Yduqs Participações (YDUQ3) Q2 2026 earnings summary

Executive summary

• Achieved solid operational and financial results in Q2 2026, with premium courses and all business units contributing to growth and profitability despite macroeconomic and regulatory headwinds.

• Maintained high student renewal rates, record intake in IDOMED, and robust expansion in Ibmec, including a new Fortaleza campus.

• Continued recognition for ESG initiatives, including international awards and increased female representation in senior management.

• Focused on cash generation, disciplined capital allocation, reducing leverage, and returning value to shareholders through dividends and share buybacks.

• Interim financial statements for H1 2026 reviewed with no material misstatements, confirming fair presentation.

Financial highlights

• Consolidated net revenue reached BRL 2,900.9 million in H1 2026, up 1.2% year-over-year; adjusted EBITDA was BRL 904.2 million with a 31.2% margin.

• Adjusted EBITDA rose 17% since 1H24, and net revenue increased 45% since 1H24; adjusted net income was BRL 164.1 million, down 11% year-over-year.

• Bad debt as a percentage of NOR improved by 1.5 percentage points year-over-year, reaching 11% in H1 2026.

• Cash generation remained strong, with BRL 225 million generated for shareholders and BRL 150 million paid in dividends in H1 2026.

• Share buyback program of BRL 100 million completed in July 2026; R$780 million returned to shareholders since 2024.

Outlook and guidance

• Guidance for FCFE earnings per share between BRL 520–620 million and EPS of BRL 1.4–2 for 2026 reaffirmed.

• Positive outlook for H2 2026, supported by expected normalization of DIS impacts, lower Selic rates, and operational improvements.

• Targeting net debt/EBITDA of 1.0x by end of 2027, with leverage at 1.55x in Q2 2026.

• Expect gradual ticket recovery in Semi On-Campus, with more significant improvement in 2027.

• Transitioning to a new tax regime due to Brazil's tax reform, with no impact expected on 2026 results.