Earnings call transcript: DASA Q2 2026 profit beat overshadowed by revenue miss

In Q2 2026, Brazilian healthcare services company DASA reported a smaller-than-expected loss but fell short of revenue estimates, causing its stock to drop sharply. The Brazilian company posted adjusted earnings per share (EPS) of -$0.0367, significantly better than the forecasted -$0.37, representing a 90.08% positive surprise.

However, revenue came in at $2.22 billion, missing the expected $2.35 billion by $130 million. This revenue shortfall likely had a more significant impact on investors than the earnings beat, especially as the company also reported some margin pressure at the gross profit level.

Despite the earnings beat, DASA's stock fell 16.73% to $2.09, nearing the lower end of its 52-week range of $1.22 to $4.77. The decline suggests that investors were not reassured by the earnings beat alone, as the revenue miss, margin pressure, and still-leveraged balance sheet likely overshadowed the positive developments.

The company's gross revenue increased 9.2% year over year on a comparable basis, driven by volume growth in premium care, home care, and B2B lab-to-lab services. Management highlighted a more efficient operating structure resulting from recent restructuring efforts, with SG&A expenses (excluding depreciation) falling 25% from a year earlier on a current-scope basis. The company also reported an improved cash conversion cycle, showing better working capital management.

DASA's strategic focus has been on reshaping its business around higher-return services and tighter capital use. The company expects continued growth through 2026, driven by premium care, home care, and B2B services. Management also noted that the company grew its revenue with controlled capital spending, relying on existing assets with strong operational leverage and leveraging digitalization and AI for improved productivity.

CFO Rafael Bollani highlighted the improvement in cash flow, with free cash flow turning positive at BRL 292 million for the year.