Ser Educacional (SEER3) Q2 2025 earnings summary

Executive summary

• Net income rose 66.4% year-over-year in 2Q25 to R$81.3 million, the highest since 1Q16, with net margin up 4.6 p.p. to 13.8%.

• Adjusted EBITDA increased 25.0% to R$163.2 million, with margin up 3.2 p.p. to 27.7%.

• Double-digit growth in enrollments, especially in hybrid and medical programs, drove expansion in EBITDA and net margins.

• Operational cash generation post-CapEx surged 729.8% year-over-year, nearly matching last year's total.

• Debt reduced by over BRL 100 million year-over-year, with net debt/adjusted EBITDA at 1.24x, the lowest in recent years.

Financial highlights

• Net revenue grew 10.7% year-over-year in Q2 to R$470.0 million, with Q1 revenue up 20% due to the CES/Ser Solidário program.

• Adjusted net income reached R$86.5 million, up 87.3% from 2Q24.

• Gross margin improved 4.6 p.p. to 60.3%, and adjusted EBITDA margin reached 27.7%.

• Pre-CapEx operating cash flow grew 42.8% year-over-year; post-CapEx cash flow surged 729.8%.

• Average ticket increased, with hybrid education up 2.9% and digital education facing pricing pressure but maintaining ticket.

Outlook and guidance

• Management expects continued value generation through operational efficiency, organic growth, and expansion in health and law courses.

• Operational model to be replicated in new markets with established brand recognition.

• Expansion of medical course offerings and participation in public calls for new medical vacancies.

• Conservative approach to ProUni offerings, with expectations for continued organic growth and efficiency improvements.