Earnings Call: Q3 2025

Nov 7, 2025

Summary

Q3 revenue, EBITDA and net income grew, with record premium issuance; credit and consortium remained under pressure. Banrisul adds a five-year distribution channel, while the Concept sale advances simplification and cash generation supports deleveraging.

Good morning, everyone. Welcome to Wiz Co Q3 2025 results call. For simultaneous translation, the tool is available at the globe icon interpretation button on the lower bar of your Zoom screen. Please select your language, either Portuguese or English. If you choose English, you can click on Mute Original Audio also. After this presentation, we will start our Q&A session. To take part, please submit your question through the platform Q&A icon, and then your question will be answered by the Wiz Co representatives. If it is not answered during this web call, our IR team will later contact you to answer your questions. Before we move on, we would like to tell you that some comments and statements related to forward-looking statements by this, beliefs and goals are assumptions of Wiz management team and current information available to the company. These statements, they are not certainties. They involve risks, and they relate to future events, and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that macroeconomic environment, the segment and other factors can cause results to materially differ from Wiz in those expressed in such forward-looking statements. The Wiz Co team here with us today are Mr. Marcus Vinícius Oliveira, CEO, Mr. Lucas Neves, CFO and Investor Relations Officer, and Mr. João Resende, Manager of IR department. Mr. Marcus Vinícius will start his presentation. The floor is yours. Good morning, everyone. Welcome to our Q3 2025 results call. Before I call Mr. Lucas, I would like to share with you a brief message. We had delivered three quarters of the year, and consistency remains the keyword that guides us quarter after quarter. Throughout this presentation, we will see results that make us proud, reinforcing our sustainable growth, strengthen our position in our market as well. I would like to begin this message by underscoring an important partnership established in Q3 2025 with Banrisul. We will cooperate with the bank regarding the distribution of financial products through banking correspondents spread throughout the state of Rio Grande do Sul. Our contract is valid for 60 months and underscores our commitment towards strategic growth, and is also aligned with the company's vision for the future. I am particularly excited about the possibilities that lie ahead. I would also like to highlight the sale of Wiz Concept last month. This move aligns with our strategy to simplify and focus on core assets that will help us build a Wiz of the future. As to our results, we also have good news to share. We broke a record in premium issuance both in Q3 2025 and year-to-date periods. Considering the quarter period, we closed with BRL 1 billion in issuances, representing a 9.2% increase compared to Q3 2024. As to our year accrual, we have reached almost BRL 3 billion, which puts us 12% above the nine months of 2024. We accomplished all of this while in a turbulent macroeconomic environment, which can be seen in daily news. In my opinion, our accomplishment reinforces Wiz's ability to operate in the most diverse contexts, whether or not they are favorable to our business' best performance. In all of this, consistency led to a significant consolidated EBITDA result that reached BRL 194.3 million in Q3 2025, which exceeds the strong Q3 2024 by 3.6%. With regards to the holding company, we should highlight the significant result of BRL 55.4 million in net profit, a figure that is 10.5% higher than the one reached in the same period last year. In addition to the above and other considerable results that we will present in this release, I would like to make it essential to mention some other achievements. This quarter, we received the news that we are, for the second consecutive time, among the 1,000 largest companies in the country, according to Valor 1000 ranking, as published by Valor Econômico journal. We made significant progress on Wiz Pro, the group's proprietary technology platform, and also released our fourth annual sustainability report. Lastly, I would like to take this opportunity to remind you of the excellent discussions we had throughout October regarding corporate governance. At Wiz, we take this topic very seriously, and we celebrated the Wiz Co Governance Month during that period. The program covered ESG themes as a competitive edge, in addition to various talks and workshops on risk management and related topics. Our commitment is towards transparency and credibility. As usual, I would like to take this time to appreciate our Wiz's work for the excellent teamwork and for getting throughout with another quarter of the year. Thank you to our members of the board of directors, committees, and shareholders. We are excited for the final stage of the year and confident that we are on the right track. Thank you very much. Now I would like to call our CFO and IR Director, Mr. Lucas Neves, who will continue with the analysis of the results for this period. Lucas, the floor is yours. Thank you, Marcus, and good morning, everyone. Let me start the presentation of our financial results with slide number 3, where we'll discuss the main events and operating and strategic milestones. Like Wiz Pro, the proprietary platform of Wiz Co. We keep on align with our idea that investing in technology is to think about the business in the short, medium, long terms. Composed of four modules, sales, operations, management, and engagement. The tool has been used by seven business units in their daily routines. Throughout the third quarter, we have evolved in the forefront of the tool, sales, operations, management, and engagement. Regarding sales module, we have evolved payment functionalities and better use of data to simplify journeys and improve purchase experience. Regarding management, we advanced in a lot goals and delivered functionalities that mean that we can keep up with commissions. In operations, we devoted time and effort to progress in accreditation, access, and financing work. In terms of engagements, we worked towards a better impact for our users. We also have a new partnership with Banrisul. In September, we communicated to the market a new partnership, a contract for 60 months agreement, which aims to distribute financial products through a network of affiliated banking correspondents operating across the state of Rio Grande do Sul. The business is aligned with our view of growing the company, diversifying its business units, especially in channels with a high potential of profitability and through financial products. In the third quarter, we also shared our 2024 sustainability report, highlighting our company's strong commitment. The main results of that year were built in an environment that values plurality, has social impact, and is recognized by our certification for the ninth consecutive time as one of the best companies to work— A Great Place to Work, GPTW. We remain committed to building a more sustainable future for all of our stakeholders. I would like to also call your attention for our second consecutive year as the thousand largest company in Brazil, according to Valor 1000 ranking. We are the only insurance brokerage featured, underscoring the solidity of our operations and the growing relevance of our business model. To close this for the highlights, I would like to mention almost BRL 3 billion in premiums issued during the first nine months of this year, a new record for Wiz Co. This is 12% higher than the one we achieved in the same period of 2024. In the third quarter of 2025, contributed with BRL 1 billion out of this total, overcoming the same period last year in 9.2%. The constant evolution of this indicator brings solidity and scalability to our business, underscoring our relevance in the insurance market. Now, moving on to slide 4, let me talk about the financial highlights for Q3 2025. We have BRL 289.5 million in net revenue, an increase of 9.1% if you compare it to Q3 2024. Excluding the current net revenue, ex Caixa, we have BRL 242.4 million, a growth of 12.5% compared to the same period. In this quarter, we saw consistent growth in insurance, 22% if compared to Q3 2024. It is worth mentioning the premium, which grew 9.2% if compared to the third quarter of 2024 with BRL 1 billion. Now moving on to slide 6, we have in Q3 2025, an EBITDA of BRL 194.3 million, 3.6% above the Q3 2024 with an effect of the good commercial performance of our units. Now, consolidated net income, 14% growth, BRL 101.7 million leveraged by operating results. The profit achieved BRL 55.4 million, 10.5% above the same period of last year. Now, moving to our adjusted results. In this quarter, we did not have adjustments in EBITDA. In net income, we adjusted non-recurring effects with no impact on cash, in lines below EBITDA. We have adjusted an impairment, depreciation, and amortization, BRL 21.7 million in expenses with amortizations of intangible assets recognized by BRB Seguros acquisition, Promotiva as well, and others. In financial results, we have adjusted AVP results for the present value adjustments and acquisition of BRL 7 million, and monetary adjustments in account payables with BRL 2.3 million, partially compensated by the exchange variations and contracted financial instruments of minus BRL 0.8 million. In social contribution and net income tax, we have effects of adjustments made in lines of depreciation, amortization, and impairment, and financial results. We closed BRL 124 million, a result 13% above Q3 2024 as our final result. In slide 8, we have the company's accounting result. In the third quarter of 2025, the controller registered BRL 83 million in EBITDA, 10.3% above the Q3 2024. The result was leveraged, especially by the good commercial performance in several business units, reflecting in the equity line map. In the Q3, controllers registers a 28% increase result if you compare to the same period last year. In net income, we have BRL 55.4 million in the period, representing a growth of BRL 5.3 million, or 10.5%, regarding Q3 2024. This result is leveraged especially by the good performance in business units of the company. Now, moving on to slide number 10, we started the consolidated net revenue ex-commission. Per segment in the consolidated result is in the annex and the result release of this presentation. In the first nine months of the year, 83% of this revenue come from recurring operations. Business units consolidated by Wiz in insurance accounted for 62% of our recurring results. We still see a strong movement of diversification of results allied to continuous growth in revenue. This was only manageable for the focus in the strategic pillars and goals of the company. Now, in slide 11, we have insurance segment and others. Starting with insurance, we achieved Q3 2025. In insurance, we have 22.7% increase if you compare it to last year. An effect of another good semester in several of our units, like Bmg Corretora, BRB Seguros, and Inter Seguros registered BRL 52.2 million in net income, 16.4% above Q3 2024, BRL 9.2 million in equivalent for Wiz at this period. Now, moving on to slide 12, let me talk about credit and consortium segments, Promotiva and Wiz Parceiros. In the third quarter of 2025, we achieved BRL 37.5 million in ex-commission net revenue in consortium and credits, 11.4% below if compared to the same period last year. In EBITDA, we closed this quarter with BRL 22.5 million, 20.1% lower. This is due to more challenging macroeconomic environment impacted the unit's performance and the distribution of credit in the consortium products. 37% lower distribution than in 2024. There is an evolution in credit and consortium sales in other segments, like BRB Seguros, where the sales of the segment grew 62.6% if compared to 2024, and Inter Seguros, with 23% and 29% increase. Now, in slide 13, we have services by Wiz Concept and Run-Off Caixa. In this period, the service had an ex-commission revenue of BRL 20.1 million with a retraction of 14% if compared to 2024. The unit closes the EBITDA of BRL 4.1 million, an increase of 0.4%, maintaining the focus on the business profitability. On the Run-Off Caixa, we have a net revenue and in the sales till February 14. In this quarter, we have BRL 44.3 million in EBITDA to the company. 4.3% decrease versus Q3 2024 due to a 5.5% decline in the operating revenue for the Run-Off Caixa unit. Now in the slide 14, we have corporate results below EBITDA. For the third quarter of 2025, the corporate results in August had BRL 9.8 million, BRL 1 million lower than Q3 2024, reflecting higher efficiency in corporate costs. In terms of BRL 11.3 million in other revenues and its expenses in this quarter, they are mainly due to the recognition of the loss capital in invested companies. In depreciation, amortization, and impairment line, there was a reduction of BRL 10.7 million in the third quarter of 2025, mainly due to the impairment reversal of an intangible asset from subsidiary Polishop Seguros in the total amount of BRL 8.6 million, recognizing the previous quarter with no recurring effect in this current period. Finally, we have in this period, an income tax and social contribution of 32.2%, mainly impacted by non-deductible expenses for tax purposes, such as present value adjustment and capital losses in our IRPJ and CSLL. Now we have our consolidated cash flow with BRL 294.6 million in FCB E for Q3 2025. Reduction of BRL 10.5 million regarding the previous quarter is due mainly to the payment of dividends, partially compensated by the generation of operating cash flow. In this quarter, we also dispersed BRL 123.8 million in dividends to non-controlling shareholders of our controlled companies. We close this presentation. We will start the Q&A session now. Thank you very much. Mr. João Resende will start the Q&A session. You can submit your questions through the Q&A, and then Wiz Co's representatives will answer your question. João, you may go ahead, please. Hello, everyone. Good morning. It is a pleasure to welcome you all in our Q&A. Please feel free to submit your questions and Marcus and Lucas will reply to your questions. Let me start from William Barranjard from Itaú BBA. His first question is, if you could talk a little bit about the expected premium dynamics going forward, whether to change versus what we are currently seeing or remains Inter and Wiz Corporate with greater growth versus Bmg and BRB. William, hello. Thank you for your question. William, first of all, let me set some context here. In the past 2 years, we managed to grow in premium and revenue of our bank insurance business in a faster pace compared to bank evolution. This is not infinite. Once you mature your assets, they lower a little bit and get more comparable to banks. For Wiz Co, we are reaching this limit. The dynamic for premiums next year has to do with the origination of credits in banks. In the positive side, we see a year with a decrease in interest rates, so banks will increase origination. Maybe in the less positive side, government changed the rules for FGTS and credits to anticipate FGTS tax, and also some changes in INSS. In the long run, we are excited due to the interest rate drop, but in the short run, it will not be so positive. Thank you very much. Next question to Marcus about the relevant facts released last week. Could you explain the process of simplifying structures with these movements, please? How should this simplification agenda continue going forward? Thank you very much for your question. Very relevant question. In the past few years, we have been trying to simplify the business in our company. Regarding the releases that we made, we could tell you that basically regarding the sale of Concept, we have done this in the past few years. Concept is a more complex asset with lower margin of contribution at Wiz Co or within Wiz Co. Having said that, there are some reasons why we try to find a better strategic view in selling Concept, because Concept is not part of our main core business. Also in terms of relevance, in Concept, we had a higher number of headcounts today in our business mix. There was a volume of energy to a huge operation bringing more accelerated growth, because to Concept and bringing into Wiz Co an energy that should be devoted and would not necessarily be turned into results. These were the main ideas behind the sale of Concept. Now talking a little bit about Wiz Co's partnership with Banrisul that was released now. It is also an opportunity in which we believe, due to the expertise in dealing with this type of business and going forward, we will have an operation for 5 years in the state of Rio Grande do Sul, working with credit business for this bank in the state of Rio Grande do Sul. We believe this will be a very fruitful work that will bring a very positive result going forward. In terms of new releases, that would be it. Adding something to what you said, I believe that the main movement in terms of simplification was done with Concept. Of course, we can evaluate new opportunities in the future, but from the strategic perspective, this is the main move we wanted to implement. If you look at the company's headcount, this is a good figure. We have decreased the complexity of the company, so Concept was the most structural change for us to start next year with a more simplified narrative. Thank you very much. Now we have two questions from Leonardo Piovesan from constant. Can you talk about lines of other expenses less BRL 11.3 million in the quarter? If you could talk a little bit more about Promotiva and Wiz Parceiros this quarter, and what is the outlook for the coming quarters? Well, Leonardo, regarding income and expenses, let me talk about two drivers to explain this BRL 11.3 million. The compensation of executive varies according to the share price. It was increased, so we have more expenses with that program. Second, we have a payment structure and ways in which we pay acquisition with cash generation of the business. We have seen a strong quarter with growth as profit increased. So capital loss with this acquisition also increases. These are the two main factors for income and expenses. Yes. Thank you. Could you talk about results of Promotiva and Wiz Parceiros and outlook? Well, two different dynamics. In Parceiros last year, we had a bad start of the year and a very good result for a specific campaign in the third quarter of 2024. Now this year, the result is much more consistent, less dependent on a specific campaign, because then we can generate more consistency. If you look specifically to the third quarter of this year against the third quarter of last year, last year, it was almost based on one campaign. We only checked the accumulated for the ninth month. We have a more balanced growth for Wiz Parceiros. The profit is more mature. We have reinforced all of this in all of our calls since I got here. This is the dynamic of improving the quality of our business to generate payment recurrency in consortium segment to get the commissions we aim for. This is what we made for this business so we could achieve a consistent revenue engine and add value to administrators. We are excited. We have a new partnerships with Wiz Parceiros, with Serpa for next year. We have invested in improving our commercial area in areas we understand as high-value areas. We believe that investment in insurance products has grown. We want to couple our business to this segment so we have good perspective for Wiz Parceiros with a more sustainable growth, less depending on specific campaigns. Now, in terms of Promotiva, it was a very punctual result. Promotiva is important for the company. By the end of last year, Banco do Brasil decided to restrict the offer of INSS credit for the bank branches. It was not open for banking correspondents anymore. In the middle of this year, the bank made the decision to once again make the offer in that channel, but with a level of remuneration below the previous year. This affected an important part of Promotiva results. Nearly one fifth of its production would come from INSS before. We made a heroic work at Promotiva to try and compensate this drop of almost 20% that came directly and very quickly. We defined new products for workers credits, new agreements. We could not offset all of this drop, all of this decrease coming from INSS, but we did what we could. This result or this drop comes from INSS, and next year will be better from that. Now we have from Pedro Orazek, Itaú BBA, he said that Inter was very strong this quarter, and he asks what helped to drive this operation penetration new businesses, and he asks you to make a comment about the private payroll segment. Talking about Inter Seguros, we have two components, a lot of recurrency, monthly payment and Inter Seguros. I believe that through this year, we have managed to make it stable by designing more adhering credit products for the users, digital banks too. We have continued in this successful trend in consortium offer in the platform. It has always been an important topic for Inter Seguros, and we continue customizing, delivering value, learning more about the profile of our clients. Consortium helped, and the offer of digital products also fostered. Regarding private payroll segment, when we talk about banks that are connected to Wiz, this will be an everyone bet, will be a cross bet. This has a big approachable segment to customize medium-sized banks. We already see. We have seen a result in Promotiva this semester, but we believe we'll have results with insurance and Promotiva credits more strongly in 2026. We have seen a good part of results of revenue at Promotiva through banking correspondent in this product. In other channels, there is a revenue, but it's still a very timid revenue, but next year it will gain relevance. Thank you very much, Lucas. Now, let me put some questions together. In general, they congratulate Wiz for the management and consistent results, and in general, they want to know about, we're going to have an expectation regarding dividend policy. Coming from Alexandre Sav, 840 Club Investimentos. Gerson Freitas also follows the same line, and Pedro Calisto from an investments funds also ask the same questions about dividends. Guys, we usually say that we will give a very clear direction from here till this dividend sharing of 2025. If you look at this, we have a very strong deleverage process in the company. We ended this quarter with a net debt of BRL 300 million. We have paid dividends of BRL 40 million in this third quarter, and we managed to reduce the debt. We've generated BRL 70 million in cash flow for the controller and the operating cash in the operating subsidiaries, generating more cash than net profit. It's showing the capability of generating operating cash flow. We refinanced our debentures this year, decreasing the complexity of our business with this investing at Wiz. We want to finish this process by giving visibility to our investor on how we're going to treat capital allocation, especially dividends. We will not make any acquisition that will destroy value for our shareholders. The company has gone through a good moment. We have an additional challenge, regarding how to fit prices of acquisitions that make sense because the multiple of the company at the stock market is discounted. We do not want to make an acquisition that will destroy value regarding what we negotiate in the stock market. We have a good option to continue deleveraging the company as we made in the past few years. It will give you a clear message till the date we will distribute dividends in 2025, maybe earlier when we share income tax this year. There is a question by Fabiano Tate. How is the perspective of payment to date of acquisitions? What about this team? Well, to simplify this, we have several obligations at Wiz, but Wiz has two main types of expenses. Acquisition expenses through the channels we have acquired, and a debenture that we have financed this year. Most of our acquisition liability, and you can see this in the short run report, we will pay the last installment of BRB and Inter, and the almost last installment of the third acquisition in April of next year. If you look at our cash flow position, it is robust. Around BRL 160 million of acquisition to pay in April next year. We will clear our liability and payments, we will remain with a small loan in debentures, and we start paying this debenture in the beginning of 2027. So in April 2026, we will pay all of our expenses in acquisitions. What we are going to do with this cash flow surplus is what we have discussed here. We have a question by Leonardo Roma. The controller net revenue that is accumulated in terms of the 9 months, represents a drop in 6.9%, and this is referring to the Run-Off Caixa. Yes, this is the main component. It is a variable of Run-Off Caixa, of Wiz Parceiros, and also the revenue coming from Banrisul. Most of this revenue comes from the run-off. It accounts for most of this amount. So it drops, and then we pay the loans for Caixa Habitacional, and some come from life insurance. So the dynamics of this controlling will always show this drop in run-off. Thank you very much. We have answered all of our questions. I would like to thank each and every one of you for your participation in our call. We remain available to answer any of your comments and questions. Have a wonderful Friday. Thank you.