Cogna Educação (COGN3) Q4 2024 earnings summary

Executive summary

• Net revenue grew 8.9% to R$6,422.4 million in 2024, with strong performances in Kroton and Vasta offsetting Saber’s seasonality and decline.

• Recurring EBITDA increased 25.2% to R$2,174.4 million, with margin expanding to 33.9% and all core business units posting double-digit EBITDA growth.

• Net income reached R$879.9 million, reversing a prior year loss and enabling dividend distribution.

• Free cash generation after Capex and debt service was R$395.4 million, up 34.6% year-over-year.

• Achieved or exceeded guidance for Recurring EBITDA and post-Capex operating cash generation, marking the end of a turnaround cycle and a return to profitability.

Financial highlights

• Net revenue in 4Q24 was R$2,160.6 million, up 13.2% versus 4Q23.

• Recurring EBITDA in 4Q24 was R$812.3 million, up 47.2% year-over-year.

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

• Net debt reduced by R$397 million (12.1%) to R$2,880.5 million; leverage at 1.35x, the lowest since 4Q18.

• Gross margin expanded to 67.1%, and net margin reached 13.7%.

Outlook and guidance

• Management expects continued revenue and EBITDA growth in 2025, with a focus on innovation, digital transformation, 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.