Yduqs Participações (YDUQ3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter free cash flow to equity (FCFE) of BRL 276 million, up 10% year-over-year, with a 12-month FCFE yield of 20%.

• Premium brands Ibmec and IDOMED now contribute 49% of EBITDA, driven by high-margin, high-growth performance.

• Continued disciplined capital allocation, including BRL 150 million in dividends and a BRL 100 million share buyback program.

• Launched AI platform in partnership with Google Gemini, advancing operational efficiency and ESG initiatives.

• Portfolio diversification and premium positioning provided resilience amid macroeconomic and regulatory challenges, especially for Estácio Wyden.

Financial highlights

• Net revenue grew 1.5% year-over-year to BRL 1,509 million; would have been 5% growth excluding a BRL 59 million DIS revenue decline.

• Adjusted EBITDA decreased 2% to BRL 504 million, with margin contracting 1.2 p.p. to 33.4%.

• Adjusted net income was BRL 150.4 million, down 2.1% year-over-year; excluding DIS impact, adjusted net profit rose 29%.

• Cash position increased 16% to BRL 1,081 million at quarter-end; net debt/EBITDA at 1.53x, or 1.19x excluding buybacks and dividends.

• Capex totaled BRL 113.6 million (7.5% of net revenue), with 75% allocated to digital transformation and IT.

Outlook and guidance

• 2026 FCFE guidance set at BRL 520–620 million, with EPS guidance of BRL 1.4–2.0 for 2026 and BRL 2.0–3.5 for 2027–2030.

• Margin expected to remain stable across business units, with Ibmec showing potential for further margin gains.

• Growth levers identified in premium verticals and semi on-campus expansion.

• Focus remains on cash generation, portfolio diversification, and disciplined capital allocation.