Cogna reports 18% revenue rise in Q2 2026 despite margin pressure

Brazilian education provider Cogna Educação reported an 18% year-on-year increase in revenue for the second quarter of 2026, driven by enrollment growth across its K-12 and higher education segments. The company’s cash flow surged despite ongoing margin pressure, reflecting operational efficiency gains and cost discipline.

Revenue totaled 2.1 billion reais ($420 million) in Q2 2026, up from 1.8 billion reais in the same period of 2025, according to preliminary financial slides reviewed by Reuters. The company attributed the top-line expansion to increased student enrollment and pricing adjustments, though gross margins narrowed by 120 basis points to 38.5% due to higher operational costs and competitive pricing in the education sector.

Operating cash flow rose 25% to 680 million reais, supported by improved working capital management and reduced capital expenditures. Free cash flow reached 520 million reais, up from 410 million reais in Q2 2025, as Cogna prioritized liquidity amid volatile market conditions.

The company’s debt levels remained stable at 3.2 billion reais, with a net debt-to-EBITDA ratio of 2.8x, within its target range. Cogna reaffirmed its full-year 2026 guidance for revenue growth of 12-15% and EBITDA expansion of 8-10%, despite macroeconomic headwinds.

Analysts noted that while margin compression persists, the company’s ability to generate robust cash flow underscores its resilience in Brazil’s competitive education market.