Yduqs Participações (YDUQ3) investor relations material

Executive summary

• Leadership transition completed, ensuring continuity and strategic focus for future growth.

• Premium brands (Ibmec and IDOMED) now represent nearly 45% of EBITDA and 29% of net operating revenue, with Ibmec achieving a 45% adjusted EBITDA margin.

• Strong cash generation, with FCFE reaching R$613M in the last 12 months, surpassing guidance.

• Technology and AI initiatives reduced costs and improved operational efficiency, cutting student acquisition costs by 17% and digital content costs by 24%.

• Student intake for the 25.3 cycle rose 16% year-over-year, with robust growth in semi on-campus and digital modalities.

Financial highlights

• Net revenue grew 5% year-over-year in 1H25 to R$2,920M, with gross revenue up 9.1% to R$3,241.5M in 2Q25.

• Adjusted EBITDA for 1H25 was R$954M, up 1% year-over-year, but fell 7.3% in 2Q25; margin remained high and stable.

• Adjusted net income for 1H25 was R$184M, down 20% year-over-year, and dropped 45.6% in 2Q25 due to non-recurring items.

• Operating cash flow rose 66% in the last twelve months to R$1,554M; cash and equivalents increased 20% to R$793M.

• DSO improved by 9 days year-over-year to 94 days, reflecting better receivables management.

Outlook and guidance

• Confident in exceeding year-end guidance, with FCFE already above the R$500M–R$600M range and EPS guidance reaffirmed.

• Second half expected to be stronger, driven by robust intake, retention, and operational leverage.

• Strategic focus on premium and semi on-campus growth, digital transformation, and efficiency.

• Regulatory changes for semi on-campus reduce distance learning risks and increase predictability.