Vasta Announces Third Quarter 2025 Results

SÃO PAULO–(BUSINESS WIRE)–Vasta Platform Limited (NASDAQ: VSTA) – “Vasta” or the “Company” announces today its financial and operating results for the third quarter of 2025 (3Q25) ended September 30, 2025. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS Accounting Standards).

HIGHLIGHTS

• In the 2025 sales cycle (which commenced 4Q24 through 3Q25), net revenue increased 13.6% to R$1,737 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 3Q25, net revenue totaled R$250 million, a 13.4% increase compared to the same period of the previous year. This increase came primarily from the public-school sector, or business-to-government (“B2G”) revenue, which achieved R$17 million in the quarter in sales from new customers, as well 45.0% growth in non-subscription revenue compared to the prior period, mainly related to growth in Start-Anglo bilingual schools.
• Vasta’s accumulated subscription revenue in the 2025 sales cycle totaled R$1,552 million, a 14.3% increase compared to the previous year’s sales cycle, as expected. Complementary solutions net revenue in the 2025 sales cycle increased 25.3% compared to the 2024 sales cycle, to R$239 million. The compound annual growth rate (“CAGR”) of net revenue for the last 6 cycles was a positive 17.5%, which we believe demonstrates our resilience and capacity to keep our growth in higher double digits for several years.
• In this quarter, the B2G segment, achieved R$17 million in revenue coming from several new customers, totaling R$67 million in the 2025 sales cycle, compared to R$69 million in the same period of the 2024 sales cycle.
• In the 2025 sales cycle, Adjusted EBITDA increased by 9.9% reaching R$494 million, compared to R$449 million in the same period of the 2024 sales cycle, and Adjusted EBITDA Margin decreased by 1.0 p.p., from 29.4% to 28.4%, driven by a 1.4 p.p. decrease in gross margin and 0.8 p.p. increase in marketing expenses. In 3Q25, Adjusted EBITDA totaled R$31 million, up from R$21 million in 3Q24, and Adjusted EBITDA Margin increased 2.9 p.p. to 12.6%, compared to 3Q24.
• Vasta recorded an Adjusted Net Profit of R$82 million in the 2025 sales cycle, a 32.2% increase compared to R$62 million in the previous sales cycle. Adjusted net margin increased 0.7 p.p. compared to the previous sales cycle, from 4.1% in 2024 to 4.7% in 2025. In 3Q25, Adjusted Net Loss totaled R$29 million, a 38.8% decrease compared to Adjusted Net Loss of R$47 million in 3Q24.
• Free cash flow (“FCF”) totaled R$316 million in the 2025 sales cycle, with a substantial growth of 116.6% compared to R$146 million FCF in the 2024 sales cycle. The last twelve months (“LTM”) FCF/Adjusted EBITDA conversion rate increased from 32.5% to 64.0% 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 be normalized in the next quarter. In 3Q25 FCF totaled R$93 million, a 66.9% increase from R$55 million in 3Q24.

MESSAGE FROM MANAGEMENT

In the third quarter of 2025 we concluded the 2025 sales cycle (4Q24 to 3Q25). Our net revenue during the 2025 sales cycle has reached R$ 1,737 million, representing a 13.6% increase compared to the previous sales cycle, mostly due to the conversion of ACV into revenue. Additionally, our complementary solutions have kept their growth pace and achieved 25.3% growth compared to the 2024 sales cycle, with an accelerated increase in both student base and market penetration.

Vasta’s accumulated subscription revenue in the 2025 sales cycle totaled R$1,552 million, a 14.3% increase compared to the previous sales cycle. ACV bookings expected for the 2025 sales cycle were delivered according to expectations and slightly higher than previously disclosed. Additionally, this line of revenue represents 89.3% of our total net revenue, slightly higher than last cycle. CAGR for the last 6 cycles was a positive 17.5%, showing our resilience and the power of our brands and products.

Another highlight of the 2025 sales cycle has been that Adjusted EBITDA grew by 9.9%, to R$494 million compared to R$449 million in the previous sales cycle, and Adjusted EBITDA Margin decreased by 1.0 p.p. to 28.4%. In proportion to net revenue, gross margin decreased 140 bps in the 2025 sales cycle (from 64.2% to 62.8%) mainly due to a different sales mix, investments in several initiatives to provide better services to customers and higher commercial expenses, increasing 0.8 p.p. in percentage of net revenue related to business expansion and marketing investments. On the other hand, we had another year where budgetary discipline was a key component for delivering growth in Adjusted EBITDA margin.

FCF generation was a key highlight in the 2025 sales cycle and totaled R$316 million, a 116.6% increase from R$146 million for the same period in 2024. in the last twelve months the FCF/Adjusted EBITDA conversion rate increased from 32.5% to 64.0%, because of Vasta’s growth and implementation of sustained efficiency measures. The first half of 2025 benefited from early collections relative to the 2025 sales cycle, which are expected to be normalized in the next quarter. However, we expect to deliver improved performance in FCF for the 2025 fiscal year, which will be finished in the next quarter, when compared to 2024.

Because of the FCF generation, our net debt/LTM adjusted EBITDA was 1.75x as of 3Q25, which represents a decrease of 0.57x from 2.32x in the same quarter of 2024. In comparison to 2Q25 the net debt/LTM adjusted EBITDA decreased 0.15x from 1.90x in 3Q25. The Company continues to focus on deleveraging and cash generation, which is highlighted by this indicator. In 3Q25 we negotiated and extended the maturity for our corporate loans and reduced interest rates for our indebtedness.

This is the third year that we have been providing services in the B2G segment, and we remain confident in our strategy to positively impact public education by serving this segment and its students with our extensive portfolio of core content solutions, digital platforms, and additional offerings, including custom learning solutions developed over decades in the private sector. In this segment, we generated R$67 million in revenues in this sales cycle, coming from several new customers, compared to R$89 million in the previous sales cycle. We have renewed the contract signed in the State of Pará, still our biggest contract, we have a strong pipeline and several new projects that we have been working on, that we expect to sign in the upcoming months.

Start-Anglo bilingual school operations continued its trajectory of growth. As of this date, Start-Anglo had 6 operating schools, including our 2 flagship schools, with more than 1.000 students enrolled. To keep the growth in the next years we have already signed 53 franchise contracts (this represents 30 new contracts just in this sales cycle) and next year we will launch 8 new operating units. This performance reinforces Start-Anglo’s strategic relevance and its potential to become a significant growth driver. Over a short time period, Start-Anglo has evolved from concept to reality. Besides, we are actively working to convert our robust pipeline — currently over 290 prospects — into new agreements for Start-Anglo.

OPERATING PERFORMANCE

Student base – subscription models

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

Note: n.m.: not meaningful

In the 2025 sales cycle (4Q24 through 3Q25), Vasta’s net revenue totaled R$1,737 million, representing a 13.6% increase compared to the 2024 sales cycle. Subscription revenue grew 14.3% mainly driven by the conversion of ACV bookings into revenue. Non-subscription revenue increased 15.7%, supported by higher enrollment in the Start-Anglo flagship schools and Anglo pre-university courses.

In 3Q25, Vasta’s net revenue totaled R$250 million, a 13.4% increase compared to 3Q24, mainly due to results obtained in B2G. In addition, non-subscription revenue was positively impacted by the factors described above.

EBITDA

Note: n.m.: not meaningful

In the 2025 sales cycle, Adjusted EBITDA reached R$494 million, representing an increase of 9.9% in comparison to the 2024 sales cycle, with a margin of 28.4%, compared to 29.4% in the same period of the 2024 sales cycle. This increase in Adjusted EBITDA was mainly driven by an increase in revenue in all service lines, besides gains in operating efficiency and improvement in provision for doubtful accounts (“PDA”). In 3Q25, Adjusted EBITDA totaled R$31 million, a 47.6% increase compared to R$21 million in 3Q24, mainly impacted by revenue growth.

In the 4th quarter of 2024, which is the first quarter of 2025 sales cycle, the Company, based on the opinion of its legal advisors, proceeded with the partial reversal of certain tax contingencies, related to the discussions of goodwill and other items derived from the acquisition of the Anglo Group in 2010 and subsequent restructuring, in the total amount of R$532,717, comprising (i) R$92,558 reversals of the principal portion, which impacted positively our general and administrative expenses (ii) R$233,198 reversals of the income tax and social contribution, (iii) R$206,961 reversal of interest and fines, in the finance result.

(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 by 1.4 p.p. in the 2025 sales cycle mainly due to a different sales mix. 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 0.3 p.p. driven by workforce optimization and budgetary discipline. Commercial expenses increased by 0.8 p.p. reflecting higher expenses related to business expansion and marketing investments. PDA decreased by 0.8 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

In the third quarter of 2025, finance income totaled R$23 million, a 39.7% increase from R$17 million in 3Q24. In the 2025 sales cycle, finance income increased to R$69 million from R$63 million in the same period of the 2024 sales cycle. Additionally, finance income was positively impacted by a gain of R$207 million recorded in 4Q24, due to the reversal of finance interest on tax contingencies, as mentioned above.

Finance costs in 3Q25 decreased 2.2% to R$70 million, from R$71 million in 3Q24. In the 2025 sales cycle finance cost decreased 8.9% compared to the same period of the 2024 sales cycle driven by the reduction of the interest on provision for tax, civil and labor risks as a result of the reversal of tax contingencies recorded in 4Q24, despite higher interest rates throughout the year.

Net profit (loss)

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 third quarter of 2025, adjusted net losses totaled R$29 million, a 38.8% reduction compared to losses of R$47 million in 3Q24. In the 2025 sales cycle, adjusted net profit reached R$82 million, a 32.2% increase from R$62 million in the same period of the 2024 sales cycle.

Accounts receivable and PDA

(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 111 days in 3Q25, remaining stable in the same quarter of the previous year, and 42 days lower compared to 2Q25.

Free cash flow

(1) Net (loss) profit less non-cash items less and changes in working capital. Note: n.m.: not meaningful

FCF totaled R$93 million in 3Q25, a 66.9% increase from R$55 million in 3Q24. In the 2025 sales cycle, FCF totaled R$316 million, a R$170 million, or 116.6% increase from R$146 million in the same period of the 2024 sales cycle. The LTM FCF/Adjusted EBITDA conversion rate improved from 32.5% to 64.0% as a result of Vasta’s growth and implementation of sustained efficiency measures.

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 compared to the 2025 sales cycle, which are expected to normalize in the next quarter.

Financial leverage

As of the end of 3Q25, Vasta had a net debt position of R$863 million, a R$54 million decrease compared to 2Q25, mainly due to positive FCF generation, compensated by financial interest costs. Compared to 3Q24, the net debt decreases by R$177 million. The net debt/LTM adjusted EBITDA as of 1.75x continues a show downward trend, being 0.57x less than as of 3Q24.

ESG

Sustainability Report

In July 2025, we disclosed Vasta’s fourth sustainability report regarding 2024, which was prepared in accordance with international standards and the implementation of our corporate strategy, challenges, and achievements, while also reaffirming our commitment to transparency and sustainability. These include the publication of Greenhouse Gas Inventory (carried out since 2020), the maintenance of the FSC certifications (since 2008), the SOMOS Institute, devoted to building a more equitable society by creating opportunities for all who believe in the power of education, and 43% of our Board members belonging to underrepresented groups (women and LGBTQIAPN+).

The report complies with the Global Reporting Initiative (GRI) 2021 version and considers other standards recognized in Brazil and abroad, such as the Sustainability Accounting Standards Board (SASB) guidelines for the education sector, the guidelines of the IBC Stakeholder Capitalism Metrics from the World Economic Forum, and the principles of the International Integrated Reporting Council (IIRC).

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

The increase in water consumption this quarter is expected, as the variation reflects the production schedule of distribution center operations. At educational facilities, the increase aligns with the end of the school break period, with higher occupancy levels at the units. The reduction in energy consumption this quarter is expected, as the variation reflects the production schedule of distribution center operations. At educational facilities, the increase aligns with the end of the school break period, with higher occupancy levels at the units.

SOCIAL

During the quarter, the total number of employees increased by 5% in the “Academic Staff” category and 7% in “Administrative/Operational,” driven by the seasonality of the education sector. The start of the academic semester required greater hiring of professors and internship supervisors (who are classified as administrative staff due to the nature of their contracts). Specific increases in other areas, such as Sales, also reflect the natural student enrollment cycle.

SOMOS Educação debuted on the national ranking of Great Place to Work Brazil 2025, placing 66th among the country’s best companies with up to 9,999 employees.

Contacts

Investor Relations

[email protected]

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