Core Viewpoint - Vasta Platform Limited has decided to voluntarily delist its Class A Common Shares from the Nasdaq Global Select Market due to various operational and financial considerations, following a significant acquisition by Cogna Educação S.A. [1][2][3] Company Actions - Vasta's Board of Directors approved the voluntary withdrawal and delisting of the Company's Shares from Nasdaq on January 8, 2026, citing costs associated with being publicly traded and a small base of public shareholders as key factors [3] - The Company plans to file a Form 25 with the SEC around January 19, 2026, to remove its Shares from listing, with the last trading day expected to be around January 29, 2026 [4] Acquisition Details - Cogna Educação S.A. acquired 97.2% of Vasta's Shares in a tender offer, leading to the decision for delisting and deregistration under the Securities Exchange Act [2] Company Overview - Vasta is a high-growth education company in Brazil, providing technology-driven educational solutions for K-12 schools, aiming to support their digital transformation and improve profitability [5]

Core Viewpoint - U.S. stock futures are mostly lower, with Nasdaq 100 futures down approximately 0.1% [1] Group 1: Company Movements - SeaStar Medical Holding Corp (NASDAQ:ICU) shares fell 9.5% to $0.21 in pre-market trading following a 1-for-10 reverse split announcement [1] - Coincheck Group NV (NASDAQ:CNCK) decreased by 11% to $2.28 in pre-market trading [2] - Ascent Solar Technologies, Inc. (NASDAQ:ASTI) dropped 7.6% to $4.67 after a 30% increase on Tuesday [2] - Jet.AI Inc (NASDAQ:JTAI) fell 5.3% to $0.82 after a 28% decline on Tuesday, despite announcing a joint venture with Choo Choo Express for a 50-mw data center in Nevada [2] - Lifestance Health Group Inc (NASDAQ:LFST) declined 3.7% to $6.80 in pre-market trading [2] - Precision Drilling Corp (NYSE:PDS) fell 3.3% to $66.96 in pre-market trading [2] - Vasta Platform Ltd (NASDAQ:VSTA) decreased by 3.1% to $4.80 in pre-market trading [2]

Core Viewpoint - U.S. stock futures are mostly lower, with Nasdaq 100 futures down approximately 0.1% [1] Group 1: Company Movements - SeaStar Medical Holding Corp (NASDAQ:ICU) shares fell 9.5% to $0.21 in pre-market trading following a 1-for-10 reverse split announcement [1] - Coincheck Group NV (NASDAQ:CNCK) decreased by 11% to $2.28 in pre-market trading [2] - Ascent Solar Technologies, Inc. (NASDAQ:ASTI) dropped 7.6% to $4.67 after a 30% increase on Tuesday [2] - Jet.AI Inc (NASDAQ:JTAI) fell 5.3% to $0.82 after a 28% decline on Tuesday, despite announcing a joint venture for a 50-mw data center in Nevada [2] - Lifestance Health Group Inc (NASDAQ:LFST) declined 3.7% to $6.80 in pre-market trading [2] - Precision Drilling Corp (NYSE:PDS) fell 3.3% to $66.96 in pre-market trading [2] - Vasta Platform Ltd (NASDAQ:VSTA) decreased by 3.1% to $4.80 in pre-market trading [2]

Core Insights - Vasta Platform Limited reported a quarterly loss of $0.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -40.00% [1] - The company generated revenues of $45.82 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 8.61%, but showing an increase from $39.71 million year-over-year [2] - The stock has increased approximately 146.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $150.15 million, while for the current fiscal year, the estimate is $0.33 on revenues of $342.94 million [7] - The estimate revisions trend for Vasta Platform was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Schools industry, to which Vasta Platform belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Legacy Education Inc., another company in the same industry, is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decline of 28.6%, with revenues anticipated to be $18.34 million, up 30.9% from the previous year [9][10]

Financial Data and Key Metrics Changes - Subscription revenue grew by 14.3% compared to the previous cycle, supported by ACV bookings of BRL 1,552 million [5][6] - Net revenue increased by 13.6%, reaching BRL 1,737 million, reflecting the resilience of the core business [6][11] - Adjusted EBITDA reached BRL 494 million, a 10% increase compared to 2024, with a margin of 28.4%, slightly below last year's 29.4% [6][12] - Free cash flow totaled BRL 316 million, a 117% increase from the previous cycle, with a conversion rate of 64% [8][15] - Net debt decreased to BRL 863 million, with a leverage ratio of 1.75 times, down from 2.32 times in Q3 2024 [8][17] Business Line Data and Key Metrics Changes - Complementary solutions grew by 25.3% year over year, reinforcing the strength of the ecosystem [5][6] - In the B2G segment, revenues reached BRL 17 million from new customers, totaling BRL 67 million in the 2025 sales cycle [6][9] - Non-subscription revenue increased by 45% to BRL 21 million, driven by higher enrollment in flagship schools [11][12] Market Data and Key Metrics Changes - The company is gaining market share in premium learning systems, with expectations of continued growth in 2026 [19] - The Start Angle franchise operates six units, with plans to launch eight new operational units in the upcoming year [9][10] Company Strategy and Development Direction - The company is focused on innovation, particularly through RAU AI, to introduce tools for personalized learning [9][10] - The diversification strategy in the B2G segment aims to expand access to quality education through partnerships with public institutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and enhancing profitability, with expectations of mid double-digit revenue growth for 2026 [19] - The company anticipates challenges in the credit environment but remains committed to operational efficiency and financial management [13][16] Other Important Information - Provisions for doubtful accounts improved to 3.1% of net revenue, reflecting better management despite a challenging credit environment [13] - Adjusted net profit reached BRL 82 million, a 32% increase from the previous year [14] Q&A Session Summary Question: Could you provide some color on the ACV build-up for 2026? - Management expects a continuation of the 14.3% subscription revenue growth trend into 2026, with mid double-digit growth anticipated [19]

Financial Performance Highlights - Subscription Revenue increased by 14.3% [9] - Adjusted EBITDA reached R$494 million [10], while Free Cash Flow amounted to R$316 million [10] - Net revenue increased by 13.6% compared to cycle 2024 [11] - Adjusted Net Loss improved by 38.8% in 3Q25 [35] - Free Cash Flow increased by 66.9% in 3Q25 [40] ACV Bookings - ACV Bookings reached R$1,552 million, meeting expectations [11] - ACV 2025 Bookings increased by 14.3% compared to 2024 [14] - Complementary solution expansion grew by 25.3% compared to 2024 [11] Margin Analysis - Adjusted EBITDA Margin was 28.4%, a decrease of 1.0 percentage point compared to 2024 (29.4%) [12, 25] - LTM FCF / LTM Adjusted EBITDA conversion was 64.0%, a 31.5 percentage point improvement [13] - Provision for Doubtful Accounts (PDA) decreased to 3.1% of net revenue [45, 47] Debt Management - Net Debt decreased by R$177 million cycle to date [56] - Net Debt/LTM Adjusted EBITDA ratio decreased to 1.75 [60]

Core Insights - Vasta Platform Limited reported a net revenue of R$1,737 million for the 2025 sales cycle, marking a 13.6% increase from the previous cycle, primarily driven by the conversion of Annual Contract Value (ACV) into revenue [3][4][14] - The company achieved a net revenue of R$250 million in 3Q25, a 13.4% increase year-over-year, with significant contributions from the public-school sector and non-subscription revenue [4][15] - Adjusted EBITDA for the 2025 sales cycle reached R$494 million, a 9.9% increase compared to the previous cycle, while the Adjusted EBITDA margin decreased slightly to 28.4% [6][17] - Free cash flow (FCF) for the 2025 sales cycle totaled R$316 million, representing a substantial growth of 116.6% compared to R$146 million in the previous cycle [7][28] - The company’s net debt to LTM adjusted EBITDA ratio improved to 1.75x as of 3Q25, down from 2.32x in the same quarter of the previous year, indicating a focus on deleveraging and cash generation [8][30] Financial Performance - Subscription revenue in the 2025 sales cycle totaled R$1,552 million, a 14.3% increase, constituting 89.3% of total net revenue [5][14] - Non-subscription revenue increased by 15.7%, supported by higher enrollment in Start-Anglo bilingual schools [14] - Adjusted net profit for the 2025 sales cycle was R$82 million, a 32.2% increase compared to R$62 million in the previous cycle, with an adjusted net margin of 4.7% [24] Operating Performance - The student base for core content solutions reached approximately 1.5 million, while over 560,000 students benefited from complementary solutions [11][12] - The Start-Anglo bilingual school operations expanded, with plans to launch 8 new operating units next year [10] Market Segments - The B2G segment generated R$67 million in revenue during the 2025 sales cycle, with a strong pipeline for future projects [9] - The company continues to focus on enhancing its client base through a better mix of schools and premium education systems [12] Cash Flow and Debt Management - The FCF/Adjusted EBITDA conversion rate improved significantly from 32.5% to 64.0%, reflecting operational efficiency [28] - The company negotiated and extended the maturity of corporate loans while reducing interest rates, contributing to improved financial health [8][30] ESG and Sustainability - Vasta published its fourth sustainability report, reaffirming its commitment to transparency and sustainability, including initiatives for diversity and inclusion [31][32] - The company has maintained its FSC certifications and is actively involved in social impact programs, such as the Somos Futuro Program [31][36]

Financial Performance - Net revenue from sales and services increased to R$1,038,494 thousand for the nine-month period ended September 30, 2025, up from R$975,261 thousand in the same period of 2024, reflecting a growth of about 6.48%[7] - Gross profit for the nine-month period ended September 30, 2025, was R$660,877 thousand, compared to R$623,227 thousand in 2024, indicating an increase of approximately 6.06%[7] - Loss for the period narrowed to R$119,197 thousand for the nine-month period ended September 30, 2025, compared to R$121,369 thousand in the same period of 2024, a reduction of about 1.79%[7] - The company reported a net revenue of R$249,602 for the third quarter of 2025, an increase of 13.4% compared to R$220,193 in the same period of 2024[112] - The total loss attributable to shareholders for Q3 2025 was R$119,197, slightly improved from R$121,369 in Q3 2024, with a basic loss per share of R$1.49[108] Assets and Liabilities - Total assets decreased from R$7,205,155 thousand as of December 31, 2024, to R$6,949,174 thousand as of September 30, 2025, representing a decline of approximately 3.55%[3] - Total current liabilities decreased from R$1,244,172 thousand as of December 31, 2024, to R$890,962 thousand as of September 30, 2025, a decrease of approximately 28.38%[5] - Total non-current liabilities increased from R$967,672 thousand as of December 31, 2024, to R$1,178,794 thousand as of September 30, 2025, an increase of about 21.73%[5] - The total shareholder's equity decreased from R$4,993,311 thousand as of December 31, 2024, to R$4,879,418 thousand as of September 30, 2025, a decline of about 2.28%[5] - The company has a total of R$1,357,498 in financial liabilities as of September 30, 2025, compared to R$1,309,978 at the end of 2024, indicating a slight increase of approximately 3.6%[28] Cash Flow - Cash generated from operating activities increased significantly to R$348,790, compared to R$259,094 in the prior year, reflecting a growth of approximately 34.5%[11] - Net cash from operating activities for the period was R$267,626, up from R$150,908 in 2024, indicating a year-over-year increase of about 77.5%[11] - The company reported a net cash used in investing activities of R$327,143, a substantial increase from R$82,463 in the previous year, primarily due to higher investments in marketable securities[11] - Total cash and cash equivalents at the end of the period decreased to R$2,421 from R$96,162 at the end of September 2024, marking a decline of approximately 97.5%[11] Investments and Securities - The company holds marketable securities valued at R$388,445, significantly up from R$111,313 as of December 31, 2024[54] - The company’s investments in marketable securities included a purchase of R$628,561, which was lower than the previous year's purchase of R$736,481, showing a decrease of about 14.7%[11] Tax and Contingencies - The effective tax rate for the period ending September 30, 2025, was reported at -32%, compared to -30% for the same period in 2024, indicating a slight increase in tax efficiency despite losses[96] - The company’s income tax and social contribution loss carryforwards rose to R$829,216 as of September 30, 2025, from R$668,475 at the end of 2024, reflecting ongoing tax amortization strategies[98] - The total amount of possible loss contingencies decreased to R$47,868 as of September 30, 2025, from R$52,117 as of December 31, 2024, with labor-related contingencies being the largest component at R$27,951[94] Shareholder Information - The company completed a share repurchase program on March 31, 2024, repurchasing shares worth R$62,500 (approximately US$12,500), which contributed to a total outstanding share capital of R$4,820,815 as of September 30, 2025[103][104] - The total number of shares outstanding as of September 30, 2025, was 80,406,085, with 3,243,802 shares held as treasury shares[104] Operational Expenses - The company’s total costs and expenses for the nine months ended September 30, 2025, were R$1,051,505, an increase from R$975,459 in 2024[115] - The company experienced a significant increase in advertising and publicity expenses, rising to R$41,785 in Q3 2025 from R$22,128 in Q3 2024[115] Legal Matters - The company is involved in 70 legal and administrative lawsuits as of September 30, 2025, indicating a slight increase from 68 lawsuits at the end of 2024, with potential risks assessed by legal advisors[94]

Core Insights - Vasta Platform Limited (VSTA) is currently more attractive to value investors compared to Lincoln Educational Services Corporation (LINC) based on various financial metrics and rankings [1][3][7] Valuation Metrics - VSTA has a forward P/E ratio of 14.94, significantly lower than LINC's forward P/E of 29.80, indicating that VSTA may be undervalued [5] - The PEG ratio for VSTA is 0.26, while LINC's PEG ratio is 1.99, suggesting that VSTA has a better growth outlook relative to its valuation [5] - VSTA's P/B ratio stands at 0.45, compared to LINC's P/B of 3.93, further indicating VSTA's undervaluation [6] Zacks Rank and Earnings Outlook - VSTA holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while LINC has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for VSTA makes it a standout option in the Zacks Rank model [7] Value Grades - VSTA has received a Value grade of A, while LINC has a Value grade of C, highlighting VSTA's stronger position as a value investment [6]

Core Viewpoint - Vasta Platform Limited is scheduled to report its financial results for the third quarter of 2025 on November 6, 2025 [1] Company Summary - Vasta Platform Limited will disclose its Q3 2025 financial performance, indicating ongoing operations and financial transparency [1]