Ser Educacional (SEER3) Q1 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA of R$143.7 million (up 57.9% YoY) and highest net operating cash generation post-CapEx since IPO at R$75.5 million, with net income reaching R$43.6 million, reversing a prior loss.

• Student intake in higher education grew over 16%, with the student base surpassing 185,000; medical school undergraduate base increased 26.6%.

• Operational leverage and efficiency drove significant conversion of additional revenues into EBITDA and profit.

• Four consecutive years of organic growth in hybrid learning undergraduate enrollment.

• Strategic focus on health and law courses, operational efficiency, and expansion of medical school seats contributed to results.

Financial highlights

• Net revenue rose 19.8% YoY to R$540.0 million, driven by organic growth in the student base, especially in medical and hybrid courses.

• Adjusted EBITDA margin reached 26.6%, the highest since Q1 2017.

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

• Net operating cash generation post-CapEx grew 81.8% YoY to R$75.5 million.

• CapEx totaled R$22.7 million, representing 4.1% of net revenues, and declined YoY due to timing of expansion projects.

Outlook and guidance

• Focus remains on organic growth, especially in hybrid education and health courses, with ongoing expansion of medical course places and new campus accreditations.

• Continued investment in new courses, infrastructure, and educational technologies.

• Management expects further value generation through operational efficiency and deleveraging.