Vitru Educação (VTRU3) Q1 2026 earnings summary

Executive summary

• Student base reached 972.8k, up 10% year-over-year, with engagement rate rising from 54.9% to 68.6% after refining intake methodology.

• Hybrid learning intake grew 64.9%, now representing 60% of new students, validating strategy and academic quality.

• Adjusted EBITDA rose 16% to BRL 235.2 million, with margin expanding 3.5 p.p. to 40.6%.

• Free cash flow surged 86% year-over-year to BRL 217.1 million, reflecting strong operational efficiency and merger synergies.

• Adjusted net income increased 24.1% year-over-year to BRL 91.8 million, supported by operating leverage and merger benefits.

Financial highlights

• Consolidated net revenue was BRL 579.2 million, up 6.1% year-over-year, driven by hybrid and distance learning undergraduate programs.

• Hybrid and distance learning accounted for 71% of revenue, growing 8.9%.

• Adjusted gross profit reached BRL 412.9 million, with a gross margin of 71.3%.

• Adjusted net income margin was 15.9%, up 2.3 p.p. year-over-year.

• Free cash flow conversion rate improved to 82.6%.

Outlook and guidance

• Proceeds from April 2026 follow-on offering to strengthen capital structure, accelerate healthcare school openings, and support regulatory investments.

• Capex expected to concentrate in upcoming quarters for lab expansion, healthcare schools, and digital platforms.

• Expect continued improvement in bad debt provisions (PCLD), though at a more moderate pace.

• Marketing expenses as a percentage of revenue expected to normalize closer to last year's level.

• No significant cost impact from new regulatory framework expected until 2027.