Cogna Educação (COGN3) Q2 2026 earnings summary

Executive summary

• Achieved strong double-digit growth in net revenue and net income year-over-year, led by Basic Education and supported by portfolio diversification and operational efficiency amid regulatory changes in higher education.

• Free cash flow and operating cash flow saw robust increases, reflecting improved cash generation and disciplined capital allocation.

• Strategic acquisition of a majority stake in Educbank strengthens the Basic Education ecosystem and technological capabilities.

• Leverage improved to 1.10x, with net debt reduced by R$21.8M year-over-year.

Financial highlights

• Net revenue in Q2 2026 reached R$1,960.7M, up 17.8% YoY; H1 2026 net revenue was R$4,106.9M, up 24.7% YoY.

• Recurring EBITDA for Q2 2026 was R$589.4M (+6.8% YoY); H1 2026 recurring EBITDA was R$1,269.0M (+14.6% YoY), with margin contraction of 3.0 p.p. and 2.7 p.p., respectively.

• Net income in Q2 2026 was R$148.9M (+25.3% YoY); H1 2026 net income was R$290.3M (+35.7% YoY).

• Free cash flow for H1 2026 reached R$504.3M, up 77.7% YoY.

• Net debt leverage reduced to 1.10x, with net debt down R$21.8M YoY.

Outlook and guidance

• Management reaffirms commitment to sustainable growth, capital discipline, and value creation through business diversification and digital transformation.

• Continued focus on expanding hybrid and distance learning, leveraging technology for operational efficiency, and resumption of student intake in nursing programs.

• Expect continued revenue growth in the third and fourth quarters, with higher average ticket offsetting lower enrollment volumes.