By Brazil Stock Guide – Rede Mater Dei de Saúde (B3: MATD3) reported a 57.2% drop in net income for the third quarter of 2025, to R$27.5 million, compared with R$64.2 million in 3Q24, as rising borrowing costs and heavier interest payments eroded earnings. The quarter showed strong operational performance and record cash generation, but profit was weighed down by higher financial expenses.
The company’s net financial result deteriorated sharply, moving from a negative R$27.7 million in 3Q24 to a negative R$55.5 million this quarter — a 100% increase in financial expenses. Interest on loans and leases rose 40%, reflecting the higher cost of capital and CDI-linked debt. Consequently, the adjusted net margin fell to 4.8%, from 8.2% a year earlier.
Operationally, Mater Dei continued to expand. Net revenue rose 16.3% year-on-year to R$568 million, and adjusted EBITDA jumped 38.7% to R$126 million, with margins up 3.6 percentage points to 22.2%. Gross profit advanced 22.1% to R$171 million, driven by solid growth in oncology and high-complexity procedures.
The company also cut net debt to R$642 million, excluding share buybacks and dividends, its lowest level in a year, supported by record operating cash generation. Leverage closed the quarter at 1.5x adjusted EBITDA, a comfortable level for the sector.