Edenred Faces Regulatory Setback in Brazil, Appeals Court Decision

São Paulo – Edenred, a leading provider of payment solutions for businesses and public sector organizations, is challenging a recent Brazilian court ruling that upholds a November 2025 presidential decree impacting the country’s meal and food voucher system. The decision, handed down by the Brazilian Federal Regional Court, confirms the applicability of the novel regulations concerning the Worker Feeding Program (PAT), despite previous legal challenges.

Regulatory Changes and Initial Injunction

The presidential decree, issued on November 12, 2025, introduces significant changes to the meal and food voucher system in Brazil, specifically addressing the merchant discount rate (MDR) and reimbursement periods. Edenred, along with the Associação Brasileira das Empresas de Benefícios ao Trabalhador (ABBT), initially secured an injunction suspending the decree’s implementation. However, the Brazilian government contested this suspension in early February 2026, leading to the recent court decision.

Edenred and ABBT to Pursue Further Appeal

Edenred and ABBT are now preparing to appeal the ruling, initiating action on the merits with a decision expected no earlier than the end of 2026. The ABBT represents the collective interests of companies facilitating the meal and food voucher system under the PAT, and also addresses issues related to food assistance and cultural vouchers ABBT.

Financial Impact and Outlook

The regulatory changes are expected to have a financial impact on Edenred. The company anticipates an organic EBITDA decline of between 8% and 12% in 2026, a downward revision from a previously projected range of 2% to 4%. However, Edenred maintains its outlook for 2027 and 2028, forecasting an annual EBITDA like-for-like growth of 8% to 12%, in line with its Amplify25-28 plan Edenred.

Edenred’s meal and food voucher activities in Brazil represented 9.5% of the Group’s operating revenue in 2024 Edenred.

Market Reaction

Following the court’s decision, Edenred’s stock price experienced a decline, dropping 5.4% to 17.8 euros around 08:15 GMT on February 25, 2026, while the SBF 120 index saw a modest gain of 0.2% FinanzWire.