Cogna Educação (COGN3) Q3 2025 earnings summary

Executive summary

• Net revenue grew 18.9% year-over-year in 3Q25 to R$1,523.4 million, with all business units contributing to growth.

• Recurring EBITDA increased 9.8% in 3Q25 and 12.4% year-to-date, marking the 18th consecutive quarter of growth, though margin was pressured by higher provisions related to PAGFASIO and seasonality in Saber.

• Net income reached R$191.6 million in 3Q25, reversing a net loss of R$29.1 million in 3Q24, 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 by nearly 50%.

• 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

• 3Q25 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 3Q25 (+9.8% YoY); 9M25: R$1,530.4 million (+12.4% YoY); margin 27.7% in 3Q25.

• Net income: R$191.6 million in 3Q25 (vs. -R$29.1 million in 3Q24); R$405.5 million in 9M25 (vs. -R$46.0 million in 9M24).

• Free cash flow: R$300.1 million in 3Q25 (+3.1% YoY); R$583.9 million in 9M25 (+197.9% YoY).

• Net debt: R$2.576 billion; cash position: R$1,277 million.

Outlook and guidance

• Optimistic outlook for Q4 and 2026, expecting continued consistent results and strong cash generation.

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

• Anticipates a strong Q4 in Saber and Vasta due to seasonality and government programs.

• Continued focus on growth, efficiency, and student experience, with strategic initiatives in innovation, ESG, and people development.

• Expansion in NBTP market share and positioning for regulatory changes to drive future revenue growth.