Cogna Educação (COGN3) investor relations material

Executive summary

• Celebrated 60 years, now serving over 25 million students and reinforcing a diversified business model.

• Successfully integrated Vasta, Saber, and Cogna into a single Basic Education unit, with new segmentation for Higher Education.

• Demonstrated strong operational cash flow, double-digit growth in both core business units, and expansion into B2G and new products.

• All business units reported double-digit revenue and EBITDA growth, with robust cash generation.

• Regulatory changes impacted course offerings, especially in nursing and pedagogy, but adaptation is underway.

Financial highlights

• Net revenue grew 31.9% year-over-year to R$2.1 billion in Q1 2026.

• Recurring/adjusted EBITDA increased 22.2% to R$679.6 million, with margin down 2.5 p.p.

• Net income rose 48.7% to R$141.4 million, driven by operational improvements.

• Free cash flow grew 68.7% year-over-year to R$252.5 million.

• Net debt reduced to R$2.78 billion, leverage improved to 1.13x EBITDA from 1.28x.

Outlook and guidance

• Optimistic for continued growth in both Basic and Higher Education segments, with focus on operational efficiency and portfolio expansion.

• Expect further margin pressure due to regulatory changes and business mix, but nominal revenue growth remains strong.

• Anticipate full adaptation to new regulatory framework by 2027 and completion of high school procurement program billing in 2Q26.

• Ongoing expansion of new growth avenues, including B2G and product innovation.