Earnings Call: Q4 2025

Mar 20, 2026

Summary

Record 2025 premiums and higher EBITDA and net income reflected resilient, diversified operations despite macro and credit pressures. Lower leverage and a proposed 50% earnings payout accompanied leadership and governance changes.

Good morning, everyone. Welcome to Wiz Co's video conference call on the results for the fourth quarter of 2025. Simultaneous interpretation is available through the globe icon labeled Interpretation, located at the bottom center of your screen. Click on it and choose your preferred language, Portuguese or English. For English listeners, you also have the option to mute the original Portuguese audio by selecting Mute Original Audio. After the company's presentation, we will begin the Q&A session. To participate, just send your question via the Q&A icon, and it will be answered by Wiz Co's team present today. If your question is not addressed during the video conference call, our investor relations team will reach out to you afterwards to answer it. Before proceeding, I would like to clarify that any forward-looking statements made during this teleconference regarding Wiz Co business outlook, projections, and operational and financial goals reflect the beliefs and assumptions of the company's management, as well as information currently available to Wiz Co. Forward-looking statements are not guarantees of performance and involve risks, uncertainties, and assumptions as they relate to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry factors, and other operational elements could impact Wiz Co's future results and may lead to outcomes that differ materially from those expressed in such forward-looking statements. Joining us today is the Wiz Co team, Mr. Marcus Vinícius de Oliveira, who is stepping down as CEO and passing the role to Mr. Lucas Neves, who from today onwards will be the CEO and IRO. And Mr. João Resende, investor relations manager. Now I would like to turn it over to Mr. Marcus Vinícius, who will begin the presentation. Please, Mr. Marcus, go ahead. Good morning, everyone, and welcome to our Q4 2025 earnings conference call. Before I turn it over to Lucas, I would like to share a very brief message. We closed 2025 confident that we delivered our mission. As I reflect on the year, it is clear how much we accomplished, even in a challenging Brazilian macroeconomic environment. As you will see throughout this presentation, we maintained disciplined cash management, reduced leverage, and made meaningful progress across key performance indicators. This is a particularly meaningful moment for me as it marks the end of an important chapter in my journey at Wiz Co Group. Over the last six years, there has been no shortage of dedication, challenges, and care for governance, people, and results. Together with the company's leadership, we expanded our footprint in insurance, consortiums, and credit, building a strong and scalable platform for the future. I am stepping down as CEO in a planned and responsible transition. Turning to results, I would like to highlight a record year. We issued BRL 4 billion in insurance premiums in 2025, an increase of 11.7% compared to the strong year of 2024. I like to look at this indicator and see it growing consistently as it reinforces the robustness and scalability of our business and further expands our relevance in the insurance market. This performance translated into spectacular net income of BRL 201.1 million at the parent company level, up 25.6% year-over-year. In Q4 2025 alone, net income reached BRL 49.6 million, representing growth of 28.6% year-over-year. Gross revenue in 2025 also reached a record and totaled BRL 2 billion, up 1.5% compared to 2024. Consolidated EBITDA for 2025 was BRL 739.3 million, 7.8% higher than in 2024. All these achievements make us feel proud and reaffirm our ability to navigate challenging environments. Looking back, 2025 was also marked by several strategic milestones. We celebrated 10 years as a publicly listed company on B3. We were once again certified as a Great Place to Work. Ranked among the top 1,000 companies in Brazil by Valor 1000. We entered into a partnership with Banrisul to distribute financial products in Rio Grande do Sul and celebrated our 52-year history with our Wizards. I would like to thank everyone who has been part of this journey, especially our Wizards, who are the foundation of our company and brought me to this point. In times of high interest rates, large companies facing difficulties, and global uncertainty, our focus on operational discipline, efficiency, and cash generation allowed us to deliver consistent value to clients, partners, and shareholders. We closed 2025 with confidence in the future and conviction that the Wiz Co Group will continue to advance, supported by qualified teams, a clear strategy, and a commitment to generating pleasing value. I have full confidence in the leadership team stepping into these roles. To my colleagues, Lucas Neves and Marcelo Kronenberg, now CEO and CFO of Wiz Co, I wish you success as great as Wiz Co deserves. Companies that endure across generations are not defined by those who remain in position, but by those who prepare the ground for the next harvest. I move forward with the same commitment I had at the beginning, transforming experience into future value. Thank you all. Long live Wiz Co. Now I'd like to turn it over to Lucas Neves. He will now share the results for this quarter. Lucas, over to you. Thank you, Marcus, for your legacy and your trust. I'm reassured knowing you will remain close and engaged with everything we can still build together. Now let's move on to the results for the fourth quarter of 2025. Let me begin the financial section of this presentation with slide 3, where I will cover the main events and operational and strategic highlights for this quarter. I begin highlighting advances in Wiz Co's governance. On March 18, 2026, management approved a proposal for a new composition of the company's board of directors to be submitted to the shareholders' meeting in due course. The board, previously composed of 16 members, will be reduced to five members, maintaining two independent directors. This restructuring is aligned with the company's commitment to greater agility in decision-making and a simpler administrative structure, while preserving the governance best practices already adopted. I'd like to highlight recent changes in executive management. Mr. Marcus Vinícius de Oliveira will step down from the position of CEO to join the slate of members for the board of directors. With this transition, I will take on the roles of CEO and IRO, while the CFO role will be assumed by Mr. Marcelo Kronenberg, who will combine these responsibilities with his duties as executive director. The new executive structure remains committed to the company's strategy of growth, innovation, and institutional strengthening. The year of 2025 was marked as an important period of deleveraging for our business. We closed the year with net debt of BRL 228.9 million, representing a decrease of BRL 216.8 million year-over-year. A decrease of 48.6% in this indicator. This consistent reduction is mainly driven by a decrease in acquisition-related payables and reinforces Wiz's commitment to efficiency and disciplined resource management. I'd like to highlight Omni1's record performance in assistance products. The unit delivered BRL 103.5 million in gross revenue from assistance product sales in 2025, a record and an increase of 48.8% compared to 2024. These results enabled the unit to close 2025 with BRL 46.4 million, up 52.2% year-over-year. By offering vehicle and home assistance in addition to insurance products, Omni1 strengthens Wiz's portfolio diversification. I would like to highlight a proposed distribution payout for fiscal year 2025 to be submitted for shareholder approval. The financial statements include a payout equivalent to 50% of the company's net income, above the statutory minimum of 25%. Management believes that the proposed distribution is appropriate given the company's business conditions and reinforces our commitment to shareholder value creation. To conclude the key highlights, we achieved the important milestone of BRL 4 billion in insurance premiums issued in 2025, an 11.7% increase compared to 2024, representing a new record for Wiz. The continued growth of these indicators translates the robustness and scalability of our business and reinforces our relevance in the insurance market. Moving on to slide four, we share the financial highlights for the fourth quarter of 2025. We recorded net revenue of BRL 276 million, up 6.4% compared to Q4 2024. Excluding the Caixa run-off portfolio, net revenue totaled BRL 228.8 million, representing a growth of 10% year-over-year. We reported consolidated net income of BRL 88.8 million for the quarter, 24.1% higher than the same period last year. This quarter, we continue to see consistent growth in insurance revenue, with an increase of 25.8% compared to the previous year. Moving on to slide five, we present the financial highlights for the full year 2025. As Marcos mentioned earlier, we delivered consistent results in 2025, strengthening Wiz's position in the insurance, credit, and consortia markets. During the year, Wiz's business units generated BRL 4 billion in insurance premiums, up 11.7% compared to 2024, reinforcing our relevance in the Brazilian insurance market. Even in a more challenging credit environment, our businesses remained resilient, supported by portfolio diversification and the offering of comprehensive and tailored solutions to clients, which contributed to the profitability of our distribution channels. As a result, we reached BRL 1.1 billion in net revenue excluding commissions, 10.8% above 2024. Moving on to slide seven, we present the summary of consolidated results. Consolidated EBITDA totaled BRL 176.5 million in Q4 2025, 1.1% higher than Q4 2024, and BRL 739.3 million for the full year, 7.8% above 2024, reflecting the strong commercial performance of our business unit. In the quarter, consolidated net income increased to 24.1% compared to the same period last year, reaching BRL 88.8 million, driven by both operating and financial results. For the year, net income totaled BRL 367.7 million, 23.9% higher than 2024. Parent company net income attributable to controlling shareholders reached BRL 201.1 million for the year, 25.6% above 2024, driven by EBITDA performance and financial results. Moving to slide eight, we present the adjustments considered for our adjusted view. In this quarter, no adjustments were made to EBITDA. For net income, we adjusted for non-recurring non-cash effects below the EBITDA line. Highlights include depreciation, amortization, and impairment adjustments totaling BRL 32 million related to amortization of intangible assets recognized in the acquisitions of BRB Seguros, Promotiva, and other business units. Additionally, we recorded an adjustment of BRL 10.3 million related to the impairment of intangible assets, including from Wiz Corporate of BRL 8.6 million and from other business units totaling BRL 1.7 million. Income tax and social contribution reflected tax effects of the adjustments made in depreciation and amortization on impairment and financial results. As a result, adjusted net income for the quarter was BRL 115.5 million, 0.3% lower than Q4 2024. Moving on to slide 9, we present the composition of the parent company results. In Q4 2025, parent company recorded EBITDA of BRL 67.6 million, 2% lower than Q4 2024. For the full year, EBITDA reached BRL 313.4 million, 14.9% up than 2024, mainly driven by strong commercial performance across several business units reflected in the equity income line. In 2025, equity income totaled BRL 232.7 million, 44.6% higher than in 2024. Parent company net income reached BRL 49.6 million in Q4 2025, an increase of BRL 11 million or 28.6% compared to Q4 2024. For the year, net income reached BRL 201.1 million, 25.6% higher than 2024, driven primarily by the strong commercial performance of the company's business units. Now, moving on to slide 11, we begin the presentation of results by segment. The reconciliation between segment results and consolidated results is available in the appendix of this presentation and in the earnings release. In 2025, 83% of net revenue came from our ongoing operations. Consolidated insurance business units represented 63% of our ongoing results. We continue to observe strong diversification of results combined with continuous revenue growth. This performance reflects our focus on executing the company's strategic objectives. Slide 12, we present the operating performance of our segments. Starting with the insurance segment, in Q4 2025, we recorded BRL 184.3 million in net commission revenue, 25.8% higher than the same period last year, reflecting another quarter of strong performance across multiple units, despite a challenging environment. Highlights include BRB Seguros with Corporate and Bmg Corretora. Segment EBITDA totaled BRL 143.3 million in the quarter, up 15.1% compared to Q4 2024. For the year, insurance segment EBITDA reached BRL 559.1 million, up 17.1%. Moving to slide 13, we present the business units operating in consortium and credit distribution, Promotiva and Luiz Barcellos. In Q4 2025, we reported BRL 38.1 million net revenue, excluding commissions in the credit and consortium segment, 7.4% lower year over year. EBITDA totaled BRL 25.1 million this quarter, 3.3% below Q4 2024. For the year, EBITDA reached BRL 96.4 million, up 0.4% compared to 2024, reflecting a challenging macroeconomic environment for these units. Together, they distributed BRL 3.3 billion in the quarter, 12.6% lower than Q4 2024. Moving to slide 14, we present the run-off Rede Caixa operation, which reflects the revenue base from sales made through February 14, 2021. In the quarter, Rede Caixa contributed with BRL 42.6 million in EBITDA, 12.9% lower than Q4 2024, mainly due to an 8.4% decline in revenue. Moving to slide 15, I highlight key points regarding corporate results and items below EBITDA. In Q4 2024, other income and expenses totaled BRL 20.5 million, mainly reflecting capital losses in investees, largely due to dividend distributions from Omni1 during the period. In financial results, the BRL 17.9 million decrease is mainly due to monetary adjustments on operations, partially offset by financial income. We recorded an effective tax rate of 33.1%, primarily reflecting non-deductible expenses for tax purposes, such as present value adjustments and capital losses. Moving on to slide 16, we present our cash flow for the quarter. We closed the quarter with BRL 405.3 million consolidated cash. The increase of BRL 111.1 million versus the previous quarter was mainly driven by operating cash generation. As for depreciation, amortization, and impairment, it totaled BRL 36.7 million, an increase of BRL 9.3 million versus the previous quarter, reflecting impairment recognized during the period. We also paid BRL 14.4 million in dividends to non-controlling shareholders of our subsidiaries during the quarter. With that, we conclude the presentation and we will now open for questions. Thank you very much. We will now open the Q&A session for investors and analysts. I'd like to turn it over to Mr. João Resende. I'd like to remind you that in order to participate, send us your question using the Q&A icon, and the management team will answer your questions. João, please go ahead. Good morning, everyone. I'd like to start by saying that it's a great pleasure to open for your questions. Let me start with Roberto Kuchplgel and I'm going to ask Marcos to answer that. It says, "You understand the environment remains somewhat uncertain for BRB Seguros growth, given strong dependence on the growth of portfolio. Could you provide some sensitivity on how each one percentage point lower portfolio growth would impact BRB revenue or earnings?" Good morning, Ricardo. Thank you for this great question. Now, let me answer it by starting saying that today, for BRB and 2025, we added BRL 67 million to ISPO. Just to give you an idea, it accounts for 33% of the controlling company net income. BRB Seguros in 2025 contributed with BRL 785 million in premiums issued, or 25% of the total. We know that this type of insurance is very relevant to us, accounting for 60% of premiums. It's credit life insurance premiums. We need to understand that BRB operates serving different kinds of credit, particularly on payroll-deducted loans. Last year, approximately BRL 5 billion originated from that. This still happens without any issues regarding continuity. The bank is still working on that, and they're working on credit lines, and also examining priority. When it comes to insurance, we had an increase where there was no decrease nor cut. What I can tell you is that in 2026, well, things are happening just as forecast in our budget. I'd like to say that from 2024 to 2025, we saw a decrease in origination of approximately 10%, which means that we still increased the insurance and there was a decrease despite a decrease in origination. We expect a challenging quarter, but nothing that can affect our performance in a relevant manner. We are very optimistic with operations, and we know that BRB will be able to solve their structural issues regarding capitalization. Thank you, Marcos. Now, we have also a question to Lucas Neves. It's about financial expenses. Ricardo says that that's decreased, so should we wait for that and consider that normalized for 2026? Ricardo, thank you for your question. I believe there are two very important aspects we need to take into account. First, at the end of every year, we deliver the results of the subsidiaries. In April now we will pay Inter, BRB, and one more, and with that, we close the payment of the channels we acquired. Whenever we close the year, we then adjust the accounts payable regarding acquisitions. This year we had a reversal of approximately BRL 5 million considering liabilities we had. Historically, we are always around that number, and that has positively contributed on our financial results this quarter. When we go over next year, first of all, we know that we ended the year with a higher cash and also higher interest rate, lower leverage, which was one of the highlights of 2025. We closed the year with BRL 200 million net debt. We actually decreased that by 50% in 2025. If you go over net debt over EBITDA, which is how we examine debt, it's a very healthy debt. This leverage decrease and increase the cash. We do not have these payable accounts coming from acquisitions. We believe that this will be extremely important in our results for 2026. We believe that this will be around BRL 11 million every quarter in 2026, and that's going to play a relevant role. Thank you. Thank you, Lucas. Now we have two questions from William from Itaú BBA. First of all, he commends the team for the results and also thanks Marcos for his legacy. Lucas, he also commends you, and his question is about this dynamics of selling this payroll-deducted loans and also the life insurance. Loan protection insurance. As for the INSS, that is a very good credit program. The interest rate is low if you compare it to other types of loans in Brazil, and I believe that that's going to be very important for banks and also for customers. We had many issues, right? We had an investigation covering INSS, and whenever there is an adjustment, many people refinance that loan. INSS also had some issues. Their website did not work properly. But we still consider that to be a very positive product, bancassurance, and whenever a customer goes into a bank, you have this opportunity to sell them some of the products. I believe we will see a decrease in origination. This is INSS payroll loans. It may have an impact on our business related to that. What we see in our bank partners is that banks are also working. Banks are working in order to launch new products. There are many banks talking about private payroll-deducted loans in 2026. But I do not think that we will just see this total decrease in INSS payroll loans from the payroll-deducted loans. We also believe that we will also see normalization of the Selic interest rate, which will lead people to take more loans. If that happens, we will be able to offer more products. Another question also from William is about the payout. He asks if we can comment on the rationale behind the 50% level and whether that should be viewed as a structural level or if there's room for changes going forward. Thank you for your question, William. This is something we have been discussing, and this is good news for our shareholders. I believe that that really proves the gain of efficiency and the growth of our business, also deleveraging. Now we are able to share that with our shareholders. Just like to remind you that that payout, it should be approved by shareholders. How did we make that decision? When you consider our EBITDA and our leverage level, very healthy. The other point we also like to share, this is a company that generates more operating cash than profit because of amortization, which is classical. For example, the amortization of BRB, for example. The units generates more cash than profit. If you consider that once you distribute 50% of profit, we are not distributing 50% of the cash generated. We are paying less. We did not have any changes. We wanted to be able to assess and to discuss this payout level. That does not have any impact on our business, and it still allows us to keep on deleveraging and keep on carrying out M&As. Great. Now, I'd like just to say that we will have time for answering more questions, so please feel free to send your questions. Now we have a question from Evandro. First, he commends Lucas, and he says that, Lucas, he is sure that you continue to contribute, and also thanks Marcus Vinícius for his legacy. The question is about how often non-controlling companies pay these dividends to others, and what about the run-off, and what about tax credits? Well, thank you for your question, Evandro. Let me start talking about the cash of subsidiaries, then I'll talk about your run-off. As for the cash from subsidiaries, we closed the year with BRL 254 million of our direct control. You can see that this level has been consistent over time. As for cash payout, that is done once we share that, then we have the general meeting, and then we distribute that. The main event takes place usually in April, and then some others over the year. Of course, we wanted to pay out as much as possible. Major payout that takes place in April, our distribution. As for income tax, although we presented results per segment, the income rate is based on our corporate ID. We do not discriminate how much income tax coming from each segment. Just to give an idea about our income, we have the run-off, then with partners, which is our corporate ID, also corporate expenses, and also a non-tax part. As we deleverage, we will be close. We do not need to pay income tax rate because of this equivalence model. In practice, our current income tax rate of run-off is close to zero. Just in closing, last question about Open X. We are still working, but the entire process is not that agile, and I hope I can share more in the future quarters. Thank you. We have one more question from Arturo Oliveira. Considering all the uncertainty regarding BRB, the bank has been addressing growth and some important operations. His question is, how can that have any impact on BRB? Marcus, if you can help us. Thank you for your question. BRB CEO, Nelson Souza, he has been providing full support to the partnership between BRB and Flamengo. The idea is that this partnership becomes a priority. We will have the opening of one branch of this partnership in downtown Rio de Janeiro in April of 2026. The idea is to have one branch Nação BRB in every single Brazilian state. The second one is probably in Brasília. For these branches, we will see insurance companies, insurance products, cards, and many other products and actions that will make sense targeting this specific public. This will certainly have an impact on BRB Seguros business, but it will be a positive impact. It will be another production line that we do not have, and that will be extremely important for our revenue. We are very optimistic because the CEO of BRB has been supporting this partnership and us. With this, we close the Q&A session. Please feel free to send us your questions later on. I would like to thank Marcus. I would like to commend him for his legacy and wish also Lucas Neves a great journey ahead of him together with Marcelo Kronenberg. I want to thank you. Thank you. With that, we close Wiz Co Conf Call. Thank you and have a great day.