Yduqs Participações (YDUQ3) Q3 2025 earnings summary

Executive summary

• Achieved strong revenue growth, margin expansion, and robust student intake, with Premium (Idomed and Ibmec) and Semi On-campus segments delivering double-digit growth and now representing 31% of revenue and 43% of EBITDA.

• Semi On-campus format drove a 50–54% increase in intake and student base, surpassing 100,000 students.

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

• Strong cash generation supported shareholder returns, with FCFE at R$610M and an 18% yield.

• All business segments contributed positively, with premium and semi on-campus models leading performance.

Financial highlights

• Net revenue for 3Q25 up 4–5% year-over-year to R$1,352–1,368M; premium segment accounted for 31% of NOR.

• Adjusted EBITDA for 3Q25 rose 5.8–9% to R$507.7–521M, with margin up 1 p.p. to 37.6%.

• Adjusted net income for 3Q25 was R$154.5M, margin at 11.4%; EPS up 23% year-over-year.

• Free cash flow to equity (FCFE) for 12 months reached R$610M, with an 18% yield.

• Cash position at quarter-end was R$1,056M, up 20.7% year-over-year.

Outlook and guidance

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

• 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.

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