Edenred: Bad News, Brazilian Federal Court Validates Decree Application to Meal Voucher Issuers

Federal Court Decision Announced

Edenred was informed through the press about the decision of the President of the Brazilian Federal Court validating the applicability of the Presidential Decree published on November 12, 2025, regarding the regulatory changes to the meal and food voucher system in Brazil (PAT). The company had filed for an injunction on January 15, 2026, and obtained a suspension of the decree's application on January 20, 2026, along with eight other market players. The Brazilian government challenged this suspension by initiating an action in early February 2026 with the President of the Federal Court of Sao Paulo to request the cancellation of these interim decisions.

Preparations to Implement the Decree

Edenred is preparing to implement the decree upon receiving its official notification, expected in the coming days. Edenred and the professional association ABBT reserve the right to appeal this decision. A substantive action has been initiated by Edenred, with a decision expected no earlier than the end of 2026.

Financial Impact and Outlook

The impact of implementing the decree starting February 2026 had already been incorporated into the EBITDA targets for 2026 communicated by Edenred on November 12, 2025, and confirmed on February 24, 2026: a decrease in EBITDA ranging from -8% to -12% on a comparable basis, corresponding to an intrinsic growth of +8% to +12%. Edenred also confirmed a Free-cash-flow / EBITDA conversion rate target for 2026 ? 35% (intrinsic conversion rate ? 65%). Thus, this court decision does not alter the guidance for 2026, 2027, and 2028. The meal and food voucher business in Brazil accounted for 10% of Edenred's global operational revenue in 2025.