By Brazil Stock Guide – Vivo (Telefônica Brasil S.A., B3: VIVT3; NYSE: VIV) reported net income of R$ 1.876 billion in the fourth quarter of 2025, up 6.5% from a year earlier. For all of 2025, profit reached R$ 6.168 billion, an increase of 11.2%, showing steady and predictable growth rather than a one-off spike.
Revenue in the quarter climbed 7.1% to R$ 15.6 billion. Operating profit before depreciation and interest (EBITDA) rose 8.1% to R$ 6.7 billion, with a healthy margin of 42.9%. In practical terms, that means nearly R$ 43 of every R$ 100 in revenue remained after operating costs — a sign of efficiency in a competitive market.
Mobile Leads the Way
Mobile services remained the main driver. The company ended the year with 103 million mobile accesses, including 70.8 million postpaid customers — up 6.5% year-on-year. These monthly subscription plans generate more stable revenue. Average revenue per mobile user increased to R$ 31.8 in the quarter.
Vivo’s 5G network expanded to 716 cities, reaching about two-thirds of Brazil’s population, supporting demand for higher-value plans.
Fiber and Digital Growth
In fixed broadband, fiber continued to gain ground. Vivo now passes 31 million homes with fiber and has 7.8 million connected customers, up 12% from a year earlier. Fixed revenue rose 5.4% year-on-year.
Digital services for companies — including cloud, cybersecurity and IT solutions — also expanded at double-digit rates, helping diversify revenue beyond traditional telecom services.
Costs, Investments and Cash
Investments totaled R$ 2.36 billion in the quarter, down 4% from the previous year, reflecting more disciplined spending. Even while expanding 5G and fiber, the company reduced capital intensity.
Free cash flow more than doubled year-on-year to R$ 2.29 billion in the quarter. Vivo ended 2025 with a solid balance sheet, posting net cash of R$ 2.3 billion (excluding lease obligations), which provides financial flexibility.
Shareholder Returns
The company distributed R$ 6.38 billion to shareholders in 2025 — equivalent to 103% of its net income. For investors, this reinforces Vivo’s profile as a stable dividend payer.
Overall, the results show balanced growth: moderate profit expansion, stronger cash generation, expanding 5G and fiber coverage, and continued shareholder returns. Vivo may not be a high-growth tech story, but it remains one of Brazil’s most consistent and cash-generative large companies.