Ser Educacional (SEER3) Q2 2025 earnings summary

Executive summary

• Net income rose 66.4% year-over-year in 2Q25 to R$81.3 million, with net margin up 4.6 p.p. to 13.8%, and adjusted EBITDA up 25% to R$163.2 million, driven by strong enrollment growth in medical and hybrid programs.

• Operational cash generation post-CapEx surged 730% year-over-year, nearly matching last year's total, supporting significant deleveraging.

• Debt reduced by over BRL 100 million year-over-year, with net debt/adjusted EBITDA down to 1.24x.

• Four consecutive years of growth in hybrid undergraduate enrollment, with 1H25 outperforming or matching full-year 2024 results.

• Medical school program base increased 62%, with annual openings rising from 521 to 1,001 and a 27% growth in medical student base.

Financial highlights

• Net revenue grew 10.7% year-over-year in Q2, reaching R$589.2 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.

• Adjusted EBITDA margin expanded to 27.7% (+3.2 p.p.), and net margin reached 13.8% (14.7% adjusted).

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

• Average ticket increased 30.7%, driven by a higher share of hybrid education and increased digital education ticket.

Outlook and guidance

• Focus on operational efficiency, expanding healthcare and law programs, and leveraging technology for student experience.

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

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

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

• Ongoing investment in technology, student experience, and new business development for education ecosystem maturation.