Ser Educacional (SEER3) Q1 2025 earnings summary

Executive summary

• Achieved record operational cash generation for a first quarter since IPO, with a 48.3% year-over-year increase and a 53.5%–57.9% rise in adjusted EBITDA, driven by efficiency gains and strong growth in hybrid and medical courses.

• Net income reached R$43.6 million, reversing a prior loss, and adjusted net income was R$51.8 million, the highest since 1Q19.

• Hybrid undergraduate intake grew 16.4% year-over-year, with medical student base up 26.6% and annual medical slots increasing 92.1%.

• Financial leverage reduced, with net debt/adjusted EBITDA at 1.35x, the lowest among listed peers.

• Expansion supported by new campus openings and the Ser Solidário program, which contributed over R$30 million in gross revenue and R$14 million in adjusted EBITDA.

Financial highlights

• Net revenue grew 19.8% year-over-year to R$539.99–R$540.0 million, driven by student base and average ticket increases.

• Adjusted EBITDA rose 57.9% to R$143.7 million, with margin up to 26.6% (+6.4 p.p. YoY).

• Gross profit increased 35.8% to R$327.7 million, with gross margin up 7.2 p.p. to 60.7%.

• Net operating cash generation after CAPEX grew 81.8% to R$75.5 million; operational cash flow reached R$98.2 million (+48.3% YoY).

• Net debt reduced to R$662.7 million (-12.9% YoY), with net debt/adjusted EBITDA improving from 1.99x to 1.35x.

Outlook and guidance

• Focus on organic growth, especially in hybrid education and health courses, with ongoing expansion of medical offerings and new campuses.

• Continued emphasis on operational and financial discipline, aiming for further deleveraging and increased dividend payments.

• Regulatory changes in distance education and medical course authorizations are being closely monitored, with proactive legal and operational strategies.