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01/11 11:24
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects strong financial performance with double-digit revenue growth, improved EBITDA, and increased free cash flow. Despite challenges in the credit scenario and increased commercial expenses, the company shows solid subscription revenue growth and a positive outlook for B2G contracts. The Q&A section reveals a positive sentiment among analysts, with expectations for continued growth and improved margins. The company's strategic initiatives, including technological development and operational efficiency, further support a positive stock price movement.
Subscription Revenue BRL 1.340 billion, a 16% increase compared to the same period of 2024. This growth demonstrates sustained double-digit growth in the core business for the fourth consecutive year.
Complementary Solutions Business Revenue 24% growth, supported by accelerated expansion in both student base and market penetration.
Net Revenue BRL 1.488 billion, a 14% increase compared to the same period in 2024. This growth was driven by the successful conversion of ACV bookings into revenue along with the strong performance of complementary business.
B2G Segment Revenue BRL 50 million in the cycle to date, with BRL 9 million from new customers. However, this represents a decrease compared to BRL 69 million in 2024 due to changes in the timing of revenue recognition for the Pará contract.
Adjusted EBITDA BRL 462 million, an 8% increase compared to the previous cycle. The EBITDA margin was 31.1%, reflecting a different product mix, lower year-to-date B2G revenue, and higher marketing expenses related to business expansion.
Free Cash Flow BRL 224 million, an increase of BRL 133 million year-over-year. In Q2 2025, free cash flow reached BRL 80 million, a 108% increase compared to Q2 2024. This improvement was driven by operational discipline, automation, and renegotiation of supplier terms.
Net Debt to EBITDA Ratio 1.9x, down from 2.28x in Q2 2024, reflecting progress in deleveraging.
Non-Subscription Revenue BRL 98 million, an 11% increase compared to 2024. This growth was driven by new revenue from the Start-Anglo Liceu in São Paulo and a 21% increase in students in the Anglo pre-university course.
Adjusted Net Profit BRL 111 million in the sales cycle, a slight increase of 1% from BRL 110 million in 2024.
Provision for Doubtful Accounts (PDA) BRL 45 million in the 2025 sales cycle, representing 3.1% of net revenue, an improvement of 0.9 percentage points compared to 2024.
Start-Anglo bilingual school expansion: Implemented 5 new operating units this year, totaling 7 units in operation. Signed over 50 contracts, actively working to deliver another strong growth cycle.
AI-driven tools for education: Introducing new tools focusing on equity and personalized learning, including the Individualized Education Plan (IEP) to provide tailored pedagogical recommendations.
B2G segment growth: Generated BRL 14 million from new customers in the last 2 quarters, mainly municipalities. Diversified portfolio into states and municipalities.
Complementary solutions growth: Achieved 24% growth, driven by accelerated expansion in student base and market penetration.
Free cash flow improvement: Free cash flow totaled BRL 224 million in the cycle to date, a 147% increase from 2024. Q2 2025 free cash flow reached BRL 80 million, a 108% increase compared to Q2 2024.
Operational discipline: Implemented automation in collection processes, centralized payment scheduling, and renegotiation of supplier terms, improving cash flow and efficiency.
Deleveraging strategy: Net debt to EBITDA ratio reduced to 1.9x from 2.28x in Q2 2024, driven by positive cash flow and financial discipline.
B2G Revenue Decline: Revenue from the B2G segment decreased by 28% compared to 2024, primarily due to a different revenue recognition schedule and lower year-to-date B2G revenue. This poses a challenge to maintaining growth in this segment.
Adjusted EBITDA Margin Decline: The adjusted EBITDA margin decreased by 1.6 percentage points compared to 2024, driven by a different product mix and lower B2G revenue. This could impact overall profitability.
Credit Environment Challenges: The company faces a challenging competitive credit environment, particularly for non-premium brands, which could affect collections and financial stability.
Provision for Doubtful Accounts: Although provisions for doubtful accounts improved slightly, the company still foresees challenges in the credit scenario, which could lead to higher financial risks.
Increased Commercial Expenses: Commercial expenses increased by 0.6 percentage points due to higher marketing and business expansion costs, which could pressure margins if not offset by revenue growth.
Net Debt Levels: The company has a net debt position of BRL 917 million, which, while decreasing, still represents a significant financial obligation that could limit operational flexibility.
Future Revenue Expectations: The company expects to achieve a free cash flow conversion rate of about 50% for the 2025 fiscal year, representing a significant increase from 41.8% in 2024.
Market Trends and Business Expansion: The company foresees challenges in the credit scenario for the coming months, particularly for schools related to mainstream brands. However, it remains committed to innovation and inclusion, with plans to introduce AI-driven tools for personalized learning and inclusive practices in 2026.
Operational and Strategic Plans: The company plans to continue expanding its Start-Anglo bilingual school operations, with 5 new units implemented in 2025 and over 50 contracts signed. It is actively working to deliver another strong growth cycle in this business line.
Profitability and Margins: The adjusted EBITDA margin for the 2025 sales cycle is expected to stabilize at around 31.1%, with ongoing efforts to optimize workforce and implement budgetary discipline measures.
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The earnings call reveals strong financial performance, with significant revenue and profit growth, despite slight margin declines. The company is expanding its premium bilingual education units and introducing AI-driven tools, indicating a forward-thinking strategy. Despite challenges in the credit environment, particularly for non-premium customers, the company's proactive measures and strong cash flow management are positive. The Q&A session highlights continued market share gains and clear management responses, reinforcing a positive outlook. Overall, the company's strategic initiatives and financial health suggest a positive stock price movement over the next two weeks.
The earnings call reflects strong financial performance with double-digit revenue growth, improved EBITDA, and increased free cash flow. Despite challenges in the credit scenario and increased commercial expenses, the company shows solid subscription revenue growth and a positive outlook for B2G contracts. The Q&A section reveals a positive sentiment among analysts, with expectations for continued growth and improved margins. The company's strategic initiatives, including technological development and operational efficiency, further support a positive stock price movement.
The earnings call highlights several concerns: missed EPS expectations, significant revenue declines in government and non-subscription segments, and unclear guidance on B2G revenue growth. Despite some positive aspects like revenue growth and operational efficiency, the lack of a share buyback program and challenges in the credit landscape further dampen sentiment. The Q&A section reveals management's avoidance of specific guidance, adding uncertainty. These factors, combined with a challenging economic environment, suggest a negative stock price reaction in the short term.
The earnings call reveals strong financial performance with increased revenue, EBITDA, and free cash flow, despite challenges in credit landscape and economic factors. The Q&A section highlights some unclear guidance, but overall, the company demonstrates resilience with strategic growth initiatives and a share buyback program. These positive indicators outweigh the concerns, suggesting a likely positive stock price movement in the short term.
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