By Brazil Stock Guide – Cogna (B3: COGN3) returned to profitability in the third quarter of 2025, supported by stronger operations in both higher and basic education and improved capital efficiency. The company posted a net profit of R$191.6 million, reversing a R$29.1 million loss from a year earlier, as net revenue rose 18.9% to R$1.52 billion and recurring EBITDA advanced 9.8% to R$422.7 million. Free cash flow reached R$300.1 million, while net leverage dropped to 1.11x, the lowest level in seven years.
Kroton gains traction with flexible credit model
The higher-education unit Kroton remained Cogna’s main growth engine, with revenue up 20.9% to R$1.14 billion. Its “Pague Fácil” financing program, which allows students to pay tuition in installments, boosted enrollment and average ticket prices but also lifted loan-loss provisions (PCLD), trimming EBITDA margin by 3.2 percentage points to R$370.5 million. Still, the company views the initiative as a key tool to build loyalty and pricing power in an increasingly competitive market dominated by digital players.
Vasta and Saber sustain momentum in basic education
In K–12, Vasta reported R$249.6 million in revenue (+13.4%) and R$23.1 million in recurring EBITDA (+25.4%), with its Annual Contract Value (ACV) for 2025 rising 14.3% to R$1.74 billion. Saber, Cogna’s school operator, grew 9.4% in revenue to R$145.8 million, with EBITDA down 8.2% to R$27.5 million. The business gained market share in Brazil’s federal textbook program (PNLD), reaching 30% of the high-school segment, up eight percentage points from last year — revenue recognition from those contracts will mostly occur in coming quarters.
Capital discipline and selective expansion
Cogna continued to strengthen its balance sheet, with net debt at R$2.6 billion and a steady deleveraging path since 2022. Recent capital moves include the acquisition of the Dourados Medical School (60 seats) for R$54.4 million and the extension of Vasta’s tender offer in the U.S. — US$5.00 per share, up to US$79.9 million — now open until December 9, following delays caused by the U.S. government shutdown.