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Vasta Platform (VSTA)
NASDAQ:VSTA
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Vasta Platform
(NASDAQ:VSTA)
Rating:77Outperform
Price Target:
$5.00
▲(16.82% Upside)
Positive Factors
B2G Sales
The B2G sales were above expectations, showing strong demand.
Subscription Revenue Growth
Subscription revenue grew by 20% YoY, with complementary solutions exceeding expectations.
Negative Factors
EBITDA Margin
Vasta's EBITDA margin missed expectations due to higher general and administrative expenses, which accounted for 5.4% of revenues compared to 4.2% previously.
Provision for Doubtful Accounts
Management anticipates further deterioration of the Provision for Doubtful Accounts in the coming quarters, which could impact financial performance.
Vasta Platform (VSTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$343.26M
Dividend YieldN/A
Average Volume (3M)13.36K
Price to Earnings (P/E)4.5
Beta (1Y)-0.35
Revenue Growth-7.36%
EPS GrowthN/A
CountryUS
Employees1,808
SectorConsumer Defensive
Sector Strength49
IndustryEducation & Training Services
Share Statistics
EPS (TTM)<0.01
Shares Outstanding15,765,930
10 Day Avg. Volume14,925
30 Day Avg. Volume13,359
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.46
Enterprise Value/Ebitda0.68
Forecast
1Y Price Target
$4.50Price Target Upside5.14% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Vasta Platform Business Overview & Revenue Model
Company DescriptionVasta Platform (VSTA) is a prominent educational company in Brazil, focused on providing integrated educational solutions to private schools. The company operates in the K-12 educational sector, delivering a comprehensive suite of products and services that include educational content, digital platforms, and learning systems tailored to enhance the educational experience for students, teachers, and educational institutions.
How the Company Makes MoneyVasta Platform generates revenue primarily through the sale of educational content and learning systems to private schools. Its key revenue streams include subscription fees from its digital platforms, sales of printed and digital educational content, and service fees for training and consulting services offered to schools. The company also benefits from strategic partnerships with educational institutions and leveraging its vast network to expand its market reach, thus contributing to its earnings.
Vasta Platform Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with notable growth in subscription revenue and complementary solutions, significant free cash flow increase, and successful deleveraging. However, challenges remain with a decrease in B2G revenue, adjusted net losses, and a decline in gross margin. Overall, the highlights outweigh the lowlights.Q2-2025 Updates
Positive Updates
Record Subscription Revenue Growth
Subscription revenue reached BRL 1.340 billion in the cycle to date, a 16% increase compared to the same period of 2024, demonstrating sustained double-digit growth for the fourth consecutive year.
Strong Growth in Complementary Solutions
Complementary solutions business grew 24%, supported by accelerated expansion in student base and market penetration.
Significant Free Cash Flow Increase
Free cash flow in the cycle to date totaled BRL 224 million, an increase of BRL 133 million year-over-year, with a 108% increase in Q2 2025 compared to Q2 2024.
Successful Deleveraging
Net debt to EBITDA ratio decreased to 1.9x from 2.28x in Q2 2024, showing progress in deleveraging efforts.
Expansion of Start-Anglo Bilingual School
Implemented 5 new operating units in 2025, with a total of 7 units in operation, and signed over 50 contracts for future growth.
Negative Updates
Decrease in B2G Revenue
B2G segment revenue in the cycle to date was BRL 15 million, a decrease of 28% compared to BRL 69 million in 2024.
Adjusted Net Losses
Adjusted net losses totaled minus BRL 29 million in Q2 2025, compared to minus BRL 37 million in the same quarter of 2024.
Decline in Gross Margin
Gross margin decreased to 62%, a reduction of 2.4 percentage points from 64.4% in the 2024 sales cycle.
Company Guidance
In the call, Vasta Platform provided robust guidance for its financial and operational performance for the second quarter of 2025. The company reported a 16% increase in subscription revenue, reaching BRL 1.340 billion, and a 24% growth in its complementary solutions business. As a result, net revenue for the 2025 sales cycle to date reached BRL 1.488 billion, marking a 14% increase compared to the previous year. Adjusted EBITDA rose by 8% to BRL 462 million, with an EBITDA margin of 31.1%. Free cash flow was a significant highlight, totaling BRL 224 million for the cycle, an impressive 147% year-over-year increase, with a conversion rate of 57.7%. The company also made progress in deleveraging, reducing its net debt to EBITDA ratio to 1.9x. Vasta remains optimistic about further growth, particularly in its Start-Anglo bilingual school operations and B2G segment.Vasta Platform Financial Statement Overview
Summary
Vasta Platform demonstrates strong growth and profitability metrics, supported by a stable balance sheet and improving cash flow. Revenue growth and healthy margins are positive, but attention is needed on maintaining profitability and managing debt levels.Income Statement
Vasta Platform shows a strong revenue growth trajectory with a 3.9% increase in TTM, supported by solid gross and net profit margins of 60.18% and 28.05%, respectively. The EBIT and EBITDA margins are healthy, indicating efficient operational management. However, the slight decline in net income from the previous annual report suggests potential volatility in profitability.75
Positive
Balance Sheet
The company's balance sheet is stable with a low debt-to-equity ratio of 0.24, indicating conservative leverage. The return on equity is modest at 9.80%, reflecting decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure. However, the slight increase in debt levels over time could pose future risks.70
Positive
Cash Flow
Vasta Platform's cash flow performance is improving, with a notable 31.44% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.18, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.59 suggests room for improvement in converting earnings to cash.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.67B | 1.49B | 1.26B | 947.42M | 997.60M |
| Gross Profit | 1.03B | 1.02B | 915.37M | 791.14M | 550.59M | 619.60M |
| EBITDA | 699.77M | 606.80M | 459.99M | 423.49M | 163.07M | 201.54M |
| Net Income | 470.90M | 486.49M | -83.77M | -54.57M | -118.75M | -45.60M |
Balance Sheet | ||||||
| Total Assets | 7.10B | 7.21B | 7.40B | 7.52B | 7.33B | 6.98B |
| Cash, Cash Equivalents and Short-Term Investments | 315.20M | 195.84M | 341.81M | 426.28M | 476.24M | 802.30M |
| Total Debt | 1.18B | 1.18B | 1.15B | 1.14B | 991.77M | 987.50M |
| Total Liabilities | 2.16B | 2.21B | 2.88B | 2.89B | 2.67B | 2.19B |
| Stockholders Equity | 4.93B | 4.99B | 4.52B | 4.63B | 4.67B | 4.79B |
Cash Flow | ||||||
| Free Cash Flow | 170.60M | 47.17M | 92.02M | 26.47M | -96.83M | 156.66M |
| Operating Cash Flow | 264.16M | 175.44M | 218.85M | 174.97M | -20.04M | 201.10M |
| Investing Cash Flow | -115.06M | 30.91M | 44.69M | -396.09M | 88.47M | -541.78M |
| Financing Cash Flow | -185.72M | -217.68M | -213.44M | -43.01M | -69.69M | 608.55M |
Vasta Platform Technical Analysis
Positive
4.28
Price Trends
4.20
Positive
4.29
Negative
3.55
Positive
Market Momentum
0.02
Negative
56.47
Neutral
81.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTA, the sentiment is Positive. The current price of 4.28 is above the 20-day moving average (MA) of 4.24, above the 50-day MA of 4.20, and above the 200-day MA of 3.55, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTA.
Vasta Platform Risk Analysis
Vasta Platform disclosed 91 risk factors in its most recent earnings report. Vasta Platform reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vasta Platform Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $343.26M | 4.46 | 8.67% | ― | -7.36% | ― | |
73 Outperform | $1.88B | ― | -8.40% | ― | 7.10% | 49.18% | |
69 Neutral | $545.27M | 28.61 | 10.20% | ― | 5.50% | 338.59% | |
64 Neutral | $1.03B | ― | -12.62% | ― | 3.93% | 63.52% | |
63 Neutral | $1.07B | 33.57 | 25.15% | ― | -1.66% | ― | |
63 Neutral | $20.44B | 14.73 | -2.94% | 3.07% | 2.04% | -6.12% | |
56 Neutral | $947.54M | ― | -32.95% | ― | 56.38% | -16.84% |
* Consumer Defensive Sector Average
Performance Comparison
VSTA
Vasta Platform
4.28
2.05
91.93%
APEI
American Public Education
30.18
14.62
93.96%
GOTU
Gaotu Techedu
3.90
0.88
29.14%
DAO
Youdao
8.97
5.84
186.58%
COUR
Coursera
11.50
3.63
46.12%
UDMY
Udemy Inc
6.86
-1.23
-15.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.