Ânima Holding S.A. (ANIM3) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to our Q2 2025 earnings presentation. I am Carina Carreira, IR of Anima. I'd like to present or introduce Paula Harraca; Atila Cunha, CFO; and Guilherme Soarez, President of Inspirali. So we are recording this presentation. It's going to be available on our website where you see all the other materials. At the end of the presentation, we're going to have some space for Q&A. [Operator Instructions] Now the floor is yours, Paula.

Good morning, Carina.

Good morning.

Good morning, everyone, taking part. I'm very pleased to share with you the results of the second quarter first semester 2025. Before moving to numbers and starting with the presentation of results, I'd like to take this stock here. It's an important milestone. For me, what this moment represents the third wave of Anima of first year of journey. I remember that in August last year, I was taking part of the same life in this process of passing on the baton that happened previously and looking in retrospect this year that has gone by, brings 2 words that materialize that are tangible in these results. The 2 elements I'd like to share. The first is consistency and the second is trust. I'd like to thank everyone. I'd like to start by thanking the students who choose us every day today. I'm taking part of this live in Curitiba -- well, in Belo Horizonte. I'm in this -- on this campus. It is for them that we do what we do, 100,000 educators making up the Anima system. They deliver the learning experience that is delightful of quality with bright eyes and passion that all the faculty delivers to the students with dedication and confidence. The whole team that brings the results that we're going to share with Atila, Guilherme and Carina. And I'd like to thank our shareholders, our partners that believe in our purpose, our strategy and our ability of consistently carrying out our strategies, adding value to you, society, students, everyone that trust our value proposal. The main word is gratitude. With further ado, let's move on to our earnings that actually make the deliverables tangible. This commitment, the strategy that is clear that we have been carrying out with great commitment on our day-to-day. We're presenting consistent results that are solid that confirm our strategy and the growth of our revenue above BRL 2 million the first semester with 4% growth previous -- regarding previous years and ticket growth in Academic Education, all segments is a great highlight. Looking at profitability of the company, we delivered an EBITDA of BRL 642 million, growing over 7% regarding previous year and net income of BRL 144 million in the half with a growth of almost 12% regarding the same period of 2024. Our cash, the sound revenue EBITDA that is sound is translated into robust cash generation of BRL 778 million, our operating cash growing 7% regarding previous semester and leverage that is better regarding same period last year, 2.66x, slightly smaller, 0.3. So company in line of what we were expecting profitability that is robust, consistent work of efficiency, very carefully using our resources to improve student experience, academic proposal engaged, and we see very positive results, both in the return of students and teachers in all our processes. This is being translated into this robust cash generation, robust leverage. We still have investments and elements of building future of those results. To deepen it, I'd like to call my Copilot. I dearly call our Financial Director or our CFO, Atila, well known by most of you. Please, Atila, it's up to you. Thank you very much.

Thank you. And I dearly say Boss, [indiscernible]. Well, good morning, everyone. Thank you very much. Our next slide, please. It's a pleasure to be with you once again for the earnings results. Well, considering our discipline, and we are delivering what we have promised. I think work in education is not short term. It's a journey and consistency is fundamental for us to attain results. I think it's important for the Core segment, the robustness of our Core segment. We see it growing both in terms of ticket, improving dropout rates, and we see net revenue and also operating results growing. In brief, this is a reflection of the importance of our strategic choices. Since you took over, it is clear for everyone on the importance of the of our brands, the power to the edge of the edges acting and strengthening our brands, and we see some reflections here. We have the Core segment, which is our largest one, quite robust. And it is important to say that we understand that it is at a very interesting level of margin since we have been very vocal. Our challenge today is of gaining efficiency and expenses to reinvest the efficiency gains in the end activity, improving the academic offer and the experience of students so that we can drive revenue in the future, which is our other mantra that Paula actually shares with all our educators, sustainable growth of revenue. The results are the reflection of that. On the Digital segment, we also present positive and consistent results driven much more by a strategic choice of actually emphasizing ticket to the detriment of volume. We understand the importance of Digital Education. We understand that it is a vehicle that is totally important to promote access or higher or to higher education, but we understand that it has to be quality higher education that requires quality in our Digital as well. So our choice is offering more and charging more. This is shown in the soundness of revenue and also our results with the dropout dropping semester after semester, this is a reflection of our strategic choices and the results show that it has been very selective. And I'd like to take the chance and congratulate the whole Digital team, all our partner stores that have actually taken this journey along with us. And Guilherme, I'd like to invite you to talk about our Inspirali.

Thank you, Atila. Good morning, Paula, Carina, everyone that are following us. It's a privilege to be sharing the results of Inspirali in Q2 2025, welcoming our students that have resumed their lessons, 12,000 students that have come back this week. We continue our journey in building Inspirali with significant growth numbers of lifelong education with the arrival of Eu Medico Residente, doing great work, EMR as well as other schools preparing to ENEM [indiscernible], the first edition of this examination that will take place in the second semester. And for undergraduate studies, this quarter has a basic effect of comparison hindered by, as you all know, followed previous year, there was a delay in the release of students, the FIES contract and this delay generated 2 effects: the concentration of enrollments in the second quarter 2024 and a reduction of the FIES base because of the delay some students ended up giving up waiting. So 2025 is a calendar, let's call it, more normalized in which students in their majority enrolled in the first quarter and at levels that are more consistent and recurring. So we move on in our trajectory. The best way of analyzing results as always, we reinstate is looking by the semester as a whole, isolating some seasonality effects. So we are available with this for questions, and I turn back to Atila.

Thank you very much, Guilherme. We have been able to have a brief overview of the performance of each one of our businesses. They are robust businesses. Our on-campus business is very robust of national capillarity presence literally from Rio Grande do Norte to Rio Grande do Sul, where we have very strong brands, very consolidated in each one of the marketplaces, driving each one of the segments, on-campus teaching or education, Distance Learning and our Medical Education, driven by all our fronts of our businesses, we have very sound consolidated results. We have a trajectory that is very consistent EBITDA growth. We have had growth in all various well lost track of the quarters with totally consistent margins that show great efficiency in each one of the segments. We have an almost 8% EBITDA growth in the semester. We grew in the second quarter. It's naturally a bit weaker. This margin expansion is in turn, driving the growth in net income. That growth despite the growth in financial expenses, also a reflection of a lower level of depreciation because of the maturing and amortization of our intangibles and especially due to the growth in the quality of our results, EBITDA growth and net income also grows. Here, we see a bit of our numbers that, unfortunately, all of us Brazilians have to fight against the SELIC or the interest rates that is critical that also pressures our financial results. So our financial results, they suffer an increase. So the net debt has increased, as you have seen, it has been absorbed -- more than absorbed by the improvement in the performance of our business. So we, Brazilians have to fight for our businesses despite macroeconomic conditions. This slide is very important because it shows our attention and our care and our prioritizing of investments for digital transformation. We have a whole team that is bright, led by our VP, Bruno Henrique. We have several other people here that build projects that bring efficiency and service improvement for our students in an absolutely significant way from our app that has been attaining highest grades in app stores. Today, students can have personal service on a phone through video call, the whole team of our team. We created a student experience, VP of Student service. We have a wonderful service that is called [indiscernible] led by Rodrigo Rossetto, the whole team, Ana. And the whole team has brought increasingly better experience to our students. And we have used a lot of technology or tapped into technology to leverage our business, not only in terms of operating efficiency, but also in student experience to areas that have brought great results, and I'd like to congratulate and thank for the great work. So we continue with a solid and robust cash position. We have liquidity that provides us a certain comfort in a country and world that is so volatile. We understand that this confidence and security for such large company like ours. Well, Anima is totally safe in terms of liquidity and soundness and financial results. Our debt has been totally renegotiated. We have deadlines in the short term that are quite modest, and we understand that this gives a certain comfort so that the company can keep on in its trajectory to look at our operations and bring increasingly better quality, better experiences and have the focus of what Daniel Castanho, our President of the Board says the focus of the company has to be just like a performance. It's the stage, not the box office. We in the financial department do our job so that we have the stage shining, not the box office, but box office is also important. It's fundamental because it brings or it sheds light to the stage. So -- and it has been providing our leverage reduction. This is very important for everyone to see in the past year, we've reduced our leverage. So this is a very important topic, and we've been able to reduce leverage, invest in the student experience, compensate shareholders and bring leverage results. It's a solid, robust company that has very clear strategies and consistently follows in this direction. So I conclude, Paula, this part of finance before turning the floor back to you, saying that it is a company that is very disciplined, which efficiency is very carefully taken care of. The hard obtained money of our students is taken care of carefully so that we increasingly more spend less in expenses, invest in quality so that this quality can provide sustainable growth of our businesses, of our revenue. And with this, we are able to fulfill the dreams of our students. Well, turning back to Paula. Please.

Thank you very much, Atila. Thank you very much, Guilherme. And as final remarks. Of course, numbers are important, but what sustains and supports an organization over time are not the numbers. Numbers are a consequence. They are a consequence of a purpose that moves us, that drives us every day, that is vibrant, that is strong and the clarity of our vision, the consistency of our execution and coherence of our choices and strategic renouncing. As Atila said, it's a team that has a strong discipline, attitude caring for students, caring for the experience and for teachers and also caring for the resources that enable us to attain our goals. We continue committed in this third wave of sustainable growth with this quality revenue. We are continue to committed with caring for our resources, our efficiency, our structure and cash generation of the company. We prioritize student experience because we know that is the origin of success, that is the success of our business, success of our teachers that actually realizes when they talk. This is the virtuous circle that we talked about in the previous call. We are ready looking at the horizon, we are ready to capture opportunities that are coming ahead. We know we are faced with an important moment of important changes and Anima is ready and confident because we know those changes are not only good for Anima, but also for education in Brazil, education that increasingly more needs to provide access with quality and bring transforming learning experiences to prepare better citizens for Brazil. So without further ado, Carina, let's move on to our Q&A and the sharing and exchange moment with the participants.

Thank you very much, Paula. Let's start our Q&A session. [Operator Instructions] The first question is from Flavio Yoshida from Bank of America.

Congratulations on your results. I have 2 questions here on our side. The first is regarding gross margin. It's been impacted, especially from what we understood due to a change in the academic offer with more on-campus activities. What should we expect for gross margin for future year, if this somehow is an adaptation to the new regulation, just to have a visibility for mid, long term? And my second question is regarding the bad debt level. There has been a significant improvement in the quarter. I assume it's been due to the effort that you've been making since last year, focusing on the improvement in the quality of the student, not only numbers. I'd like to understand that whether the number is a structure of what you're going to have ahead or there should be some kind of changes.

Thank you, Flavio, for your questions. They are wonderful because they generate opportunity for us to clarify the strategy of our business. The company has been very vocal saying that from the third growth wave, it's going to be very focused on academic experience and quality to leverage the sustainable growth of the revenue. From there, you can see a company that seeks a lot of efficiency in expenses so that we can release our funds to invest in the academic -- in the student experience. You should actually see gross margins well, slightly dropping and the loss in gross margin being offset by the expenses so that we can maintain an operating margin at this high consistent level that we have that we have conquered and attained. This is indeed a clear strategy of the company, saving in expenses and investing in students. And with that, leverage future revenue. On bad debt and default, I'm going to play with the equation. So it's Px Q+Z. So you see lower bad debt, but you see a consistent portfolio coverage. If we have the coverage consistent, this is a reflection of a better quality portfolio. So we can see that the aging of the portfolio has improved. We have a number of the actually delinquent that is better than in the past. This is a result of our choice, strategic choice of privileging quality revenue. It's not occasional. It's the result of the strategy.

Next question is from Lucas Nagano from Morgan Stanley.

We have 2 questions. The first is on Inspirali’s marketing. Going a bit against the other segments, there's been a commercial trend and if the pressure on second Q was because of lower FIES revenue or if it has another effect? Second question is on leverage. What are the leverage drivers ahead? It should come from organic cash generation or you should have other significant short-term gains with inorganic gains or things you did in the past as working capital operations?

Thank you, Lucas, for your question. With regards to marketing, we observed 2 effects. The first one, obviously, we see in the whole ecosystem where we have been investing in the positioning, the building of Inspirali's brand with the arrival of EMR, Eu Medico Residente and lifelong education led by IBCMED. This increase in the relevance of lifelong learning in the mix of Inspirali generates this pressure on marketing due to the inherent characteristic of the market of lifelong learning, which we invest a bit more in terms of marketing. So we have the effect of the investment we make on the brand and the mix effect because of continuous or lifelong education. Regarding the margin, the most correct way of analyzing it is the semester. There has been a great stability in Inspirali's margin in this semester and some specific effects and other expenses and revenues, which is a line that encompasses several other costs and expenses, and this includes contingencies, provisions and other specific effects that we left out of the results to make it neater and cleaner. So we do not expect things happening to the semester results. So for the second question, I turn over to Atila.

Thank you, Guilherme. Lucas, the company has been presenting solid trajectory of organic deleveraging. We've reduced in the past 12 months, 2.76x to 2.66x. We have -- we made the acquisition of EMR investing in growth. We actually distributed dividends and invested in CapEx. We improved leverage. We've been balancing the company towards deleveraging and selling seeds for the future. On the working capital dynamics, the company has been working with great discipline with great care, all the investment it makes in its accounts receivable, always looking at accounts receivable as something that should provide conditions for students to continue studying with us and that also comes in with quality and the quality education is turned into cash generation because the box office or ticket office is also important. So this care with working capital is permanent. So we have been reducing the time line of receivables. You're going to see in our financial statement that costs have been increasing for our students. And actually, we have been reaping important results in financial revenue that we charge. And in this whole dynamic has been showing organic results, putting us on a sound deleveraging trajectory. As Marcelo Bueno says, our Board member says and also preaches us and places us in this direction, we are all the time evaluating opportunities for organic deleveraging because interest rates at 15%, they are having on our financial results. So we should be constantly evaluating opportunities. But currently, we have the results of deleveraging are coming from the organic deleveraging considering the conditions that we see on the market.

Next question is from Leandro Bastos from Citibank.

I have 2 questions. First, if you could talk about intake. It's the beginning of the cycle. What do you see in terms of trend and the Distance Learning market before the transition for the new regulation? What do you observe in terms of competitive environment? I think it would be interesting to hear that. Second one, taking these comments on gross margin, investing gross margin funded by expenses. Well, for a long time, you've been moving forward on agenda of acting on costs and expenses. What do you see as great buckets for cutting expenses? You've been controlling your bad debt. Where are we in terms of the cycle having more room for cutting expenses and keep on investing in gross margin? Those are my questions.

I'm going to take this one. Thank you, Leandro. As to the moment, well, how we're doing in terms of intake, we're doing well, specifically on what you asked on Distance Learning. We have been experiencing a change in the dynamics of the market. With the arrival of the new legal framework, it brings an improvement both for the industry and also for education. We believe that the regulatory market is very good for education in Brazil. It's a key point because it will bring an opportunity of greater access along with quality. Quality has always been an assumption, a priority for Anima. When you see the evolution of a belief -- so that being a priority now being sort of christened by the legal framework as a priority too on campus is a great priority. So changes bring opportunities and threats. What we see, Leandro, is that we have had different approaches. We continue as Atila put it quite well, sustaining our value proposal with our strong brands, knowing that from the viewpoint of competitive dynamics, we have had some reactions that we have been observing, but we are not reacting. We are confirming our strategy. So the confirmation of our strategy is happening by looking, for example, from the point of view of structure, we are ready for this whole movement coming with the legal framework. We are offering everything that is in line with this new opportunity that has opened up. And we have been doing within our competitive intelligence well, power to the edge, an analysis as to how this is impacting Distance Learning in some marketplaces, but knowing that we have certain games we're not going to play. And again, confident we see well, the movement of intake with the challenges that we are facing and generate and in our case, confirms that we are on the right track and facing challenges with our competitive strength. We are not letting or failing to doing what we believe in because of short-term happenings of what has been happening in these recent moments. We know that we act where we can offer quality. We are well positioned in this sense and also working hard within this intake process. And now we're going to have in the forthcoming weeks, we have an important track ahead. So you've asked about our space for continuing to reducing and/or to increasing our efficiency. Last week, we have been following our strategies. So we have administrative strategy or efficiency that is very important. We have all the areas of the company, technology, the work that Anima has been consistently carrying out quarter after quarter. I mentioned this in the previous call. So cost is a discipline. It's muscle. We always have room to continue reducing. We'll keep on following that without letting go on the quality of our offer, our academic experience of the incredible differentiated experience that we want to continue offering to our students.

Next question from Lucca Marquezini from Itau BBA.

As a follow-up regarding the question on capital structure, deleveraging. Atila mentioned that the company keeps on focusing on deleveraging. Considering this level of high interest rates, can you talk about the dividend policy of the company? Should we see a level regarding the last previous dividend payout? So if you could comment on the strategy, we would be grateful.

Lucca, thank you very much for your question. This answer, well, the company has been very vocal. We've been questioned in the previous call, what we made a payment this quarter was regarding profit of 2024 was payment of dividends actually mandatory by the bylaws, 25% of net income. This is the policy we have in the company. For this year, dividends have been paid now regarding profits of last year. So we don't have any expectations or provisions for this topic. We are diligent in the use of capital structure to maximize shareholder value always.

Next question is from Marcelo Santos from JPMorgan.

I'd like to focus on something that is more conceptual or strategic. I think what Atila says, well, gain efficiencies to drive revenues in the future. Could you make it a bit more tangible? Investments are being made. How would this lead to more revenue? What is the timing? I'm not asking you to be very precise. What is the conceptual mechanism? How will the student recognize the value of such investments? I'd like to understand how one thing takes to the other, of course, invest in quality, but you at the forefront, what does it mean in more practical terms?

Atila, I'm taking it here. If you'd like, you can add. A simple point, Marcelo, that you see -- you should see our balance sheet. We haven't made reductions in our cost center. We are saving efforts in terms of having a faculty that is loyal, engaged as we understand to make it necessary for an incredible experience events that is on the edge and the experience of the teacher in the classroom, for example, going back to classes, each unit is going back on their day. So they hold an event. It has to be an incredible experience. We have to keep on working and offsetting costs that are administrative. The value has to be at the edge at the forefront. That's where it flows our structure becoming increasingly more -- actually, we made an adjustment in the executive committee. I'm making an analogy, integrating areas, eliminating leaders. It's just as if we were going to center left, moving to center right more lighter in the Core, stronger on the edge where value and experience has to be incredible where differentiation is important because we have a top teacher -- well, it's an incredible teacher. This is word of mouth. So people soon get back home and say, well, this university is incredible. Then we get the revenue virtuous circle. We deliver an experience that is different. The differentiation goes through that. When we talk about the brand value, it's not the logo when we go through the door. What do you find an incredible teacher, professor. We have top faculty, academic experience that is top notch. What I deliver a service experience is that's where we have to put our resources, Marcelo. This is the concept of spirit. Atila, if you want to add, feel free to that.

No numbers, your numerology. This is the strategy, Paula. I just actually, just to share the example of this morning, we -- at 8:30 this morning, we had a call with our collaborators or associates to tell them about the results. It's something we do and to please our team. And at the time, it was offhand our marketing VP, Bulgueroni, he's doing a great job, and he joined directly from Sao Judas preparing the return to classes several initiatives. Abilio started talking about things of academic effects of talks, things that have been prepared for the next week so that our students get back and see a different campus, a stronger and livelier academic life. Things are happening at the very edge. These things are happening every day. Today, this is part of the smaller net income.

Our next question is from Samuel Alves from BTG Pactual.

Two questions on our side. And I'm going to follow this topic. I'd like to hear you on using capacity in Anima Core. The strategy of the company is very clear regarding sustainable growth, focusing on better quality to students, more effective cash conversion and actually driving to more growth in the future. What is the use of the capacity of the company? Once you focus it in this way, the base has consistently dropping -- been dropping. And consequently, you have better students in the company. Leading to the second question. In this context, can we have more cost efficiency project. So the strategy regarding faculty is very clear. So it's less than 70% of the cost line of the company. Can we cut these costs reduction in square footage or digitizing more or you believe you cannot tackle this cost structure considering the current capacity use?

I'm going to start here, Paula, and then you can add. Samuel, thank you for the question. We have in 2022 and '23, we made important resizing of our physical capacity and buildings in a project led by our director -- brilliant director, Elizabeth [indiscernible] very dear to everyone. And we've been able to drastically reduce these costs, and it's about 7% of net income or net revenue. So it's a very efficient benchmark. We understand where we are today is where we want to be. Where we are today is where we understand that we have opportunities to grow and reap the fruits of changes coming from the new legal framework. So Samuel we have space in our units. We have been able to reap and host base growth without physical expansion. We were able to have significant student base growth without physical expansion and privileged units that mean value to our business. So if you take operations in Sao Judas, in Sao Paulo, we have all of them that are very close to public transportation. This is very valuable. The work continues. [indiscernible] work is still very strong, working on renegotiations to work so that we can use the money from our students in the best way possible. So you can see that we have been able to -- even by maintaining the physical structure through renegotiations, we've been able to maintain these costs very close to flat year-over-year. So we understand as strategic guidance, we have strengths in our units. If you go to UM, as you were at the UM at Macau, you see a unit that delights students. And this means value. And now with this new framework on on-campus, the growth of our on-campus courses, this power of ours has to be valued because it will deliver much more value in the future. I turn over to you, Paula.

Thank you, Atila. I'll just add, Samuel, precisely that today, our infrastructure is fully in line to our sustainable growth strategy. It is not there much on the contrary. The main point, your question has 2 components. You've asked about technology. So and I said, just to clarify that strategic front that we call administrative resilience is mostly looking at processes, technology simplification. This is a great driver for the company, simplify. So when I say we've reduced 3 fewer leaders in the management. So this -- we're finding the best ways of organizing the resources and efforts of the company and also taking leaps and technology has a key role in the structuring project in this front that we call administrative efficiency to continue looking at better gains, higher gains from the standpoint of synergies, efficiencies and costs in a structuring way with projects that have technology behind them.

Next question is from Andre Salles from UBS.

I think the sustainable growth team has been very well addressed in the call, quality of teaching, student experience. But can you give me a bit more color in terms of growth metrics that you monitor to measure the success of growth in the company. This would help us give us [indiscernible] to expect in terms of growth in the future and are there business units that we should focus more.

Thank you, Andre, for your question. We don't provide guidance. We don't talk about future growth projections. What I can tell you, we have a strategy with 3 major fronts: the growth of Core business, top line, quality revenue, it's been growing. Being the part of the base, we have the strength of our brands. Our part of the edge data-driven is playing the game very well in each territory. So -- what about again with the intake. It's brand by brand, course by course, bringing the strength and value attributes of our offerings within the Core that we call, which is on-campus undergraduate studies. This is a great avenue of the new modalities, semi on-campus that is strengthened with a new regulatory or legal framework. We have important of these modalities, new experience and opportunity in education in hybrid mode, which is a premise pillar with the building of our educational project at Anima an important avenue, which is medical studies. We presented to investors last year our strategy, different leaders that are focused in each one of those fronts that were there. We'll be presenting again at the Anima Investor Day. In short, we'll call it. Andre, you're invited for us to interact to bring more details on this strategy of growth. I can tell you this is in one of the analysis made for the market, precisely that this new time brings wins that are favorable for this strategy, we call the third wave of Anima of sustainable growth that naturally has space for organic growth that may have opportunities for inorganic growth as well.

Next question is from Caio Moscardini from Santander.

I'd like to ask you about the perspective of cash generation for the company in the forthcoming quarters and understand a bit more on the receivables discount. Do you see that happening very much on credit cards side to understand whether those discounts should keep on happening in the forthcoming quarters as well?

Thank you for your question, Caio. The company continues its consistency [indiscernible]. Our receivables have been adapted so that they can be successful or good without -- or actually exceeded without losses to company. We use the tool of installments on a credit card, and this tool is important to provide opportunity for students that want to renegotiate tuition fees and arrears to adjust their enrollment and adjust some specific issues, but the cost for this installment to happen is quite higher than our intake cost. So this is translated every time we make those discounts in receivables is turned into financial revenue, not expense. And you see this item growing in our balance sheet. So this is already part of dynamics that we adopt, and we use those tools according to specific temporary issues and opportunity aspect and managing the working capital of the company today. Well, actually, for some time, we have been dealing with great discipline, but this has been turned at the end of the day into an important element of our business that is very much controlled. It's well controlled. And we see financial expenses with this kind of modality that is very well timed. You see in the item with the interest in PraValer. So we are well timed in this item. This management in working capital has found a stability time in which it is used to add value to the company and not to steal value from the company. So it will continue like this from now on. Sorry, on cash generation, it's constant. It's consistent actually. We have quarters that are odd numbered and with robust cash generation in the even numbered quarters, it drops a bit in the sum of odd and even it's still positive.

Cool. It was precisely that I wanted to ask you. Seasonality and cash generation will go back to featuring -- so we have the odd numbered always very blue and even quarters and the sum of both continues to be blue and the sum of the 4 as well.

The next question is from Gustavo Miele from Goldman Sachs.

I have a question on consolidation environment in medicine, perhaps less in the optics of opportunities of short term for the company. I understand that leverage, as you mentioned, may be perhaps a barrier at least in the forthcoming quarters. What has been the feedback of the M&A team on the exogenous part, the opportunities you have seen? How has this evolved in the valuation of targets that you monitor internally? Just to get a bit of temperature of these consolidation opportunities.

Thank you, Gustavo, for your question. Actually, the consolidation and transaction process has been impacted by regulatory issues and also injunctions and the process known the Mais Medicos 3 that is underway has been postponed. Once again, it suffers those effects. And as you well know, Anima has always been active and continues to be active in those dialogues and valuation of those companies considers always various elements, location, the brand, goodwill and reputation and the ability to attract students, all those elements are part of the analysis, and we continue very much attentive to any type of movement. We keep everything on our radar.

Our last question is via chat today from [ Wagner Silva ]. I’m going to read his question. Congratulations on your presentation. Could you please comment on the expectation of the company regarding the effect of the new legal framework for Distance Learning and also Mais Medicos 3 and the impact for the company.

I'm going to take the first part of the question and then Guilherme has talked about the Mais Medicos 3. Well, [ Wagner ], thank you very much. This new regulatory or legal framework is a structural change in the sector. Structural changes generate opportunities or threats overall. To us at Anima, it is a great opportunity. First, because it is an important movement for the quality of education in Brazil. And Anima has always believed in quality education, has always invested in quality education, has always believed in this. And second, because we are structurally ready for this movement. So within our competitive positioning, we have strong brands, infrastructure. We have an academic model that knows how to operate in this. We have know-how, we have experience. So we have knowledge and better of everything we believe that we are able to deliver quality education. We don't see significant impact to our cost. And when we see our growth strategy, we are -- we have our structure competitively very well positioned for this moment. We know that there will be certain investments, certain adjustments and some units. But actually, we have our own units that are well positioned to great part of our revenue in hubs that are operating 30 kilometers from our headquarters, giving a reference of how much this enables us to look at this not only from the standpoint that is conceptual of the conviction that this is very good for education, but how much Anima has a great opportunity, in fact, to position itself in this new market movement in this structural change in a different way in a very strong, powerful way.

With this, we close our Q&A session. Thank you all very much for taking part of our earnings results webinar. So our IR team is available for additional questions. Have a good day, and see you next time. [Statements in English on this transcript were spoken by an interpreter present on the live call.]