Financial Performance - Q3'25 revenue increased by 70% year-over-year and 55% quarter-over-quarter[19] - Q3'25 bookings increased by 131% year-over-year and 77% quarter-over-quarter, reaching $22.8 million[19, 24] - Non-GAAP gross margin increased by 179 basis points year-over-year and 507 basis points quarter-over-quarter, reaching 81.5%[19] - Non-GAAP operating expenses increased by 55% year-over-year and 18% quarter-over-quarter[19] - Non-GAAP operating loss improved by $0.3 million year-over-year and $3.3 million quarter-over-quarter, resulting in a loss of $2.3 million[19] - Annual Contract Value (ACV) reached $65 million, a 29% increase year-over-year[19, 33] Bookings and Revenue Breakdown - EDA bookings increased by 513% year-over-year, contributing $16.3 million, which is 71% of total bookings[28, 26] - EDA revenue increased by 294% year-over-year, contributing $10.4 million, which is 56% of total revenue[30] Guidance - Q4 FY25 revenue is projected to be in the range of $14.0 to $18.0 million[36]

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]

Core Insights - Pegasystems (NASDAQ: PEGA) reported a 59% rise in adjusted income and a 17% increase in revenue, driven by a 27% year-over-year growth in Pega Cloud's annual contract value [5] - Overall, annual contract value (ACV) rose 14% from a year earlier, contributing to a positive market reaction with shares rising before the opening bell [5] Financial Performance - Adjusted income increased by 59% [5] - Revenue grew by 17% [5] - Pega Cloud's annual contract value experienced a 27% year-over-year growth [5] - Total annual contract value (ACV) rose by 14% compared to the previous year [5]