Ser Educacional (SEER3) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with double-digit growth in adjusted EBITDA, net operating cash generation up over 200%, and significant revenue and net income increases.

• Operational optimization since 2022 drove margin expansion, improved cash flow, and reduced financial leverage for the eighth consecutive quarter.

• Student base grew 5.6% year-over-year to 330,300, with notable expansion in hybrid and health-related courses, especially medical programs.

• Expansion of medical courses enabled by favorable legal and regulatory decisions, nearly doubling annual medical vacancies to 1,001.

• Resumed dividend payments after three years, with a R$19.6 million payout approved for May 2025.

Financial highlights

• Net revenue rose 8.7% year-over-year to R$523.8 million in 4Q24; full-year revenue reached R$1,981.4 million, up 8.2%.

• Adjusted EBITDA increased 18.3% to R$122.5 million in 4Q24; margin expanded 1.9 p.p. to 23.4%.

• Adjusted net income surged 101.3% to R$36.3 million in 4Q24; net loss for the year narrowed sharply to R$1.2 million.

• Net operating cash generation jumped 206.4% to R$50.1 million in 4Q24; cash from operations for the year grew 24.6% to R$455.3 million.

• Net debt reduced by 9.3% to R$718.5 million; net debt/EBITDA improved to 1.64x.

Outlook and guidance

• Entering 2025 with a larger number of medical student places, focusing on disciplined expansion in health and law, and ongoing operational efficiency.

• Plans for further margin improvement, debt reduction, and greater dividend distribution from 2026.

• Ongoing regulatory processes and Mais Médicos 3 program could further expand medical course offerings.