Yduqs Participações (YDUQ3) Q3 2026 earnings summary

Executive summary

• 3Q26 net revenue rose 1.7% YoY to R$1,374.8M; adjusted EBITDA fell 3.4% to R$490.3M and adjusted net income declined 10.1% to R$138.9M.

• Record 3Q26 FCFE reached R$364.2M, up 23.1% YoY; 9M26 FCFE was R$565M.

• Leverage declined to 1.43x, and FY26 FCFE and EPS guidance was reaffirmed.

• The interim financial statements received an unmodified review conclusion under CPC 21 and IAS 34.

Financial highlights

• 3Q26 adjusted EBITDA margin was 36%, versus 38% a year earlier; revenue and EBITDA grew 2% in the quarter, with expense timing pressuring margin.

• Reported 3Q26 net income rose 20.1% to R$117.6M; 9M26 reported net income fell 20.9% to R$181.6M, while adjusted net income was R$303M, down 10.6%.

• 3Q26 LTM EPS was R$1.43, or R$1.73 excluding the DIS decline impact; 9M adjusted EPS was R$1.19, down 7.6%.

• 9M26 revenue rose 1.4% to R$4,275.7M; adjusted EBITDA fell 1.5% to R$1,394.5M, with margin down 1.0 p.p. to 32.6%.

• Lower deferred-tax recognition reduced accounting results without cash impact; total tax cash disbursement was cited at 2%-3%.

Outlook and guidance

• FY26 guidance was reaffirmed: FCFE of R$520M–R$620M and EPS of R$1.40–R$2.00.

• 4Q26 levers include Premium-segment revenue growth, lower bad debt, improved renewals, reduced DIS revenue and a more favorable Selic comparison.

• 2027.1 intake indicators were positive, particularly for on-campus and semi-on-campus formats; management cautioned that the cycle was early.

• Management expected cash generation to keep growing in 2027, supported by lower leverage and interest costs, partly offset by less working-capital benefit; deleveraging target is 1.0x by end-2027.

• Ibmec graduate demand was expected to normalize in 4Q26 after a pause in corporate hiring; Fortaleza campus is scheduled to open for 2027.1 intake.