Q2 2026 Afya Ltd Earnings Call

August 13, 2026

Speaker #1: Welcome to Zoom. Enter your meeting ID. Followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting.

Operator: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: IFRS Financial Measures. Now, let me turn the call over to Vigilio Gibbon, FSCO.

[Company Representative] (Afya): IFRS financial managers. Now, let me turn the call over to Virgilio Gibbon, Afya CEO.

Renata Costa Couto: Now, let me turn the call over to Virgilio Gibbon, Afya CEO.

Speaker #3: Thank you, Renata, and welcome to our second quarter in the first half conference call for 2026 results. Starting with the slide number 3: once again, the delivery of solid performance in closing the first half of 2026, with revenue growth of 7% year over year.

Virgilio Gibbon: Thank you, Renata, and welcome to our Q2 and H1 conference call for 2026 results. Starting with slide number 3. Once again, we delivered a solid performance closing the H1 of 2026 with revenue growth of 7% year-over-year, reached BRL 1,985 million. Adjusted EBITDA reached BRL 918 million, growing 2% year-over-year with an adjusted EBITDA margin of 46.2%, a contraction of 190 basis points compared to the same period last year. This margin decrease primarily reflects the lower gross profit contribution from Continuing Education, driven by a higher sales and market expenses associated with the investment cycle outlined at the beginning of the year across Continuing Education and Medical Practice Solutions. Net income reached BRL 463 million, a 7% increase year-over-year. Basic EPS climbed to BRL 5.10, represents a 9% increase over the previous year, reflecting our capital location strategy.

Virgilio Gibbon: Thank you, Renata, and welcome to our Q2 and H1 Conference Call for 2026 Results. Starting with slide number three. Once again, we delivered a solid performance closing the H1 of 2026 with revenue growth of 7% year-over-year, reached BRL 1,985 million. Adjusted EBITDA reached BRL 918 million, growing 2% year-over-year with an adjusted EBITDA margin of 46.2%, a contraction of 190 basis points compared to the same period last year.

Speaker #3: Which $1,985 million. Adjustability reached $918 million growing 2% year over year, with an adjustability margin of 46.2%. A contraction of $190 basis points compared to the same period last year.

Virgilio Gibbon: This margin decrease primarily reflects the lower gross profit contribution from Continuing Education, driven by a higher sales and market expenses associated with the investment cycle outlined at the beginning of the year across Continuing Education and Medical Practice Solutions. Net income reached BRL 463 million, a 7% increase year-over-year. Basic EPS climbed to BRL 5.10, represents a 9% increase over the previous year, reflecting our capital allocation strategy.

Speaker #3: This margin decrease primarily reflects the lower gross profit contribution from continuing education, driven by a higher sales and market expenses associated with the investment cycle outlined at the beginning of the year across continuing education and medical practice solutions.

Speaker #3: Net income reached $463 million, a 7% increase year over year. Basic EPS climbed to $5.10, representing a 9% increase over the previous year, reflecting our capital allocation strategy.

Speaker #3: Operating cash conversion remained strong at 87.8%, brought in line with the prior year. Turning now to free cash flow to equity, we delivered $423 million in the first half of 2026.

Virgilio Gibbon: Operating cash conversion remained strong at 87.8%, broadly in line with the prior year. Turning now to free cash flow to equity. We delivered BRL 423 million in the H1 of 2026. These results reflect the strength of our cash generation, disciplined execution, and our continued commitment to create a long-term shareholder value. Moving now to our operational updates. We have 3,768 operating medical seats, with an increase of over 6% year-over-year. Furthermore, our number of undergrad medical students grew to more than 26,000 students, represents a 3% growth compared to the H1 of last year. Additionally, we increased the net average shift of medical school by almost 4% year-over-year, reached BRL 9,443. In Continuing Education, have an increase almost 5% over last year, reaching BRL 144 million.

Speaker #3: These results reflect the strength of our cash generation, disciplined execution, and our continued commitment to create long-term shareholder value. Moving now to our operational updates.

Speaker #3: We have 3,768 operating medical seats, with an increase of over 6% year over year. Furthermore, our number of undergrad medical students grew to more than 26,000 students, representing 3% growth compared to the first half of last year.

Virgilio Gibbon: We have 3,768 operating medical seats, with an increase of over 6% year-over-year. Furthermore, our number of undergrad medical students grew to more than 26,000 students, represents a 3% growth compared to the H1 of last year. Additionally, we increased the net average shift of medical school by almost 4% year-over-year, reached BRL 9,443. In Continuing Education, have an increase almost 5% over last year, reaching BRL 144 million.

Speaker #3: Additionally, we increased the net average shift of medical school by almost 4% year over year, which is $9,443. In continuing education, we have an increase of almost 5% over last year, reaching $144 million.

Speaker #3: And in Medical Practice Solutions, we saw a 2% growth in revenue compared to the first half of 2025, which is $85 million. Our ecosystem now accounts for 295,000 users, reflecting continuing meaningful penetration among physicians and medical students across the country.

Virgilio Gibbon: In Medical Practice Solutions, we saw 2% growth in revenue compared to H1 2025, reaching BRL 85 million. Our ecosystem now accounts for 295,000 users, reflecting continuing meaningful penetration among physicians and medical students across the country. Moving to slide number four, we will discuss the highlights across our three business segments. H1 2026 was marked by favorable pricing trends in medicine course, where tickets rose by nearly 4% year-over-year. In addition, we continued to deliver strong student base growth momentum in health science course. Compared to the previous years, health science course delivered 13% growth, reflecting the diversification of our health-related undergrad portfolio. The Continuing Education segment was once again marked by strong growth in our total student base, which expanded 23% in H1 2026, driven by higher intake in short-term programs, which carry a lower average ticket per student.

Speaker #3: Moving to slide number 4, we will discuss the highlights across our three business segments. The first half of 2026 was marked by favorable pricing trends.

Speaker #3: In the medicine course, where tickets rose by nearly 4% year-over-year. In addition, we continued to deliver strong student-based growth momentum in the health science course.

Virgilio Gibbon: In addition, we continued to deliver strong student base growth momentum in health science course. Compared to the previous years, health science course delivered 13% growth, reflecting the diversification of our health-related undergrad portfolio. The Continuing Education segment was once again marked by strong growth in our total student base, which expanded 23% in H1 2026, driven by higher intake in short-term programs, which carry a lower average ticket per student.

Speaker #3: Compared to previous years, the Health Science course delivered 13% growth, reflecting the diversification of our health-related undergraduate portfolio. The Continuing Education segment was once again marked by strong growth in our total student base, which expanded 23% in the first half of 2026.

Speaker #3: Driven by higher intake and short-term programs, which carry a lower average ticket per student. B2P revenue for the second quarter grew 8% compared to the same period of the prior year.

Virgilio Gibbon: B2B revenue for the segment grew 8% compared to the same period of prior year. The Medical Practice Solutions segment delivered a 20% increase in clinical management active payers in H1 of this year. In addition, B2B revenue for H1 grew 5% year-over-year. Lastly, shareholder returns remain a key priority. Our disciplined capital allocation framework continues to create sustainable value for shareholders. At the corporate level, supported by strong cash generation, we returned BRL 448 million to our shareholders through dividends and share repurchases in H1 2026, representing 106% of our free cash flow to equity. This reflects our disciplined approach to capital allocation. When acquisition opportunities do not meet our return criteria, we return capital to shareholders. The strength of our cash generation gives us the flexibility to pursue acquisition when attractive and to consistently return capital to shareholders.

Speaker #3: The Medical Practice Solution segment delivered a 20% increase in clinical management active payers in the first half of this year. In addition, B2B revenue for the first half grew 5% year over year.

Speaker #3: Lastly, shareholder returns remained a key priority. Our discipline capital allocation framework continues to create sustainable value for shareholders. At the corporate level, supported by strong cash generation, we returned $448 million to our shareholders, through dividends and share repurchase in the first half of 2026.

Virgilio Gibbon: At the corporate level, supported by strong cash generation, we returned BRL 448 million to our shareholders through dividends and share repurchases in H1 2026, representing 106% of our free cash flow to equity. This reflects our disciplined approach to capital allocation. When acquisition opportunities do not meet our return criteria, we return capital to shareholders.

Speaker #3: Representing $106% of our free cash flow to equity. This reflects our discipline approach to capital allocation. When acquisition opportunities do not meet our return criteria, we return capital to shareholders.

Speaker #3: The strength of our cash generation gives us the flexibility to pursue acquisitions when attractive and to consistently return capital to shareholders. Now, I will turn the call over to Luis Blanco, Afya CFO, to provide further insight into the financial and operational metrics.

Virgilio Gibbon: The strength of our cash generation gives us the flexibility to pursue acquisition when attractive and to consistently return capital to shareholders. Now I will return the call over Luis Blanco, Afya CFO, to provide further insight into the financial and operational metrics. Thank you all.

Virgilio Gibbon: Now I will return the call over Luis Blanco, Afya CFO, to provide further insight into the financial and operational metrics. Thank you all.

Speaker #3: Thank you all.

Speaker #4: Thank you, Vigilio. And good evening, everyone. Starting with slide number 6 for our discussion of key operational metrics by business units. Starting with the undergraduate programs.

Luis Andre Blanco: Thank you, Virgilio, and good evening, everyone. Starting with slide number six for discussions of key operational metrics by business unit. Starting with the undergraduate programs. Our medical students base grew by 3% compared with H1 2025, reaching over 26,000 students, while operating medical school seats increased by over 6% year-over-year to 3,768. Our medical school net average ticket increased by 4%, reaching BRL 9,443 in H1 2026. As a result, revenue for the undergraduate segments grew over 7%, totaling BRL 1,762 million. It is worth mentioning that 85% of this revenue comes from medical programs and 93% from health-related courses, reinforcing our strategic focus and leadership in the sector. On the next page, I will present our continuing educational metrics. We approach Continuing Education through three major journeys, starting with the residency journey, which encompass products focused on the residency preparations.

Luis Blanco: Thank you, Virgilio, and good evening, everyone. Starting with slide number six for discussions of key operational metrics by business unit. Starting with the undergraduate programs. Our medical students base grew by 3% compared with H1 2025, reaching over 26,000 students, while operating medical school seats increased by over 6% year-over-year to 3,768. Our medical school net average ticket increased by 4%, reaching BRL 9,443 in H1 2026.

Speaker #4: Our medical student base grew by 3% compared with the first half of 2025, reaching over 26,000 students, while operating medical school seats increased by over 6% year over year, to 3,768.

Speaker #4: Our medical school net average ticket increased by 4%, reaching $9,443. In the first half of 2026, as a result, revenue for the undergraduate segment grew over 7%, totaling $1,762 million.

Luis Blanco: As a result, revenue for the undergraduate segments grew over 7%, totaling BRL 1,762 million. It is worth mentioning that 85% of this revenue comes from medical programs and 93% from health-related courses, reinforcing our strategic focus and leadership in the sector. On the next page, I will present our continuing educational metrics. We approach Continuing Education through three major journeys, starting with the residency journey, which encompass products focused on the residency preparations.

Speaker #4: It's worth mentioning that 85% of this revenue comes from medical programs, and 93% from health-related courses, reinforcing our strategic focus and leadership in the sector.

Speaker #4: On the next page, I will present our continuing educational metrics. We approach continuing education through three major journeys. Starting with the residency journey, which encompasses products focused on residency preparations, the student base remained stable year over year, reaching 9,244 students at the end of the period.

Luis Andre Blanco: The student base remained stable year-over-year, reaching 9,244 students at the end of the period. In the graduate journey, which focus on the specialization test preparations and graduated medical education, the total number of students increased by 13%, reaching 10,213 students, supported by the continuing demand for advanced medical training programs. Lastly, other B2P and B2B offerings continue to grow strongly with total students increasing 35% year-over-year to 36,780 students, demonstrating the continued expansions of our broader Continuing Education portfolio. Continuing Education revenue increased to BRL 144 million in the six-month period of 2026, compared to BRL 138 million in the same period of 2025, representing growth of 5%. This performance was primarily driven by B2P revenue, which increased 8% year-over-year to BRL 135 million, representing 94% of the Continuing Education revenue. Meanwhile, the B2B revenue totaling BRL 9 million, declining 25% year-over-year.

Luis Blanco: The student base remained stable year-over-year, reaching 9,244 students at the end of the period. In the graduate journey, which focus on the specialization test preparations and graduated medical education, the total number of students increased by 13%, reaching 10,213 students, supported by the continuing demand for advanced medical training programs.

Speaker #4: In the graduate journey, which focuses on the specialization test preparations and graduate medical education, the total number of students increased by 13%, reaching 10,213 students, supported by the continuing demand for advanced medical training programs.

Speaker #4: Lastly, other B2P and B2B offerings continue to grow strongly, with total students increasing 35% year over year, to 36,780 students. Demonstrating the continued expansion of our broader continuing education portfolio.

Luis Blanco: Lastly, other B2P and B2B offerings continue to grow strongly with total students increasing 35% year-over-year to 36,780 students, demonstrating the continued expansions of our broader Continuing Education portfolio. Continuing Education revenue increased to BRL 144 million in the six-month period of 2026, compared to BRL 138 million in the same period of 2025, representing growth of 5%.

Speaker #4: Continuing education revenue increased to $144 million in the six-month period of 2026, compared to $138 million in the same period of 2025, representing growth of 5%.

Luis Blanco: This performance was primarily driven by B2P revenue, which increased 8% year-over-year to BRL 135 million, representing 94% of the Continuing Education revenue. Meanwhile, the B2B revenue totaling BRL 9 million, declining 25% year-over-year.

Speaker #4: This performance was primarily driven by B2P revenue, which increased 8% year over year, to $135 million. Representing 94% of the continuing education revenue. Meanwhile, the B2B revenue totally $9 million declined 25% year over year.

Speaker #4: Moving to the next slide, I will discuss the medical practice solutions operational metrics. The total active payers remained broadly stable year over year at approximately 201,000, with clinical management active payers growing 20% to more than 50,000, reflecting the continued penetration of Afya Eye Clinic.

Luis Andre Blanco: Moving to the next slide, I will discuss the Medical Practice Solutions operational metrics. The total active payers remaining broadly stable year-over-year at approximately 201,000, with clinical management active payers growing 20% to more than 50,000, reflecting the continued penetration on Afya iClinic. Monthly active users reached 212,000 during the period, an 8% year-over-year decrease. Despite the stability in total active payers, Medical Practice Solutions revenue increased 2% year-over-year to BRL 85 million in the H1 of 2026. On the next slide, we present Afya Ecosystem. We are proud of the meaningful impact Afya continues to make across Brazil healthcare ecosystem. By the end of the Q2 of 2026, 295,000 users were actively engaging with our service and products, reflecting our solid relevance and reach in medical, educational, and medical solutions.

Luis Blanco: Moving to the next slide, I will discuss the Medical Practice Solutions operational metrics. The total active payers remaining broadly stable year-over-year at approximately 201,000, with clinical management active payers growing 20% to more than 50,000, reflecting the continued penetration on Afya iClinic. Monthly active users reached 212,000 during the period, an 8% year-over-year decrease.

Speaker #4: Monthly active users reached 212,000 during the period, an 8% year-over-year decrease. Despite the stability in total active payers, Medical Practice Solutions revenue increased 2% year over year to $85 million in the first half of 2026.

Luis Blanco: Despite the stability in total active payers, Medical Practice Solutions revenue increased 2% year-over-year to BRL 85 million in the H1 of 2026. On the next slide, we present Afya Ecosystem. We are proud of the meaningful impact Afya continues to make across Brazil healthcare ecosystem. By the end of the Q2 of 2026, 295,000 users were actively engaging with our service and products, reflecting our solid relevance and reach in medical, educational, and medical solutions.

Speaker #4: On the next slide, Ecosystem. We are proud of the meaningful impact of Afya continues to make across Brazil healthcare ecosystem. By the end of the second quarter of 2026, $295,000 users were actively engaging with our service and products.

Speaker #4: Reflecting our solid relevance and reach in medical educational and medical solutions. Moving forward to page 10, I want to discuss our financial overview for the second quarter and the first half of 2026.

Luis Andre Blanco: Moving forward to page 10, I want to discuss our financial overview for the Q2 and the H1 of 2026. I am pleased to present another solid set of results for Afya, reflecting the resilience of our business model and our continued focus on sustainability growth and operational efficiency. Revenue for the Q2 of 2026 reached BRL 972 million, representing a 6% increase compared to the same period of the prior year. For the H1 of 2026, revenue totaling BRL 1,985 million, 7% year-over-year increase. Adjusted EBITDA reached BRL 407 million in the Q2 of 2026, an increase of 1% compared to the prior year. For the H1 of the year, adjusted EBITDA totaling BRL 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the six-month period.

Luis Blanco: Moving forward to page 10, I want to discuss our financial overview for the Q2 and the H1 of 2026. I am pleased to present another solid set of results for Afya, reflecting the resilience of our business model and our continued focus on sustainability growth and operational efficiency. Revenue for the Q2 of 2026 reached BRL 972 million, representing a 6% increase compared to the same period of the prior year.

Speaker #4: I'm pleased to present another solid set of results for Afya, reflecting the resilience of our business model and our continued focus on sustainable growth and operational efficiency.

Speaker #4: Revenue for the second quarter of 2026 reached $972 million. Representing a 6% increase compared to the same period of the prior year. For the first half of 2026, revenue totally $1,985 million.

Luis Blanco: For the H1 of 2026, revenue totaling BRL 1,985 million, 7% year-over-year increase. Adjusted EBITDA reached BRL 407 million in the Q2 of 2026, an increase of 1% compared to the prior year. For the H1 of the year, adjusted EBITDA totaling BRL 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the six-month period.

Speaker #4: 7% year over year increase. I just said the EBITDA reached $470 million in the second quarter of 2026, an increase of 1% compared to the prior year.

Speaker #4: For the first half of the year, adjusted EBITDA totally $918 million. Growing 3% year over year. Adjusted EBITDA margin reached $41.8%. In the quarter and 46.2% in the 6-month period.

Speaker #4: While margins were below those reported in the comparable periods last year, this reflects a combination of continuing investments to support growth initiatives and the investment cycle across continuing educational and medical practice solutions.

Luis Andre Blanco: While margins were below those reported in the comparable periods last year, reflecting a combination of continuing investments to support growth initiatives and the investment cycle across Continuing Educational and Medical Practice Solutions, profitability remained healthy. On the next page, cash flow from operating activities reached BRL 806 million in the H1 of 2026, compared to BRL 783 million in the same period of the prior year, representing a growth of 3%. Cash conversions remaining strong at 87.8%, broadly stable compared to the prior year. Net income for the Q2 of 2026 totaling BRL 201 million, an increase of 14% compared to the same period of the prior year. For the H1 of the 2026, net income reached BRL 463 million, growing 7% year-over-year.

Luis Blanco: While margins were below those reported in the comparable periods last year, reflecting a combination of continuing investments to support growth initiatives and the investment cycle across Continuing Educational and Medical Practice Solutions, profitability remained healthy. On the next page, cash flow from operating activities reached BRL 806 million in the H1 of 2026, compared to BRL 783 million in the same period of the prior year, representing a growth of 3%.

Speaker #4: Profitability remained healthy. On the next page, cash flow from operating activities reached $806 million in the first half of 2026, compared to $783 million in the same period of the prior year, representing a growth of 3%.

Speaker #4: Cash conversions remained strong at $87.8%, broadly stable compared to the prior year. Net income for the second quarter of 2026 totally $201 million. An increase of 14% compared to the same period of the prior year.

Luis Blanco: Cash conversions remaining strong at 87.8%, broadly stable compared to the prior year. Net income for the Q2 of 2026 totaling BRL 201 million, an increase of 14% compared to the same period of the prior year. For the H1 of the 2026, net income reached BRL 463 million, growing 7% year-over-year.

Speaker #4: For the first half of the 2026 net income reached $463 million. Growing 7% year over year. Earnings per share increased to $2.22. In the second quarter of 2026, up 17% from $1.90 in the prior year.

Luis Andre Blanco: Earnings per share increased to BRL 2.22 in Q2 2026, up 17% from BRL 1.90 in the prior year. Higher than the net income increase, reflecting the execution of our buyback program. For the six-month periods, earnings per share reached BRL 5.10, up 9% from the BRL 4.69 in H1 2025. Overall, these results reflect Afya's ability to continue to generate solid cash flow while delivering consistent growth in profitability and shareholder returns. Now moving to my last three slides, I will go over our gross debt compositions and cost of debt, our net debt reconciliation, and close with our shareholder return. This slide details the compositions of our gross debt positions as of June 2026, covering its maturity profile and average cost of debt.

Luis Blanco: Earnings per share increased to BRL 2.22 in Q2 2026, up 17% from BRL 1.90 in the prior year. Higher than the net income increase, reflecting the execution of our buyback program. For the six-month periods, earnings per share reached BRL 5.10, up 9% from the BRL 4.69 in H1 2025. Overall, these results reflect Afya's ability to continue to generate solid cash flow while delivering consistent growth in profitability and shareholder returns.

Speaker #4: Higher than the net income increase, reflecting the execution of our buyback program. For the six-month period, earnings per share reached $5.10, up 9% from $4.69 in the first half of 2025.

Speaker #4: Overall, these results reflect Afya's ability to continue generating solid cash flow while delivering consistent growth in profitability and shareholder returns. And now, moving to my last three slides, I will cover our gross debt composition and cost of debt.

Luis Blanco: Now moving to my last three slides, I will go over our gross debt compositions and cost of debt, our net debt reconciliation, and close with our shareholder return. This slide details the compositions of our gross debt positions as of June 2026, covering its maturity profile and average cost of debt.

Speaker #4: Our net debt reconciliation ends close with our shareholder return. This slide details the compositions of our gross debt positions as of June 2026, covering its maturity profile and average cost of debt.

Luis Andre Blanco: Afya continues to maintain a solid capital structure and a conservative leverage profile. As of 30 June, gross debt totaling BRL 2.4 billion compared to the BRL 2.7 billion as of 30 June 2025. At the same time, the average debt duration increases from 1.9 years to 3.7 years, extending our maturity profile in the period. The average cost of debt stood at 15.1% per year, representing approximately 106% of the CDI up for the period. On the next page, we can look closely at the net debt variation. As of June 2026, our net debt totaling BRL 1,394 million, remaining virtually unchanged from the end of 2025, despite returning BRL 448 million to shareholders through dividends and treasury share repurchase during H1 of the year, reflecting our strong cash generations and disciplined capital allocation.

Luis Blanco: Afya continues to maintain a solid capital structure and a conservative leverage profile. As of 30 June, gross debt totaling BRL 2.4 billion compared to the BRL 2.7 billion as of 30 June 2025. At the same time, the average debt duration increases from 1.9 years to 3.7 years, extending our maturity profile in the period. The average cost of debt stood at 15.1% per year, representing approximately 106% of the CDI up for the period. On the next page, we can look closely at the net debt variation.

Speaker #4: Afya continued to maintain a solid capital structure and a conservative leverage profile. As of June 30, gross debt totaled $2.4 billion, compared to $2.7 billion as of June 30, 2025.

Speaker #4: At the same time, the average debt duration increased from 1.9 years to 3.7 years, extending our maturity profile in the period. The average cost of debt stood at 15.1% per year, representing approximately 106% of the CDI for the period.

Speaker #4: On the next page, we can look closely at the net debt variation. As of June 2026, our net debt totally $1,394 million. Remaining virtually unchanged from the end of 2025, despite returning $448 million to shareholders through dividends and treasury share repurchase during the first half of the year.

Luis Blanco: As of June 2026, our net debt totaling BRL 1,394 million, remaining virtually unchanged from the end of 2025, despite returning BRL 448 million to shareholders through dividends and treasury share repurchase during H1 of the year, reflecting our strong cash generations and disciplined capital allocation.

Speaker #4: Reflecting our strong cash generation and disciplined capital allocation, our net debt position continues to benefit from the solid cash flow from operating activities, which totaled $806 million during the period.

Luis Andre Blanco: Our net debt positions continue to benefit from the solid cash flow from operating activities, which totaled BRL 806 million during the period. Largely offsetting investments, leases, interest expenses, and shareholders distributions. Our Afya net debt, excluding IFRS 16, divided by the midpoint of 2026 adjusted EBITDA guidance was 0.8 times. In my last slide, we paid BRL 307 million in dividend during Q2 2026, representing 40% of our 2025 net income. While continuing to execute the share purchase program, our consistent growth in net income and cash generations has enabled us to enhance shareholder returns while remaining disciplined in our capital allocations decisions and focus on the long-term value creation. In H1 2026, we returned BRL 448 million through shareholders, surpassing our free cash flow to equity of BRL 423 million for the period, resulting in a 106% ratio.

Luis Blanco: Our net debt positions continue to benefit from the solid cash flow from operating activities, which totaled BRL 806 million during the period. Largely offsetting investments, leases, interest expenses, and shareholders distributions. Our Afya net debt, excluding IFRS 16, divided by the midpoint of 2026 adjusted EBITDA guidance was 0.8 times. In my last slide, we paid BRL 307 million in dividend during Q2 2026, representing 40% of our 2025 net income.

Speaker #4: Largely offsetting investments, leases, interest expenses, and shareholders' distributions. Our Afya net debt excluding IFRS 16 divided by the midpoint of 2026 adjusted EBITDA guidance was $0.8 times.

Speaker #4: In my last slide, we pay $307 million in dividend during the second quarter of 2026, representing 40% of our 2025 net income. While continuing to execute the share purchase program.

Luis Blanco: While continuing to execute the share purchase program, our consistent growth in net income and cash generations has enabled us to enhance shareholder returns while remaining disciplined in our capital allocations decisions and focus on the long-term value creation. In H1 2026, we returned BRL 448 million through shareholders, surpassing our free cash flow to equity of BRL 423 million for the period, resulting in a 106% ratio.

Speaker #4: Our consistent growth in net income and cash generations has enabled us to enhance shareholder returns while remaining disciplined in our capital allocation decisions and focus on the long-term value creation.

Speaker #4: In the first half of 2026, we returned $448 million to shareholders, surpassing our free cash flow through equity of $423 million for the period.

Speaker #4: Resulting in a $106% ratio. Our last 12-month free cash flow through equity yields stood at 11%. Calculated on market capitalizations as of 30 June 2026, and basic EPS growth reached 13% for a total equity return of 24% at constant valuation multiple.

Luis Andre Blanco: Our last 12 months free cash flow to equity yield stood at 11%, calculated on market capitalizations as of 30 June 2026, and basic EPS growth reaches 13% for a total equity return of 24% at constant valuation multiple. This concludes our prepared remarks. H1 2026 reinforces what we have consistently demonstrated over time. A resilient business, a focused team, and a strategic that was working. We remain deeply committed to advancing the physician's journey through our integrated ecosystem and confidence in our ability to deliver sustainable long-term value for our shareholders, students, and healthcare professionals across Brazil. I will now open the conference for the Q&A session. Thank you.

Luis Blanco: Our last 12 months free cash flow to equity yield stood at 11%, calculated on market capitalizations as of 30 June 2026, and basic EPS growth reaches 13% for a total equity return of 24% at constant valuation multiple. This concludes our prepared remarks. H1 2026 reinforces what we have consistently demonstrated over time. A resilient business, a focused team, and a strategic that was working.

Speaker #4: This concludes our prepared remarks. The first half of 2026 reinforces what we have consistently demonstrated over time: a resilient business, a focused team, and a strategic debt risk working.

Luis Blanco: We remain deeply committed to advancing the physician's journey through our integrated ecosystem and confidence in our ability to deliver sustainable long-term value for our shareholders, students, and healthcare professionals across Brazil. I will now open the conference for the Q&A session. Thank you.

Speaker #4: We remain deeply committed to advancing the physician's journey through our integrated ecosystem, and are confident in our ability to deliver sustainable, long-term value for our shareholders, students, and healthcare professionals across Brazil.

Speaker #4: I will now open the conference for the Q&A session. Thank you.

[Company Representative] (Afya): If you want to ask a question, please raise your hand and we will call you. The first question comes from Marcelo Santos from JP Morgan.

Operator: If you want to ask a question, please raise your hand and we will call you. The first question comes from Marcelo Santos from JP Morgan.

Speaker #1: Joanna asked a question. Please raise your hand, and we’ll call on you. The first question comes from Marcelo Santos from JPMorgan.

Speaker #2: Hi, good evening. Thanks for taking my questions. I have two: the first, if you could talk a bit about the competitive intake in the second half, and how you're seeing the pressure for tickets, the capacity to increase prices.

Marcelo Santos: Hi, good evening. Thanks for taking my questions. I have two. The first, if you could talk a bit about the competitive intake in the H2 and how you are seeing the pressure for take, if the capacity to increase prices. That is the first question. The second question is regarding Medical Practice Solutions. It was a bit down this quarter. So just wanted to get a bit more detail on when we should see the increased investment start showing results in the revenue side. Thank you very much.

Speaker #2: That's the first question. And the second question is regarding medical practice solutions. It was a bit down this quarter, so I just wanted to get a bit more detail.

Speaker #2: And when we should see the increased investment start showing results in the revenue side. Thank you very much.

Speaker #3: Hi, Marcelo Virgilio here. Regarding our intake for the second half, we are once again aiming to have 100% of all of our occupancy fulfilled.

Virgilio Gibbon: Hi, Marcelo. Virgilio here. Related to our intake on the H2, we are once again aiming to have 100% of all of our occupancy fulfilled. While still not all the ProUni FIES cycle is a little bit late, so we are waiting for these enrollments to be completed by September. So once again, we have a solid and healthy intake. The price, I think we are not changing price for the H2 because we are doing the beginning of the year.

Speaker #3: While still not all the ProUni FIES cycle is a little bit late, so we are waiting for these enrollments to be completed by September.

Speaker #3: So once again, we have a solid and healthy intake. So the price—I think we are not changing price for the second half because we already did so at the beginning of the year.

Speaker #3: So, we are not also giving any discount for our medicine programs. On the health sector, on the health programs, we are seeing a very strong intake.

Virgilio Gibbon: We are not also giving any discount for our medicine programs. On the health sector, on the health programs, we are seeing a very strong intake. At this moment, we are still ending the process in the beginning. We will also end on the beginning of September. We are more than 20% above from last year at the same period. So we are growing organically more than 18% in volume and health. We expecting to be above that for the H2. That is on Medical Practice Solutions, Blanco will help me here.

Speaker #3: At this moment, we're still ending the process in the beginning we will also end on the beginning of September. We are more than 20% above from last year.

Speaker #3: At the same period. So we are growing organically more than 18% in volume and health. We expect to be above that for the second half.

Speaker #3: So that's on NPS. Blank will help me here.

Luis Andre Blanco: Hi, Marcelo. It's Blanco speaking. Thank you for your question. Regarding the MPS, the general environments, what's happening is that we are having some pushbacks in terms of clinical decisions, a major on Whitebook. These pushbacks in terms of active payers are due to the competitions by the AI tools that are pressuring the number of payers. What we decided is that we would reduce a little bit the tickets on that and increase functionalities embedded on the Whitebook. On the other side, on the clinical management system, that's our major encompass iClinic, we have a very positive cycle. We are growing faster, but this growth is not sufficient to surpass a lot of the decline on Whitebook. They're both together on the business to physician sides. We are growing semester by semester, just 1.1%.

Luis Blanco: Hi, Marcelo. It's Blanco speaking. Thank you for your question. Regarding the MPS, the general environments, what's happening is that we are having some pushbacks in terms of clinical decisions, a major on Whitebook. These pushbacks in terms of active payers are due to the competitions by the AI tools that are pressuring the number of payers. What we decided is that we would reduce a little bit the tickets on that and increase functionalities embedded on the Whitebook.

Speaker #4: Hi, Marcelo. It's Blanco speaking. Thank you for your question. Regarding the NPS, the general environment, what's happening is that we have been having some pushback in terms of clinical decisions.

Speaker #4: A major on white book, these pushbacks in terms of active payers are due to the competitions by the AI tools. That pressuring the number of payers.

Speaker #4: What we decided was that we would reduce the tickets on that a little bit, and increase functionalities under Embedded in the White Book. But on the other side, on the clinical management system, which is mainly encompassed by Clinic, we have a very positive cycle.

Luis Blanco: On the other side, on the clinical management system, that's our major encompass iClinic, we have a very positive cycle. We are growing faster, but this growth is not sufficient to surpass a lot of the decline on Whitebook. They're both together on the business to physician sides. We are growing semester by semester, just 1.1%.

Speaker #4: We are growing faster, but this growth is not sufficient to surpass a lot by this decline on white book. The both together, on the business to physician sides, we are growing semester by semester just 1.1%.

Speaker #4: Having said that, just remember that our investment cycle, which we've announced at the beginning of the year, encompasses the investment cycle. This investment cycle is both regarding CAPEX and that we are increasing the intangibles in the year.

Luis Andre Blanco: Having said that, just remember that our investment cycle that we've announced in the beginning of the year encompass investment cycle. This investment cycle is both regarding CapEx, that we are increasing the intangibles in the year if we compare to last year, to increase functionalities both in iClinic and Whitebook, and investments in teams, increasing the number of the team members on this book under this segment. We are under our plan to put more functionalities on the segment, increase audience first, and then, in the future, have this recover in terms of revenues.

Luis Blanco: Having said that, just remember that our investment cycle that we've announced in the beginning of the year encompass investment cycle. This investment cycle is both regarding CapEx, that we are increasing the intangibles in the year if we compare to last year, to increase functionalities both in iClinic and Whitebook, and investments in teams, increasing the number of the team members on this book under this segment. We are under our plan to put more functionalities on the segment, increase audience first, and then, in the future, have this recover in terms of revenues.

Speaker #4: If you compare to last year, we increased functionalities, both in Night Clinic and White Book, and investments in teams. Under the teams, we increased the number of team members in both of these segments.

Speaker #4: So we are under our plan to put more functionalities on the segment, increase audience first, and then in the future have these recover in terms of revenues.

Speaker #2: All right. Thank you very much.

Virgilio Gibbon: Right. Thank you very much.

Marcelo Santos: Right. Thank you very much.

Speaker #3: Thank you.

Luis Andre Blanco: Thank you.

Luis Blanco: Thank you.

[Company Representative] (Afya): Second question comes from Flavio Yoshida from Bank of America.

Operator: Second question comes from Flavio Yoshida from Bank of America.

Speaker #1: Second question comes from Flavio Yoshida from Bank of America.

Flavio Yoshida: Hi. Good evening Virgilio, Blanco, Renata. I have two questions here from our side. The first one is on EBITDA. If we get the H1 EBITDA and annualize it gets us to roughly BRL 1.8 billion for the year, which is pretty much the top of your guidance range, right? Since you guys didn't make any changes on the guidance, should we expect the H2 EBITDA to come a bit below the H1, or you guys just prefer to be a little bit more conservative here on the guidance? This is my first question. My second question is on capital allocation strategy going forward, right? If you guys could share with us some details on how do you guys plan to balance an eventual higher dividend distribution or a more active approach on M&A, right?

Speaker #2: Hi, good evening. Virgilio Blanco, Renata. I have two questions here from our side. The first one is on EBITDA. Okay. So if we get the first half EBITDA and analyze it, it gets us to roughly 1.8 billion for the year, which is pretty much the top of your guidance range, right?

Speaker #2: So, since you guys didn't make any changes to the guidance, should we expect the second-half EBITDA to come in a bit below the first half, or do you just prefer to be a little more conservative here on the guidance?

Speaker #2: So this is my first question. And my second question is on capital allocation strategy going forward, right? So, if you guys could share with us some details on how you plan to balance an eventual higher dividend distribution or a more active approach on M&A, right?

Flavio Yoshida: This is my first question. My second question is on capital allocation strategy going forward, right? If you guys could share with us some details on how do you guys plan to balance an eventual higher dividend distribution or a more active approach on M&A, right? Also if you could share with us how is the recent M&A environment for medical courses. Thank you.

Flavio Yoshida: Also if you could share with us how is the recent M&A environment for medical courses. Thank you.

Speaker #2: And also, if you could share with us how the recent M&A environment is for medical courses. Thank you.

Speaker #3: Marcelo, thank you. Flavio, it's Blanco speaking. I will start with that. Regarding the first question, under the EBITDA, we are focused on delivering the EBITDA that we provided to the market.

Luis Andre Blanco: Thank you, Flavio. It's Blanco speaking. I will start with that. Regarding the first one under the EBITDA, we are focused on delivering the EBITDA that we provided to the market. That's between BRL 1.7 billion and BRL 1.8 billion. So we guided the market, and we delivered as we always do regarding the guidance. Regarding the capital allocation itself, what I can assure you that Afya will always be very conscious in terms of capital allocations. Since the IPO, we've made 22 business combinations, and we take capital allocations very serious. If we don't have opportunities that attend the thresholds in terms of concentration demands and mostly the IRR that these business combinations do not have a return on the capital employed in these business combinations that is above our thresholds, that's 20% minimal nominal unleverage, we simply do not do the business combination.

Luis Blanco: Thank you, Flavio. It's Blanco speaking. I will start with that. Regarding the first one under the EBITDA, we are focused on delivering the EBITDA that we provided to the market. That's between BRL 1.7 billion and BRL 1.8 billion. So we guided the market, and we delivered as we always do regarding the guidance. Regarding the capital allocation itself, what I can assure you that Afya will always be very conscious in terms of capital allocations.

Speaker #3: That's between R$1.7 and R$1.8 billion. So we guided the market, and we delivered as we always do regarding the guidance. Regarding the capital allocation itself, what I can assure you is that Afya will always be very, very conscious in terms of capital allocation.

Speaker #3: Since the IPO, we've made 22 business combinations. We take capital allocation very, very, very, very seriously. If we don't have opportunities that attend the thresholds in terms of concentrations in medicine, and mostly the IRR, these business combinations do not have a return on the capital employed in these business combinations that is above our thresholds — that's 20% minimum.

Luis Blanco: Since the IPO, we've made 22 business combinations, and we take capital allocations very serious. If we don't have opportunities that attend the thresholds in terms of concentration demands and mostly the IRR that these business combinations do not have a return on the capital employed in these business combinations that is above our thresholds, that's 20% minimal nominal unleverage, we simply do not do the business combination.

Speaker #3: Nominal, unleveraged. We simply do not do the business combinations, so we are very careful on that. As we did not have these business combinations, with this return of the capital in hand, we prefer to return this capital to our shareholders both in terms of share buybacks and dividends.

Luis Andre Blanco: We are very careful on that. As we did not have these business combinations with this return of the capital in the hands, we prefer to return this capital to our shareholders, both in terms of share buybacks and dividends. We are very comfortable with this 0.8 net debt to EBITDA that we presented right now, and we decided to give it back, the shareholders, all the free cash flow to equity for the first semester. It is very important, going forward, to have in mind that we have an opening buyback in place that we have announced at the inaugurals of last year, if I am not wrong. Right now from this 4 million shares in buyback that we have announced, we have performed 2.6 million shares. We had the firepower of 1.4 million to perform until the end of this year.

Luis Blanco: We are very careful on that. As we did not have these business combinations with this return of the capital in the hands, we prefer to return this capital to our shareholders, both in terms of share buybacks and dividends. We are very comfortable with this 0.8 net debt to EBITDA that we presented right now, and we decided to give it back, the shareholders, all the free cash flow to equity for the first semester.

Speaker #3: We are very comfortable with this 0.8 net debt to EBITDA that we presented right now. And we decided to give it back the shareholders all the free cash flow to equity for the first semester.

Speaker #3: And it's very important to going forward to have in mind that we have opening buyback in place, that we've announced at the inaugural of last year, if I'm not wrong, and right now, from this 4 million shares in buyback that we've announced, we've performed 2.6 million shares.

Luis Blanco: It is very important, going forward, to have in mind that we have an opening buyback in place that we have announced at the inaugurals of last year, if I am not wrong. Right now from this 4 million shares in buyback that we have announced, we have performed 2.6 million shares. We had the firepower of 1.4 million to perform until the end of this year.

Speaker #3: So, we had firepower of $1.4 million to perform to the end of this year. Yeah, Flavio, just as a—if I may add here and summarize what Blanco wants to mention.

Virgilio Gibbon: Yeah, Flavio, if I may add here and summarize what Blanco wants to mention. We keep aware about M&A opportunities considering this threshold. We have a good pipeline in our hand here. As you saw in the first semester, we distributed almost 100%, actually more than 100% of the cash that we generated to our shareholders through buyback and dividends, and also keeping a very low leveraging on our net debt. In parallel, we are also investing a lot in terms of product. You can see the intangible. We are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solution. We are leveraging prescription into our clinical decision solution. We are reaching more than 50,000 users on our clinical solution, on our iClinic here. It is our main solution.

Speaker #3: So we keep aware about M&A opportunities, considering this threshold. So we have a good pipeline in our hand here. As we saw in the first semester, we distributed almost 100% of actually more than 100% of the cash that we generated to our shareholder through buyback and dividends.

Speaker #3: And also keeping a very low leveraging on our net debt. In parallel, we are also investing a lot in terms of product. You can see the intangible.

Virgilio Gibbon: In parallel, we are also investing a lot in terms of product. You can see the intangible. We are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solution. We are leveraging prescription into our clinical decision solution. We are reaching more than 50,000 users on our clinical solution, on our iClinic here. It is our main solution.

Speaker #3: So we are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physicians into our solutions. So we are leveraging prescription into our clinical decision solution.

Speaker #3: We are reaching more than 50,000 users on our clinical solution, on our eye clinic here. It's our main solution and also embedding clinical decision support features that, on one side, is reducing the solo users on that, but they are also using this type of feature embedded on our clinical management solution.

Virgilio Gibbon: Also embedding clinical decision support features that for one side is reducing the solo users on that, but they are also using this type of feature embedded on our clinical management solution. That is all. We are funding not only our current internal investment, reducing our leverage, buying back shares, distributing through dividends and keep aware of with a lot of firepower to do some M&As. But we have to reach at least the threshold that we are aiming. Okay?

Speaker #3: So that's what we are funding, not only our current internal investment, reducing our leverage buying back shares, distributing through dividends, and keep aware of a lot of firepower to do some M&As but we have to reach the at least the threshold that we are aiming.

Speaker #3: Okay.

Speaker #2: All right. Super clear. Thank you.

Luis Andre Blanco: All right. Super clear. Thank you.

Flavio Yoshida: All right. Super clear. Thank you.

Speaker #1: Next question comes from Luca Marchesini from Italy.

[Company Representative] (Afya): Next question comes from Lucca Marquezini from Itaú.

Operator: Next question comes from Lucca Marquezini from Itaú.

Lucca Marquezini: Good evening everyone, and thank you for taking our question. Our question is regarding the Continuing Education segment, it is actually a follow-up from previous questions. We saw a decline in that revenue. If you could just comment on the competitive environment and the factors that led to this decline, and also what are your expectations for the H2 of this year if we should continue to see a decline across the year, or when you expect resumption and growth, please?

Speaker #4: Good evening, everyone, and thank you for taking our question. Our question is regarding the continuing education segment. It's actually a follow-up from a previous question.

Speaker #4: So, we saw a decline in net revenue. If you could just comment on the competitive environment and the factors that led to this decline.

Speaker #4: And also, what are your expectations for the second half of this year? Should we continue to see a decline throughout the year, or when do you expect a resumption and growth, please?

Virgilio Gibbon: Hi, Lucca. It is Virgilio here. For one side, you can see a growth on our number of students under the Continuing Medical Education segment. For one side, we are seeing a lower rhythm on revenue growth from the Q1. The reason of that is that we have a different mix of product. Although we have much more students coming, we have a different mix of product with more lower duration, with a lower ticket, and that impact mainly on the Q2 that also face seasonality, on Continuing Medical Education, mainly on prep courses. Having said that, we are keeping at least close to a high one-digit growth for the H2. We are not foreseeing any jump or a decrease from what we were in terms of Continuing Education for the entire year.

Speaker #3: Hi, Luca. It's Virgilio here. So, on one side, you can see growth in our number of students under the continuing medical education segment.

Speaker #3: But for one side, we are seeing a revenue a low rhythm on revenue growth from the first quarter. But the reason of that is that we have a different mix of product although we have much more students coming, we have a different mix of product with more lower duration with a lower ticket.

Virgilio Gibbon: Although we have much more students coming, we have a different mix of product with more lower duration, with a lower ticket, and that impact mainly on the Q2 that also face seasonality, on Continuing Medical Education, mainly on prep courses. Having said that, we are keeping at least close to a high one-digit growth for the H2.

Speaker #3: And that impacted mainly the second quarter, which also faces seasonality in continuing medical education, mainly in prep courses. Having said that, we are seeing at least close to high single-digit growth for the second half here.

Speaker #3: We are not foreseeing any jump or decrease from where we were in terms of continuing education for the entire year. Once again, we are aiming to reach our guidance for 2026 based on the results that are embedded in this first half for all three segments.

Virgilio Gibbon: We are not foreseeing any jump or a decrease from what we were in terms of Continuing Education for the entire year. Once again, we are aiming to reach our guidance for 2026 based on the results that we are embedded in this H1 for all the three segments.

Virgilio Gibbon: Once again, we are aiming to reach our guidance for 2026 based on the results that we are embedded in this H1 for all the three segments.

Lucca Marquezini: Very clear. Thank you.

Speaker #4: Very clear. Thank you.

Speaker #3: Thank you, Luca.

Virgilio Gibbon: Thank you, Luca.

Speaker #1: Next question comes from Lucas Nagano from Morgan Stanley.

[Company Representative] (Afya): Next question comes from Lucas Nagano from Morgan Stanley.

Operator: Next question comes from Lucas Nagano from Morgan Stanley.

Speaker #2: Hi, Virgilio. Blanco, Renato, thanks for taking our questions. We have two. The first is related to the new injunction from last week that suspended the endometrial restrictions.

Lucas Nagano: Hi, Virgilio, Blanco, Renata, thanks for taking our questions. We have two. The first is related to the new injunction from last week that suspended the Enamed restrictions. With that, are you now allowed to fill all your authorized seats? Would that be still valid after this year's edition of Enamed and so on for next years as well? The second question is related to income tax. The income tax extended quarter was very low compared to the previous quarters and the minimum Pillar 2 tax rates. Could you just give some color on that and the liable going forward? Thank you.

Speaker #2: With that, are you now allowed to fill all of your authorized seats? And would that still be valid after this year's edition of endometrial and so on, for next years as well?

Speaker #2: And the second question is related to income tax. The income tax expense this quarter was very low compared to the previous quarters. And the minimum pillar two tax rate so could you just give some color on that and the level going forward?

Lucas Nagano: The second question is related to income tax. The income tax extended quarter was very low compared to the previous quarters and the minimum Pillar 2 tax rates. Could you just give some color on that and the liable going forward? Thank you.

Speaker #2: Thank you.

Luis Andre Blanco: Hi, Lucas. I will take the first one regarding injections. Yes, the answer is yes. After the decision last week, all the seats that were prohibited, returned to the institutions. But on the other hand, we are very advanced on the intake process. We did ask also ProUni and also FIES for that seats, because they were not allowed at that moment. For some campuses, for some institutions, yes, we will be able to fulfill these additional seats. But once again, remember that considering the issue at the beginning of the year, we had a very strong intake in terms of percentage of the entire year on the H1 to minimize that effect. Even with considering these additional seats, we will leave some of them unfulfilled. This will not impact, not even positive, not even negative, to our results on the H2.

Luis Blanco: Hi, Lucas. I will take the first one regarding injections. Yes, the answer is yes. After the decision last week, all the seats that were prohibited, returned to the institutions. But on the other hand, we are very advanced on the intake process. We did ask also ProUni and also FIES for that seats, because they were not allowed at that moment. For some campuses, for some institutions, yes, we will be able to fulfill these additional seats.

Speaker #3: Hi, Lucas. I'll take the first one. Regarding injunctions, yes, the answer is yes. So, after the decision last week, all the seats that were prohibited...

Speaker #3: Return to the institutions. On the other hand, we are very advanced on the intake process. So we did ask also Pro Uni and also Fies for that seats because they were not allowed at that moment.

Speaker #3: So, for some campuses, for some institutions, yes, we will be able to fulfill these additional seats. But once again, remember to consider the issue: in the beginning of the year, we had a very strong intake in terms of the percentage of the entire year in the first half. This was done to minimize that effect.

Luis Blanco: But once again, remember that considering the issue at the beginning of the year, we had a very strong intake in terms of percentage of the entire year on the H1 to minimize that effect. Even with considering these additional seats, we will leave some of them unfulfilled. This will not impact, not even positive, not even negative, to our results on the H2.

Speaker #3: Even if considering this additional seats we will leave some of them unfulfilled this will not impact not even positive, not even negative to our results on the second half.

Speaker #3: But yes, we will be able to fulfill if we had time to fulfill these seats. Hi, Luca. Blanco speaking. I will take the second question regarding taxations.

Luis Andre Blanco: But yes, we will be able to fulfill if we had time to fulfill these seats. Hi, Lucca. Blanco speaking. I will take the second question regarding taxations. During the H1 of 2026, we have some new classifications under new regulations that were clarifying the Pillar 2. We see opportunity regarding the payments that we should do regarding the 2025 taxations that we paid on July this year, reducing the provision amounts that we had on our balance sheets. In big numbers, we had disbursed regarding these taxations from 2025, amount of BRL 8, BRL 9 million approximately, as we had at the end of 2025, BRL 109 million as a provision, our best provisions at that time. We had this positive effect more or less of BRL 20 million.

Luis Blanco: But yes, we will be able to fulfill if we had time to fulfill these seats. Hi, Lucca. Blanco speaking. I will take the second question regarding taxations. During the H1 of 2026, we have some new classifications under new regulations that were clarifying the Pillar 2. We see opportunity regarding the payments that we should do regarding the 2025 taxations that we paid on July this year, reducing the provision amounts that we had on our balance sheets.

Speaker #3: In this second quarter, during the first semester of 2026, we have some new clarifications under new regulations that were clarifying Pillar Two. And then we see opportunities regarding the payments that we should make regarding the 2025 taxations that we paid in July this year.

Speaker #3: Reducing the provisional amounts that we had on our balance sheets. So, in big numbers, we had disbursed regarding these taxations from 2025, an amount of 8 to 9 million reais approximately.

Luis Blanco: In big numbers, we had disbursed regarding these taxations from 2025, amount of BRL 8, BRL 9 million approximately, as we had at the end of 2025, BRL 109 million as a provision, our best provisions at that time. We had this positive effect more or less of BRL 20 million.

Speaker #3: And we had, at the end of 2025, R$109 million as our best provisions at that time. So we had this positive effect of more or less R$20 million.

Speaker #3: Having said that, for the year, as these regulations have evolved, we think that in terms of tax, the effective tax rates that we're going to achieve this year will be very similar to what we had last year, which will be around 10%.

Luis Andre Blanco: Having said that, for the year, as these regulations has evolved, we think that in terms of the effective tax rates that we are going to achieve this year will be very similar that we had last year. That will be around 10%, okay, for 2026.

Luis Blanco: Having said that, for the year, as these regulations has evolved, we think that in terms of the effective tax rates that we are going to achieve this year will be very similar that we had last year. That will be around 10%, okay, for 2026.

Speaker #3: Okay. For 2026.

Speaker #2: Thank you. Just a follow-up. Assuming after the new results of endometrial—this year's edition of endometrial, which should be out, I think, in December—would the injunction still be valid?

Lucas Nagano: Thank you. Just a follow-up. Assuming after the new results of Enamed, this year's edition of Enamed, which should be out, I think, in December, would the injunction still be valid, so it would still suspend any seat restrictions that MEC tries to impose?

Speaker #2: So it would still suspend any seat restrictions that Meg tries to impose?

Luis Andre Blanco: Lucas, what we understood from the new normative rule that they released is that, and also the conversation that we are having very close to Minister of Education right now, is that as soon as we have the results from Enamed 2026 release, they are expected to be in the beginning of December. We will have all the updates from what was considered as a penalization from the current situation, and also the new results will be released and considered for the new intake cycle of 2027. This injunction that changed the results last week is just related to the result that was released last year. The new one does not have anything related to the new Enamed that is coming now in beginning of September.

Speaker #3: So, Lucas, what we understood from the new normative rule that they released is that, and also from the conversation that we are having very close to the Minister of Education right now, is that as soon as we have the results for endometrial 2026 released, which are expected to be in the beginning of December, we'll have all the updates from what was considered as a penalization from the current situation. Also, the new results will be released and considered for the new intake cycle of 2027.

Luis Blanco: Lucas, what we understood from the new normative rule that they released is that, and also the conversation that we are having very close to Minister of Education right now, is that as soon as we have the results from Enamed 2026 release, they are expected to be in the beginning of December.

Luis Blanco: We will have all the updates from what was considered as a penalization from the current situation, and also the new results will be released and considered for the new intake cycle of 2027. This injunction that changed the results last week is just related to the result that was released last year. The new one does not have anything related to the new Enamed that is coming now in beginning of September.

Speaker #3: So that's what it is. So this injunction that changed the results last week is just related to the result that was released last year, so the new one doesn't have anything related to the new endometrial that is coming now in the beginning of September.

Speaker #2: Okay. Very clear. Thank you.

Lucas Nagano: Okay, very clear. Thank you.

Speaker #3: You're welcome.

Luis Andre Blanco: You are welcome.

Luis Blanco: You are welcome.

Speaker #1: Just a reminder: if you want to ask a question, please raise your hand. The next question comes from Renan Prata from Seat.

[Company Representative] (Afya): Just a reminder, if you want to ask a question, please raise your hand. Next question comes from Renan Prata from SUINT.

Operator: Just a reminder, if you want to ask a question, please raise your hand. Next question comes from Renan Prata from Citi.

Renan Prata: Hi, everyone. Good morning, and thank you for the opportunity to take questions. I have just one question regarding the CapEx. We saw the CapEx that is running at 30% of your full-year guidance. I just want to understand how you see this CapEx accelerating during the H2 of the year. Also, if you could also provide some breakdown of this CapEx if it will be more intensified on PPE or intangible or license. That is it. Thank you.

Renan Prata: Hi, everyone. Good morning, and thank you for the opportunity to take questions. I have just one question regarding the CapEx. We saw the CapEx that is running at 30% of your full-year guidance. I just want to understand how you see this CapEx accelerating during H2 of the year. Also, if you could also provide some breakdown of this CapEx if it will be more intensified on PPE or intangible or license. That is it. Thank you.

Speaker #4: Hi everyone. Good morning, and thank you. Thank you for the opportunity to take questions. So, I have just one question. Regarding the CAPEX, we saw the CAPEX that is running, I mean, at 30% of your guidance—of your full-year guidance.

Speaker #4: So, I just want to understand—how do you see this CAPEX accelerating during the second half of the year? And also, if you could provide some breakdown of this CAPEX—will it be more intensified in PP&E, or intangible, or license, I'm not sure.

Speaker #4: And that's it. Thank you.

Speaker #3: Okay. I have now Blanco speaking. I'll take this one. We are running CAPEX for this year as expected. We want to fulfill the guidance that we provided that is between 340 and 380 million reais for the year.

Luis Andre Blanco: Renan, Blanco speaking. I will take this one. We are running CapEx for this year as expected. We want to fulfill the guidance that we provided that is between BRL 340 and BRL 380 million for the year. We expect an acceleration of the CapEx in the H2. If we see the breakdown regarding the first semester, we are going to see that the CapEx regarding properties and equipment were down year-over-year. We have a very high acceleration on the intangibles, mostly concentrated on the investment plan that we have around Continuing Education and Medical Practice Solutions. Regarding the breakdown of these expectations for ahead, we do not open the guidance of the CapEx between property and license. We are going to see definitely an acceleration in the H2.

Luis Blanco: Renan, Blanco speaking. I will take this one. We are running CapEx for this year as expected. We want to fulfill the guidance that we provided that is between BRL 340 and BRL 380 million for the year. We expect an acceleration of the CapEx in the H2. If we see the breakdown regarding the first semester, we are going to see that the CapEx regarding properties and equipment were down year-over-year.

Speaker #3: We expect an acceleration of the CAPEX in the second half. If we see the breakdown regarding the first semester, we're going to see that the CAPEX regarding properties and equipment was down year over year, but we have a very high acceleration on the intangibles, mostly concentrated on the investment plan that we have around continuing education and medical practice solutions.

Luis Blanco: We have a very high acceleration on the intangibles, mostly concentrated on the investment plan that we have around Continuing Education and Medical Practice Solutions. Regarding the breakdown of these expectations for ahead, we do not open the guidance of the CapEx between property and license. We are going to see definitely an acceleration in the H2.

Speaker #3: Regarding the breakdown of these expectations going forward, we don't provide guidance on CAPEX between property and license, but we are definitely going to see an acceleration in the second half.

Renan Prata: Very clear. Thank you.

Speaker #4: Very clear. Thank you.

[Company Representative] (Afya): Since we do not have any other questions, we end this call. We appreciate the presence of you all. Have a good night. Goodbye.

Speaker #1: Okay. We do not have any other questions. We end this call. We appreciate the presence of you all. Have a good night.

Operator: Since we do not have any other questions, we end this call. We appreciate the presence of you all. Have a good night. Goodbye.