Vivo's double-digit EBITDA inflection: convergence and light plans unlock new growth
From defensive to offensive
Vivo's Q2 2026 results mark a clear inflection. Revenue grew 7.6% year-over-year, above inflation, while EBITDA expanded 10.9% — the first double-digit increase in 11 quarters. The company has moved from defending market share to actively shaping its customer mix, with the launch of "light" plans that turn prepaid volatility into a recurring, low-risk revenue stream. CEO Christian Gebara explained the logic: “they allow us to address customer segments that may not qualify for traditional hybrid plans. Because first, they have, like, as I said, less onboarding friction and lower bad debt exposure because they are on credit cards.” — Christian Mauad Gebara, CEO · 2026-07-28 This is a sophisticated play on the perennial prepaid problem, converting a segment that was merely a feeder for postpaid migration into a profitable, guaranteed-ARPU base.
The light plans are not cannibalizing the core hybrid book — they are deliberately aimed at credit-constrained customers, as Gebara clarified. The company also signaled it is analyzing price increases across segments, including prepaid, which has lagged inflation for years. This strategic patience, combined with disciplined cost management, has allowed Vivo to maintain its premium positioning while still growing volumes.
Convergence and the B2B flywheel
Convergence remains the engine of retention. Vivo Total reached 3.8 million customers, up 29.4% year-over-year, and fiber churn dropped to a record-low 1.4%. Gebara's confidence was palpable: “our ability to drive convergence in a way that at the moment is unreplicable.” — Christian Mauad Gebara, CEO · 2026-07-28 This is not just about bundling — it's about creating a sticky ecosystem that reduces churn and increases wallet share. B2B revenue grew 9.2%, with digital services accelerating 14.9%. Cloud, up 20.9%, is the standout, and it aligns with the global data center AI theme, as Vivo positions itself as the local partner for enterprises migrating to the cloud. The company is also investing in AI for internal efficiency, echoing broader industry trends in high performance computing and cloud data centers.
Cash engines: asset sales and lease discipline
Beyond operations, the concession migration is now a tangible cash source. Copper sales generated BRL 202 million in the quarter, and the company expects more in H2. CFO Rodrigo Rossi Monari highlighted the lease management success: “on a 12-month basis, our leases are increasing only 1.8% year-over-year.” — Rodrigo Rossi Monari, CFO · 2026-07-28 This is a critical achievement given that tower costs are typically a major drag for telcos. Combined with strong free cash flow of BRL 4.9 billion in H1 and a net debt/EBITDA of just 0.4x, Vivo has ample firepower for both M&A and shareholder returns.
What changed? The market should take note
The market's prior concerns have been addressed head-on. In earlier calls, management flagged prepaid as a challenge but now has a concrete tool to counter it. The light plans, alongside the copper monetization, represent new, company-specific actions that go beyond the usual price-increase cycle. As Gebara said in his closing remarks:
The trajectory is clear: Vivo is not just surviving the competitive Brazilian market — it is out-executing peers by monetizing its asset base and customer relationships more intelligently. The next earnings report will be a key test of whether these levers translate into sustained double-digit EBITDA growth.we are very driven by the EBITDA minus CapEx minus leases... and we have been able to prove that in all these different lines.