Yduqs Participações (YDUQ3) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 2025, with robust revenue growth, margin expansion, and a 14% increase in student intake year-over-year, supported by all segments including medicine, Ibmec, semi-on-campus, on-campus, and distance learning.

• Premium and semi-on-campus segments delivered double-digit growth, now representing 31% of net operating revenue and 43% of EBITDA, with semi-on-campus intake up nearly 50% and surpassing 100,000 students.

• On-campus segment stabilized after years of contraction, returning to growth.

• Significant acquisitions, including Unifametro and Edufor, expanded presence in higher education.

Financial highlights

• Net revenue for Q3 2025 reached R$1,368M, up 4–5% year-over-year, with premium brands now representing 43% of EBITDA.

• Adjusted EBITDA was R$521M, up 9% year-over-year, with margin improvement of 1 p.p.; adjusted EBITDA margin reached 37.6%.

• Earnings per share increased 23% to R$1.9 per share, supported by a successful buyback program.

• Free cash flow to equity (FCFE) for the last twelve months reached R$610M, with an 18% yield, above guidance.

• Leverage (Net Debt/Adj. EBITDA ex-IFRS 16) improved to 1.52x, with a target of 1.0x.

Outlook and guidance

• Confident in meeting 2025 FCFE guidance of R$500–600M, with 9M25 already reaching R$559M.

• Guidance for earnings per share and cash flow remains strong, with 93% of annual guidance achieved in the first nine months.

• Positive outlook for Q4 and 2026, with further margin expansion, lower bad debt, and strong intake anticipated.

• Focus remains on deleveraging, opportunistic acquisitions, and continued value creation.

• New regulatory framework expected to benefit the company due to its focus on teaching quality and on-campus learning.