Vasta Platform Ltd (NASDAQ:VSTA) Misses Q3 2025 Revenue and Earnings Estimates

Vasta Platform Limited (NASDAQ:VSTA) reported its financial results for the third quarter of 2025, concluding its 2025 sales cycle. The Brazilian educational platform provider posted revenue and earnings figures that came in below analyst expectations, contributing to negative after-market price movement.

Earnings and Revenue Versus Estimates

The company's quarterly performance showed a notable divergence from market expectations. For the third quarter of 2025, Vasta reported revenue of R$249.6 million, falling short of the R$296.8 million analysts had projected. This represents a significant revenue miss during what management described as the conclusion of their 2025 sales cycle.

The earnings picture was similarly challenging, with the company reporting a non-GAAP EPS of -R$0.37, worse than the estimated -R$0.26. This underperformance occurred despite the company achieving year-over-year revenue growth of 13.4% for the quarter.

• Reported Q3 Revenue: R$249.6 million
• Estimated Q3 Revenue: R$296.8 million
• Reported Q3 Non-GAAP EPS: -R$0.37
• Estimated Q3 Non-GAAP EPS: -R$0.26

Market Reaction

Following the earnings release, the market responded negatively, with the stock declining approximately 2.2% in after-hours trading. This immediate reaction suggests investor disappointment with both the top and bottom-line misses. The stock had been relatively flat in the weeks leading up to the announcement, with minimal movement over the past month, indicating that the earnings report served as a significant catalyst.

Quarterly Performance Highlights

Despite missing analyst targets, Vasta's third-quarter results showed several positive operational trends. The company demonstrated solid growth across key financial metrics compared to the same period last year.

• Net Revenue: Increased 13.4% year-over-year to R$250 million
• Adjusted EBITDA: Grew 47.6% to R$31 million, with margin expanding to 12.6%
• Free Cash Flow: Surged 66.9% to R$93 million
• Adjusted Net Loss: Improved to R$29 million, down from R$47 million in Q3 2024

Full Sales Cycle Performance

Looking at the complete 2025 sales cycle (spanning from Q4 2024 through Q3 2025), Vasta delivered consistent growth, though with some margin compression. The company reported net revenue of R$1.74 billion, representing a 13.6% increase over the previous cycle. Adjusted EBITDA reached R$494 million, up 9.9%, though the margin decreased by 1.0 percentage point to 28.4%. Free cash flow generation was particularly strong, more than doubling to R$316 million.

Business Segment Performance

The company's growth was driven by multiple segments, with complementary solutions showing particularly strong momentum. The B2G (business-to-government) segment contributed R$17 million in revenue during the quarter from new customers. The Start-Anglo bilingual school operations continued to expand, with 53 franchise contracts signed and plans to launch 8 new operating units next year.

Outlook and Analyst Expectations

While the press release did not provide specific quantitative forward guidance, management expressed confidence in their strategy and expected improved free cash flow performance for the full 2025 fiscal year. Analysts currently estimate Q4 2025 revenue of R$820.1 million and full-year 2025 sales of R$1.86 billion. The absence of detailed guidance may contribute to investor uncertainty following the quarterly miss.

For a detailed look at historical earnings and future estimates for Vasta Platform Ltd., review the comprehensive earnings data available here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.