Cogna Educação (COGN3) Q4 2024 earnings summary

Executive summary

• Achieved and exceeded 2024 EBITDA guidance, with recurring EBITDA reaching R$2.17 billion, growing over three times since 2020 and averaging 33% annual growth; all core business units posted double-digit EBITDA growth, with GCO segment averaging 45% per year.

• Net profit for 2024 reached R$879.9 million, reversing a prior year loss and enabling the resumption of dividend payments, with a BRL 120.8 million proposal for 2025.

• Leverage dropped to 1.35x, the lowest since 4Q18, with net debt reduced by R$397 million.

• 2024 marked by strong operational and financial results, with consistent delivery across all business units and a strategic focus on premium products, innovation, and digital platforms.

• Entered a new phase focused on transforming assets into Brazil's largest educational services platform.

Financial highlights

• Net revenue for 2024 grew by almost BRL 880 million year-over-year, reaching R$6,422.4 million (+8.9% YoY); fourth quarter net revenue increased 13.2% to R$2,160.6 million.

• Recurring EBITDA for the fourth quarter rose 47.2% to R$812.3 million; full-year recurring EBITDA up 25.2% to R$2,174.4 million.

• Operating cash generation after Capex was R$1,044.6 million in 2024, up 16.9% year-over-year.

• Free cash flow in 4Q24 was R$199.4 million (+34.6% YoY); free cash generation after Capex and debt service was R$395.4 million in 2024.

• Net debt reduced to R$2,880.5 million, with cash and equivalents at R$1,332 million at year-end.

Outlook and guidance

• Management expects continued revenue and EBITDA growth in 2025, leveraging innovation, digital platforms, and premium educational solutions.

• Dividend payments are expected to continue, inaugurating a new cycle of capital returns to stakeholders.

• Seasonality of cash generation is expected to remain similar in 2025, with strong fourth quarter contributions.