Cogna Educação (COGN3) Q2 2026 earnings summary

Executive summary

• Achieved strong double-digit net revenue and net income growth in both Q2 and H1 2026, led by Basic Education and supported by portfolio diversification and operational efficiency amid regulatory changes in higher education.

• Free cash flow and operating cash flow saw robust increases, reflecting improved cash generation and disciplined capital allocation.

• Strategic acquisition of a majority stake in Educbank strengthens the Basic Education ecosystem and technological capabilities.

• Leverage improved to 1.10x, with net debt reduced by R$21.8M YoY.

Financial highlights

• Net revenue in Q2 2026 reached R$1,960.7M, up 17.8% YoY; H1 2026 net revenue was R$4,106.9M, up 24.7% YoY, mainly driven by Basic Education.

• Recurring EBITDA for Q2 2026 was R$589.4M (+6.8% YoY); H1 2026 was R$1,269.0M (+14.6% YoY), with margin contraction of 3.0 p.p. and 2.7 p.p., respectively.

• Net income in Q2 2026 was R$148.9M (+25.3% YoY); H1 2026 net income was R$290.3M (+35.7% YoY).

• Free cash flow for H1 2026 reached R$504.3M, up 77.7% YoY; 2Q26 free cash flow was R$251.9M (+87.8% YoY).

• Net debt leverage reduced to 1.10x, with net debt down R$21.8M YoY.

Outlook and guidance

• Management reaffirms commitment to sustainable growth, capital discipline, and value creation through business diversification and digital transformation.

• Continued focus on expanding hybrid and distance learning, leveraging technology for operational efficiency, and resumption of student intake in Higher Education after accreditation of nursing hubs.

• Expect continued revenue growth in the third and fourth quarters, with higher average ticket offsetting lower enrollment volumes.

• Commercial cycle for 2027 shows robust renewals and strong new contract flow, with the main impact expected in the second semester.

• PNLD revenue for the second semester expected to be much lower than the first, with future cycles dependent on government purchasing and market share.