Yduqs Participações (YDUQ3) Q4 2025 earnings summary

Executive summary

• Achieved over R$1 billion in free cash flow and delivered R$500 million in Free Cash Flow to Equity (FCFE) in 2025, reflecting strong cash generation and financial discipline.

• Premium segment (IDOMED and Ibmec) accounted for 44% of EBITDA, with Ibmec more than doubling its contribution over three years.

• Adjusted EBITDA margin reached 34%, with Premium segment margins at 45% (Ibmec) and 50% (IDOMED).

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

• Distributed R$150 million in dividends and executed share buybacks, maintaining consistent capital returns.

Financial highlights

• Net revenue grew 3.2% year-over-year to R$5.52 billion, with Premium segment driving growth.

• Adjusted EBITDA rose 3.2% to R$1.88 billion, with margin stable at 34%.

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

• Adjusted net income was R$399.1 million, down 16.9% due to higher financial expenses and non-recurring items.

• Net debt/EBITDA improved to 1.46x (from 1.61x in 2024), with average cost of debt at CDI + 1.03%.

Outlook and guidance

• Targeting net debt/EBITDA of 1.0x by 2027, with further deleveraging and stable or improving margins expected.

• Expecting continued gains in cash conversion, consistency of results, and reduction in bad debt in 2026.

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