important source of investments for us.
Thank you, Lucchesi. The next question comes from Renan Prata with Citi. Please unmute your mic.
Hello. Thank you. I have 2 quick questions. First, concerning hospitals, especially oncology. The fourth quarter was very strong, whereas in this quarter there was a decrease if we compare period over period. I would like to understand more about oncology in this area of hospitals. Secondly, about disinvestment, o r divestment rather. How have you observed the landscape for these investments, disposition of assets? What can you share with us?
Hi, Renan. Lucchesi speaking.
Oncology in the Northeast, there was a reduction in the first quarter. There are some effects there. There are some specific operations that have lost volume. There is also a management of clients' portfolio looking for appropriate mix of revenues and products. There has been a decrease, we have really a good mix and payment portfolio management strategies. In terms of margin, we've been providing quite well our services in the Northeast, maintaining profitability and sustaining our quality deliverables as well as profitable results. These are our priorities. In terms of divestment, no new facts. We are really focusing on improving our performance. We have very good brands. We are well-positioned. We've been talking to payers considering partnering with us. This is the focus, operational operation and the progress of our operations in the Northeast.
That's great. Thank you.
The next question comes by Flavio Yoshida with Bank of America. Please unmute your mic.
Hello. Good afternoon, Lucchesi, Bossolani. Thank you for the opportunity to ask a question. I have two questions. First, the diagnostic units. You said that the strong growth was driven by B2B premium and home services. Do you still see room for growth by channel? Have you reached a recurring level, or is there still upside per channel? Can you expand your home operation going to other geographical areas and also B2B, of course. Second question concerning the second quarter. We've already had half of the second quarter go by. How has it been in terms of comparison basis year-over-year? What have you seen in utilization, hospitals, diagnostic labs? We would appreciate if you could share that with us.
Thank you, Flavio. Lucchesi speaking.
Let me talk about the expansion and growth of diagnostics. Our growth has been driven by those 3 initiatives: B2B, home, and premium. Home care can keep on growing. We've been expanding our routes, gaining more productivity. We have a smart operations, which makes them much better and provide appropriate growth. There are some brands that can have an expansion of the product. A characteristic of the consumer, which is, once they use the home services, they end up using more. This is an opportunity of growth with low CapEx. That's really positive to us. The premium segment, as I told you, it has increase in our growth on a quarter basis. We still think there is room for growth in terms of number of units and also home care. We are also considering expansion of services in existing units.
Also, as I told you in the previous call, optimizing some of the units for upcoming years so that we can gain more revenues and performing above the market. B2B, talking about lab to lab, this is something that we didn't used to be much focused on because there were other initiatives in place. Now going back into our diagnostic core, we are trying to understand better the business, create a business commercial team, have more focus on it, and we realize that we have a very strong potential because we have a very good number of operational technical centers throughout Brazil. Implementing new systems for clinical lab analysis that's going to add to the throughput. Combining all these factors, we can still see a lot of opportunities of growth.
We have a smaller market share than our competitors in this area. We can gain market, something which has been growing significantly because we can have here 2 components: market growth multiplied by a reduction of outsourcing. These are good initiatives, but they bring our average up. The growth in general of brands and other businesses has been equally high. There are some other initiatives, commercial initiatives, private care, corporate clients, better utilization of devices per square meter, attraction of new physicians. In other words, a number of other initiatives such as CRM, performance marketing, things that have helped us raise the bar so that we can maintain the growth as we've seen so far. Looking ahead, our initiatives are still in place. We have a lot to see.
The second quarter has a worse calendar than the first quarter, really, especially compared to last year's. In June, we are going to have the World Cup. We've been having good attendance, but in the first quarter, we expect really worse performance than what we had last year because of the calendar effect. Let's wait and see how things are showing.
Great. Thank you very much. Our question and answer session is finished now. I would like to hand it back to Mr. Lucchesi for his closing remarks.
Thank you all very much for joining us. Thank you for your interest in our work, in the company's progression, the numbers that we've achieved. Some quarters ago, we talked about consistent execution, dedicated team, attracting new talents.
We talked about a very positive long-term perspective at our work initiatives. We know that short-term gains are equally important for the long term. We keep on learning on a daily basis. We can grow with less CapEx and always maintaining the level of service. We also believe that growing with technology and with AI, we'll be able to grow with profitability. There are a lot of initiatives. We are going to share with you more details in upcoming quarters. We have a very strong initiative of artificial intelligence. We are very optimistic with the beginning of the year, very well-positioned, investing in our brands, in medical marketing. A number of initiatives are ongoing. The first quarter was a very good consequence. It results from a number of very good initiatives that bear great fruit.
This is what we want. We want a company that is sustainable, a preference of patients, physicians, with good relationship with the payers and presenting itself as a relevant healthcare player, bringing benefits to the whole chain. Thank you all very much. See you in the next quarter.
The earnings release call of Dasa is closed now. Thank you all very much for your participation. Have a great afternoon.