Vasta Platform’s Earnings Call Highlights Growth and Expansion

Vasta Platform Ltd. ((VSTA)) has held its Q3 earnings call. Read on for the main highlights of the call.

Vasta Platform Ltd. has reported a positive outlook during its latest earnings call, highlighting significant revenue and cash flow growth alongside strategic expansions. Despite slight decreases in margins, the overall performance indicates strong operational and financial health for the company.

Revenue and Profitability Growth

Vasta Platform achieved a notable 14.3% growth in subscription revenue compared to the previous cycle, with net revenue rising by 13.6%. The company’s adjusted EBITDA increased by 10% to BRL 494 million, maintaining a healthy margin of 28.4%. This growth underscores the company’s robust financial performance and operational efficiency.

Strong Free Cash Flow Performance

The company reported a remarkable 117% increase in free cash flow, totaling BRL 316 million. This improvement significantly enhanced the free cash flow to EBITDA conversion rate to 64%, up by 31.5 percentage points from the previous year, showcasing Vasta’s effective cash management strategies.

B2G Segment Stability and Expansion

The B2G segment demonstrated stability with revenues of BRL 67 million in the 2025 sales cycle, maintaining its performance compared to 2024. The addition of new municipalities to the portfolio highlights Vasta’s strategic expansion efforts in this segment.

Bilingual Education Expansion

Vasta’s Start Angle franchise expanded to six units, with plans to launch eight new operational units next year. Over 50 contracts have been signed, and the company boasts a robust pipeline of more than 300 prospects, indicating strong growth potential in bilingual education.

Decreased Leverage

The company’s net debt to last 12 months EBITDA ratio decreased from 2.32x in Q3 2024 to 1.75x in 2025, attributed to strong free cash flow generation. This reduction in leverage reflects Vasta’s improved financial stability and risk management.

Slight Decrease in EBITDA Margin

Vasta experienced a slight decrease in its adjusted EBITDA margin, down by 1 percentage point from 29.4% in 2024 to 28.4% in 2025. This decline was primarily due to a different product mix and increased investments in marketing and growth initiatives.

Gross Margin Decline

The gross margin decreased by 1.4 percentage points to 62.8%, impacted by high payments to product owners of certain products. Despite this decline, the company’s overall financial health remains strong.

Forward-Looking Guidance

Looking ahead, Vasta Platform Ltd. aims for continued mid double-digit revenue growth, driven by a 14.3% increase in subscription revenue and a 13.6% rise in net revenue. The company plans to launch new operational units and focus on innovation and strategic expansion, indicating a promising future.

In summary, Vasta Platform Ltd.’s earnings call reflected a positive sentiment, with significant revenue and cash flow growth, strategic expansions, and reduced leverage. Despite slight decreases in margins, the company’s strong operational and financial health positions it well for future growth and success.