Yduqs Participações (YDUQ3) investor relations material

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 and premiumization supported resilience amid macroeconomic and regulatory challenges, especially for Estácio Wyden.

• Maintained robust shareholder returns through dividends and share buybacks, including BRL 150 million in dividends and a BRL 100 million buyback program.

• Advanced AI and ESG initiatives, launching new digital platforms and expanding social impact programs.

Financial highlights

• Net income grew 29% year-over-year on a comparable basis, excluding accounting effects from DIS decline; adjusted net income was BRL 150.4 million, down 2.1% year-over-year, but up 29% excluding DIS impact.

• Net revenue increased 5% year-over-year to BRL 1,568 million; would have been 5% growth excluding a BRL 59 million DIS revenue decline.

• Adjusted EBITDA margin increased 7% year-over-year in premium segments, with Ibmec margin near 50%; overall adjusted EBITDA margin was 33.4%, down 1.2 p.p.

• Bad debt and DSO reduced year-over-year, improving cash flow predictability and quality.

• Cash position exceeded BRL 1 billion at quarter-end, with 12-month FCFE of BRL 525 million.

Outlook and guidance

• 2026 FCFE guidance set between BRL 520 million and BRL 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.

• Deleveraging to 1x net debt/EBITDA targeted by 2027, after which higher dividend payouts are anticipated.