Cogna Educação (COGN3) Q2 2025 earnings summary

Executive summary

• Achieved 17th consecutive quarter of EBITDA growth, with double-digit revenue and EBITDA increases across all business units in 2Q25 and 1H25, reflecting strong operational execution and transformation strategy.

• Net revenue grew 15.5% in 2Q25 and 10.5% in 1H25, with all business units contributing; recurring EBITDA rose 14.5% in 2Q25 and 13.4% in 1H25.

• Net income reached R$118.8 million in 2Q25, reversing a loss in 2Q24, and totaled R$213.9 million in 1H25.

• Operating cash generation after Capex surged 206.1% in 2Q25 and 78.1% in 1H25; free cash flow was R$134.1 million in 2Q25 and R$283.8 million in 1H25.

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

Financial highlights

• 2Q25 net revenue: R$1,664.6 million (+15.5% YoY); 1H25: R$3,292.2 million (+10.5% YoY).

• Recurring EBITDA: R$551.7 million (+14.5% YoY) in 2Q25; 1H25: R$1,107.7 million (+13.4% YoY); margin at 33.1% in 2Q25.

• Net income: R$118.8 million in 2Q25, up R$127.1 million from 2Q24; 1H25 net income: R$213.9 million.

• Free cash flow: R$134.1 million in 2Q25 (vs. -R$104.6 million in 2Q24); 1H25: R$283.8 million.

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

Outlook and guidance

• Management expects continued double-digit growth in all business units, with a focus on digital transformation and operational efficiency.

• Regulatory changes in higher education are expected to provide clearer parameters and favor established players.

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