Ser Educacional (SEER3) Q3 2025 earnings summary

Executive summary

• Operational and financial results improved significantly in Q3 2025, with operational cash generation post-CAPEX reaching R$104.6 million, up 118.3% year-over-year, and net income turning positive at R$14.9 million from a loss in 3Q24.

• Hybrid Learning undergraduate student base grew between 11.3% and 12%, marking the 8th consecutive year of growth, while medical student base increased 12.2%.

• Strategic focus on operational efficiency, cost control, and course portfolio optimization, especially in healthcare and law, contributed to improved profitability and cash generation.

• The Ser Solidário program completed its first year, supporting intake and financial results.

• Operational improvements and disciplined expansion drove increased profitability and cash generation.

Financial highlights

• Net revenue for 3Q25 was R$514.5 million, up 8.4% year-over-year, driven by student base growth and expanded medical school seats.

• Adjusted EBITDA reached R$102.3 million (margin 19.9%), up 9.2% year-over-year.

• Adjusted net income totaled R$24.2 million, up 24.5% year-over-year, with a margin of 4.7%.

• Net operating cash generation post-CAPEX was R$104.6 million (+118.3% YoY), with a 102.3% EBITDA conversion rate.

• Net debt reduced to R$576.5 million, with net debt/adjusted EBITDA at 1.08x, down from 1.76x in 3Q24.

Outlook and guidance

• Management expects continued growth in hybrid and medical school undergraduate segments, with a focus on organic growth, operational efficiency, and cash generation.

• Margin expansion is expected to continue, though at a slower pace than the first semester.

• The new regulatory framework for distance education is expected to have limited impact, as less than 10% of gross revenue comes from EAD.

• The company is awaiting results from the Mais Médicos 3 program, which could add new medical course opportunities.

• Focus remains on improving average ticket and maintaining high occupancy rates, especially in medicine.