Ser Educacional (SEER3) Q4 2025 earnings summary

Executive summary

• Achieved double-digit growth in the hybrid education student base, with hybrid learning up 10.4% and medical student base up 12.3%, optimizing property occupancy and expanding Adjusted EBITDA margin by 2.9 percentage points to 26.3%, with Adjusted EBITDA up 22.8% year-over-year.

• Adjusted net income surged 112.1% year-over-year to R$76.9 million, reversing a BRL 30 million loss to a BRL 74.6 million profit.

• Reduced financial indebtedness by nearly 30% year-over-year, reaching the lowest leverage since Q1 2021, with net debt/adjusted EBITDA down to 0.90x.

• Operational optimization, asset-light organic growth, and expansion in promising markets with six new units operational and further expansion planned in secondary cities.

• Robust cash generation, with net operating cash generation post-CapEx up 227.9% to R$74.5 million, enabling resumed shareholder dividends.

Financial highlights

• Consolidated net revenue increased 9.4% year-over-year in Q4 to R$572.9 million, with hybrid education revenue up 12.3% to R$463.7 million and other revenues up 25.8%.

• Adjusted EBITDA margin expanded by 2.9 percentage points, closing the year slightly above 25% and reaching 26.3% in 4Q25.

• Net income reversed from a BRL 30 million loss to a BRL 74.6 million profit, with recurring net income nearly doubling year-over-year.

• Operating cash generation grew 94.5% pre-CapEx and 228% post-CapEx, driven by improved payment punctuality and anticipation of receivables.

• CapEx decreased to R$23.0 million, representing 4.0% of net revenues.

Outlook and guidance

• Focus for 2026 is on maintaining operating leverage, gradual technology adoption, organic expansion, new unit openings, and medical course expansion, especially in healthcare programs and secondary cities.

• CapEx expected to return to historical average of 5%-6% of net revenue, supporting asset-light expansion and new unit openings.

• Dividend policy reinstated, targeting semi-annual payments of 30% of net earnings, with R$61 million paid.

• Leverage targeted between 0.6 and 0.8, balancing growth and shareholder returns.

• Continued emphasis on reducing financial leverage and optimizing course portfolio.