Ser Educacional (SEER3) Q2 2025 earnings summary

Executive summary

• Net income rose 66.4% year-over-year to R$81.3 million in 2Q25, with adjusted net income up 87.3% to R$86.5 million and net margin up to 13.8% (14.7% adjusted).

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

• Strong operational efficiency, higher campus occupancy, and successful student recruitment drove results.

• Net profit for 1H25 is 26% higher than the adjusted net profit for 2024, with post-CapEx cash generation nearly matching last year's total.

• Net debt decreased 14.4% year-over-year, with net debt/adjusted EBITDA at 1.24x, the lowest in recent years.

Financial highlights

• Net revenue for 2Q25 was R$589.2 million, up 10.7% year-over-year; 1H25 net revenue reached R$1.13 billion, up 14.9%.

• Gross margin improved to 60.3% in 2Q25 from 55.7% in 2Q24; cash gross margin rose to 68.5%.

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

• Average ticket price increased 3.7% to R$534, with hybrid undergraduate ex-medicine up 2.9%.

• Cash cost as % of net revenues dropped to 31.5% from 34.6% year-over-year.

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.