Business Context and Reporting Period
Company: Telefônica Brasil S.A. (Vivo)
Filing Type: Form 6-K (Foreign Private Issuer)
Reporting Period: Fourth Quarter 2025 (ended December 31, 2025)
Filing Date: February 23, 2026
Telefônica Brasil reported its 4Q25 results in accordance with IFRS. The company operates as a leading telecommunications provider in Brazil, offering mobile, fixed, and digital services. The reporting period highlights continued growth in postpaid mobile accesses, fiber-to-the-home (FTTH) expansion, and digital ecosystem revenues.
Key Financial Metrics
| Metric | 4Q25 Value | YoY Change |
|---|---|---|
| Total Revenues | R$15.6 billion | +7.1% |
| EBITDA | R$6.7 billion | +8.1% |
| EBITDA Margin | 42.9% | +0.4 p.p. |
| EBITDA ex-Concession Migration | R$6.6 billion | +17.7% |
| Net Income | R$1.9 billion | +6.5% |
| Operating Cash Flow | R$4.3 billion | +16.0% |
| Free Cash Flow | R$2.3 billion | +111.9% |
| Capex | R$2.4 billion | -4.0% |
| Net Debt (ex-IFRS 16) | R$4.9 billion | -10.7% |
| Net Cash Position (ex-IFRS 16) | R$2.3 billion | N/A |
Note: All figures are in Brazilian Reais (R$). Net Debt including IFRS 16 leases was R$13.1 billion.
Material Changes vs. Prior Period
- Revenue Growth: Driven by Postpaid (+9.0%), FTTH (+9.8%), and Corporate Data/ICT (+10.2%). Fixed revenues grew +5.4% YoY.
- EBITDA Expansion: Reported EBITDA grew +8.1% YoY. Adjusted EBITDA (excluding concession migration effects) surged +17.7% YoY, reflecting operational efficiency and revenue mix improvements.
- Cost Management: Commercial & Infrastructure costs decreased -2.6% YoY, primarily due to a one-time infrastructure cost increase in 4Q24 and reduced network rental expenses. Personnel costs rose +6.4% YoY due to salary adjustments and headcount growth in digital areas.
- Customer Base: Total accesses reached 116.7 million (+0.6% YoY). Postpaid mobile accesses grew +6.5% YoY to 70.8 million. FTTH accesses increased +12.0% YoY to 7.8 million.
- Financial Expenses: Increased +93.8% YoY to R$663.7 million, largely due to an atypical comparison base in 4Q24 which included a R$406 million reversal of monetary updates.
Guidance, Outlook, and Risks
- Shareholder Remuneration: The company reaffirmed its commitment to distribute at least 100% of net income for fiscal years 2024–2026. In 2025, the payout ratio was 103.4% (R$6.4 billion). For 2026, R$6.99 billion has been deliberated, including R$4.0 billion in capital reduction (subject to shareholder approval) and R$2.99 billion in interest on equity.
- Buyback Program: A new share buyback program of up to R$1.0 billion was approved, effective February 23, 2026, through February 22, 2027.
- Asset Sales: The company remains committed to R$4.5 billion in asset sales related to the migration from concession to authorization (copper and real estate), with value capture expected mainly in 2026 and 2027.
- Investment Focus: Continued expansion of 5G coverage (716 municipalities) and fiber footprint (31.0 million homes passed). Capex intensity is expected to decline, with 4Q25 Capex at 15.1% of revenues.
- Risks: Forward-looking statements involve risks and uncertainties. The filing notes that future results may differ from expectations. Specific risks include regulatory changes, competition, and execution of asset sales.
Key Facts for Investor Verification
- Capital Reduction Approval: Verify the outcome of the Extraordinary Shareholders' Meeting on March 12, 2026, regarding the R$4.0 billion capital reduction.
- Asset Sale Execution: Monitor progress on the R$4.5 billion asset sale program linked to the concession-to-authorization migration, with significant proceeds expected in 2026–2027.
- Debt Structure: Confirm the net debt position including IFRS 16 leases (R$13.1 billion) versus the ex-lease position (R$4.9 billion) to assess true leverage.
- Digital Revenue Mix: Track the growth of B2B digital services (up +29.5% YoY in 2025) and B2C new businesses as key drivers of future margin expansion.
- Regulatory Environment: Assess potential impacts of the concession migration on future revenue recognition and asset valuations.