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 free cash flow to equity reaching BRL 500 million, 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.

• Adjusted EBITDA margin improved by up to 4 percentage points year-over-year, with Premium brands achieving margins of 45% (Ibmec) and 50% (Idomed).

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

• Consistent dividend payments of BRL 150 million in 2025 and share buybacks totaling up to BRL 300 million over 2024-2025.

Financial highlights

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

• Adjusted EBITDA reached R$1.88 billion (+3.2% YoY), with margin stable at 34%.

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

• Adjusted net income per share was R$1.51 in 2025, with pro forma EPS at R$1.93.

• Bad debt ratio dropped to 11.5% of net revenue, the lowest since 2020.

Outlook and guidance

• Positive outlook for 2026, with focus on cash generation, operational efficiency, and value creation, supported by lower interest rates and further leverage reduction.

• Targeting net debt/EBITDA of 1.0x by 2027, with leverage at 1.46x in 2025.

• Expect continued margin stability around 34% in 2026, with potential for improvement from mix and bad debt reduction.

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

• Capex to be maintained at approximately 8% of net revenue.