Description of 's Business Segments

The company reports its operations within a single segment: Content & Edtech Platform. Its revenues primarily arise from the sale of textbooks—either as standalone publishing or as part of educational platform bundles—learning systems, and complementary educational solutions in both printed and digital formats. These sales are mainly conducted through term contracts with a minimum duration of one year, classified as subscription arrangements. Additional revenue sources include tuition fees for preparatory courses for university admission exams and sales of products directly to students and parents via the Livro Fácil e-commerce platform, acquired in 2017. Revenue recognition is based on the transfer of control of goods, anticipated returns informed by historical data, and seasonality aligned with the academic calendar, with higher revenues typically recorded in the first and fourth quarters. Cost of goods sold and services primarily consist of expenses related to publishing and printing educational materials, including paper, printing, employee costs, and copyright fees. Operating expenses encompass general and administrative costs among other categories.

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