Vasta Platform (VSTA) Q3 2025 earnings summary

Executive summary

• Net revenue for the 2025 sales cycle reached BRL 1.737 billion, up 13.6% year-over-year, driven by strong ACV conversion and growth in both subscription and complementary solutions.

• Subscription revenue grew 14.3% year-over-year, with ACV bookings of BRL 1.552 billion.

• Adjusted EBITDA was BRL 494 million, up 10% year-over-year, with a margin of 28.4%, though the margin declined by 1.0 percentage point.

• Free cash flow totaled BRL 316 million, up 117% year-over-year, with a conversion rate of 64%.

• Adjusted net profit for the cycle was BRL 82 million, up 32.2% year-over-year.

Financial highlights

• Net revenue for Q3 2025 increased 13.4% to BRL 250 million, mainly from B2G and non-subscription growth.

• Subscription revenue in Q3 2025 was BRL 212 million, up 3% year-over-year.

• Non-subscription revenue rose 45% to BRL 21 million in Q3, driven by higher enrollment in flagship schools.

• Gross margin for the 2025 sales cycle was 62.8%, down 1.4 percentage points from 2024, mainly due to sales mix and higher royalties.

• Adjusted EBITDA for Q3 2025 was BRL 31 million (12.6% margin), a 47.6% increase over Q3 2024.

Outlook and guidance

• Expecting mid double-digit revenue growth for 2026, with continued market share gains in premium learning systems and over 20% growth in complementary products.

• Pricing for the next cycle targeted at EPCA Plus between 1%–2%.

• Free cash flow to EBITDA conversion rate expected to normalize to about 50% for the fiscal year.

• Management expects continued growth in FCF and improved performance for the full 2025 fiscal year.

• Strong pipeline in B2G and Start-Anglo segments, with new contracts and school launches planned.