Cruzeiro do Sul Educacional (CSED3) recorded adjusted net income of R$ 52.3 million in 3Q26, down 53.8% from 3Q25, with a margin of 7.5%. The result was affected by an additional provision of R$ 52 million in PECLD (Estimated Losses on Doubtful Accounts), stemming from a methodological change that distributes the provision more evenly throughout the year. On a comparable basis, net income was R$ 104.2 million, down 8.0%.
Net revenue totaled R$ 698.2 million in the quarter, up 0.6%, with growth in on-campus education, mainly in Health courses (+3.5%), which offset the decline in digital. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 198.4 million, with a margin of 28.4%, versus 40.1% in 3Q25. Comparable EBITDA, which excludes non-cash effects of PECLD, was R$ 272.6 million (-2.0%), with a margin of 39.0%.
The PECLD effects include, in addition to the R$ 51.9 million additional provision, an accounting reclassification of R$ 22.3 million, previously allocated to financial results, with no impact on net income, shareholders' equity or cash. The company also recorded R$ 167.9 million in non-recurring expenses related to the FAPI earn-out (additional performance-based payment), triggered by the authorization of 146 new Medicine seats. The total earn-out is R$ 186 million: R$ 93 million was paid in the quarter, and the balance will be paid in 2027 (20%) and 2028 (30%).
Net debt ended the quarter at R$ 596.4 million, with leverage of 1.1x adjusted EBITDA for the last 12 months, versus 0.8x in 2Q26. Cash totaled R$ 915 million, and the average cost of debt is CDI +1.2%. Free Cash Flow to Equity was R$ 147.9 million, versus R$ 221.3 million in 3Q25.
In 9M26, net revenue was R$ 2.2 billion (+4.5%), comparable EBITDA totaled R$ 756 million (+3.4%), with a margin of 34.7%, and adjusted net income was R$ 216 million (-18.1%). The on-campus student base stood at 167 thousand (-1.0%), and the digital base at 372 thousand (-8.3%).
