Cogna Educação (COGN3) investor relations material

Executive summary

• Q3 2026 net revenue was R$1,444.3M, down 5.2% YoY, and recurring EBITDA was R$320.4M, down 24.2%; 9M revenue and recurring EBITDA grew 15.3% and 3.9%, respectively.

• Q3 net loss attributable to controlling shareholders was R$37.3M; 9M consolidated net income was R$253.2M, down 37.6% YoY, with the prior-year comparison affected by a deferred tax benefit.

• 9M free cash flow rose 31.6% to R$768.6M; net debt fell R$239.2M QoQ to R$2,536.2M and leverage reached 1.04x.

Financial highlights

• Q3 recurring EBITDA was R$320.4M, down 24.2%, with a 22.2% margin, down 5.5 p.p.; 9M recurring EBITDA rose 3.9% to R$1,589.5M, with a 28.6% margin.

• 9M adjusted net income was R$433.8M, down 25.6%; Q3 adjusted net income was R$22.8M, down 90.9% YoY.

• Operating cash generation after capex was R$372.0M in Q3 and R$1,085.0M in 9M, up 15.5%; 9M free cash flow was R$768.6M, up 31.6%.

• Q3 gross margin was 75.7%, up 0.8 p.p. YoY; 9M gross margin was 71.3%, down 4.4 p.p.

Outlook and guidance

• Most revenue from the 2026 PNLD Fundamental I cycle is expected to be recognized in 2027, with later material repurchases also contributing in future periods.

• Basic Education 2026-cycle ACV reached R$1,707.7M, up 10.0%; Core Content grew 9.4% and Complementary Solutions 13.4%.

• Management expected B2G prospects to convert in Q4; PNLD revenue timing remained dependent on government purchasing schedules.

• Basic Education SG&A was expected to be lighter in Q4 after elevated Q3 technology and outsourced-service costs.

• The 2027 enrollment cycle had begun with 10% completed; pricing trends were stable across on-site and online modalities.