Vasta Announces Second Quarter 2025 Results
SÃO PAULO--(BUSINESS WIRE)--Aug. 6, 2025--
HIGHLIGHTS
-
In the 2025 sales cycle to date (which commenced 4Q24 through 2Q25), net revenue increased 14% to
R$1,488 million compared to the same period of the 2024 sales cycle, mostly due to the conversion of Annual Contract Value (“ACV”) bookings into revenue in the period. In 2Q25, net revenue totaledR$359 million , a 22% increase compared to the same period of the previous year. -
Vasta’s accumulated subscription revenue in the 2025 sales cycle to date year totaled
R$1,340 million , a 16% increase compared to the previous year’s sales cycle. Complementary solutions net revenue in the 2025 sales cycle increased 24% compared to the 2024 sales cycle, toR$228 million . -
In this quarter, the public school sector, or business-to-government (“B2G”) segment, achieved
R$9 million in revenue coming from several new customers, totalingR$50 million in the 2025 sales cycle to date, compared toR$69 million in the same period of the 2024 sales cycle, when the totality of revenues from our contract with theState of Pará (1st and 2nd semesters) was booked all at once. In the 2025 sales cycle to date, the 1st semester under our contract withPará contract was booked in 4Q2024, and the 2nd semester is expected to be performed in the second half of 2025. -
In the 2025 sales cycle to date, Adjusted EBITDA increased by 8% reaching
R$462 million , compared toR$428 million in the same period of the 2024 sales cycle, and Adjusted EBITDA Margin decreased by 1.6 p.p., from 32.7% to 31.1%. In 2Q25, Adjusted EBITDA totaledR$42 million , up fromR$26 million in 2Q24, and Adjusted EBITDA Margin increased 2.9 p.p. to 11.7%, compared to 2Q2024, driven by a 0.8p.p. increase in gross margin and 2.0 p.p. reduction in marketing expenses. -
Vasta recorded an Adjusted Net Profit of
R$111 million in the 2025 sales cycle to date, a 1% increase compared toR$110 million in the 2024 sales cycle. In 2Q25, Adjusted net loss totaledR$29 million , a 22% increase compared to adjusted net loss ofR$37 million in 2Q24. -
Free cash flow (FCF) totaled
R$224 million in the 2025 sales cycle to date, aR$134 million increase fromR$90 million in the 2024 sales cycle. In 2Q25 FCF totaledR$80 million , a 108% increase fromR$38 million in 2Q24. The last twelve-months (LTM) FCF/Adjusted EBITDA conversion rate improved from 31.9% to 57.7%, as a result of Vasta’s growth and implementation of sustained efficiency measures. Additionally, the first semester of 2025 benefited from early collections relative to the 2025 sales cycle, which are expected to normalize throughout the next quarters of the year.
MESSAGE FROM MANAGEMENT
As we conclude the third quarter of the current sales cycle, Vasta´s net revenue reached
Start-Anglo bilingual school operations continue to gain momentum, having generated
In the B2G segment, we recorded
The continued growth of the company's profitability was another highlight of the 2025 sales cycle to date as the Adjusted EBITDA grew by 8% to
Cash flow generation continues to be a key strength and one of the main highlights of the 2025 sales cycle to date. Free cashflow (FCF) totaled
It is worth saying that these measures include certain improvements in our collection processes, including automation, reminders and past-due notifications, customer segmentation, and faster renegotiation of overdue receivables. On the payments side, we implemented several initiatives to enhance discipline in payments, such as rigorous financial planning, centralized payments scheduling, and negotiating longer payment terms with suppliers.
Moreover, we continue to make progress in deleveraging the company. The net debt/LTM adjusted EBITDA as of the end of 2Q25 was 1.90x, down 0.38x from 2Q24 and 0.16x from 1Q25, reinforcing our commitment to long-term value creation to our stakeholders.
OPERATING PERFORMANCE
Student base – subscription models
2025 |
|
2024 |
|
% Y/Y |
|
2023 |
|
% Y/Y |
||
Partner schools - Core content |
5,025 |
|
4,744 |
|
5.9% |
|
5,032 |
|
(5.7%) |
|
Partner schools – Complementary solutions |
2,149 |
|
1,722 |
|
24.8% |
|
1,383 |
|
24.5% |
|
Students - Core content |
1,489,698 |
|
1,432,289 |
|
4.0% |
|
1,539,024 |
|
(6.9%) |
|
Students - Complementary content |
563,525 |
|
483,132 |
|
16.6% |
|
453,552 |
|
6.5% |
|
Note: Students enrolled in partner schools |
In the 2025 sales cycle, Vasta provides approximately 1.5 million students with core content solutions and more than 560,000 students with complementary solutions. This is aligned with the company’s strategy to focus on improving its client base in 2025 through a better mix of schools and growth in premium education systems (Anglo, PH, Amplia and Fibonacci), brands with higher average ticket, lower defaults, greater adoption of complementary solutions and longer-term relationships.
FINANCIAL PERFORMANCE
Net revenue
Values in R$ ‘000 |
2Q25 |
|
2Q24 |
|
% Y/Y |
|
2025 cycle |
|
2024 cycle |
|
% Y/Y |
|
Subscription |
320,711 |
279,760 |
14.6% |
1,340,155 |
1,152,007 |
16.3% |
||||||
Traditional learning systems |
|
316,374 |
|
275,817 |
|
14.7% |
|
1,111,926 |
|
967,821 |
|
14.9% |
Complementary solutions |
|
4,337 |
|
3,943 |
|
10.0% |
|
228,229 |
|
184,186 |
|
23.9% |
Non-subscription |
28,960 |
14,593 |
98.5% |
97,787 |
88,139 |
10.9% |
||||||
B2G |
|
8,829 |
|
- |
|
0.0% |
|
49,879 |
|
69,031 |
|
(27.7%) |
Total net revenue |
358,500 |
294,353 |
21.8% |
1,487,821 |
1,309,177 |
13.6% |
||||||
% Subscription |
|
89.5% |
|
95.0% |
|
(5.6p.p.) |
|
90.1% |
|
88.0% |
|
2.1p.p. |
Note: n.m.: not meaningful |
In the 2025 sales cycle to date (4Q24 through 2Q25), Vasta’s net revenue totaled
In 2Q25, Vasta’s net revenue totaled
EBITDA
Values in R$ ‘000 |
2Q25 |
|
2Q24 |
|
% Y/Y |
|
2025 cycle |
|
2024 cycle |
|
% Y/Y |
|
Net revenue |
|
358,500 |
|
294,352 |
|
21.8% |
|
1,487,821 |
|
1,309,177 |
|
13.6% |
Cost of goods sold and services |
|
(156,321) |
|
(130,767) |
|
19.5% |
|
(565,546) |
|
(466,293) |
|
21.3% |
General and administrative expenses |
|
(129,518) |
|
(122,909) |
|
5.4% |
|
(369,442) |
|
(358,462) |
|
3.1% |
General and administrative expenses - reversal of tax contingencies |
|
- |
|
- |
|
0.0% |
|
92,558 |
|
- |
|
0.0% |
Commercial expenses |
|
(82,383) |
|
(73,578) |
|
12.0% |
|
(252,263) |
|
(213,966) |
|
17.9% |
Other operating income |
|
341 |
|
(284) |
|
(220.1%) |
|
(8,935) |
|
2,068 |
|
n.m. |
Share of loss of equity-accounted investees |
|
(4,648) |
|
(3,968) |
|
17.1% |
|
(9,151) |
|
(20,151) |
|
(54.6%) |
Impairment losses on trade receivables |
|
(11,037) |
|
(10,149) |
|
8.7% |
|
(45,387) |
|
(52,348) |
|
(13.3%) |
Profit before financial income and taxes |
|
(25,066) |
|
(47,303) |
|
(47.0%) |
|
329,655 |
|
200,025 |
|
64.8% |
(+) Depreciation and amortization |
|
64,953 |
|
67,827 |
|
(4.2%) |
|
207,687 |
|
204,390 |
|
1.6% |
EBITDA |
|
39,887 |
|
20,524 |
|
94.3% |
|
537,342 |
|
404,415 |
|
32.9% |
EBITDA Margin |
|
11.1% |
|
7.0% |
|
4.2p.p. |
|
36.1% |
|
30.9% |
|
5.2p.p. |
(+) Layoff related to internal restructuring |
|
588 |
|
2,630 |
|
(77.6%) |
|
927 |
|
3,610 |
|
(74.3%) |
(+) Share-based compensation plan |
|
1,631 |
|
2,768 |
|
(41.1%) |
|
8,361 |
|
5,997 |
|
39.4% |
(+) M&A adjusting expenses |
|
- |
|
- |
|
0.0% |
|
8,271 |
|
13,776 |
|
(40.0%) |
(-) Reversal of tax contingencies |
|
- |
|
- |
|
0.0% |
|
(92,558) |
|
- |
|
0.0% |
Adjusted EBITDA |
42,106 |
|
25,922 |
|
62.4% |
|
462,343 |
|
427,798 |
|
8.1% |
|
Adjusted EBITDA Margin |
11.7% |
|
8.8% |
|
2.9p.p. |
|
31.1% |
|
32.7% |
|
(1.6p.p.) |
|
Note: n.m.: not meaningful |
In the 2025 sales cycle to date, Adjusted EBITDA reached
In the 4th quarter of 2024, which is the first quarter of 2025 sales cycle, the Company proceeded with the partial reversal of the tax contingencies, based on the opinion of its legal advisors, related to the discussions of goodwill and other subjects derived from the acquisition of the
(%) Net Revenue |
2Q25 |
|
2Q24 |
|
Y/Y (p.p.) |
|
2025 cycle |
|
2024 cycle |
|
Y/Y (p.p.) |
|
Gross margin |
|
56.4% |
|
55.6% |
|
0.8p.p. |
|
62.0% |
|
64.4% |
|
(2.4p.p.) |
Adjusted cash G&A expenses (1) |
|
(18.6%) |
|
(18.3%) |
|
(0.3p.p.) |
|
(10.9%) |
|
(11.4%) |
|
0.5p.p. |
Commercial expenses |
|
(23.0%) |
|
(25.0%) |
|
2.0p.p. |
|
(17.0%) |
|
(16.3%) |
|
(0.6p.p.) |
Impairment on trade receivables |
|
(3.1%) |
|
(3.4%) |
|
0.4p.p. |
|
(3.1%) |
|
(4.0%) |
|
0.9p.p. |
Adjusted EBITDA margin |
|
11.7% |
|
8.8% |
|
2.9p.p. |
|
31.1% |
|
32.7% |
|
(1.6p.p.) |
(1) Sum of general and administrative expenses, other operating income and profit (loss) of equity-accounted investees, less: depreciation and amortization, layoffs related to internal restructuring, share-based compensation plan and M&A one-off adjusting expenses. |
Gross margin decreased 2.4 p.p. in the sales cycle to date mainly due to a different sales mix and lower net revenue in the B2G segment. Complementary solutions have grown at a faster pace despite royalties being owed to the owners of certain products. Adjusted cash G&A expenses declined by 0.5 p.p. driven by workforce optimization and budgetary discipline. Commercial expenses increased by 0.6 p.p. reflecting higher expenses related to business expansion and marketing investments. Provision for doubtful accounts (PDA), decreased by 0.9 p.p. in the 2025 sales cycle, mainly due to an additional provision booked in the 2024 sales cycle for expected credit losses related to customers in mainstream brands.
Finance Results
Values in R$ ‘000 |
|
2Q25 |
|
2Q24 |
|
% Y/Y |
|
2025 cycle |
|
2024 cycle |
|
% Y/Y |
Finance income |
18,452 |
16,187 |
14.0% |
45,064 |
46,405 |
(2.9%) |
||||||
Finance from contingencies |
|
- |
|
- |
|
0.0% |
|
206,961 |
|
- |
|
n.m. |
Finance costs |
(68,131) |
(63,974) |
6.5% |
(182,044) |
(205,176) |
(11.3%) |
||||||
Total |
|
(49,679) |
|
(47,787) |
|
4.0% |
|
69,981 |
|
(158,771) |
|
(13.7%) |
In the second quarter of 2025, finance income totaled
Finance costs in 2Q25 increased 6.5% to
Net profit (loss)
Values in R$ ‘000 |
|
2Q25 |
|
2Q24 |
|
% Y/Y |
|
2025 cycle |
|
2024 cycle |
|
% Y/Y |
Net (loss) profit |
(56,151) |
(66,171) |
(15.1%) |
548,195 |
15,739 |
n.m. |
||||||
(+) Layoffs related to internal restructuring |
588 |
2,630 |
(77.6%) |
927 |
3,610 |
(74.3%) |
||||||
(+) Share-based compensation plan |
|
1,631 |
|
2,768 |
|
(41.1%) |
|
8,361 |
|
5,997 |
|
39.4% |
(+) Amortization of intangible assets (1) |
39,395 |
39,304 |
0.2% |
118,185 |
118,902 |
(0.6%) |
||||||
(+) Success fee (tax contingencies reversal) |
|
- |
|
- |
|
0.0% |
|
9,333 |
|
- |
|
0.0% |
(-) Income tax contingencies reversal |
|
- |
|
- |
|
0.0% |
|
(532,717) |
|
- |
|
0.0% |
(+) M&A adjusting expenses |
|
- |
|
- |
|
0.0% |
|
8,271 |
|
13,776 |
|
(40.0%) |
(-) Tax shield (2) |
(14,149) |
(15,199) |
(6.9%) |
(49,326) |
(48,377) |
2.0% |
||||||
Adjusted net profit |
(28,686) |
(36,668) |
(21.8%) |
111,229 |
109,647 |
1.4% |
||||||
Adjusted net margin |
(8.0%) |
(12.5%) |
4.5p.p. |
7.5% |
8.4% |
(0.9p.p.) |
||||||
Note: n.m.: not meaningful; (1) From business combinations. (2) Tax shield (34%) generated by the expenses that are being deducted as net (loss) profit adjustments. |
In the second quarter of 2025, adjusted net losses totaled
Accounts receivable and PDA
Values in R$ ‘000 |
2Q25 |
|
2Q24 |
|
% Y/Y |
|
1Q25 |
|
% |
|
Gross accounts receivable |
812,286 |
755,133 |
7.6% |
946,669 |
(14.2%) |
|||||
Provision for doubtful accounts (PDA) |
(87,028) |
(93,543) |
(7.0%) |
(87,590) |
(0.6%) |
|||||
Coverage index |
|
10.7% |
|
12.4% |
|
(1.7 p.p.) |
|
9.3% |
|
1.5 p.p. |
Net accounts receivable |
|
725,258 |
|
661,590 |
|
9.6% |
|
859,079 |
|
(15.6%) |
Average days of accounts receivable (1) |
153 |
152 |
1 |
188 |
(35) |
|||||
(1) Balance of net accounts receivable divided by the last-twelve-month net revenue, multiplied by 360. |
The average payment term of Vasta’s accounts receivable portfolio was 153 days in 2Q25, remaining stable in the same quarter of the previous year, and 35 days lower compared to 1Q25.
Free cash flow
Values in R$ ‘000 |
|
2Q25 |
|
2Q24 |
|
% Y/Y |
|
2025 cycle |
|
2024 cycle |
|
% Y/Y |
Cash from operating activities(1) |
116,003 |
|
68,866 |
|
68.4% |
|
344,458 |
|
228,582 |
|
50.7% |
|
(-) Income tax and social contribution paid |
(477) |
|
- |
|
0.0% |
|
(856) |
|
(672) |
|
27.4% |
|
(-) Payment of provision for tax, civil and labor losses |
|
(427) |
|
(64) |
|
567.2% |
|
(2,373) |
|
(440) |
|
439.3% |
(-) Interest lease liabilities paid |
|
(2,886) |
|
(2,579) |
|
11.9% |
|
(8,878) |
|
(6,109) |
|
45.3% |
(-) Acquisition of property, plant, and equipment |
(476) |
|
(1,910) |
|
(75.1%) |
|
(20,974) |
|
(14,183) |
|
47.9% |
|
(-) Additions of intangible assets |
(26,000) |
|
(22,080) |
|
17.8% |
|
(70,809) |
|
(100,723) |
|
(29.7%) |
|
(-) Lease liabilities paid |
(5,750) |
|
(3,787) |
|
51.8% |
|
(17,065) |
|
(16,017) |
|
6.5% |
|
Free cash flow (FCF) |
|
79,986 |
|
38,446 |
|
108.0% |
|
223,502 |
|
90,438 |
|
147.1% |
FCF/Adjusted EBITDA |
190.0% |
|
148.3% |
|
41.6p.p. |
|
48.3% |
|
21.1% |
|
27.2p.p. |
|
LTM FCF/Adjusted EBITDA |
|
57.7% |
|
31.9% |
|
25.8p.p. |
|
57.7% |
|
31.9% |
|
25.8p.p. |
(1) Net (loss) profit less non-cash items less and changes in working capital. Note: n.m.: not meaningful |
Free cash flow (FCF) totaled
These measures include certain improvements in our collection processes, including automation, reminders and past-due notifications, customer segmentation, and faster renegotiation of overdue receivables. On the payments side, we implemented several initiatives to enhance discipline in payments, such as rigorous financial planning, centralized payments scheduling, and negotiating longer payment terms with suppliers. Additionally, the first semester of 2025 benefited from early collections relative to the 2025 sales cycle, which are expected to normalize throughout the next quarters of the year.
Financial leverage
Values in R$ ‘000 |
|
2Q25 |
|
1Q25 |
|
4Q24 |
|
3Q24 |
|
2Q24 |
Financial debt |
|
770,489 |
|
771,727 |
|
762,005 |
|
764,693 |
|
768,459 |
Accounts payable from business combinations |
|
462,034 |
|
449,467 |
|
436,600 |
|
630,267 |
|
618,830 |
Total debt |
|
1,232,523 |
|
1,221,194 |
|
1,198,605 |
|
1,394,960 |
|
1,387,289 |
Cash and cash equivalents |
|
14,257 |
|
12,345 |
|
84,532 |
|
96,162 |
|
50,868 |
Marketable securities |
|
300,942 |
|
245,941 |
|
111,313 |
|
258,945 |
|
272,991 |
Net debt |
|
917,324 |
|
962,908 |
|
1,002,760 |
|
1,039,853 |
|
1,063,430 |
Net debt/LTM adjusted EBITDA |
|
1.90 |
|
2.06 |
|
1.97 |
|
2.32 |
|
2.28 |
As of the end of 2Q25, Vasta had a net debt position of
ESG
Sustainability Report
In
The report complies with the
The document is available at: https://ir.vastaplatform.com/esg/. Information contained in, or accessible through, our website is not incorporated by reference in, and does not constitute a part of, this press release.
In line with the topics identified in the materiality process, every quarter we present Vasta's most material indicators:
Key Indicators
ENVIRONMENT
Water withdrawal 1 |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
3, 11, 12 |
303-3 |
Total water withdrawal |
m3 |
6,362 |
3,039 |
109% |
7,343 |
(13%) |
Municipal water supply1 |
% |
100% |
100% |
0 p.p. |
100% |
0 p.p. |
||
Groundwater |
% |
0% |
0% |
0 p.p. |
0% |
0 p.p. |
||
Energy consumption within the organization2 |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
12, 13 |
302-1 |
Total energy consumption |
GJ |
2,809 |
3,856 |
(27%) |
3,384 |
(17%) |
Energy from renewable sources2 |
% |
63% |
52% |
11 p.p. |
66% |
(3 p.p.) |
The increase in energy consumption this quarter was expected, as the variation reflects the production schedule of our distribution centers. At educational facilities, the increase aligns with the end of the school break period, with higher occupancy levels at the units.
SOCIAL
Diversity in workforce by employee category |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
5 |
405-1 |
C-level – Women |
% |
22% |
29% |
(7 p.p.) |
22% |
0 p.p. |
C-level – Men |
% |
78% |
71% |
7 p.p. |
78% |
0 p.p. |
||
C-level- total4 |
no. |
9 |
7 |
29% |
9 |
0.0% |
||
Leadership (≥ managers) – Women |
% |
41% |
43% |
(2 p.p.) |
44% |
(3 p.p.) |
||
Total - Leadership (≥ managers) – Men |
% |
59% |
57% |
2 p.p. |
56% |
3 p.p. |
||
Leadership (≥ managers) 5 – total |
no. |
123 |
124 |
(1%) |
124 |
(1%) |
||
Academic staff – Women |
% |
27% |
15% |
12 p.p. |
28% |
(1 p.p.) |
||
Academic staff – Men |
% |
73% |
85% |
(12 p.p.) |
72% |
1 p.p. |
||
Academic staff 6 – total |
no. |
93 |
75 |
24% |
96 |
(3%) |
||
Administrative/Operational – Women |
% |
55% |
54% |
1 p.p. |
54% |
1 p.p. |
||
Administrative/Operational – Male |
% |
45% |
46% |
(1 p.p.) |
46% |
(1 p.p.) |
||
Administrative/Operational 7 – total |
no. |
1,253 |
1,229 |
2% |
1,229 |
2% |
||
Employees – Women |
% |
52% |
51% |
1 p.p. |
51% |
1 p.p. |
||
Employees – Men |
% |
48% |
49% |
(1 p.p.) |
49% |
(1 p.p.) |
||
Employees – total |
no. |
1,478 |
1,435 |
3% |
1,458 |
1% |
We are proud to receive recognition as one of the Best Companies to Work For® 2024/2025 by
Social impact* 8 |
||||||
SDGs |
GRI |
Disclosure |
Unit |
1S2025 |
1S2024 |
2S2024 |
4, 10 |
- |
Scholars of the Somos Futuro Program |
no. |
227 |
195 |
219 |
* Indicators presented progressively, referring to the total accumulated since the beginning of the year, which is why we are not presenting the variations compared to previous semesters. |
We continue to maintain the Somos Futuro Program via Instituto SOMOS. The initiative enables public school students to attend high school at one of Vasta's partner schools. In this quarter, 227 young people were studying through the program, receiving didactic and paradidactic material, online school tutoring, mentoring, and access to the entire support network of the program, which includes psychological monitoring, in addition to the scholarship offered by the school.
Health and Safety |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
1Q2025 |
1Q2024 |
% HA |
4Q2024 |
% HA |
3 |
403-5, 403-9 |
Units covered by the Risk Management Program (PGR) |
% |
100% |
100% |
0.0 p.p. |
100% |
0.0 p.p. |
Trained employees |
no. |
62 |
361 |
-83% |
84 |
-26.2% |
||
Average hours of training per employee 9 |
no. |
0.62 |
1.33 |
-53% |
3.00 |
-79% |
||
Injury frequency 10 |
rate |
- |
0.90 |
-100% |
2.31 |
-100% |
||
High-consequence injuries |
no. |
- |
- |
0% |
- |
0% |
||
Recordable work-related injuries 11 |
rate |
- |
- |
0% |
1.16 |
-100% |
||
Fatalities resulted from work-related injuries |
no. |
- |
- |
0% |
- |
0% |
||
Fatalities 12 |
rate |
- |
- |
0% |
- |
0% |
During the quarter, we conducted the
GOVERNANCE
Diversity in the Board of Directors (gender) |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
5 |
405-1 |
Members |
no. |
7 |
7 |
0% |
7 |
0% |
Women |
% |
29% |
29% |
0 p.p. |
29% |
0 p.p. |
Ethical conduct |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
16 |
2-25 |
Cases recorded in our Confidential Ethics Hotline 13 |
no. |
32 |
21 |
52% |
17 |
88% |
10 |
406-1 |
Grievances regarding discrimination received through our Confidential Ethics Hotline 13 |
no. |
1 |
2 |
(50%) |
1 |
0% |
Confirmed incidents of discrimination 13 |
no. |
0 |
0 |
0% |
0 |
0% |
||
5 |
405-1 |
Employees received training on anti-corruption policies and procedures |
% |
100% |
100% |
0 p.p. |
100% |
0 p.p. |
Operations assessed for risks related to corruption |
% |
100% |
100% |
0 p.p. |
100% |
0 p.p. |
||
Confirmed incidents of corruption |
no. |
0 |
0 |
0% |
0 |
0% |
During the quarter, we recorded a significant increase in the number of reports due to intensified communication and awareness around the Cogna Confidential Channel (CCC), which was integrated into the Ombudsman Portal. This strategy facilitated access to the Channel, allowing requesters to be redirected to the CCC even when initial contact occurs through the ombudsman's office.
Compliance* | ||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
16 |
307-1, 419-1 |
Fines for social and economic noncompliance |
R$ thousand |
0 |
0 |
0% |
0 |
0% |
Non-financial sanctions for social and economic non-compliance |
no. |
0 |
0 |
0% |
0 |
0% |
||
Fines for environmental noncompliance |
R$ thousand |
0 |
0 |
0% |
0 |
0% |
||
Non-financial sanctions for environmental non-compliance |
no. |
0 |
0 |
0% |
0 |
0% |
||
* Only cases deemed material, i.e., cases that harm Vasta's image, which lead to a halt in operations, or where the amounts involved are over |
We did not record significant sanctions or fines related to economic and social issues, except for the normal course of business.
Customer data privacy |
||||||||
SDGs |
GRI |
Disclosure |
Unit |
2Q2025 |
2Q2024 |
% HA |
1Q2025 |
% HA |
16 |
418-1 |
External complaints substantiated by the organization |
no. |
14 |
3 |
367% |
27 |
(48%) |
Complaints received from regulatory agencies or similar official bodies |
no. |
0 |
0 |
0% |
0 |
0% |
||
Cases identified of leakage, theft, or loss of customer data |
no. |
0 |
0 |
0% |
0 |
0% |
The Privacy Portal underwent a migration process to the Compliance section of the Cogna website. As a result, there was a slight reduction in the volume of cases received through the Portal, which are now primarily related to data subjects' rights as provided under
FOOTNOTES | |
SDG |
Sustainable Development Goal. Indicates goal to which the actions monitored contribute. |
GRI |
|
ND |
Indicator discontinued or not measured in the quarter. |
NM |
Not meaningful |
1 |
Based on invoices from sanitation concessionaires. |
2 |
Acquired from the free energy market. |
3 |
n.a. |
4 |
Takes into the account the positions of CEO, vice presidents and director reporting directly to the CEO |
5 |
Management, senior management and leadership positions not reporting directly to the CEO |
6 |
Course coordinators, teachers, and tutors. |
7 |
Corporate coordination, specialists, adjuncts, assistants and analysts. |
8 |
Indicators reported on semi-annual basis (2Q and 4Q). |
9 |
Total hours of training/employees trained. |
10 |
Total accidents (with and without leave)/ Total man/hours worked (MHW) x 1,000,000 |
11 |
Work-related injury (excluding fatalities) from which the worker cannot recover fully to pre-injury health status within 6 months. Formula: Number of injuries/MHW x 1.000.000. |
12 |
Fatalities/ MHW x 1,000,000. |
13 |
Indicators measured from the first quarter of 2023. It used to be reported annually in Sustainability Reports |
CONFERENCE CALL INFORMATION
Vasta will discuss its second quarter of 2025 results on
ABOUT VASTA
Vasta is a leading, high-growth education company in
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to of various factors, including (i) general economic, financial, political, demographic and business conditions in
NON-GAAP FINANCIAL MEASURES
This press release presents our EBITDA, Adjusted EBITDA and Adjusted net (loss) profit and Free cash flow (FCF), which is information provided for the convenience of investors. EBITDA and Adjusted EBITDA are among the key performance indicators used by us to measure financial operating performance. Our management believes that these Non-GAAP financial measures provide useful information to investors and shareholders. We also use these measures internally to establish budgets and operational goals to manage and monitor our business, evaluate our underlying historical performance and business strategies and to report our results to the board of directors.
We calculate EBITDA as net (loss) profit for the period/year plus income taxes and social contribution plus/minus net finance result plus depreciation and amortization. The EBITDA measure provides useful information to assess our operational performance.
We calculate Adjusted EBITDA as EBITDA plus/minus: (a) income tax and social contribution; (b) net finance result; (c) depreciation and amortization; (d) share-based compensation expenses, mainly due to the grant of additional shares to Somos’ employees in connection with the change of control of Somos to Cogna (for further information refer to note 23 to the audited consolidated financial statements); (e) provision for risks of tax, civil and labor losses regarding penalties, related to income tax positions taken by the Predecessor Somos – Anglo and Vasta in connection with a corporate reorganization carried out by the Predecessor Somos – Anglo; (f) Bonus IPO, which refers to bonus paid to certain executives and employees based on restricted share units; and (g) expenses with contractual termination of employees due to organizational restructuring. We understand that such adjustments are relevant and should be considered when calculating our Adjusted EBITDA, which is a practical measure to assess our operational performance that allows us to compare it with other companies that operates in the same segment.
We calculate Adjusted net (loss) profit as the (loss) profit for the period/year as presented in Statement of Profit or Loss and Other Comprehensive Income adjusted by the same Adjusted EBITDA items, however, added by (a) Amortization of intangible assets from Business Combination and (b) Tax shield of 34% generated by the aforementioned adjustments.
We calculate Free cash flow (FCF) as the cash from operating activities as presented in the Statement of Cash Flows less (a) income tax and social contribution paid; (b) tax, civil and labor proceedings paid; (c) interest lease liabilities paid; (d) acquisition of property, plant and equipment; (e) additions to intangible assets; and (f) lease liabilities paid.
We understand that, although Adjusted net (loss) profit, EBITDA, Adjusted EBITDA, and Free cash flow (FCF) are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted net (loss) profit, Adjusted EBITDA, and Free cash flow (FCF) may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.
REVENUE RECOGNITION AND SEASONALITY
Our main deliveries of printed and digital materials to our customers occur in the last quarter of each year (typically in November and December), and in the first quarter of each subsequent year (typically in February and March), and revenue is recognized when the customers obtain control over the materials. In addition, the printed and digital materials we provide in the fourth quarter are used by our customers in the following school year and, therefore, our fourth quarter results reflect the growth in the number of our students from one school year to the next, leading to higher revenue in general in our fourth quarter compared with the preceding quarters in each year. Consequently, in aggregate, the seasonality of our revenues generally produces higher revenues in the first and fourth quarters of our fiscal year. Thus, the numbers for the second quarter and third quarter are usually less relevant. In addition, we generally bill our customers during the first half of each school year (which starts in January), which generally results in a higher cash position in the first half of each year compared to the second half.
A significant part of our expenses is also seasonal. Due to the nature of our business cycle, we need significant working capital, typically in September or October of each year, to cover costs related to production and inventory accumulation, selling and marketing expenses, and delivery of our teaching materials at the end of each year in preparation for the beginning of each school year. As a result, these operating expenses are generally incurred between September and December of each year.
Purchases through our Livro Fácil e-commerce platform are also very intense during the back-to-school period, between November, when school enrollment takes place and families plan to anticipate the purchase of products and services, and February of the following year, when classes are about to start. Thus, e-commerce revenue is mainly concentrated in the first and fourth quarters of the year.
KEY BUSINESS METRICS
Annual Contract Value, or ACV, is a non-accounting managerial metric and represents our partner schools’ commitment to pay for our solutions offerings. We believe it is a meaningful indicator of demand for our solutions. We consider ACV is a helpful metric because it is designed to show amounts that we expect to be recognized as revenue from subscription services for the 12-month period between
FINANCIAL STATEMENTS
|
|||
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
14,257 |
84,532 |
|
Marketable securities |
300,942 |
111,313 |
|
Trade receivables |
725,258 |
863,244 |
|
Inventories |
246,533 |
276,781 |
|
Prepayments |
71,010 |
80,993 |
|
Taxes recoverable |
22,114 |
20,813 |
|
Income tax and social contribution recoverable |
6,550 |
13,631 |
|
Other receivables |
4,939 |
1,304 |
|
Related parties – other receivables |
26,647 |
13,714 |
|
Total current assets |
1,418,250 |
1,466,325 |
|
|
|
|
|
Non-current assets |
|||
Judicial deposits |
164,220 |
154,452 |
|
Deferred income tax and social contribution |
230,046 |
208,849 |
|
Equity accounted investees |
45,614 |
52,184 |
|
Other investments |
1,608 |
|
1,608 |
Property, plant and equipment |
147,984 |
160,952 |
|
Intangible assets and goodwill |
5,088,974 |
5,160,785 |
|
Total non-current assets |
5,678,446 |
5,738,830 |
|
|
|
|
|
Total Assets |
7,096,696 |
7,205,155 |
Consolidated Statements of Financial Position (continued) |
|||
Liabilities |
|
|
|
Current liabilities |
|
|
|
Bonds |
272,369 |
264,484 |
|
Suppliers |
172,580 |
240,192 |
|
Reverse factoring |
301,863 |
|
302,608 |
Lease liabilities |
23,686 |
22,133 |
|
Income tax and social contribution payable |
4,605 |
2,146 |
|
Taxes payable |
7,068 |
|
4,583 |
Salaries and social contributions |
105,148 |
101,958 |
|
Contractual obligations and deferred income |
48,051 |
|
40,565 |
Accounts payable for business combination |
232,340 |
215,237 |
|
Other liabilities |
528 |
19,944 |
|
Other liabilities - related parties |
18,980 |
30,322 |
|
Total current liabilities |
1,187,218 |
1,244,172 |
|
|
|
|
|
Non-current liabilities |
|||
Bonds |
498,120 |
497,521 |
|
Lease liabilities |
84,092 |
89,240 |
|
Accounts payable for business combination |
229,694 |
221,363 |
|
Provision for tax, civil and labor losses |
160,625 |
157,123 |
|
Other liabilities |
804 |
2,425 |
|
Total non-current liabilities |
973,335 |
967,672 |
|
|
|
|
|
Total current and non-current liabilities |
2,160,553 |
2,211,844 |
|
|
|
|
|
Shareholder's Equity |
|
|
|
Share capital |
4,820,815 |
4,820,815 |
|
Capital reserve |
90,914 |
90,909 |
|
|
(72,287) |
(74,641) |
|
Accumulated losses |
95,495 |
154,928 |
|
Total Shareholder's Equity |
4,934,937 |
4,992,011 |
|
|
|
|
|
Interest of non-controlling shareholders |
1,206 |
|
1,300 |
|
|
|
|
Total Shareholder's Equity |
4,936,143 |
4,993,311 |
|
|
|
|
|
Total Liabilities and Shareholder's Equity |
7,096,696 |
|
7,205,155 |
Consolidated Income Statement |
||||||||
|
|
April to 2025 |
|
April to 2024 |
|
2025 |
|
2024 |
Net revenue from sales and services |
|
358,500 |
|
294,352 |
|
788,892 |
755,068 |
|
Sales |
|
333,694 |
|
272,433 |
|
738,295 |
714,978 |
|
Services |
|
24,806 |
|
21,919 |
|
50,597 |
40,090 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold and services |
|
(156,321) |
|
(130,767) |
|
(297,534) |
(270,850) |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
202,179 |
|
163,585 |
|
491,358 |
484,218 |
|
|
|
|
|
|
|
|
|
|
Operating income (expenses) |
|
(222,597) |
|
(206,920) |
|
(465,468) |
(431,502) |
|
General and administrative expenses |
|
(129,518) |
|
(122,909) |
|
(262,208) |
(262,811) |
|
Commercial expenses |
|
(82,383) |
|
(73,578) |
|
(180,082) |
(146,838) |
|
Impairment losses on trade receivables |
|
(11,037) |
|
(10,149) |
|
(23,583) |
(23,354) |
|
Other operating income |
|
341 |
|
22 |
|
405 |
2,002 |
|
Other operating expenses |
|
- |
|
(306) |
|
- |
(501) |
|
|
|
|
|
|
|
|
|
|
Share of loss equity-accounted investees |
|
(4,648) |
|
(3,968) |
|
(6,570) |
|
(7,028) |
|
|
|
|
|
|
|
|
|
(Loss) profit before finance result and taxes |
|
(25,066) |
|
(47,303) |
|
19,320 |
45,688 |
|
|
|
|
|
|
|
|
|
|
Finance result |
|
|
|
|
|
|
||
Finance income |
|
18,452 |
|
16,187 |
|
31,083 |
29,730 |
|
Finance costs |
|
(68,131) |
|
(63,974) |
|
(126,475) |
(133,784) |
|
|
|
|
|
|
|
|
|
|
Loss before income tax and social contribution |
|
(74,745) |
|
(95,090) |
|
(76,072) |
(58,366) |
|
|
|
|
|
|
|
|
|
|
Income tax and social contribution |
|
|
|
|
|
|
|
|
Current |
|
(3,939) |
|
5,183 |
|
(4,652) |
(1,790) |
|
Deferred |
|
22,533 |
|
23,736 |
|
21,197 |
15,927 |
|
|
|
18,594 |
|
28,919 |
|
16,545 |
|
14,137 |
|
|
|
|
|
|
|
|
|
Loss for the period |
|
(56,151) |
|
(66,171) |
|
(59,527) |
(44,229) |
|
|
|
|
|
|
|
|
|
|
Allocated to: |
|
|
|
|
|
|
|
|
Controlling shareholders |
|
(56.166) |
|
(66,022) |
|
(59.433) |
(43,850) |
|
Non-controlling shareholders |
|
15 |
|
(149) |
|
(94) |
(379) |
Consolidated Statement of Cash Flows |
||||
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Loss before income tax and social contribution |
|
(76,072) |
(58,366) |
|
Adjustments for: |
|
|
||
Depreciation and amortization |
|
145,264 |
141,252 |
|
Share of loss profit of equity-accounted investees |
|
6,570 |
7,028 |
|
Impairment losses on trade receivables |
|
23,583 |
23,354 |
|
(Reversal) provision for tax, civil and labor losses net |
|
(715) |
458 |
|
Interest on provision for tax, civil and labor losses |
|
5,278 |
22,859 |
|
Interest and transaction costs on bonds |
|
55,166 |
48,409 |
|
Contractual obligations and right to returned goods |
|
(3,909) |
(1,551) |
|
Interest on accounts payable for business combination |
|
27,471 |
30,472 |
|
Interest on suppliers |
|
24,265 |
22,684 |
|
Share-based payment expense |
|
2,359 |
4,729 |
|
Interest on lease liabilities |
|
5,943 |
4,702 |
|
Interest on marketable securities |
|
(13,911) |
(12,144) |
|
Cancellations of right-of-use contracts |
|
(18) |
(1,951) |
|
Residual value of disposals of property and equipment and intangible assets |
|
- |
1,187 |
|
|
|
201,274 |
233,122 |
|
Changes in |
|
|
|
|
Trade receivables |
|
114,403 |
12,568 |
|
Inventories |
|
32,449 |
11,088 |
|
Prepayments |
|
10,025 |
(10,358) |
|
Taxes recoverable |
|
1,128 |
2,605 |
|
Judicial deposits |
|
(9,680) |
(11,491) |
|
Other receivables |
|
(3,635) |
569 |
|
Related parties – other receivables |
|
(12,933) |
(3,832) |
|
Suppliers |
|
(92,622) |
(43,494) |
|
Salaries and social charges |
|
3,190 |
(4,668) |
|
Tax payable |
|
5,421 |
(546) |
|
Contractual obligations and deferred income |
|
9,152 |
(700) |
|
Other liabilities |
|
(21,037) |
(11,933) |
|
Other liabilities - related parties |
|
(11,342) |
(1,717) |
|
Cash generated from operating activities |
|
225,793 |
171,213 |
|
Payment of interest on leases |
|
(5,824) |
(4,608) |
|
Payment of interest on bonds |
|
(46,682) |
(77,996) |
|
Payment of interest on business combinations |
|
(344) |
(5,815) |
|
Income tax and social contribution paid |
|
(477) |
|
- |
Payment of provision for tax, civil and labor losses |
|
(1,149) |
(198) |
|
Net cash from operating activities |
|
171,317 |
82,596 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Acquisition of property and equipment |
|
(1,940) |
(10,893) |
|
Additions of intangible assets |
|
(50,956) |
(56,856) |
|
Proceeds from investment in marketable securities |
|
422,130 |
498,674 |
|
Purchase of investment in marketable securities |
|
(597,848) |
(513,579) |
|
Net cash used in investing activities |
|
(228,614) |
(82,654) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Purchase of treasury shares |
|
- |
(22,531) |
|
Lease liabilities paid |
|
(11,285) |
(8,087) |
|
Payments of bonds |
|
- |
|
(490,000) |
Issuance of securities with related parties |
|
- |
|
495,627 |
Payments of accounts payable for business combination |
|
(1,693) |
(19,947) |
|
Net cash used in financing activities |
|
(12,978) |
(44,938) |
|
|
|
(70,275) |
(44,996) |
|
Cash and cash equivalents at beginning of period |
|
84,532 |
95,864 |
|
Cash and cash equivalents at end of period |
|
14,257 |
50,868 |
|
|
|
(70,275) |
(44,996) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806849220/en/
Investor Relations
ir@vastaplatform.com
Source: