Cruzeiro do Sul Educacional (CSED3) Q2 2026 earnings summary

Executive summary

• Net revenue rose 8.2% year-over-year in 2Q26 to R$780.3 million, driven by growth in health-related and hybrid courses, with strong re-enrollment and average ticket growth in both On-Campus and Digital segments.

• Adjusted EBITDA increased 16.0% to R$233.5 million, with margin expanding 2.0 p.p. to 29.9%, reflecting operational leverage and lower provisions for doubtful accounts.

• Net income surged 61% to R$101 million, with margin up 4.2 p.p. to 12.9%, supported by improved financial results and disciplined cost management.

• Digital transformation initiatives improved operational efficiency, student engagement, and enrollment conversion.

• Student base totaled 554,000, with 173,000 on-campus and 381,000 in digital/hybrid formats.

Financial highlights

• Gross profit increased 10% YoY to R$402 million, with gross margin expanding by 0.8 p.p. to 51.5%.

• Free cash flow in 2Q26 was R$74.3 million, with free cash flow to equity of R$31.1 million.

• Net debt (ex-IFRS 16) was R$523 million, down 22% YoY, with leverage at 0.8x adjusted EBITDA.

• Cash costs and expenses fell to 71.2% of net revenue in 2Q26, a 2.0 p.p. efficiency gain YoY.

• Capex decreased 17.2% YoY to R$22.3 million in 2Q26.

Outlook and guidance

• Strategic expansion in healthcare education, with medical school seats increasing 25% YoY to 1,275 after regulatory approvals.

• Continued focus on digital transformation and operational efficiency to drive future growth.

• Company monitoring impacts of tax reform and regulatory changes in digital education.