Cogna Educação (COGN3) Q4 2025 earnings summary

Executive summary

• Net revenue grew to R$7,016.7 million in 2025, up 9.8% year-over-year, driven by strong performance in Kroton and Vasta, offsetting Saber’s seasonality and NBTP schedule shifts.

• Adjusted/recurring EBITDA reached R$2,299.5 million, up 5.8% year-over-year, with margin improvement in core segments.

• Net income for 2025 was R$625.5 million, impacted by prior year’s non-recurring reversals; pro forma net income up 756% year-over-year, excluding non-recurring effects.

• Free cash flow surged 81.1% to R$716.2 million, with operating cash generation after Capex at R$1,274.8 million.

• Strategic capital allocation included dividend payments, share buybacks, and acquisitions of Dourados Medical School, Alumia, and Vasta shares.

Financial highlights

• 4Q25 net revenue was R$2,201.1 million (+1.9% YoY); pro forma 4Q25 revenue was R$2,367.7 million (+12.1% YoY).

• Recurring EBITDA margin was 32.8% for 2025 (down 1.1 p.p. YoY); pro forma EBITDA margin at 32.7%.

• Net debt ended 2025 at R$2,835.6 million, with leverage ratio improved to 1.21x from 1.35x in 2024.

• Capex and expansion investments totaled R$490.5 million (+26.5% YoY).

• Cash and equivalents at year-end were R$1,283 million.

Outlook and guidance

• Management reaffirmed commitment to sustainable double-digit growth, innovation, and shareholder value, with focus on free cash flow and profitability.

• NBTP revenue recognition postponed to 2026, impacting short-term margins but expected to normalize in the next cycle.

• Capex as a percentage of revenue expected to remain around 7% in 2026 and 2027.

• Guidance reaffirmed for continued value creation and robust cash generation.