Ser Educacional (SEER3) Q1 2025 earnings summary

Executive summary

• Achieved highest adjusted EBITDA of R$143.7 million (26.6% margin) and net operating cash generation post-CAPEX of R$75.5 million since IPO, with net income reaching R$43.6 million and adjusted net income at R$51.8 million.

• Net revenue grew 19.8% year-over-year to R$540.0 million, driven by a 15.2% increase in hybrid undergraduate students and expansion in medical course enrollments.

• Four consecutive years of organic growth in hybrid learning undergraduate enrollment, with total undergraduate student base up 10.3% to 346,300.

• Operational leverage and cost control led to significant margin improvements and profit conversion.

• Net debt/adjusted EBITDA improved to 1.35x, marking the ninth consecutive quarterly reduction.

Financial highlights

• Consolidated net revenues rose 19.8% year-over-year to R$540.0 million in 1Q25, with organic growth in the student base, especially in medical and hybrid courses.

• Adjusted EBITDA increased 57.9% year-over-year to R$143.7 million, with margin up to 26.6%, the highest since IPO.

• Net income improved to R$43.6 million from a loss of R$17.5 million in 1Q24; adjusted net income was R$51.8 million.

• Net operating cash generation post-CAPEX grew 81.8% year-over-year to R$75.5 million.

• CapEx totaled R$22.7 million, mainly for campus renovations and equipment, representing 4.1% of net revenues.

Outlook and guidance

• Focus on organic growth, especially in hybrid education and health courses, with continued investment in new courses and infrastructure.

• Management aims to maximize educational assets, process automation, and financial discipline for expansion.

• Ongoing efforts to expand medical course places, awaiting further regulatory approvals.