Growth, Margin Expansion and Strong Cash Generation define Yduqs’ performance in 3Q25
14% increase in student intake, higher margins, and Shareholder Cash Flow of R$559 million year-to-date are among the highlights
Rio de Janeiro, November 13, 2025 – Strong operational performance across all business lines, disciplined management driving margin expansion, and robust cash generation defined Yduqs’ (B3: YDUQ3) third quarter of 2025. In addition to a 14% increase in new student intake compared to the same period last year, the company reported growth in its student base, net revenue (+5% 9M25 vs. 9M24, pro forma), and a 6% rise in quarterly EBITDA versus 3Q24. Net income for the first nine months of 2025 reached R$427 million, up 2% year-over-year (pro forma).
Beyond operational and financial gains, two additional factors stood out during the period. Free Cash Flow to Equity (FFCE) – the company’s top management priority – reached R$610 million over the last 12 months (as of 3Q25). Year-to-date, FCFE totaled R$559 million, already surpassing the midpoint of the company’s 2025 guidance range (R$500–600 million). The period also saw a 3 percentage-point reduction in the Bad Debt and improved collection cycles, driven by ongoing initiatives to enhance revenue quality and predictability.
“All our indicators, from operations to cash generation, demonstrate consistency and sustainability,” said Rossano Marques, CEO of Yduqs. “They show that we are delivering what students expect, that our discipline and focus on revenue quality maximize results, and that our cash generation – our core strength as a business – is a powerful driver of value for our investors. We are tracking above the upper end of our FCFE guidance, with an 18% yield (reference prince of November 7). We are growing, expanding margins, and generating cash at a strong pace.”
Growth Across All Business Segments
Student intake at Estácio and Wyden grew 14% compared to 3Q24, led by strong results in the Semi On-campus. The student base in this segment expanded 50% year-over-year, surpassing 100,000 students. Another positive development was the stabilization of the On-campus student base, holding steady at approximately 190,000 students. The Digital Learning segment also posted solid intake and stable intake, with a notable 2.5 percentage-point increase in EBITDA margin over the same quarter last year.
At IDOMED, which received authorization for 60 additional Medicine seats during the period (pending CADE approval), revenue and EBITDA grew by double digits, with an adjusted EBITDA margin of 52% for the quarter. Ibmec once again stood out as Yduqs’ top operational performer. Driven by unit maturation, an expanded course portfolio, and outstanding results in graduate programs, Ibmec reported a 23% increase in revenue and a remarkable 40% rise in EBITDA for the first nine months of the year (vs. 9M24). Its EBITDA margin reached 48% in the quarter – nearly equivalent to that of Medicine. Together, Ibmec and IDOMED accounted for 31% of Yduqs’ total revenue and 43% of EBITDA.
The third quarter also marked the implementation of Brazil’s new regulatory framework for higher education. Yduqs’ proven quality delivery, nationwide footprint (90 fully equipped units across all regions), and strong Semi On-campus performance are three key growth levers in this evolving market context, positioning the company to capture new opportunities in the coming cycles.
Consistent Performance and Another Quarter of Strong Cash Generation
In 2025, Yduqs implemented measures to enhance revenue quality and improve earnings predictability. While these actions temporarily impacted net revenue over the short term (first 18 months), the company still posted 3% growth in total net revenue for the first nine months of the year – or 5% on a comparable basis. These initiatives have no cash effect, and their impact is already beginning to subside. EBITDA increased 6% year-over-year, with a one-point gain in margin. As a result, pro forma net income for 9M25 reached R$427 million, 2% higher than 9M24.
These are robust results, but Yduqs’ strategy shows its full strength in cash generation. Year-to-date operating cash flow (OCF) reached R$1.2 billion (+32% vs. 9M24), with cash conversion showed progress 33 percentage points to 119%. The company’s FCFE for the last 12 months stood at R$610 million, representing an FCFE yield of 18% (reference prince of November 7) – a 355% increase compared to 3Q24.
Yduqs remains committed to reaching a leverage ratio of 1.0x Net Debt/EBITDA. As of 3Q25, this metric stood at 1.52x – or 1.31x when adjusted for shareholder return initiatives (dividends and buyback). The company maintains a strong cash position, with no debt maturities due this year. Its average debt spread of CDI + 1.07% is one of the lowest in the market today.
Technology and ESG on the Strategic Agenda
Yduqs also updated the market on key achievements in its ESG agenda – including its second consecutive win at the Exame People Management Award and recognition as the leading company in the Alas20 Sustainability Award – as well as progress in its use of artificial intelligence.
The company’s AI strategy is built on three pillars: enhancing learning quality, preparing students for the future job market, and driving operational efficiency. Four cases involving generative AI were featured in this earnings release, including a marketing automation initiative that boosted the production of personalized communication assets by 110 times, and early results from Low-Code and No-Code development teams that are cutting new software feature implementation costs by 60%. There was also progress in digital student support and in the employability platform that serves all its education brands.
All quarterly and year-to-date results are available on the company’s Investor Relations website.