Cogna Educação (COGN3) Q3 2025 earnings summary

Executive summary

• Net revenue grew 18.9% year-over-year in Q3 2025 to R$1,523.4 million, with all business units contributing to growth.

• Recurring EBITDA increased for the 18th consecutive quarter, up 9.8% in Q3 and 12.4% year-to-date, reflecting operational efficiency and strategic initiatives.

• Net income reached R$191.6 million in Q3 2025, reversing a loss from Q3 2024, and totaled R$405.5 million year-to-date.

• Free cash flow for 9M25 was R$583.9 million, up 197.9% year-over-year, surpassing the full year of 2024.

• Leverage (Net Debt/EBITDA) dropped to 1.11x, the lowest in 28 quarters, with net debt reduced by R$474 million year-over-year.

Financial highlights

• Q3 2025 net revenue: R$1,523.4 million (+18.9% YoY); 9M25: R$4,815.6 million (+13.0% YoY).

• Recurring EBITDA: R$422.7 million in Q3 2025 (+9.8% YoY); 9M25: R$1,530.4 million (+12.4% YoY); margin 27.7% in Q3.

• Net income: R$191.6 million in Q3 2025 (vs. -R$29.1 million in Q3 2024); R$405.5 million in 9M25 (vs. -R$46.0 million in 9M24).

• Free cash flow: R$300.1 million in Q3 2025 (+3.1% YoY); R$583.9 million in 9M25 (+197.9% YoY).

• Net debt: R$2,576.2 million; cash and equivalents: R$1,277.3 million (+13.4% YoY).

Outlook and guidance

• Optimistic outlook for Q4 and 2026, expecting continued growth in Vasta’s new commercial cycle, Kroton’s student base, and Saber’s NBTP-driven results.

• Vasta ACV expected to maintain mid double-digit growth for 2026, in line with recent years.

• Anticipate increased revenue from NBTP market share gains and ongoing capital allocation to strategic opportunities.

• Company well-positioned for regulatory changes and focused on strategic capital allocation.