Ser Educacional (SEER3) Q1 2026 earnings summary

Executive summary

• Net income grew 74.0% year-over-year to R$75.9 million, with adjusted net income up 58.1% to R$81.9 million, driven by expansion in on-campus undergraduate and medical programs and improved average ticket.

• Net revenue increased 8.1% to R$583.8 million, with adjusted EBITDA rising 10.1% to R$158.2 million and margin expanding to 27.1%.

• Net debt decreased 35.4% year-over-year to R$427.9 million, with net debt/adjusted EBITDA at 0.75x, the lowest since Q1 2021.

• Operational cash generation post-CAPEX increased 45.2% to R$109.6 million, with cash and equivalents at R$528.5 million.

• Strategy prioritized value over volume, focusing on academic quality, higher profitability per campus, and operational efficiency.

Financial highlights

• Gross profit rose 11.3% to R$364.6 million, with gross margin up 1.8 p.p. to 62.5%.

• Operating income increased 18.4% to R$136.2 million.

• Cash conversion reached 84% of EBITDA and 70% post-CapEx.

• Financial expenses fell 4.4% to R$84.3 million, while financial income rose 14.9% to R$30.3 million.

• Capex totaled R$23.7 million, mainly for licenses, equipment, and campus improvements.

Outlook and guidance

• Focus remains on operational leverage, technology implementation, and organic expansion, with new units and medical seat expansion planned for 2027.

• Commitment to reducing financial leverage and maintaining a 30% dividend payout policy.

• Internal actions implemented to mitigate regulatory risks related to medical courses and EAD.