Yduqs Participações (YDUQ3) Q4 2025 earnings summary

Executive summary

• Achieved strong cash generation in 2025, with net cash flow before interest exceeding BRL 1 billion and BRL 500 million in free cash flow to equity, meeting guidance and supporting consistent results for 2026.

• Premium segment contributed 44% of consolidated EBITDA, with Ibmec and Idomed showing significant margin gains and strategic focus on higher-value offerings.

• Dividend payments totaled BRL 150 million in 2025, with share buybacks of BRL 154 million and a BRL 300 million program over 2024-2025.

• Acquisition of Unifametro added 8,000 students and 60 medical seats, strengthening the Premium segment and regional presence.

• Emphasis on transparency, consistency, and predictability in results, with ongoing focus on operational efficiency and value creation.

Financial highlights

• Net revenue grew 3.2% year-over-year to R$5.52 billion, with Premium segment driving expansion and adjusted EBITDA margin stable at 34%.

• Free cash flow to equity increased 38% year-over-year, reaching BRL 500 million.

• Adjusted net income dropped by 16.9% to R$399.1 million, with EPS at R$1.51.

• Net debt/EBITDA improved to 1.46x from 1.61x in 2024.

• Dividend payments continued, with BRL 150 million distributed in 2025.

Outlook and guidance

• Confident in maintaining or exceeding 2025 cash generation in 2026, supported by lower interest rates, further leverage reduction, and stable margins around 34%.

• Targeting net debt/EBITDA of 1.0x by 2027.

• Guidance for net income and EPS to be updated after Q1 2026, with strong growth expected as interest costs decline.