Cogna Educação (COGN3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 15.5% in Q2 2025, with all business units contributing and recurring EBITDA up 14.5%, marking the 17th consecutive quarter of EBITDA growth.

• Net income reached R$118.8 million in Q2 2025, reversing a loss from Q2 2024, and totaled R$213.9 million in H1 2025.

• Operating cash generation after Capex rose 206.1% in Q2 2025 to R$296.6 million, with free cash flow at R$134.1 million.

• Leverage ratio improved to 1.22x, the lowest in six years, with net debt reduced by over R$526 million year-over-year.

• Strong operational indicators and consistent value creation supported by efficiency gains and strategic execution.

Financial highlights

• Q2 2025 net revenue: R$1,664.6 million (+15.5% YoY); H1 2025: R$3,292.2 million (+10.5% YoY).

• Recurring EBITDA in Q2 2025: R$551.7 million (+14.5% YoY); H1 2025: R$1,107.7 million (+13.4% YoY); margin at 33.1%.

• Net income in Q2 2025: R$118.8 million, up R$127.1 million from Q2 2024; H1 2025: R$213.9 million.

• Free cash flow: R$134.1 million in Q2 2025 (+228.2% YoY); H1 2025: R$283.8 million.

• Net debt at R$2.8 billion; cash and equivalents at R$944 million at quarter-end.

Outlook and guidance

• Optimistic outlook for 2025, expecting continued double-digit growth in all business units.

• Regulatory changes in higher education seen as manageable and providing clearer parameters, with anticipated cost increases offset by pricing power and reduced competition.

• No expected deceleration in cash generation for H2 2025; strong revenue and cash flow anticipated.

• Continued investment in digital transformation, supported by a new IFC loan.

• Strategic focus on educational services, innovation, and operational excellence to drive future growth.