Yduqs Projects Free Cash Flow to Equity of R$500 Million to R$600 Million for 2025
Strong cash generation and long-term confidence prompt revised earnings guidance
Rio de Janeiro, May 12, 2025 — In its first-quarter earnings release, Yduqs projected Free Cash Flow to Equity (FCFE) between R$500 million and R$600 million for the year. The outlook is supported by the robust cash performance in the quarter —operating cash flow, which reached R$1.4 billion over the last 12 months, with FCFE totaling R$251 million in Q1—along with confidence in the company’s ability to sustain this level over the coming years.
Incorporating in external conditions — particularly the increase in Brazil’s benchmark interest rate (Selic) — and internal measures aimed at accelerating deleveraging, Yduqs also refined its earnings per share (EPS) guidance. EPS is now expected to range from R$1.70 to R$2.00 in 2025, rising to R$3.00 to R$4.00 by 2027.
The quarter also saw further returns to shareholders. On May 8, Yduqs paid R$150 million in dividends, continuing an uninterrupted annual practice since 2007. The company also completed a share buyback program totaling R$300 million, with R$154 million executed in 2025. The average repurchase price was R$9.80 per share.
Yduqs continued to reduce leverage, ending the quarter with a net debt-to-EBITDA ratio of 1.42x (excluding share repurchases). The company also improved its debt profile, renegotiating terms to extend its average debt maturity — no significant maturities are due before 2026 — and lowering the average cost of debt to CDI + 1.07%, a signal of investor confidence and strong market credibility.
Operational Performance
Net revenue rose 2% year over year, driven by qualitative shifts across the business. First, the Premium segment continued to grow as a share of both net revenue and consolidated EBITDA, contributing to a more resilient and higher-yielding base. Ibmec stood out with double-digit growth in both revenue (20%) and EBITDA (31%) compared to Q1 2024.
Second, the company saw a clear “trade-up” in student intake, with a shift from fully online to hybrid learning models, which offer higher renewal rates and tuition prices. Finally, Yduqs launched an innovative initiative: a tuition waiver program for freshmen who do not engage in any academic activity during the semester. Historically, attempts to recover such tuition have created friction and legal contingencies. Under the new approach, the company will record a provision equal to 5% of gross intake revenue — based on historical data — allowing the future reintegration of these students without negative financial or reputational impacts. The initiative has no immediate effect on cash flow and is expected to be neutral for earnings over the medium term.
ESG Highlight
Yduqs also launched the “Corpo Preto” project, part of the broader Mediversidade program by IDOMED and the Yduqs Institute. Featuring a short film and a book, the initiative addresses diversity and inclusion in the medical field. Welcomed as essential by the medical community and praised by the public, the project reflects the company's ongoing efforts to embed ESG principles across all areas of its business.
For further details on the company’s Q1 2025 performance, visit the Investor Relations Center.