Ser Educacional (SEER3) Q1 2026 earnings summary

Executive summary

• Net income surged 74.0% year-over-year to R$75.9 million, with net margin improving to 13.0%.

• Net revenue increased 8.1% to R$583.8 million, driven by a 6.2% growth in on-campus undergraduate student base and medical school expansion.

• Adjusted EBITDA rose 10.1% to R$158.2 million, with margin expanding to 27.1%.

• Strategic focus shifted to increasing perceived value and average ticket, prioritizing profitability over volume in digital and semi on-campus segments.

• Distance and hybrid learning segments faced challenges due to regulatory changes and market adjustments, leading to a 10.3% decline in student base.

Financial highlights

• Gross profit increased by 11.3% year-over-year to R$364.6 million, with gross margin up 1.8 p.p. to 62.5%.

• Net operating cash generation post-CapEx rose 45.2% to R$109.6 million.

• Net debt decreased 35.4% year-over-year to R$427.9 million, with net debt/adjusted EBITDA at 0.75x, the lowest since 1Q21.

• Average ticket for undergraduate programs (ex-PROUNI) increased 10.2% year-over-year to R$552.98.

• Cash and equivalents more than doubled sequentially to R$528.5 million.

Outlook and guidance

• Continued focus on operational leverage, technology adoption, and organic expansion, especially in health and medical programs.

• Plans to open new units and expand existing high-capacity campuses, with intake expected to begin in 2027.

• Expectation of further progress in expanding medical seats, pending regulatory approvals.

• Dividend payments resumed, with a 30% payout policy and ongoing commitment to leverage reduction and disciplined investment.