Vitru Brasil Empreendimentos Participações e Comércio (VTRU3) Q4 2025 earnings summary

Executive summary

• Achieved record student base of 915,400 at year-end 2025, up 11% year-over-year, with hybrid programs representing 55% of new enrollments and 2,533 learning centers nationwide.

• Net revenue reached R$2.26 billion, up 5.5% year-over-year, driven by strong performance in hybrid and distance learning segments.

• Adjusted EBITDA hit an all-time high of R$873.7 million (38.7% margin), up 10.1% year-over-year.

• Adjusted net income rose 61.2% to R$483.7 million, with net margin expanding to 21.4%.

• Free cash flow reached a record R$571.3 million, up 22.5% year-over-year, supporting a 15% reduction in net debt.

Financial highlights

• 4Q25 net revenue was R$558.1 million, up 5.3% year-over-year; adjusted gross margin expanded to 70.0% (+1.0 p.p.).

• Undergraduate student base increased 13.2% to 842,100, with dropout rates falling 26.0%.

• Hybrid model accounted for 55% of undergraduate intake, with improved conversion KPIs and reduced cost per lead.

• Medicine segment revenue increased 3.4% to R$297 million; continuing education up 1.8% to R$141 million.

• Adjusted EBITDA for 4Q25 was R$202.4 million (+20.7% YoY), with margin at 36.3%.

Outlook and guidance

• Management expects continued disciplined growth in 2026, with focus on high margins, cash generation, and further deleveraging.

• Deferred tax assets expected to convert into cash starting in 2026, further enhancing cash flow.

• Corporate simplification and Unicesumar incorporation in Jan-26 anticipated to optimize tax structure and reduce effective tax rate.

• Gross margin expected to remain flat year-over-year at around 70% despite mix changes.

• Strategic priorities include operational efficiency, productivity gains, and adaptation to new regulatory requirements.