Yduqs Participações (YDUQ3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter free cash flow to equity (FCFE) of BRL 276 million, up 10% year-over-year, with a 20% FCFE yield, driven by strong performance in premium brands Ibmec and Idomed, which now represent 49% of EBITDA.

• Portfolio diversification across verticals provided stability amid challenging macroeconomic and regulatory environments, especially for B and C income classes.

• Strategic focus on deleveraging, disciplined capital allocation, and ongoing share buyback and dividend programs, with BRL 150 million in dividends and a BRL 100 million share buyback program.

• AI initiatives and ESG commitments are integral to operational efficiency and social impact, including the launch of an AI platform in partnership with Google Gemini.

Financial highlights

• Net revenue grew 5% year-over-year on a comparable basis to BRL 1,568 million, with EBITDA margin up 7% and adjusted EBITDA up 7% to BRL 552 million.

• Ibmec revenue up 23% year-over-year, with margin near 50% and strong intake growth; Idomed achieved 10% revenue growth and record intake of over 2,000 students, maintaining stable high margins.

• Cash position exceeded BRL 1 billion at quarter-end; 12-month FCFE reached BRL 525 million.

• Bad debt and DSO both declined year-over-year, improving cash flow predictability.

Outlook and guidance

• 2026 FCFE guidance set at BRL 520–620 million, with EPS guidance of BRL 1.4–2.0 for 2026 and BRL 2.0–3.5 for 2027–2030.

• Margin expected to remain stable, with upside potential if distance learning recovers.

• Confident in continued growth across all verticals, despite regulatory and macroeconomic headwinds.