Ser Educacional (SEER3) Q4 2025 earnings summary

Executive summary

• Achieved robust operational and financial performance in 2025, with consistent net profit in all quarters and strong cash generation, driven by operational optimization, organic growth, and financial discipline.

• Student base grew 4.0% year-over-year to 343,500, with hybrid learning up 10.4% and expansion in health and law courses, supported by successful enrollment campaigns and the Ser Solidário program.

• Adjusted net income surged 112.1% year-over-year to R$76.9 million in 4Q25, with net income reaching R$214.4 million for the year, reversing a prior year loss.

• Expansion in medical courses and hybrid learning formats, including new accreditations and increased student intake, were key growth drivers, especially in underserved regions.

• Recognized for ESG and diversity initiatives, with continued inclusion in the IDIVERSA B3 index and establishment of a Sustainability Committee.

Financial highlights

• Consolidated net revenue reached R$2,216.5 million for the year, up 11.9%, and R$572.9 million in 4Q25, up 9.4% year-over-year, driven by hybrid and medical school expansion.

• Gross profit rose 19.9% to R$1,311.5 million, with gross margin improving to 59.2% (up 3.9 p.p.), and net income was R$214.4 million, reversing a prior year loss.

• Adjusted EBITDA margin rose 2.9 percentage points to 26.3% in 4Q25, with adjusted EBITDA up 22.8% to R$150.4 million.

• Net operating cash generation post-CapEx increased 227.9% to R$74.5 million in 4Q25, supporting debt amortization and reducing gross debt by 29.6%.

• CapEx totaled R$92.1 million for the year, down 25.9%, with R$23.0 million in 4Q25, representing 4.0% of net revenues.

Outlook and guidance

• Strategic focus for 2026 includes disciplined organic expansion, new unit openings, medical course growth, operational efficiency, and strengthening capital structure.

• Dividend policy targets a 30% payout semi-annually, with R$61.1 million paid and maintained at 30% of adjusted net income.

• Ongoing monitoring of regulatory changes in medical education and distance learning, with proactive adaptation to new frameworks.

• Investments in organic growth expected to continue, with selective expansion and emphasis on high-demand courses.