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• Net Operating Cash Generation: Increased by more than 200% compared to last year.

• Financial Debt Reduction: Reduced by almost 10% year-on-year.

• Dividends: Planned payout of BRL19.6 million, representing BRL0.15 per share.

• Undergraduate Enrollment Growth: 16.7% growth in hybrid education and 9.2% growth in digital education.

• Medical Course Places: Offering 1,000 places per year, a 9% increase compared to the first semester of 2024.

• Adjusted EBITDA Growth: Significant double-digit growth.

• Net Debt Reduction: Reduced by 9% year-on-year.

• Nonrecurring Impacts: Approximately BRL70 million, with BRL25 million having a cash effect.

• Student Base Growth: Increase in on-campus student base aided by new medical course places.

• Health Courses Participation: Health courses account for 64% of hybrid teaching days and 45% of all students.

• Warning! GuruFocus has detected 5 Warning Signs with BSP:SEER3.

Release Date: March 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ser Educacional SA (BSP:SEER3) achieved significant double-digit growth in adjusted EBITDA for the fourth quarter of 2024.

• The company reported a more than 200% increase in net operating cash generation compared to the previous year.

• Financial debt was reduced by almost 10%, contributing to a decrease in financial leverage.

• The company resumed dividend distribution after three years, planning to pay out BRL19.6 million in May.

• There was a notable increase in student enrolment, particularly in hybrid and digital education, with a 16.7% growth in undergraduate enrolment in hybrid education.

Negative Points

• The company faced nonrecurring impacts totaling approximately BRL70 million, affecting accounting net income.

• Online courses experienced stagnation in growth following a surge during the pandemic.

• There was an increase in personnel costs due to the expansion of operations, impacting gross margins.

• The company had to increase provisions related to student loans (FG-FIES) by around BRL70 million due to inconsistencies.

• Despite improvements, the company still faces challenges in maintaining the punctuality of student payments.

Q & A Highlights

Q: Can you provide insights into the student intake for the first quarter and the impact of PDD on cash generation? A: Rodrigo de Macedo Alves, Investor Relations Officer: The on-site student intake has been robust, exceeding expectations, which is promising for cash flow generation. Online courses have stabilized post-pandemic. Joao Alberico Porto de Aguiar, CFO: Regarding PDD, we have a cap on student loans, and the financial support system is well-managed. We increased provisions to address inconsistencies, ensuring a stable cash flow.