By Brazil Stock Guide – Telefônica Brasil S.A. (B3: VIVT3, NYSE: VIV) – Vivo brand – posted a net profit of R$1.89 billion (US$345 million) in the third quarter of 2025, up 13.3% year-on-year, supported by higher operating income and stronger demand for fiber and digital services. The result came slightly above market expectations, with EBITDA growth and margins showing consistent improvement amid a resilient telecom market.
Revenue rose 6.5% from a year earlier to R$14.9 billion (US$2.72 billion), driven by gains in postpaid mobile (+8%), fiber (+10.6%), and B2B data and digital solutions (+22.8%). Adjusted EBITDA reached R$6.5 billion (US$1.18 billion), up 9.0%, yielding a margin of 43.4%, the highest in two years. On an after-lease basis, EBITDA margin stood at 34.3%. Operating cash flow grew 12.4%, totaling R$3.88 billion (US$710 million).
The company closed September with 116.6 million total accesses, up 1.2% from the prior year, including 102.9 million mobile users and 7.6 million fiber households, a 12.7% annual increase. Telefônica’s 5G network reached 683 municipalities, up 1.7x from 2024, while postpaid ARPU rose 3.9%, to R$31.5, maintaining record low churn levels.
Investments reached R$2.6 billion (US$480 million), equivalent to 17.4% of revenue, slightly lower as a share of sales despite the expansion of fiber and 5G coverage. Free cash flow advanced 5.5%, to R$1.76 billion (US$320 million). Net cash (ex-IFRS 16) ended the quarter at R$3.0 billion (US$550 million), reflecting disciplined leverage and lower gross debt after the repayment of a R$1.5 billion debenture in July.
Telefônica reaffirmed its 100% payout commitment for 2024–2026, having distributed R$5.68 billion to shareholders up to October 2025, including R$2.68 billion in interest on equity, R$2 billion in capital reduction, and R$1.4 billion in share buybacks. Year-to-date, the company has repurchased 48.4 million shares, and in the quarter canceled 34.7 million shares held in treasury.
On the ESG front, Telefônica expanded its “Futuro Vivo” initiatives, including the restoration of 800 hectares of Amazon rainforest and the development of climate education programs ahead of COP30. The company remains a leader in the ISE B3 index and continues to score among the top five firms in Brazil’s “Great Place to Work” ranking.
Telefônica shares have gained 11% year-to-date, outperforming the Ibovespa, and closed Wednesday at R$52.80. According to consensus data from MZIQ, the market expects the company to maintain EBITDA growth near 8% in 2026, supported by stable ARPU, digital service expansion, and a payout yield close to 8.5%.