Vasta Platform Limited Q3 FY2025 earnings call

• Subscription revenue grew 14.3% comparing to the previous cycle, supported by ACV bookings of BRL 1.552 billion and net revenue up 13.6%. - Complementary solutions grew 25.3% year - over - year. - In the B2G segment, this quarter alone recorded revenues of BRL 17 million from several new customers and from the State of Pará contract, totaling BRL 67 million in the 2025 sales cycle. - Adjusted EBITDA reached BRL 494 million, a 10% increase compared to 2024. - Free cash flow totaled BRL 316 million, 117% higher than last cycle. - In the B2G segment, advanced diversification strategy by adding new municipalities. - In Bilingual Education, Start Angle franchise operates 6 units, has signed over 50 contracts besides a robust pipeline with more than 300 prospects, and expects to launch 8 new operational units for the coming year. - In 2026, will introduce new tools focused on equity and personalized learning through AI, including the individualized educational plan EEP.

Subscription revenue grew 14.3% compared to the previous cycle, with third - quarter 2025 subscription revenue at BRL 212 million, a 3% increase from the same quarter in 2024. Non - subscription revenue increased 45% to BRL 21 million in the third quarter. For the 2025 sales cycle, organic net revenue growth was 13.6% amounting to BRL 1.737 billion. Subscription revenue in the 2025 sales cycle increased 14.3% to BRL 1.552 billion, representing 89.3% of net revenue share. Non - subscription revenue in the 2025 sales cycle increased 16% to BRL 119 million. Adjusted EBITDA reached BRL 494 million, a 10% increase compared to 2024. Free cash flow totaled BRL 316 million, 117% higher than the last cycle. Net debt to last 12 months EBITDA was 1.75x, down from 2.32x in Q3 2024.

• 2026 subscription revenue is expected to have mid - double - digit growth. - Complementary products are expected to continue growing with more than 20% growth. - For pricing, EPCA plus is targeted to have a growth of 1% to 2% in the next cycle.

• Challenges in the credit environment, especially for non - premium customers, with still challenges foreseen in the credit scenario for the next month. - Commercial expenses increased by 0.8 percentage points driven by higher expense related to business expansion of the commercial cycle for 2026.

Q: Could you provide some color on the ACV buildup for 2026? And also, if you could comment on your outlook for growth and the balance between volume and pricing?

A: We just ended the quarter of the cycle of 2025, recording a 14.3% subscription revenue growth. That's definitely the trend that we expect to continue for 2026. So I would say it's mid double - digit growth in terms of revenues. In terms of outlook of our performance, we are growing in learning systems, gaining market share in premium learning systems and complementary products keeps the pace growing with more than 20% and that's -- the trend should be continued to 2026. In terms of pricing, we are -- for the last 5 cycles, we were able to price EPCA plus, and we definitely are targeting the same level. I would say EPCA plus between 1% and 2% for the next cycle should be a good guess for what we are seeing right now.