Afya Aktie

Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgilio Gibbon; and our CFO, Luis Andre Blanco.

During today's presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties and other factors that may cause Afya's actual results to differ materially from those contemplated by these forward-looking statements.

Forward-looking statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, its related events. These risks include those more fully described in our filings with the Securities and Exchange Commission.

The forward-looking statements in this presentation are based on the information available to us as the date hereof. You should not rely on them as predictions of future events and we disclaim any obligation to update any forward-looking statements, except as required by law.

In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or as a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures.

Now let me turn the call over to Virgilio Gibbon, Afya's CEO.

Thank you, Renata, and welcome to our first conference call of 2026. It's with much satisfaction that Afya starts another year of great operational and financial performance.

This quarterly results shows the high predictability of our business and success execution of our strategy, that once again combines growth with cash generation, Afya's 3 pillars business model. In this presentation, I will cover key strategic topics, including our performance highlights, successful business execution across our 3 segments. And finally, Luis Blanco will provide an in-depth look at our financial and operational performance.

Now turning to Page #3. Let's begin by highlighting our performance achievements. Initially, our revenues increased by 8%, reaching BRL 1.013 billion accompanied by a growth in adjusted EBITDA of 4% year-over-year, reaching BRL 511 million with a margin of 50.5%.

We also reported a free cash flow of BRL 376 million, reflecting 3% increase compared to the previous year, boosted by the solid operational results of the company, with a cash conversion of 92.5% and a solid cash position of BRL 1.3 billion at the end of the first quarter.

With this consistent momentum, our net income reached BRL 262 million, marking a 2% growth year-over-year with an EPS of BRL 2.88, a 3% increase compared to the previous year. This growth reflects strong operational performance, partially offset by and a provision related to the OECD Pillar 2 global minimum tax.

Moving to our operational updates, we have now 3,768 operating medical school seats with an increase of over 6% year-over-year. Additionally, our number of undergrad medical students has reached over 26,000 students, representing over 2% growth compared to the first quarter of 2025.

Furthermore, we increased the net average ticket of medical school by almost 5% year-over-year, reaching BRL 9,634. In addition, we continue to observe improving performance in continued education and medical practice solutions segments.

In continued education, revenue increased 11% year-over-year, purely organically, reaching BRL 79 million. In medical practice solutions, we saw a 4% growth in revenue compared to the first quarter of 2025, reaching over BRL 43 million. Lastly, our ecosystem has 304,000 active users, exemplifies substantial penetration among physicians and medical students in the country.

Moving to Slide #4, we will discuss our performance across our 3 business segments. We start with the undergrad segment. We observed important movements throughout the quarter, such as higher tickets in medicine course with almost 5% increase year-over-year, above 2025 inflation.

This growth was accompanied by a stable gross margin across the segment of 69%. In addition, we expanded our health science student base by 5,000 students compared to the first quarter of 2025. The continued education segment delivered record on B2B revenue of $74 million in the first quarter of 2026, supported by a record student base of 57,000 students and reflecting the continued strength of our product offering and engagement across the segment.

The medical practice solutions segment delivered solid performance in the first quarter of 2026, supported by an increase of 6,000 clinical management active payers compared with the first quarter of 2025. And B2B revenue grew by 17%, reflecting the continued progress of our product offering and commercial initiatives across the segment.

I will now turn the call over to Luis Blanco, Afya's CFO, to provide further insight into the financial operational metrics. Thank you.

Thank you, Virgilio, and good evening, everyone. Starting with Slide #6 for discussions of key operational metrics by business unit. Starting with the undergraduate products.

Our medical student base grew by 2% compared with the first quarter of 2025, reaching 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 5%, reaching BRL 9,634 in the first quarter of 2026.

In addition, revenue for the undergraduate segment saw an 8% increase, achieving BRL 892 million, 86% of which is related to medicine and 94% from health-related courses.

On the next page, I will present our continuing educational metrics. We approach continuing education through 3 main journeys, starting with the residency journey, which encompass products focused on the residency preparation.

We saw a 20% decrease, reaching 9,744 students by the end of the period. In the graduate journey focused on specializations test and preparations and graduate courses in medicine, students grew by 15%, reaching 9,855 students. Lastly, our other costs in B2B offerings increased an impressive 41% over the same 3-month period of the prior year.

Continuing educational revenue rose to BRL 79 million in the 3-month period of 2026, up from BRL 71 million in the 3-month period of 2025, reflecting a growth of 11%. This includes a 13% increase in B2B revenue and 14% decline in B2B.

Moving to Slide #8, I'll discuss the Medical Practice Solutions operational metrics. The first graph shows our total active payers, which are the ones that generate revenues in the business of physician. The number of active payers declined to 201,000, a 1% decline over the same quarter last year.

The second graph highlights our month active users, which account for 221,000, a reduction of 10% compared to the same period of the prior year. Lastly, in our final graph represents revenue of our Medical Practice Solutions segment, which has expanded by over 4% compared to the same quarter of the last year, reaching BRL 43 million.

Of this total, BRL 38 million was generated by B2B, showing an increase of 3%, while B2B contributed to BRL 5 million, 17% increase over the same quarter last year.

In the next slide, we presented our Afya Ecosystem. We are pleased to highlight Afya's substantial contributions to the Brazilian health care community. By the end of the first quarter of 2026, our ecosystem encompassed 304,000 physicians and medical students using our service and products.

Moving forward to Page 10, I want to discuss our financial overview for the first quarter of 2026, starting with the next slide. With great satisfaction, I present another strong quarterly performance for Afya.

Revenue for the first quarter of 2026 reached BRL 1,013 million, representing an 8% increase compared to the same quarter of last year. The quarter revenue increase has mainly due to higher tickets in medicine courses, the increase in nonmedical under-graduated students, the acquisition of FUNIC and abatement of the continuing educational segment.

In the first quarter of 2026, adjusted EBITDA rose by 4%, reaching BRL 511 million with an adjusted EBITDA margin of 50.5%, a reduction of 200 basis points compared to the first quarter of 2025. The reductions in adjusted EBITDA margin was primarily driven by higher costs and expenses in continuing educational and medical practice solutions segments, mainly reflecting a lower gross margin compared with the first quarter of 2025 and higher payroll, sales and marketing expenses associated with the ongoing investment cycle in both segments.

Moving to the next slide. The first quarter cash flow from operating activities rose by 0.6%, reaching BRL 473 million. The operating cash flow conversions ratio was 92.5%. Net income for the first quarter of 2026 totaled BRL 262 million, representing a 2% increase from the same period of 2025.

This growth reflects a stronger operational performance, partially offset by an additional taxation provisions related to OCD Pillar 2 global minimum taxation. Despite a lower adjusted EBITDA margin driven by higher expenses in continued education and Medical Practice Solutions, net income growth was sustained, supported by the disciplined execution and the consistency of our business model.

Regarding EPS, we achieved BRL 2.88 per share in the 3-month period, representing a 3% increase year-over-year.

And now moving to my 2 last slides. I will discuss our cash and net debt position, also giving more color on our cost of debt. This slide presents a table detailing our gross debt compositions at the end of the first quarter of 2026 and the total cost of debt covering our primarily obligations.

Afya capital structure remains solid with a conservative leverage position and the low cost of debt. Afya net debt, excluding IFRS 16 divided by the midpoint of the 2026 adjusted EBITDA guidance was 0.7x.

Our financial discipline was also independently recognized. On May 5th, Moody's reaffirmed Afya credit rating at AAA with a stable outlook, reflecting our consistent revenue growth, above industry average margins, solid cash generation and robust liquidity, while also recognizing our strong competitive position and disciplined approach to liability management and capital allocation.

On the next page, we can look closely at the net debt variation. As of the end of the first quarter of 2026, our net debt has reduced to BRL 1,151 million when compared to the end of 2025, a reduction of BRL 218 million, even considering the repurchase of BRL 70 million in treasury in the first quarter, reflecting our strong operational performance and capital allocation discipline.

This concludes our prepared remarks. We are pleased with the progress achieved during the quarter and with the consistency of our execution across the business segments. Our commitment to advance to the medical journey through an integrated ecosystem of education and Medical Practice Solutions remains unchanged, supporting students through their path to became physicians, promoting continued medical learning and enhancing physician decision-making and productivity.

Looking ahead, we remain focused on our -- executing our strategy with discipline and capturing the opportunities ahead.

I will now open the conference for the Q&A session. Thank you.

[Operator Instructions] So the first question comes from Lucca Marquezini from Itau.

Two questions from our side. So the first one would be the release mentioned that the intake cycle was successful and the company implemented a 4.6% price increase. So can you please comment on the competitive environment for this intake cycle and whether it got any worse when compared to the other intake cycles in previous years?

So that is the first question. And the second one, the release also mentions that one of the drivers for net revenue growth was the performance of nonmedical undergraduate students. Can you please comment on the strategy on this side and whether this has changed compared to the last years as well, please?

Hi, Lucca, this is Virgilio. So the first half intake was a very strong intake when we compare to last year, we saw the same level of candidates perceived.

On our side here, we are seeing that the recognition of our brand and also the internal process that now we are having an intake and enrollment process fully centralized that we are calling the national intake process. So that is also helping us to keep us with 100% of equipment.

So it was a very healthy intake cycle. And besides that, we also start -- already started our second half intakes very beginning and the number of leads, it's also better than the same period last year.

In terms of the share of our undergrad revenues, we are seeing a very good trend on other health programs, because of Afya's brand is very well connected to the health sector. The last 2 years, we're also opening some health programs, completing the portfolio for all of our campuses.

So we are seeing a very strong intake when we compare year-over-year and almost a 20% growth -- organically growth coming from other undergrad programs on the health sector. So this is a strategy for Afya.

We are not only offering medicine on our program, but also increasing the health undergrad programs as a portfolio and strategic portfolio for our ecosystem. And why is that? When we have a campus in a small city, just the physician, just the undergrad, that's the program for medicine does not solve the issue on the region.

And being -- also offering other health program attached to Afya's brand connected to our medicine infrastructure on that campus makes a lot of sense. It's a very low additional CapEx, strong brand recognition and very strong intake that we are seeing and good momentum. Okay?

Of course. The second question comes from Eduardo Resende from UBS.

And two on my side as well. So first, could you provide an update on the ENAMED [indiscernible]? So if you could provide an update on the impacts that are expected and the initiatives you are executing to foster student performance in the upcoming exam would be very helpful?

And the second question is regarding the M&A environment in medical school. So if you could please provide some color on the market environment for new deals in medical school. I mean what in your view has been the main constraint for new deals? Is it still on valuation or maybe some asymmetries involving ENAMED as well? So anything you can share with us in this front would be very helpful.

I'll take the ENAMED here question and Blanco will help on the M&A side. So regarding our action plan for ENAMED, we are doing a very strong initiative here. First of all, it's how to increase the engagement of all students that will be applying for ENAMED now in September in the second half this year.

We are also conducting almost 30 mockup tests of all students that will be applying for ENAMED and doing action plan for every 2 weeks, we have measuring the results based on the new model, because the ENAMED is completely new model when we compare for the previous one based on the old [ NIG ].

So having said that, we are seeing that our student is much more engaged, fully committed to have a much better result. And also, we are adapting our curriculum also to fulfill the type of question, the type of evaluation that is being considering in the ENAMED. So our expectation that will be a much better result for our students now in September. So regards the M&A, I'll pass here to Blanco.

Just to add a point on the ENAMED question, if I may. A reminder that all the results, the impacting results on the second semester is already considered in the guidance that we provided in the beginning of the year and it's minimum, it's not material. So Blanco?

It's Blanco speaking. Regarding the M&A environment, first, it's very important to highlight that we keep our capital allocation discipline, just focused on M&A that concentrated in medicine and that generates a good return on capital.

Just as a reminder, we have as a target institution that has more than 60%, 6-0, of the revenue coming for the medicine programs. And we look for targets for deals that generates an IRR above 20% on leverage, nominal kind of internal rate of returns.

Having said that, we still keeping our 200 seats per year growth and we look deals that have this profile that I just mentioned. Sometimes we don't get the right profile. Sometimes we didn't reach a price that make the return on the capitals that we seek.

And then we do not pursue a deal just for the growth itself. So we pursue deals that have the exact profile and the exact type of return and we keep a very discipline on this.

Eduardo, is it clear? I think that you're on mute. Okay. So moving to the next question, Mirela from Bank of America Merrill Lynch.

I have a question on the Medical Practice Solutions and the investments on this front. So you mentioned in the previous quarter that you plan to invest more heavily on this line. And we see that this quarter, the number of total payers continue to decline, especially on the WhiteBook front.

I understand here that there's a timing component to see the results of these investments. So I was just wondering if you guys could give us more color on the expected timing to see some recovery on these lines. And also if you could provide more color on the initiatives that you see as a solution, especially on the WhiteBook front?

Mirela, your voice burst a bit. Can you please repeat your questions?

Can you hear me well now?

Yes, we can.

Okay. So my question is on the Medical Practice Solutions and the investments on this line of business. You mentioned in the previous quarter that you plan to invest more heavily on the Medical Practice Solutions. And we see that in this quarter, the number of payers continue to decline.

I understand here that there is a timing component to see some recovery there, especially on the WhiteBook. So I just wanted more color on the timing that you expect to see recovery on these lines, especially on the WhiteBook? And also if you could give us more color on the initiatives they are being done on the WhiteBook to face the competition from AI and the more competitive market on the segment?

Now it was very clear, your question. So regard the investments, we are already investing more on the NPS here of our products, not only individually product by product, but also integrating them and creating like a network effect, having our physicians not only more engaged, but also generating more insights and information inside within our platform. So we're still seeing a reduction on payers on WhiteBook.

On the other hand, we are growing and growing faster on iClinic that is more engaged physician to our base and also generating much more data on a daily routine on our basis. We are also tracking the physicians that are leaving our base.

They are more young physicians that are not using the platform on a daily routine. We are seeing much more using on the daily routine for more mature and senior physicians that are adopting iClinic, also leveraging the number of prescriptions that is being made through our platform.

We just reached more than 2 million prescription level per month [indiscernible] that's also very important, most of them coming through iClinic. That's why it's so important to leverage the number of clinics and physicians adopting iClinic.

In terms of investment, what we are doing, first of all, AI it's one of the issues and also an opportunity here. We are launching a lot of features, new features AI-based. So the solution is becoming AI first in terms of WhiteBook and also considering the social network effect, because we are embedding prescription within WhiteBook.

We are also integrating WhiteBook with our updates and continued medical education solutions and also within iClinic. So all of this in a very middle term is to have what we are calling here Afya One platform where a physician doesn't make sense if they are signing for one solution and another. He is like a membership of the entire platform. So this is what we are building here.

So in terms of cost and investments that we are doing in this first semester, one is CapEx related to all of this innovation, integration and creating this beautiful platform. And second is improving our sales team most for B2B that we are now already seeing an important growth year-over-year and that's what we believe that's the greatest opportunity in the mid and long term for the [ MP ] segment.

And Mirela, Blanco speaking, just adding 2 more things in what Virgilio just mentioned. Regarding the investment itself, if you notice our CapEx, it is most concentrated on this quarter in intangible assets rather than property and equipment.

You can see this change of mix if you compare year-over-year. And another point regarding specific about WhiteBook, what we are pursuing this year regarding all these investments is to increase the audience within WhiteBook.

WhiteBook, when you compare with the public LLMs, most of them are provided for free. So we are focused this year on the WhiteBook on the -- what we call the audience side. So the impact on active payers and then on the revenues, you won't see a big impact on WhiteBook this year, but from 2027 ahead. So this year, these investments were focused on audience on WhiteBook.

[Operator Instructions] So the next question comes from [ Victoria ] from JPMorgan.

I have one on my side. Just on the sales and marketing expenses in this quarter. So we saw a year-over-year increase. And I just want to touch base to see why we saw this increase? And if you could please give more color on this line going forward.

So it's 2 main reasons here. First of all, we anticipate the volume of intakes for the first half because of the ENAMED, so we spend a little bit more on the undergrad and also on health programs, you saw the results. We also have a very strong intake as we also have a bigger offer portfolio in the first half when you compare to the -- to last year.

And second, also for the SPM, where we are improving our sales process sales team here. We are also putting more market effort on SPM and also [ Intercom ] to strengthen our position. That -- this is -- no, it's not a recurring base, but onetime based on this first semester, most of them from the undergrad and also for this launching of this new approach of many solutions that is being more integrated and how we are offering this new dynamic and products to our physician ecosystem, okay?

And Victoria, it's very important that this increase in sales and marketing expenses are under this program and it is embedded on our guidance for the year, okay?

So since we don't have any more questions, we are going to end the call. If you still have a question and please contact the Investor Relations team. We'll be happy to help you. Have a good evening.

Thank you for joining us for Afya's conference call. I'm here today with Afya CEO, Virgilio Gibbon; and our CFO, Luis Andre Blanco. During today's presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties and other factors that may cause, as ritual results to differ materially from those depleted by these forward-looking statements.

Forward-looking statements in this presentation include, but that are not limited to statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, it's related benefits. These risks include those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as the date hereof. You should not rely on that as predictions of future events, and we disclaim any obligation to update any forward-looking statements except as required by law. In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or as a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures.

Now let me turn the call over to Virgilio Gibbon, Afya CEO.

Thank you, Renata, and thanks, everyone, for joining us today for our final conference call of 2025. The last quarter reflects more than financial performance. It demonstrates how our strategy continues to position Afya for sustainable growth as it continues to transform medical education across Brazil, which achieved our seventh consecutive year of meeting or exceeding guidance since second half of 2018.

This track record reinforced the strength of our business model the quality of our execution and the commitment of our teams. Today, I will cover key strategic developments and operational highlights that drove these results. Then Luis Blanco will provide a detailed review of our operational and financial performance.

Starting with Slide #3. Let's highlight our performance achievements in 2025. Our revenue for the 12-month period grew 12% year-over-year, reached BRL 3.697 billion, followed by adjusted EBITDA growth of over 50% year-over-year, reached BRL 1.680 billion. Adjusted EBITDA margin for the same period reached 45.4%, an increase of 130 bps over last year. We also reported a solid cash flow from operating activities ended the 12-month period with BRL 1.548 billion, over 6% higher than last year, with a cash conversion of 93.7%.

Net income followed the same positive trend as the last quarter and reached BRL 768.4 million, a growth of 18% year-over-year, with a basic EPS reaching BRL 8.32, 19% higher than last year, reflecting strong operational performance. This achievement underscores our disciplined capital allocation on buyback programs, M&A and an efficient capital structure.

Turning to our operational updates. We maintain our leadership position in medical education, supported by 3,755 approved medical seats. Our number of underground medical student has reached more than 25,000 students represent a 5% growth compared to the same period last year. Furthermore, our medical schools net average fix excluding acquisition, increased by 3% in the 12-month period. In the Container Education segment, we continue to see solid results presenting a revenue growth of 11% year-over-year, reaching BRL 284 million.

For Medical Product Solutions, we ended the year with an increase in revenue of 6% year-over-year reaching BRL 171 million in the 12-month period. Finally, our ecosystem reached 301,000 active users, reflected strong engagement and broad adoption among physicians and medic students across Brazil.

In the next slide, starting with the undergrad segment, we delivered a gross margin record of 63.9% reflecting the strength of our academic model and solid operational discipline. On the expansion front, we continue to advance through inorganic and organic initiatives. We concluded the acquisition of 60 medical seats in [indiscernible] is strengthening our footprint in another strategic region close to [indiscernible] . In addition, we secured [indiscernible] seats with [indiscernible] received authorization of 100 additional medical seats on November 7, 2025. And [indiscernible] receiving 2 additional medical seats on December 18, 2025. These approvals reinforce our organic growth runway and support our ability to expand with predictability. In continued education, gross margin expanded 363 basis points, and we ended the period with over 10,000 graduate journey students. B2B revenue growth was 48% during the period, supporting our performance in the segment.

In Medical Pratt solutions, we continue to scale our platform and expand engagement. We reached 196,000 payers in Medical Solutions, reflecting the growth of our active user base and expansion of our solution in daily medical practice. In addition, physician made over 16.9 million prescription using asset solutions, reinforcing the increasing usage of our ecosystem in clinical routines and decision-making. At the corporate level, we delivered a gross margin record of 64.5% and an EPS record of BRL 8.32 further demonstrate the structural strength and scalability of our earnings model.

Net cash flow from operating activities reached BRL 1.5 billion, highlighting the consistency and robustness of our cash generation. We closed the period with leverage of 0.8x calculated as net debt, excluding the effect of IFRS 16 divided by the adjusted EBITDA. This combination of strong profitability, substantial cash generation and conservative leverage profile provide us with significant financial flexibility and position us well to fund growth while increasing shareholder returns.

Moving to next slide. We will today our shareholder return decision and how it reflects our disciplined and consistent approach to capital allocation. Supported by Afya strong cash generation and disciplined financial management, we are announcing a cash dividend of BRL 307.4 million, equivalent to a dividend per share of BRL 3.45 represents 40% of our 2025 net income, payable on April 6, 2026 to shareholders of record as March 25 of 2026. This decision reflects our capital allocation framework, which prioritizes sustainable cash generation, continued investment in organic and inorganic growth disciplined liability management and consistent capital returns to our shareholders.

Since 2021, our net income and cash generation have consistently expanded and this operational performance has been accompanied by a clear and disciplined commitment to shareholder returns. Over this period, we had funded our acquisition while also executing share repurchase programs across multiple years. More recently, we added a cash dividend as an additional component of our shareholder remuneration. This balanced capital allocation strategy allows us to simultaneously fund growth, strengthen our financial position and return value to our shareholders.

Moving to next slide. We will outline our strategic focus to unlock long-term growth. The next phase of our strategy focused on strengthening Afya's position across the entire physician life cycle, expanding our audience, deepening engagement and reinforce the long-term monetization potentials of the ecosystem.

As we evolve, each interaction contributes to a more connected experience and expands the value we can generate across the system. To achieve this, we are advancing a set of strategic priorities to guide the development of the ecosystem as a whole. We are strengthening and differentiate our core products to ensure they remain aligned with the needs of physicians as they progress across specialties and career stages.

We are investing in technology, data and growth capabilities to enhance the scale and intelligence of our platform. We are also broadening our physician audience and deepening the integration of our solution across both B2P and B2B channels, ensuring that ecosystem becomes increasingly relevant throughout the medical journey and we are scaling our B2B health care industry offerings, which benefit directly from the insights produced by engagement and clinical behavior across the ecosystem. These priorities reinforce one another, supporting a unified platform that increased frequency, relevance and quality of interactions. Importantly, by making the ecosystem stronger and more integrated, we can sustain a structurally low customer acquisition cost for underground students, maintaining our competitive advantage and preserving efficient growth even in a more challenging environment.

As the physician audience grows and interacts more actively with our content, services and professional tools, the platform becomes richer and more dynamic. Higher engagement deepens the data layer. It strengthens our ability to refine products, personalized experience and improve outcomes for users. The combination of scale, engagement and insights creates network effects that enhance the long-term value of the ecosystem supporting a more predictable and diversified monetization model. Executing this strategy requires incremental investment in continued education and medical pad solutions, aligned with initiatives to expand technological capabilities, enhance product development and strengthen commercial reach.

These investments are fundamental to supporting a seamless physician experience, improve integration across learning practice environments and reinforcing the structural foundation necessary to scale monetization over time. In essence, by strengthening the ecosystem across physician life cycle, we expand audience reach, deepen data-driven engagement and reinforce the structural elements that support long-term monetization. These investments enhanced the integration and relevance of our platform, sustaining efficient acquisition economics and solidifying Afya's ability to capture durable value across the ecosystem.

Turning to next slide. We translate this strategy into financial outcomes and present the 2025 results alongside our 2026 guidance. Afya's 2025 revenue was 5x higher than in 2018, the E of our IPO, reaching BRL 3.697 billion, in line with our announced 2025 midpoint guidance. Furthermore, 2025 adjusted EBITDA was BRL 1.680 billion, followed by an adjusted EBITDA margin of 45.4%, surpassing our adjusted EBITDA met the guidance of BRL 1.670 billion. These outstanding results reflect Afya's consistent growth and operational excellence. This consistent combined with another strong intake cycle provides a solid basis for our 2026 guidance. Revenue is expected to range between BRL 3.950 billion and BRL 4.1 billion, while adjusted EBITDA is anticipated to be between BRL 1.7 billion and BRL 1.8 billion, excluding any acquisitions that may be concluded after the issuance of the guidance.

Once again, we are guiding for another strong year demonstrate Afya's resilience and ability to keep delivering solid results with high predictability. We do not expect any material impact from named on our 2026 guidance. The recent release results reflect a process that is still evolving, and we expect further adjustment as the methodology continues to mature. Given that our medical scow intakes occurs in the first half of the year, we do not anticipate a material effect on 2026 cycle. A new addition of the exam is expected later in the year, which may support potential improvement in [ AMED ] scores ahead of 2027 intake cycle.

Furthermore, show in the chart, our CapEx for 2026 expect to be between BRL 340 million and BRL 380 million, even considering the investment increase in continued education and medical back solution. We continue to see health level of capital expenditures between 8.6% and 9.3% in relation to our revenue.

I will now turn the call over to Luis Blanco, Afya, CFO, to provide more insight into the financial and operational metrics. Thank you.

Thank you, Virgilio, and good evening, everyone. Starting with Slide #9 for discussions of key operational metrics by business unit, starting with the undergraduate programs. Our number of medical students grew 5% year-over-year, reaching more than 25,000 students, while approved medical seats increased by 5% in the fourth quarter of 2025.

Our medical school net average ticket, excluding acquisitions, increased by 3% for the 12 months, reaching BRL 9,060. We have also achieved BRL 2,789 million in revenue, up from BRL 2,478 million from the prior year. an increase of 13% due to higher tickets in medicine courses, the maturation of medical school seats, the beginning of the operations of FUNIC and the full year results, consolidations of UNIDOM that was acquired in July 2024. Regarding the revenue mix, 86 was delivered for medical school students and 94 from health-related courses.

On the next page, I will present our continuing educational metrics. We approach -- continued education through three main journeys, starting with the residency journey, we saw contractions in the student base after 2024, but the most recent quarters already show a clear recovery.

In the current quarter, the number of the residency journey students is 21% lower than 2024. But over 30% higher than it was in the third quarter of 2025, indicating that the portfolio is rebuilding. In the graduate journey, we continue to see a consistence and health growth since 2024, the student base has expanded every quarter in the current quarter is 20% higher than it was in 2024 and over 11% higher than in the third quarter of 2025, confirming the strength of its growth trend.

Overall, due to a higher participation of the graduate training products, the continued education and revenue reached BRL 284 million in the 12-month period of 2025, up from the BRL 255 million, reflecting a growth of over 11% over the same period of the prior year. This includes a 9% increase in the B2P revenue and a robust 48% increase in B2B revenue.

Moving to Slide #11. I will discuss the Medical Product Solutions operational metrics. The first chart shows our total active payers which generates revenue in the business positions, the B2P. The number of paying users reached 196,000 in line with the same period of the prior year. The second graph highlights our monthly active users, which are 220,000 down from the 238,000 in the same period of the prior year.

Lastly, the third graph shows revenues from our medical practice solutions, which grew 6% year-over-year, reaching BRL 171 million. This growth was primarily driven by a more favorable product mix and an increase in the average ticket. On the next slide, we also present Afya ecosystem. We are pleased to highlight that Afya substantial contributions to the Brazilian health care community. By the end of the fourth quarter of 2025, our ecosystem encompassed 301,000 physicians and medical students using our service and products.

Moving forward to Page 13, I want to discuss our financial overview for the fourth quarter of 2025, starting with the next slide. I'm pleased to report another strong quarter for Afya. Revenue for the fourth quarter of 2025 reached BRL 913 million, representing an 8% increase compared to the same period last year. Revenue totally, BRL 3,697 million for the 12-month period, up 12% year-over-year. For the fourth quarter, adjusted EBITDA rose by 6%, reaching BRL 389 million with an adjusted EBITDA margin of 42.6%, a decrease of 50 basis points compared to the fourth quarter of 2024.

For the 12-month period, adjusted EBITDA amounted BRL 1,680 million, an increase of 15% over the prior year with an adjusted EBITDA margins of 45.4% representing 130 basis points increase over the same period. The increase in the adjusted EBITDA margin was mainly driven by higher gross margins in the underground rates and continued educational segments. Restructuring initiatives we have been the continued education and medical prac solutions, improved efficiency in selling, general and administrative expenses.

Moving to Slide 15. The year's cash flow from operating activities rose by 6% reaching BRL 1,548 million, reflecting a strong operational performance. The operating cash flow conversion ratio was 93.7% in the 12-month period of 2025. Net income for the fourth quarter of 2025 came in at BRL 175 million, marking an increase of 14% over the same period in 2024. For the 12-month period ending in December 2025, net income totally BRL 768 million, up 18% year-over-year. This growth reflects a stronger operational performance combined with the recognition of the [ FER ] tax assets, partially offset by the additional taxation related to the OECD Pilar 2 global minimum tax effects. Afya base EPS for the quarter reached BRL 1.91, a 15% increase compared to the same quarter in 2024 with BRL 8.32 per share for the 12-month period of 2025, representing a 19% growth.

This earnings performance is complemented by a dividend yield equivalent to 4.76%, reinforcing our earnings growth and strong cash generations are driven attractive cash returns to shareholders. And now moving to my last 3 slides, I'll discuss our cash and net debt position also on providing additional detail on our cost of debt. This slide presents a table detailing our gross debt composition at the end of the fourth quarter of 2025 and the total cost of debt covering our primary obligations.

The issuance of BRL 1,500 million in the band risk on October 2025, together with the repurchase and cancellation of the [indiscernible] convertible held by SoftBank and the repayment of the first issuance of the ventures and other loans and financing demonstrates AFA discipline approach to liability management, resulting in average debt maturity extended to 3.6 years and the lowest cost of the debt in the educational sector.

Turning to the next slide. As of the end of the fourth quarter 2025, net debt reached BRL 1,369 million, a reduction of BRL 445 million from the end of 2024. These reductions was achieved even after considering the acquisitions of FUNIC and the return to the shareholders reflected in dividends and the share repurchase program.

Afya net debt, excluding the effects of the IFRS 16 divided by the 2025 adjusted EBITDA was only 0.8x. Afya capital structure remains solid with a conservative leverage position and the low cost of debt. And now moving to my last slide, we highlight how our earnings growth has consistently translated into cash generations for shareholders over the last few years.

First, looking at earnings. Our basic earnings per share increased from BRL 2.39 in 2021 to BRL 8.32 in 2025, representing a CAGR of 37% over the period. These evolutions reflect sustainable margins and disciplined education across our business, reinforce the quality and the resilience of our earnings profile. In parallel, free cash flow also expanded. It grew from BRL 349 million in 2021 to BRL 1,056 million in 2025, an increase of BRL 707 million and the CAGR of 32%. This shows that we are not only growing earnings, but also efficiently converting them into cash.

For the full year 2025, our results translated into a free cash flow yield of 13.3%. These combinations of earnings grow strong cash flow generation and an attractive free cash flow yield support our ability to continue investing in our inorganic growth while also returning capital to shareholders in line with our disciplined capital allocation strategy. We also continued to execute our repurchase program with approximately 60% of the current authorized buyback program remaining available for execution until December 2026.

Combined with dividends, we expected to distribute 50% of the company's consolidated net income for the year ended 2025, reinforcing our commitment to shareholder returns. We remain confident in our long-term growth and value creation strategy and maintaining our growth guidance. This concludes our prepared remarks. We are proud of the strong performance we've delivered in this quarter.

Our focus on improving the medical journey through an integrated educational system and medical practice solutions remains strong. helping students to become doctors, supporting ongoing medical learning and enabling physicians to pass a more accurate and efficiency. Looking ahead, we are excited about opportunities to continue creating value across the entire ecosystem.

I will now open the conference for the Q&A session.

[Operator Instructions] The first question comes from Marcelo Santos from JPMorgan.

I wanted to focus a bit on the transformation that you're planning from continuing education and medical practice solutions. First question is, could you -- please give some tangible examples of improvements you're planning to make just for -- to be more clear, what we are talking, where these investments will be done? And the second question is like the B2B revenues in the Medical Practice Solutions, they were soft over last year, what is needed? How does the investments are going to drive those revenues? Like what's missing is Brazil not ready yet for the kind of solutions you're offering or like some technology improvement that would unlock those revenues? Just wanted to understand the outlook for that line.

Thank you, Marcelo [indiscernible] So the investment under the continued education and also the medical practice solutions much more how can we integrate all of the products and services that we are offering for the same persona on the medical journey. So imagine that we are serving most of the time, the same physician with different products with different experience under the same Afya umbrella.

So all the investments here is how can we integrate not only in terms of products and services, creating a platform that can have like a membership concept behind that. But also unifying the experience of that physician at Afya journey. So it's a lot of product enhancement, a lot of technology, creating a platform that can tie the physician not only for our continued medical education program or an update type of program, but also to all system and application that they are running into their clinics.

So this is where we will be investing for the next 3 years integrating this platform, improving the experience aiming the name of the game here is audience improving our audience into the physician base for the -- in the entire country. On the B2B, when you compare the B2B mostly for the last quarter in 2024 against 2025. We had a very big chunk of revenues recognized in the fourth quarter that we didn't have but also B2B is struggling how can we use all of our part of our solution without a unified platform to serve all the contracts that we have. So also this investment will help us not only to leverage the B2B experience, but also having much more channels where we can monetize into our B2B offerings inside the ecosystem.

Next question comes from Mauricio Cepeda from Morgan Stanley.

My first question is about the progression of the discussion on [indiscernible] and profit [indiscernible] . If you could update us on how the sector -- how are the sector discussions there, the possibilities of litigation in that sense -- and if you do foresee potential impacts from the sanctions in your schools that underperformed in med and how are you preparing for the schools that were not tested yet because they are relatively new, how we're preparing there. And my second question is about how now you foresee M&A as a way to continue growing, given that the undergrad schools that you have seem to be getting closer to maturation.

And sorry, on 2026...

Can you start again?

I'm sorry. So starting again here, Mauricio. regarding named, we are not foreseeing any impact on 2026, because our intake is almost 100% gone with a great occupancy. We didn't finish it yet just because of [indiscernible] schedule that goes to tenth of April. So as most of our campuses will offer almost 100% of their seats on the first half. So we only have remaining seats for the second half. So the impact for those campuses that have some kind of penalty under the [indiscernible] rule, it will be close to zero.

Having said that, what we expect is that the new named is expecting to happen in September. So now with a completely different preparation for the entire sector. Now we know the rules, at least in Afya what we are doing here in terms of preparation, not only for the new campus that we entered this year on the name, but we are running 12 simulations to our mark test for all of our students. We had the first one 2 weeks ago, and we have the next one next week. So it's a strong action plan here based on the new procedure, the new evaluation system that we are going to be prepared. And for sure, we have a most -- we expect a much better result for the second half of 2026 and that we could revert not only the grades, but all of these penalties that we have over our -- for some of our campuses for 2027.

Regarding the proforma that you asked, Mauricio, it's under discussion under the. There is nothing approved yet, and we are waiting for the next steps.

[indiscernible] Blanco speaking. I'll take the second question regarding the M&A. We keep seeing our view of adding of expanding ourselves through inorganic movements through M&A. We keep seeing that we can add 200 seats capacity per year through M&A, targeting the targeting business, educational institutions that has more than 60% of the revenue coming from the medicine programs and delivering unleveraged IRR of at least 20% nominal.

So we keep saying that as a target, and we're very straight in terms of capital allocations regarding targets and returns that targets will generate for Afya. So nothing changes in our view regarding inorganic expansion.

Next question comes from Flavio Yoshida from Bank of America.

The first one is if you guys could help us to understand what happened on the operational expenses we saw that it increased only 1% year-over-year. It wasn't a much higher running rate in the previous quarters, roughly a 10% increase year-over-year. So how much of that can we consider going forward? And then also on CapEx, we saw a very significant increase on intangible assets on the CapEx. So it would be very good if you could share the reason for that. And then my second question is on the guidance. So when we see the guidance, we see that there is an implied EBITDA margin for this year that is lower than 2025, right? So the midpoint of the guidance would be around 43.5%, which compares to 45.4% from 2025.

So I would like to understand the main reasons for such EBITDA margin decrease into 2026.

[indiscernible] start with the first one. Our CapEx regarding 2025 has increased mostly in the intangible because all this program regarding these investments that Vigil mentioned under continued education and SPM segments. We started it at the fourth quarter of 2025. So -- we started this program in the fourth quarter. That's why we have an acceleration of the CapEx during the fourth quarter. That's why we have increase in intangibles on the fourth quarter.

Regarding OpEx, we have achieved our view for the year. There is some seasonality on that, and we can provide more color after the call directly to you. Regarding the reductions in terms of margins, if we can in 2026, if we got the midpoint of the EBITDA in the guidance and the midpoint of the revenue and the guidance and compare with the margins that we delivered in 2025. We are talking about 190 bps reductions on it. This is part reflecting the impact of the program that we are putting in place regarding the expansions in continued education and and as well a mix effect that the segments of continued educational and SPM will grow faster than the undergrad segment.

Next question comes from Andres Salles from UBS.

Congrats on delivering the guidance here. My question is more, I mean, capital allocation as you guys are deploying a diversified strategy here in our read, I mean, you have the opportunity on consolidating med schools. You are investing in businesses other than higher education. You have an ongoing buyback program until 2026. You just announced robust dividends now. I mean, can you guys comment on how do you rank these opportunities here in terms of relevance for the next, I don't know, 2 to 5 years in terms of your capital allocation priorities? -- as -- I mean, they might end up competing with each other. I would like to hear more about it.

Thank you, Andre. It's Blanco speaking. I will take this question. This is a great passions. Take you for to have the opportunity to do that. First, it's very important to highlight that this flexibility on capital allocations come because our ability on generating free cash flow as we presented, we delivered more than BRL 1 billion in free cash flow during the 2025. And this gives us the opportunity in locating inorganic dividends and share buyback. How we think about that, the inorganic movements, as I mentioned in the Cepeda questions, we focus on having at least 200 seats per year in meting schools that delivered an IRR of at least 20% nominal unleveraged returns.

Regarding the mix between capital allocation -- capital shareholders remunerations between share buyback and dividends we see that a mix between these 2 delivered the highest value to our shareholders. And we have in mind to start buyback programs when we see opportunity regarding the share price when we see value undervalue in our share price as we see at this moment. And we complement each with dividends and control our net debt to EBITDA. As you can see, doing that in 2025, having the expansion through FUNIC, paying dividends and performing the share buyback. We did that and reduced our leverage from 1.2 to 0.8x net debt to EBITDA.

So this is our view. This is the view that we will keep for the following years. we see that we can keep our ability on generating a strong free cash flow in the future. And with this free cash flow, we'll continue to do business combinations with this 20% return on that and dividing the remaining through dividends and share buyback, depending on the share price, of course, and the net debt at the end of the day.

Just to add some color here Andreas. So how I'd like to see sort of the cash flow generation during 2025 and how we use it in terms of allocate this cap in terms through the year. So to reach this BRL 1 billion of free cash flow maybe 1/3 of that amount, we are applying to a buyback program, the 4 million shares.

It's around another BRL 300 million the dividends, that's a robust dividend that is around 40% of our net income. It's 30% of our free cash flow again. So the also help us to fund future opportunities and acquisition here. So moving ahead, we still see a very resilient type of business that we can fund organically our improvements, our new product and service integration of all of this beautiful platform that for one side can be a beautiful growth avenue in the future but also create enormous advantage for our core business on underground because we have more than 300,000 physicians and this is an army talking about our brand and also help us to have a very low cost of acquisition, keep the resilience of our business, occupy 100% of our system semester over semester.

So that's a very beautiful strategy in terms of capital allocation, investing on our digital platform, distributing tons of value to our shareholders through buyback program and also dividends, and that will continue for the following years and also funding and future opportunities in terms of acquisition.

Our next question comes from [indiscernible] from Itau.

I just have a follow-up question regarding the guidance. So the guidance, the mid implies a 9% growth in revenue. So can you please provide more detail on the growth breakdown by segment and also whether this should come more from volume growth or higher prices. If you could provide some more detail on the revenue growth implied in the guidance. It would be very helpful.

As you know, we don't provide guidance per segment. We provide the consolidated guidance encompassing the 3 segments. But -- let me give you some color about that. In general terms, under grants will perform in single digits, mixing ticket effect that will be aligned with inflation and the volume that we'll have a growth, a small growth that is related to our medicine programs are mostly mature. So at the top of line on the ground will be single digits. The SPM segment will be double digits as well as continuing education.

Regarding EBITDA itself, we don't provide nor in the real terms, the beach per segment, it just provides gross margins per segment. So don't -- I don't have much to say on that. Just saying that part of these reductions in terms of margins is related to the programs -- the investment program that we are doing, reinforcing its product teams, reinforcing sales teams in continued educational and SPM segments.

Since you don't have any other questions, you're going to end the call. I appreciate the participation of you all, and have a nice night.

Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgilio Gibbon, and our CFO, Luis Andre Blanco.

During today's presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties, and other factors that may cause Afya's actual results to differ materially from those contemplated by these forward-looking statements.

Forward-looking statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, its related benefits. These risks include those more fully described in our filings with the Securities and Exchange Commission.

The forward-looking statements in this presentation are based on the information available to us as of the date hereof. You should not rely on them as predictions of future events, and we disclaim any obligation to update any forward-looking statements except as required by law.

In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or as a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures.

Now, let me turn the call over to Virgilio Gibbon, Afya's CEO.

Thank you, Renata, and thanks everyone for joining us today for our third quarter and 9 months conference call. This quarter reflects more than financial performance, it demonstrates how our strategy continues to position Afya for sustainable growth, transforming medical education across Brazil.

We concluded our 13th semester after the IPO delivering strong growth, profitability and cash generation and keeping 100% of occupancy in all our medical programs in Brazil.

Our results highlight the strength of our ecosystem, while advancing initiatives that will shape the future of medical education and medical practices.

Today, I will cover key strategic developments and operational highlights that drove these results. Then, Luis Blanco will provide a detailed review of our operational and financial performance.

Starting with Slide #3, let's begin with our main performance highlights and strategic priorities for the quarter. Our Revenue for the 9-month period grew over 13% year-over-year, reaching BRL 2,784 million, followed by an adjusted EBITDA growth of almost 19% year-over-year, reaching BRL 1,292 million. Adjusted EBITDA margin for the same period reached 46.4%, an increase of 200 bps over last year.

We also reported a new record cash flow from operating activities, ended the 9-month period with BRL 1,292 million, 11% higher than last year, with a cash conversion of 101.5%.

Net Income followed the same positive trend as the last quarter and reached BRL 593 million, a growth of 20% year-over-year, with a basic EPS reaching BRL 6.40, 20% higher than last year, reflecting stronger operational performance.

Turning to our operational updates, in this quarter, we maintained our leadership position in the medical education, supported by 3,653 approved medical seats, and 3,753 seats as of today after the approval of 100 medical seats in Afya Braganca.

Our number of undergraduate medical students has reached more than 25,000 students, representing a 6% growth compared to the same period last year. Furthermore, our medical school's net average ticket excluding acquisitions increased over 3% in the 9-month period.

In the Continuing Education segment, we continue to see solid results, presenting a revenue growth of 11% year-over-year reaching BRL 208 million. For Medical Practice Solution, we ended the quarter with an increase in revenue of over 9% year-over-year, reaching BRL 128 million in the 9-month period.

Finally, our ecosystem reached 304,000 active users, reflecting strong engagement and broad adoption among physicians and medical students across Brazil.

Moving on to Slide #4. We will talk about our solid business execution within our 3 business units. Starting with the Undergraduate segment, we saw important movements throughout the quarter such as an impressive gross margin expansion, and the successful beginning of FUNIC operations, acquired in May of 2025.

In addition, we are pleased to share that we received the authorization for an expansion of 100 medical school seats in Afya Braganca, bringing our total approved seats to 3,753 seats.

The Continuing Education segment was marked by an increase in graduate journey students, sustained by another round of organic expansion in our medical graduate campuses, with 5 new operating units in 2025, and a strong gross margin expansion. In this 9-month period, we saw a significant increase in B2B revenues, with 65% over the last period.

Lastly, in our Medical Practice Solutions segment, once again, we ended the quarter with a growth in the clinical management active payers. In addition, we also saw an increase in B2P Business to Physician revenues, led by an 11% growth compared to the same period of the prior year. This results reinforce the opportunity ahead in Medical Practice Solutions, which continues to deliver increasingly solutions for medical practicing.

In the next slide, I want to share how our ESG initiatives continue to create long-term value and strengthen Afya's commitment to sustainable growth.

Over the 9-month period, we delivered 700,000 free healthcare consultations, including more than 500,000 of them medical consultations. These achievements exceeded the targets set for 2025 and reflect our strong partnership with IFC through the sustainability-linked loan, as well as our public commitment to the United Nations Sustainable Development Goal number 3.

I also want to reinforce the creation of Instituto Afya, which represents a new chapter in our journey. This initiative strengthens our focus on sustainability and social impact, with a clear commitment to advancing research, science, and technology for the benefit of society, playing a strategic role in addressing non-communicable chronic conditions.

Finally, Afya's leadership in ESG was recognized by Valor Economico through the Valor 1000 Award, which evaluates companies based on financial performance and ESG practices. Afya was honored as the top performer in the education sector in Brazil for the fourth time in a row.

And now, I will be turning the call over to Luis Blanco, Afya's CFO, to provide more insight into the financial and operational metrics. Thank you.

Thank you, Virgilio, and good evening, everyone. Starting with Slide #7 for a discussion of key operational metrics by business unit, starting with the undergraduate programs. Our number of medical students grew 6% year-over-year, reaching more than 25,000 students, while approved medical seats increased by almost 2% in the third quarter of 2025.

Considering the expansion of 100 seats in Afya Braganca approved last week, the expansion in approved medical seats would be over 4% as of today. Our medical school net average ticket, excluding acquisitions, increased by 3.4% for the 9 months, reaching BRL 9,141.

We have also achieved BRL 2,459 million in revenue, up from BRL 2,156 million from the prior year, an increase of over 14% due to higher tickets in medicine courses, the maturation of medical school seats and the acquisition of FUNIC. Regarding the revenue mix, 86% was derived from medical school students and 94% from health-related courses.

On the next page, I will present our Continuing Education metrics. We approach Continuing Education through 3 main journeys. Starting with the Residency Journey, we saw a 36% decrease, reaching 9,969 students by the end of the period.

In the Graduate Journey, student numbers grew by 26%, reaching 9,180 students. Lastly, our other course and B2B offerings increased by 5% over the same 9-month period of the prior year.

Overall, due to an increase in the average ticket per student, the Continuing Education revenue reached BRL 208 million in the 9-month period of 2025, up from BRL 188 million, reflecting a growth of almost 11% over the same period of the prior year. This includes a 7% increase in B2P revenue and a staggering 65% increase in B2B revenue.

Moving to Slide #9, I will discuss the Medical Practice Solutions operational metrics. The first graph shows our total active payers, which are the ones that generate revenues in business to physician. The number of paying users reached 195,000, a 2% decrease over the same quarter last year.

The second graph highlights our monthly active users, which accounts for 228,000, lower than the 249,000 recorded over the same period of the prior year.

Lastly, the third graph shows revenue from our Medical Practice Solutions segment, which grew over 9% year-over-year, reaching BRL 128 million. This growth was primarily driven by an expansion in active payers in clinical management and a more favorable product mix.

Of this total, BRL 114 million was generated by B2P, representing an 11% increase, while B2B contributed BRL 14 million, a 2.5% decrease in the 9-month period.

On the next slide, we also present Afya Ecosystem. We are pleased to highlight Afya's substantial contributions to the healthcare community in Brazil. By the end of the third quarter of 2025, our ecosystem encompassed 304,000 physicians and medical students using our services and products.

Moving forward to Slide #11, I want to discuss our financial overview for the third quarter of 2025. Starting with the next slide. With great satisfaction, I am pleased to present another strong quarterly performance for Afya.

Revenue for the third quarter of 2025 reached BRL 929 million, representing a 10% increase compared to the same period last year. Revenue totaled BRL 2,784 million for the 9-month period, up 13% year-over-year.

For the third quarter 2025, adjusted EBITDA rose by 15%, reaching BRL 399 million, with an adjusted EBITDA margin of 43%, an expansion of 160 basis points compared to third quarter of 2024.

For the 9-month period, adjusted EBITDA amounted to BRL 1,292 million, an increase of 19% over the prior year, with an adjusted EBITDA margin of 46.4%, representing a 200 basis point increase over the same period.

The increase in adjusted EBITDA margin was mainly driven by higher gross margins in the Undergraduate and Continuing Education segments, restructuring initiatives within Continuing Education and Medical Practice Solutions, and improved efficiency in selling, general, and administrative expenses.

Moving to Slide 13. The year's cash flow from operating activities rose by 11%, reaching BRL 1,292 million, reflecting a strong operational performance. The operating cash conversion ratio was 101.5% in the 9-month period of 2025.

Net income for the third quarter of 2025 came in at BRL 159 million, marking an increase of 28% over the same period of 2024. For the 9-month period ending in September, net income totaled BRL 593 million, up 20% year-over-year. This growth reflects stronger operational performance, combined with the recognition of deferred tax assets, partially offset by the additional taxation provisions related to the OECD's Pillar Two global minimum tax effects.

Afya's basic EPS for this quarter reached BRL 1.71, a 29% increase compared to the same quarter of 2024, with BRL 6.40 per share for the 9-month period of 2025, representing a 20% growth.

And now, moving to my last 3 slides, I will discuss our cash and net debt position, also giving more color on our cost of debts. On the next slide, we will discuss our gross debt. This slide presents a table detailing our gross debt composition at the end of third quarter 2025 and total cost of debt, covering our primary obligations, the Softbank transaction, debentures, other financial liabilities, the IFC financing and accounts payable to selling shareholders.

Moving on to Slide 15, I'm pleased to announce that we have strengthened our financial position through liability management. In October, we issued commercial notes, totaling BRL 1.5 billion. The use of proceeds was the early redemption of Afya's first issuance of debentures and the repurchase of the 150,000 Series A preferred shares held by SoftBank.

We present a comparison between our actual position as of the end of the third quarter of 2025 and the pro forma gross debt after the liability management. We have extended the gross debt duration to 3.2 years while maintaining a low cost of debt at 106% of the CDI even after the repurchase of the preferred shares held by SoftBank. These actions strengthen our financial flexibility to support long-term value creation for shareholders.

On my last slide, we can look closely at the net debt variation. As of the end of third quarter of 2025, net debt stood at BRL 1,342 million, a reduction of BRL 473 million compared to the end of 2024. This reduction was achieved even considering the acquisition of FUNIC, and the return to shareholders reflected by the dividends and shares repurchase.

Afya's net debt excluding the effect of IFRS 16 divided by the midpoint of the 2025 adjusted EBITDA guidance was only 0.8x. Afya's capital structure remains solid, with a conservative leveraging position and a low cost of debt.

This concludes our prepared remarks. We're proud of the strong performance we've delivered this quarter. Our focus on improving the medical journey through an integrated education system and Medical Practice Solutions remains strong. Helping students become doctors, supporting ongoing medical learning, and making physicians more accurate and efficient.

Looking ahead, we're excited about the opportunities in front of us and confidence in our ability to keep creating value for the entire ecosystem.

I will now open the conference for the Q&A session, thank you.

[Operator Instructions] The first question comes from Lucca Marquezini from Itau.

The first question is regarding the effective tax rate. So can you please provide more color on the company's current understanding on the tax rate discussion, and also what do you believe to be an adequate assumption for this line going forward.

And then the second one will be regarding capital allocation. So considering this was another quarter of solid cash generation, what should we expect for the company's capital allocation strategy going forward? Should we expect a higher dividend payment or even a greater M&A activity in upcoming years? That's our questions.

Lucca, it's Blanco speaking. I'll take the 2 questions. First, regarding taxations. We ended the 9-month period with effective tax rate of 9.7% that was greater than the 5.1% that we got from last year.

The main reason for this increase is the provision that we are making for the Pillar Two taxations that was implemented in Brazil during 2025. And this provision, these taxations will be disbursed in July of 2026. So we are provisioning with these taxations during 2025. The effect of these minimal taxations was a little bit reduced by the provision of deferred tax asset that we recognized during the year.

Moving ahead for -- 2026 ahead, we would expect that the effective tax rate should be converted to the minimum taxation of 15%, that's the taxation of the Pillar Two. So if we do not gain the Pillar Two taxations nor by the injections that we are discussing or through a change in the current legislation regarding the Pillar Two, we would expect that 2026 -- from 2026 front, I would say that effective tax rates would converge to 15%.

To your second question regarding capital allocation, what we did during this October, we did a big liability management raising new debt regarding the commercial notes that were issued to the market. And with the use of proceeds of it, we did the prepayment of the debentures, and we repurchased the preferred shares from SoftBank that would be early redemption on April 2026.

So with that we increased our durations and keep the cash in place to do the capital allocation itself. So we have in our hands the possibility of doing an M&A or even increasing the buyback or even to pay dividends all the alternatives that we have on our hands, we will have the best choice to evaluate the scenario in the next couple of months to take the better decisions to increase value to our shareholders.

Yes. One point that I would like to highlight is that when we anticipated the payment of SoftBank's transaction, we had a financial gain. We negotiated with them to have a financial gain that will be proportionally to the difference of the rate -- the interest rate that we would have between this period and the due date of the contract.

So our next question comes from [ Eduardo Rezaji ] from UBS.

I have 2 on my side. So first, a double-click on the capital allocation. You highlighted your initiatives for shareholder remuneration. But looking at the effects of the new tax reform and impact for foreign players and investors, I just would like to understand if possible other strategies are being evaluated on this front. So this is the first question.

And second, if you could provide any color on 2026 intake cycle with overall trends observed in the latest entrance exam that you applied in the end of this semester. Any color on this front would be very helpful.

Eduardo, Virgilio here. So about capital allocation, as Blanco mentioned on the previous question here, so we're analyzing, so sort of on the M&A front, good opportunities on medical assets, medical school assets in some regions. So still aiming to have around 200 seats per year as our guidance in terms of capital allocation.

So regarding distributing that to shareholders, so we'll keep combining the best option between buyback programs as the one that we just launched, that is the biggest one that we launched on our recent history here and also paying dividends even considering the 10% additional cost. So we'll be combining 2 of them, taking the best consideration, the market price of our shares. And all the availability of cash that we have on that.

Regarding intake for 2026, it's still very early. We are collecting all the candidates. The only thing that we can anticipate is that, well, the tuition that we are aiming to 2026 is around 5% to 5.2% over 2025. So that's the only information from that.

Next question comes from Lucas Nagano from Morgan Stanley.

We have 2 questions. And the first is a follow-up on the ticket adjustment you mentioned, which is if we should see any mix effect next year or if average ticket should converge to the 5% growth you just mentioned? Because this year, I think there was possibly some effects related to FIES. That's the first question.

And the second question is a more conceptual one. In the last Afya Day, we discussed a lot about the supply side, about competition and Afya's strategy to offset those pressures. And the question is from the demand side, are you seeing any change even if it's marginal in how the applicants perceive the attractiveness of the medical career, if it should be affected both for the sector as a whole or for the worst players?

Luca, so the first question about ticket. So between 5% and 5.2% across the board is in terms of gross tuition. So it's still early in the process to check how the effect considering the FIES. But what we are aiming here is to keep stable around 17%, 18%, the penetration of FIES on our medical student base. So it's too early to check how the portfolio and the combination of them compared to 2025. But now we just can say that we will be around 5%, okay?

Regarding competition, so the number of candidates that we are seeing in terms of demand is very close to the -- what we are having to last year. So we are not seeing any substantial difference from city to city. So in terms of average, we are very close to the same figures that we had last year at the same time, okay? Just in terms of candidates.

Next question comes from Marcelo Santos from JPMorgan.

I have 2 as well. The first question is about the gross margins on Medical Practice Solutions, there was a nice sequential increase. So I just wanted to get your comments there.

And the second question is on the clinical decision software, this is the second quarter of sequential loss of subscribers. Just wanted to also get some color on these trend.

Marcelo, the first is the increase of 2% in terms of margins in the segment. That was related to the cost management that we do within the products. Nothing specific to highlight on that. That's -- it's an ongoing initiative that we have here to gain efficiency.

Yes. Just remember, just adding on the first question here, Marcelo. Remember that we launched many new campuses and new sites that we are offering Continuing Education. So we are getting to the second and the third intake process, so it's a kind of dilution of the fixed cost and gain more synergy, the campus that we launched over the last 18 months, okay?

On the second one -- and I think just to clarify, your question was about the clinical decision solution, the reduction of users that we have in the second semester in a row. Is that right?

Yes, that's correct, Virgilio.

Yes. So the clinical decision, the Whitebook solution, we changed our price at the end of last year strongly. So the decision on that was in terms of elasticity study at that moment. And we didn't change the combination about freemium users and also premium users with a much higher price.

So the result of that was positive in terms of revenues, but we lost freemium users at that moment in the beginning of their career or last year of medical programs. So what we are doing right now to resume growth on the audience is reviewing the combination of features that we are offering through the freemium version and also premium version. So this is something that we want to resume the penetration on that, not only benefit in the short term, the revenues on Whitebook.

I think the most important in terms of penetration, iClinic on the other side, it's the most important data for all monetization on B2B. It's accelerating and having much more penetration than also we were expecting because we have also to compete other medical records and to substitute clinic by clinic is something that it's not in a short and an easy way.

So on our 2 most important digital solutions, one, we need to resume penetration, that is Whitebook. We launched a lot of features, as you may have seen on our Afya Day using, adopting AI to change this and also embedding this on our premium version.

On the other side, iClinic also embedding with AI features, we are ramping up and accelerating penetration over clinics in the country, okay?

Perfect. Just on the first question, I was asking about the margin increase of Medical Practice Solution, not the Continuing Education. And what I'm saying is that you went from 66% in the second quarter to 73%. So it's a sequential increase of 7 points, which was more on this one. I think you gave me the answer on the Continuing Education, if I'm not mistaken.

Yes. But Marcelo, I would say that, yes, we are increasing the -- almost 7 points regarding the second quarter of 2025. But if you compare with the third quarter of 2024, it's 2% below -- the 2% that I mentioned. So I would say that we have the kind of seasonality on that and this down of this 2% that was mentioned in the 12-month comparison, it's nothing to highlight on that. It's regarding the second quarter, it's something about seasonality, okay?

Next question comes from Mirela Oliveira from Bank of America.

I have 2 questions here. The first one is on the recently acquired units. If you guys could comment a bit on the expected time frame for the ramp-up of FUNIC? And how long do you expect margins to be at company's run rate?

And the second one is on the consolidated EBITDA margin. So the company has delivered a significant margin expansion in the past 9 months, paving the way for reaching the top of the guidance. So just wondering here if you could comment a bit on if you see room for further margin expansion ahead and what would be the main levers for it? That will be it from my side.

Mirela, I'll take the 2 questions. So first of all, FUNIC it's our first year operating over there. So it's just 60 seats, so it's just in the beginning of the maturation. We just implemented -- launched the first class starting on August. So the first year, you have low margins because of all the implementations of the faculty and just the fact that we have just one class over there.

So what we see that FUNIC it's based in Contagem. Contagem it's in the great Belo Horizonte area. And then we're going to -- as the maturation comes, we're going to reflect the increase of margins according to the increase of the maturation, the increases of the number of students. So it's according to our business plan, the acquisitions. It's a question of timing of [ gearing ] operational leverage regarding FUNIC.

Just to add one point here, Mirela, is that just so based on our track record managing all the greenfield, the new Mais Medicos 2 campuses, we can reach a very high margin after 2 to 3 years with these campuses maturation. And considering that we didn't start the internship phase in the 5th and the 6th year.

So in terms of margin, we can scale rapidly the margin close to 50%, 60% the contribution margin. But remember that on 5th and the 6th year, that will converge to overall margin because we start the internship.

And regarding the EBITDA margin increase, I would say that we are not doing that in this year. But in the last 2 years, we have been increasing significantly the margins of it. So it was a question of working with the 3 segments to gain efficiencies in the undergrad.

Remember that in the beginning of 2024, we made the changes in the digital and the Continuing Education. We moved all the educational digital assets from the formerly digital segments to the Continuing Education and the Continuing Education we started to offer a hybrid offer on that.

And on top of that, we've implemented in the end of 2023, our zero-cost budgeting that helps a lot in SG&A expenses. So for the last -- I would say, for the last 2 years, we've been capturing a lot of this margin expansion.

Next question comes from Renan Prata from --

Super brief here. I just wanted to try to get a sense on the Continuing Education segment, the numbers of students on the Residency Journey, I think it dropped over 30%. So I'm just trying to understand if this is a [ ponto ] effect or it's something that we should expect to continue going forward?

Renan, yes, it's a onetime effect here because we decided to join the offer of [ mentoria ] and also the residence prep product. So last year, we used to count twice. So the student that was applying for mentoria and also applying for residence prep, they subscribed for both products count twice.

Now the offer, we are combining mentoria into residence prep, so it's a joint product here. The most of them now are buying this program together. So the effect on -- the number of users, the number of subscribers is lower, but the effect on revenues is not on the same level. So it's a onetime effect.

And just adding on that, because of this change, we are seeing a much more higher growth on the intake cycle that now we are in the top seasonality of the residency because of this new combination that we started last year, okay?

So we don't have any other questions. If you still have a question or want anything clear, you can contact the Investor Relations team, and we'll be happy to help you. So thank you for having us this night and see you next time.

Good morning, everyone. Welcome to the fifth edition of Afya Day. It is a pleasure to have you with. We are very excited for our meeting today. We bring a lot of things that we have not brought to you. We are a company for physicians, by physicians, you will listen from our physicians today. So we will talk about results, the figures we want to reach, and we want to show you our DNA.

So we have today a strong focus in our physicians and in our products. So today, with an institutional panel, which will be moderated by Virgilio Gibbon. Then we are going to have the Head of our Research Center. He's going to talk about trends in medical career. And then we're going to have presentations from different BUs with Virgilio as well.

Then we're going to introduce you to our new Medical VP, Gustavo Meirelles. He's now part of the Executive Board. And he will invite other 3 physicians from 3 different BUs. They will talk about our innovations and products. Finally, we're going to have Blanco here. He's going to show you that everything we present brings great results and cash flow.

So yes, we hope you enjoy this day. Our IR team is available, and we are going to have a Q&A session at the end. I hope you enjoy the event. And I give the now to Virgilio Gibbon, our CEO.

Good morning, everyone. What a joy to be in the fifth edition of Afya Day, sharing a bit of our story, our achievements, our challenges. Well, as usual, whenever we have events with investors and analysts, we try to bring something different.

This day, we're going to hear from several physicians. They're going to talk about our innovations, everything that sets us apart, what we're looking for in terms of future trends. So this is going to be different today. We're not going to be stuck to cold figures. Of course, Blanco will have to mention some figures, that's his area. But we want to talk about innovation, what do physicians want throughout their journey and throughout their career.

So let's recap our ecosystem. Afya is the most complete and the largest medical education hub with digital solutions for physicians, and we provide solutions for each stage of the physician's professional journey since they are GPs, and they mature in the career, they become experts.

So we have the appropriate resources to provide value for these professionals to capture or to understand their behaviors and to understand their DNA. This is very important for a long-term relationship.

So what do we do in this ecosystem? We divide this into 5 major blocks. The major one is medical schools, of course. Over 30 medical schools, over 25,000 students. It's a very resilient business, foreseeable. We have a very special business model and cash generation. So students go into their residence, helping professionals to choose more than 50 different areas of expertise. Then we have this market with very specific dynamics, and we're going to talk about those.

Then we have specialization areas, reports. We have software courses, hard skills that add up to all this knowledge of medical practitioners. And then in the blue axis, when we look at solutions for medical practice, we can help physicians in their professional journey.

This is directly connected to the industry, and it retrofits training and studies. We do not believe in education. That's not just for the medical area, if you're not breathing to the industry. The industry will provide jobs for the professionals we're training in the classroom. And at the end of the day, they will raise the bar for our educational project and for every single interaction we have.

Well, how do we create value at each stage of the journey? First, with development, training of these professionals in the health area, medical professionals, and we have updating. They must be updated, of course. In previous years, we've mentioned that every 70 days, the medical content of different areas more than doubles. It is a huge amount of knowledge because these professionals must be updated.

They have to be assertive. They need specialized content on each and every protocol. So this is part of our mission of our everyday work. And of course, we want to ensure productivity. Physicians will need more time to dedicate to their work with productivity, and we're going to see some tools for that, tools that we are leveraging for productivity purposes. And then we want these professionals to have a health industry relationships. So living the best of the medical world. When we are close to physicians, when we are connected to these professionals, we bring the industry closer. That means more jobs, that means connection with the health area players and these professionals.

So let's have a look at the trends in physician training. New physicians that are coming in, what are their demands? What are their ambitions? Well, who could answer this question better than a physician, founder of Afya, Whitebook is the lead of the Afya Innovation Center. He is a professor and the physician. He's going to talk about demographic trends. And he's going to share what physicians look for in their journey. Eduardo Moura, please join us.

Thank you, Virgilio. Good morning, everyone. So today, I want to share an overview of the trends in the medical area, trends that drive Afya's strategy. So I hope the next few slides show you that this is a very interesting scenario when we look at our products and what we want to do.

Okay. Let's begin with maybe the trend. Demographic data shows that we will be 635,000 physicians in Brazil by the end of 2025. That means 116,000 new physicians in the market in Brazil. In 2035, we will be 1.15 million physicians in Brazil. So the ratio physician to population, this is measurement of the availability of physicians for the population. This ratio has more than doubled since the year 2000.

There's something positive to that. We can move forward in physician training and also we can provide better services, health services to the population. However, when Brazil is compared to OECD countries, rich countries, there's still a distance, a gap. And it's an important gap when we look at physician density.

There are also other trends that are a reality in Brazil. We are now graduating more female physicians than male physicians. So very soon, we will have more female physicians than male physicians. And also, physicians are younger and younger. We are training more physicians and the population of physicians is becoming younger. So see, this is the proportion of physicians aged 55 or older. So in spite of all that, we still have an issue in Brazil.

When you look at the number of medical consultations per catheter per year, 3.1 in Brazil. That's less than half of what we see in OECD countries. And that is a problem. And it's a deep problem. We have huge regional inequalities in Brazil. We still have a greater concentration in the Southeast of Brazil. You can see that we have more physicians than enriched countries in the Southeast. And we have, in the north of Brazil, for instance, the ratio of physicians per inhabitants is close to sub-Saharan Africa. So these are physician deserts, so to speak.

At Afya, we are proud of being part of the solution to this problem. This is a study that was conducted by the sustainability area, and we want to prove that having an Afya unit brings social impact. It brings impact for health metrics for these populations. So cities that have Afya units and cities -- similar cities that don't have Afya units. Through a sound methodology, we proved that these cities increased by 12% physician density when they have an Afya unit.

So in 2021, that means 3,900 new physicians in inner areas of our country. So that helps bring more physicians to these places that need them. That has consequences in health metrics, 20% less deaths from vaccine preventable diseases, 14% less deaths from condition sensitive to primary care. We've also avoided 4,100 hospitalizations and the most important metric, 28,000 lives saved.

In Brazil, we have another inequality connected to specialization of physicians. For some areas such as pediatrics, Brazil is training more pediatricians than in other countries. For obese, we have figures that are close, but for psychiatrists. This is one of the areas where Brazil has the greatest gap compared to OECD countries. So maybe we should be training more psychiatrists.

Again, looking at areas of specialization, the number of specialists. We have moved forward in recent years. This is demographic data. And it shows that in the last 13 years, we grew by 154%, the number of specialty titles, granted to physicians. 59% of physicians in Brazil are specialists, 29% are generalists. And this is our data, right? We believe we have 12% that our specialists in practice, although they are general practitioners in the official records. So in practical terms, they are specialists.

And this is a slice of the market that will grow. And it's a challenge for Afya. We can help these professionals develop with graduate courses or preparing them to test, to take the tests required in Brazil. Well, becoming an expert is very important for physicians in Brazil.

Let's look at the data. The financial situation is very different when we compare specialists whether they have a graduate degree or they are acknowledged by medical associations. And when we look at the average salary of these 3 categories, generalists, postgraduate and specialists, there's a difference of 30% in pay. So pay becomes higher after you become a specialist.

So this determines not only pay but other aspects. When we look at regional differences, there's this supply and demand impact. The difference of salaries in capital in urban areas and in inner areas of our country. When we look at the data, we realize there are different regional differences when it comes to pay. So these differences can be of 12% or 20% in the Northeast of Brazil. So working in inner areas, that's where you have opportunities.

Now these are markets that can be explored by physicians. These are areas where we have a deficit of specialists. So we asked physicians. What is your aspiration? What do you see for your career? We asked a very simple question. Do you consider to be at the peak of your career currently? Well, 16% says yes. And out of those, 94% already have one specialization at least. So yes, specialization is key for these professionals. 86% of these physicians are satisfied with the work they perform currently. These are relatively young physicians.

Brazil has young physicians. They don't have over 20 or 30 years since they graduated. Their average age is 31 years. And the workplace says a lot about what they aim at. The 37% have their own practice or clinic, 35% was work in hospitals and many physicians have both. They work for both places and 27% also work for third-party clinics. Well, let's now look at the physicians that say that they are not in the peak of their careers yet.

So they're less satisfied with the medical career, 48% are satisfied. And we ask them, what's your ideal field? Well, 70% state that they would like to have their own practice or their own clinic. We were surprised to see these figures. 42% state that healthcare entrepreneurship is a goal, is one of their goals. This is an area where they could feel that they are in the peak of their careers.

So what is required to reach the peak of this medical career? 61% say additional training, specialization. They do understand that they need more to reach the peak and also capital to invest in their own practice or business.

Finally, I have some data about the dual behavior of physicians researched. These are 2 important topics for physicians, medical updates. So what physicians have to be updated and also support in decision-making, you know, by the bedside, what they have available to them to help make decisions. This is a universal need of physicians.

Well when it comes to medical updates, 50% of physicians use decision support apps and services. We knew about that, right? 36% do read scientific journals and articles to keep updated. And we have Afya papers. This is our own content hub with a focus on scientific articles. 31% state that they read medical updates and news website, such as the Afya portal.

As for decision-making processes by the bedside, 90% use decision support apps and services. We have our own Afya Whitebook, which is a market leader. I like to call it my child, if I can say so.

Physicians also talk to their coworkers. They want to exchange knowledge about complex cases, exchange experiences and also 31% say that they read scientific journals and articles that are also a resource by the bedside.

Finally, we can talk about digital tools in the medical office. We just saw that many physicians want to have their own practice or clinic. And this is a work environment where we see many digital tools being used for productivity purposes. 52% of practice physicians use electronic medical records. Of course, there's room to grow here, digitizing the medical office is something that is still taking place. 43% use decision support apps and services in their practices, 30% use e-prescription tools.

We have our recently launched tool Afya [indiscernible] and other resources in Afya iClinic, these are resources that are used by physicians in their office, electronic scheduling systems, telemedicine system, 22% of physicians are using telemedicine and 19% of physicians are using medical office management systems and our Afya clinic is a case in point.

So with these data, I want to show you the information that make our strategy and how we can offer the best solutions to help solve all problems throughout a doctor's career. Thank you very much. I'll turn it back to you. Thank you.

Okay, Eduardo. I think it has become really clear when we see this research, the survey that you led when you look at a doctor's journey first they're undergraduate studies. So you see there's lots of doctors that go to the smaller towns, when you look at salary and compare it to other elements, there are high employability numbers. So there's a large number of people. The market is really heated there. The name of the game is how to stand out in the crowd.

When you talk about specialization, there's an increasing need for doctors to stand out. There's a greater number of general practitioners. Their lives are harder. They need more time for their families, and they need to work so hard, 40% or even more. They seek better opportunities when they look for specialization. And this is part of their road map of desires.

So general practitioners or generalists, they're active consumers of support to decision-making, clinical decision-making. Most of them, we have, for example, the testimony of a former student, medical student. She cannot live without support, that support. She logs in when she gets to the clinic, to the hospital. She needs her own device all the time. So they want to have their own clinic, their own medical record. And we are at the center of this professional need.

So I'll now look at all of our segments. I won't spend so much time just giving you details. I just want to show how we have been innovating in each of these areas. So just an overview of our graduation processes. We are doing great in that over 3,600 vacancies, almost 36,000 students. We have so many students in medicine and also better quality in the evaluation of our schools.

Afya has new schools that for greenfield on our curriculum, but there are many that we acquired that we purchased respectfully with a good transition. We transitioned these schools to our teaching methodology and then they will -- there's a lot of evolution when students, especially in last the year. They go through the tests, and we had our ENAMED exam.

So we are expecting a lot, and we have sustainable differentiation of our teaching model, our educational model. Now what makes us stand out? The first point is we have an integrated curriculum, and it's highly integrated in detail. We have learning our objects. We have content. We are distributing every week that is standardized in 33 campuses. So we just have great business professionals.

We're also discussing the health care of all our patients from north to south. We have the best experts discussing a case on -- we go to the lab. We do simulation. So from Monday to Friday, we finish the case. It's not based on discipline. It's not shortsighted. It involves the entire learning system in a completely different way. Students suffer. They come from a content-based school, they cannot -- they don't know how to study in this new model teachers also professors, they don't know how to teach.

So there's a lot of effort for people to migrate and use our new methodology. This does not exist in any other school is unique. And we will have the testimony of our students of ours who will talk to us how we send out. And students don't even imagine how they can learn another way after they do our method toward training doctors for life, many doctors who are recently trained, they're so afraid of their first patient.

Now our students, they have real cases from year 1. So whenever we have a migrated school, then we had lots of problems because people have difficulty, but they'll have so many real life cases, and that makes a huge difference in terms of practical experience and also in terms of simulation.

So point 4, Afya is the only teaching school that has an environment -- simulation environment that is recognized by its excellence by international accreditation agencies. And we will tell you about the simulation system. It's -- there's a lot of difference in our unit, in our graduate schools.

And finally, maybe the greatest differential is how to integrate this into our ecosystem. It's not a curriculum that is different, a different learning, teaching and learning process, but also everyone used the office when they started and our doctors are also using this so that they know the tools, leading tools when they start working, when they have support in their clinical decision making if they need digital prescription, understanding also medical records.

So this ecosystem is really makes them stand out and they're much better prepared for the labor market. And also the major employers brought in-house because they want to hire doctors, they want to get closer to doctors. They want also to distribute content to these doctors. And also we raise the bar and make sure that our training process gets better and better. Now how does that make us stand out in Brazil in the healthcare training sector? So we had the entire executive suit all our colleagues there.

We were really discussing our brand change. You might remember that during the IPO, when we went public, we were an investment brand. We were -- we had many schools. It was like an alphabet soup of brands with not much differentiation. We were -- what we did, we consolidated. And we always had this goal for focus on medicine and healthcare was very serious. And then we decided to change everything and have Afya. Afya means healthcare and well-being. It made all the sense. We became powered by Afya. All our products were empowered by this brand. And in 2023, Afya became the name of all our products and services in all our units.

And this is really outstanding when you see how much our brand is known in the medical. In other words, what's the awareness of our brand. Our brand awareness is about -- it was 20% in 2023, beginning of 2023. So the third bar is the beginning of 2025. So we are now close to 70%, 68%. There's a new survey to be published, and I think we're now reaching 80% to 90% in terms of brand awareness.

And also its brand consideration of a high reputable service provider is growing even more. And that really helps us grow and attract students and doctors to our postgraduate courses. So we are getting increasingly more at present.

Now more numbers, of course, although there's been an increase in competition, reputation and differentiation are the name of the game for us. We have a good ratio of candidates and seats. So we have the seasonality in different number of seats vacancies, 5 and 7. So we were really sustainable. Afya today is an integrated brand. We have also a university admission exam that is wholly integrated. We are really flexible with students that choose to do the course in one of our units.

It's interesting to note as well that we use the concept of hub in one particular state with 5 or 6 units, one in the capital city of that state and some satellite units. So many students can go and practice to these areas, if they go back to the capital cities or the smaller towns, if they want to specialize in a particular area, we make a partnership with a hospital, they can do internship with us. And that really gives them a much more resilience. They stand out from smaller players.

There was no acquisition we made that we had 100% of the vacancies of the seats that were taken. We also grew and have them -- our brand in these units really increased number of students. Our net ticket evolution also very resilient when you see new campuses, new doctors. So our gross margin is really highly efficient with our best operating results in the first quarter of 2025.

Now let's go to continuing education. Let's continue looking at a doctor's journey. So we saw that we had a very positive dynamics. You might remember that in 2019, we had 5 units basically on the major capital cities of Brazil, Sao Paulo, Belo Horizonte, Brasilia. And now we increased to 20. We changed the concept from unit.

We now are using the concept of hub or the experience of doctors in Afya. The concept is one of membership. So they enroll with us. They are special students from the undergraduate courses. So they use all our infrastructure, all our medical offices so they can see their patients with us on Fridays and Saturdays. We have our graduate courses.

So the hub is like the whole club where students, doctors are members. We have over 25 such hubs. Other work together with us in our over 70 courses in our portfolio and it's very impressive NPS for highly demanding individuals. Our level is 70, and we have grown 13 points in the last few years. So our NPS is really high in postgraduate courses. We have over 80 that were extremely satisfied. So we're really proud of these results.

Now revenue. This -- after we were acquired. After acquisition in 2019, we grew at a very good pace in the first half of 2025 from 15,000 doctors using our Educom solution to over 50,000 in 2024. It's seasonal, of course, in the second half of the year, it will grow more at over 50,000 from '24 -- after '24.

Now if you do talk about our dynamics. We have 35,000 students that are graduating as a generalist or general practitioners and our residency seats increased as well. And these are taken about 80%. So the gap of generalist graduates and specialist increases even more, not only in terms of more competition, but also a higher demand for specialization courses in postgraduate courses as alternatives to traditional specialization in traditional residency courses.

So we have over 600,000 doctors that are trained in Brazil. So Educom with lighter regulation, very positive market dynamics. It's less intensive in capital cities. Organic growth is really interesting. We have good return on equity. And it's a very interesting product, not only in terms of monetization, but also the industry is getting closer to professionals now. So have a pharmaceutical company or a provider that wants to maybe sponsor a particular course in dermatology or oncology, so they become an access or an access hub between B2B solutions with our doctors and students.

And finally, let's discuss FTM, the part about medical practice. So again, we saw that dynamic do and the doctors are now seeking more digital solutions to stand out in their daily lives. There's a lot of, our flywheel. We have more solutions, champion solutions that help doctors from scheduling an appointment to bedside support and also following up of treatment of these patients.

So there's -- you create credibility. We have more doctors consuming our solutions. They're better engaged, generating more data, not only as a premium user, but also a user that generates a lot more data. We have more patients, more appointments. So with more data, we create more value, add more value to our ecosystem and improve our system. So we have this feedback and really get a lot from that.

Now how can we generate value? How can we add value to the industry? We have 4 levers. First, medical campaigns. We just in GSK or Pfizer producing a new molecule with a new protocol that's much more efficient than traditional protocol, but 80% of doctors in the region of Sao Paulo are not aware of that. So the sales rep will just disturb doctors and try to give them free samples. This will be terrible.

So what we need is an awareness campaign with papers with reference for doctors to learn about that particular protocol and procedure that would be the best solution to that particular treatment. Now considering this greater awareness that we can also measure through our analytic solutions, we are always looking for references like [indiscernible].

Now it makes sense that you run a marketing campaign whether you have prescription ranking or the iClinic channel. So they get more information about this new molecule that was produced by that particular pharmaceutical company. We also running marketing campaign to increase the conversion rate. And what is the final goal to increase this prescription power and also the amount of sales of that particular molecule.

Let me have each detailing. In other words, free samples are delivered in a much more efficient way when you consider costs and opportunities. And it all with many insights. So we have lots of information about the best way of delivering that content. What is the ideal medical agenda for them to get that sort of information so that you get a good efficiency level and also scaling it really highly efficient.

Now I'd like to invite our B2B executive, sales executive. She has good relations with our major clients. [indiscernible] will able to tell us about 4 real cases over 120 contracts we had. So Meirelles, you have the floor.

Good morning, everyone. Thank you. Okay. So I wanted to just share 4 tangible cases where we see the results of what we have presented for pharmaceutical companies.

So we have 3 pharmaceutical companies and 1 data partner when it comes to our medical engagement center. This is a global pharmaceutical company focused in lung diseases in Brazil. And this is about primary care. So we provide a communication strategy with physicians through our channels, informing physicians, talking about the product and bringing awareness about the brand so that physicians prescribe more of this medication.

There was a 33% increase in total prescriptions and 29% increase from the total base of product prescribers. They would need 500 sales reps if they wanted to do this otherwise. So something that sets the situation apart is that we can measure the number of prescriptions. We divide the base into segments, and then we really measure ROI, the true impact and the financial returns that they have.

The second case is about specialty care, complex and rare diseases. Maybe physicians don't have that much knowledge about new therapies. So we need to raise awareness about the disease. Symptoms, signs they might see in their clinical practice so that they prescribe more and treat patients better. So for this campaign, 260,000 physicians were reached. And by that, we increased by 30% the number of genetic tests for this disease. So this is targeted communication for this specific audience. But it's also about research.

We ask physicians before, during and after the campaign. What do you know about the disease? Can you identify the disease? Then we ask, has your knowledge improved about the symptoms and what you have to look in the clinical practice for diagnostic purposes. And then we ask them if they could treat the disease. This is a U.S. pharmaceutical company. They would don't need genetic tests. This is a very expensive therapy. It's hard to find the patients. It's hard to diagnose the patients. So we had an impact in 260,000 patients -- physicians.

The third case is about sample distribution. Virgilio had mentioned that. This is where we expand the activities of the pharmaceutical industry, and we improve the results of sales reps. We can reach physicians quicker or physicians they wouldn't reach otherwise. This is a digital campaign with physicians. We can communicate with a segmented base of physicians, and we deliver the samples to raise awareness about the brand and to start treating patients.

For this case, 25,000 new physicians were onboarded and the NPS was 4.7 out of 5. So we don't have to interfere in the physicians everyday routines. We don't bother the physician. They don't want to keep meeting sales reps. And they even receive the correct kit that they can give to the patient with our box. It's a box that we deliver with a sample.

Case #4. That's quite an important case for us. It shows our maturity when it comes to data. It's not just about impacting physician database. Also the data we generate provides lots of information for decision-making processes. This is a co-branding effort with a major data provider, international data provider. This brings data into our digital records and that gives in-depth information to physicians on what they should prescribe to patients. So this is electronic record data. We cross all the information and co-prescriptions means more products and more information so that physicians can innovate.

This is a major partnership we began very recently, and we have an Afya product and a major data partner in Brazil. These 4 cases show that we are maturing in this market and partnering with pharmaceutical companies. We want to engage physicians. We want to change their prescription behaviors and we also want to provide data that helps the market. I give the floor now back to Virgilio.

Thank you, Meirelles. Yes, we have indeed a unique positioning in this connection between industry, physicians, pharmaceutical companies, providers, payers. We have some partners in that area as well. And I think this is still the tip of the iceberg, right? We're still scratching the surface. This is a model that is very new in Brazil. No one else does what we do in Brazil. The pharmaceutical industry is quite conservative. They really rely on sales reps. We still have regulatory restrictions.

So digital prescriptions or e-prescriptions, they are specific for some types of medication. The digital channel is not mature enough to improve the relationship between industry and physicians. The question is when will it happen because it will. This is going to be a very efficient channel, very safe because there's a lot of fraud. 10% of the national medication production is in the trunk of a sales rep. And that means a lot of inefficiency, right? And we have this unique positioning.

We want this relationship to be more efficient and we want to provide a better value proposition. So our -- we have this unique presence with physicians. One out of every 3 physicians use one of our solutions where we can map behaviors, the type of protocol, the knowledge that they have and how they want to have access to information. This is a universe of 300,000 physicians that use and that have their eyes in our solutions every single day. And we have recurring relationship with 54 partners.

Some partners are already signing the 10th or 12th contract with us. This business started from scratch. We began with the B2C model in 2021 until '22. Then in '23, we had the first contracts with the industry and the business grew 2.5x. It is already efficient. The business is scaling in 2024. And in the first semester of '25, we invested a lot.

We hired a team for this product. We're going to have lots of improvements with AI. We are segmenting this industry. And then we can tackle different clusters in the pharmaceutical industry. Our gross margin is quite interesting and you see that we are very efficient in our area of solutions for medical practice.

I think the nice thing here is talking to our medical VP. Dr. Gustavo Meirelles. He's our Chief Medical Officer. He will share everything that we do with physicians. We have a former student who graduated. And actually, she had 2 graduations with us. And now she has 2 undergraduate diplomas and now she's working on her graduate diploma. She's going to talk about our syllabus, what sets us apart, how we can help her in our clinical practice. All students mention the wealth of resources we provide.

And then we are going to bring medical directors from different BUs. They will talk about product innovation. What's in store? What do we have ahead of us? Whether that's in undergrad or graduate courses, digital solutions, they will talk about solutions we are implementing. But Gustavo will begin by talking about the Afya Institute that has been recently launched. It was launched in August that represents our engagement and the social impact we want to have. And of course, we want to give more visibility to our brand in Brazil. Dr. Gustavo, please.

Hello, everyone. Good morning. What a pleasure to be here with you. Thank you for joining us. Virgilio has just introduced me. But first of all, I want to say that I'm very proud of leading the medical area at Afya. I'm a physician, and I've been working as a physician for 30 years. My area of expertise is radiology, chest radiology at the Federal Diversity of Sao Paulo. I have a PhD from the same university. I was a professor, a university professor and I taught residents and also in their masters and PhD thesis.

I also did a study in Memorial Sloan Kettering. And it's -- I also worked for 18 years at Fleury Clinical Labs. I was Medical Director and VP of a company connected to innovation. I founded a community that works with innovation. And I was watching closely what these folks were doing very well at Afya.

This is a huge transformation from an educational perspective, but also health services, technology, connection with the industry. You will see that this really transforms the medical journey as a whole. So I would like to quickly talk about the Afya Institute. I am Co-President together with Stella, my colleague Stella.

So I wanted to show an institutional video. And then I'm going to explain a little bit more about it.

[Presentation]

So the Afya Institute is a not-for-profit organization. Our focus is fighting noncommunicable chronic diseases. These are prevalent diseases around the world, obesity, high blood pressure, stroke, diabetes. You probably know someone, right, that has one of these conditions. And the institute has a social purpose of transforming health. But we also want to give more credibility and reputation to everything we do at Afya. And we want to also highlight how our products and solutions set apart.

So the purpose of our institute is to conduct research, education and partnerships with private and public organizations. And we will create health policies that will help the public health system in Brazil, as SUS is the acronym. And we want to reduce by 1/3 NCDs in Brazil. 80% of these deaths are premature. So you will be seeing in the next few months, relevant results of our work, and we want to increase these activities even more.

So now I have the pleasure of welcoming a colleague that has a medical degree from the [indiscernible] School of Medicine, which is an Afya School. Well, after she had her graduation, she decided to do her graduate course with us. Now she's studying psychiatry in this very building at Afya Medical Education. Dennis is the VP of this area.

Eduardo mentioned that we have a gap when it comes to psychiatrists in Brazil. And [indiscernible] is a physician. She is now working on psychiatry and she's going to share her trajectory with you.

[indiscernible] welcome. Good morning. What a pleasure to have you with us this morning, [indiscernible]. Well, [indiscernible] has a background in engineering actually. She started engineering as an undergraduate course and she's going to tell us why she decided to study medicine. And I got my degree 30 years ago. I had a very traditional syllabus when I went to medical school. Now as I get to know our medical schools, I am positively surprised with how modern our syllabus is. And it is the same one throughout Brazil. [indiscernible] is our graduation VP. It's the same syllabus, regardless of where you live. But [indiscernible], I think you can tell us your story.

[indiscernible] I decided to go to Ireland because I want some more professional development. I wanted to learn English. And then when I was in the started working as a volunteer and I work with homeless people. This was a company, I worked for a company that was a public and private company. And that's how we fell in love with medicine because they also provided medical services. And I just felt a connection to that. My mother had an accident, and I had to come back to Brazil and I spent 6 months caring for my mom and I -- that's when I decided to study to become a physician. So that was a full career transition moment.

So you decided to study medicine from the social aspect, right? You started at a traditional medical school, and then you decided to transfer to the Afya School in the city of Itabuna. Why? Throughout your journey, your academic journey, what were the differences that you realized or that you saw at this Afya School?

Well, Gustavo, I did start studying medicine in another school. It was a traditional school. It was not problem-based learning. And when I got there, I was in shock, and I was sort of desperate, I have to say.

So I was used to a traditional methodology. People presented the same slides over and over again. That traditional school did not demand any clinical decision-making. We didn't have to look elsewhere for other tools to develop, and there was no hands-on work. So I saw no patients at all. And I started fearing the profession.

So I heard about Afya through a friend. And I was unhappy with that school because I had no hands-on practice. And that's when I decided to make transition. When I got to Itabuna in the state of by year, I was totally desperate. I thought I cannot do it. And I had a colleague of a schoolmate that was in the same semester, but they looked as though they were bowing and I was just in a bit car. I thought I'm not going to be able to make it. That's not for me, that's too much.

But the greatest difference, the greatest insight for me was that I was really welcome there. In Itabuna, we had also a psychological service that welcomes us. So I was -- I felt really welcomed. I would see the psychologist every week and she would say, you can come down, just -- you're going to be able to make it don't worry.

And then the tools, as you've shown us the right of book was one of the greatest differentials. Before I saw no patients and now I would see patients every day. I go to the outpatient clinic every day, dealing with real cases. So we really help people. We help the community. Patients are referred there. So we are always there feeling as though we have doctors. You feel that you're a doctor really and that's what happened. And it made a huge difference to me. I was just studying using slides. And now there was a whole new world where I could make a difference. and really see and treat people. And that really helped me a lot. In order to catch that Boeing, I had a notebook, portal with the scientific papers and book chapters and the addition.

So that was -- that made a huge difference to me. I had access to recorded classes. I had book chapters. I had a way of finding knowledge and develop my learning and also put that into practice, which was what I really wanted. So it made a huge difference, not only in psychological terms but also in terms of content, medical content. So the little car got its wings and became a Boeing.

Now you're talking about our preparation course for medical residency. So after their first graduation, they have the internship and then the Whitebook and then [indiscernible] is the founder of that. This is a tool that helps decision-making that's used by every -- in every 5 students, 4 students use this. And then in postgraduate studies, we'll also discuss this but also how you see patients. How does this device help you give you and feel more confident?

Well, we see many patients. And we cannot -- unlike what patients think that we have everything in our minds. No, for every new patient, we need to learn something new. Even if it's the same disease, there's something to learn. So it's so important to have this book -- Whitebook. We have no way of doing internship without the Whitebook with us. So if you have questions, it's great support. Everything is updated. It's also residency-based medicine. That's the major support that we get in our -- when we're treating our patients.

So without this a place where you can do your research, you might treat patients inappropriately. And you might even be sued. So it made a huge difference. A huge turning point. I don't even give any patients without my Whitebook.

So we're getting to the close. But last but not least, let's discuss Postgraduate Studies. We also saw the indicators do show. We have an increase in the number of doctors. The vacancies in medical residency does not follow. So we have great graduate courses to offer. There are many in the market, and you chose to do this course in Afya, you're doing postgraduate study in psychiatry. Why did you choose to do this course? And what are the differences in our graduate courses?

Okay. Well, I'm in love. I'm passionate about Afya. This is no cliche. If anyone complains about Afya, you said you have no idea what it means to be in a poor school. So I'm really passionate about Afya. I know it's a very serious company. And I came from -- I came to Sao Paulo from Itabuna. So today, I'm on duty for 12 hours. I see 90 patients in 12 hours, and that is what Afya gave me, Afya, Itabuna. It's not just the institution, the school I studied. It is a family to me. I was so welcomed by them. So I know how serious this school is.

I have also friends who are studying psychiatry that saw no patient in practical -- in their practical lives. That's why I chose to continue being with my family, Afya. And I'm so happy for making this choice. I stay -- I do this on Fridays and Saturdays. Of course, that's when I study on Fridays, I spend the whole Friday doing the theory section. And on Saturdays, morning, afternoons and sometimes even evenings, we see patients. These are real patients that come from the Brazilian health care units, people that cannot have a better treatment.

So they come to us and we put in practice what we learned, not only in my undergraduate studies but also now in my graduate studies. I'm so happy. I'm not waiting for another 2 years to only then start using what I'm learning. I'm already applying what I'm learning from less than 1 from day 1. Everything that I learned. So every 10 patients, at least 5 patients have some psychological complaint. And I can explain to these patients, things that were not so clear to me. So now with my graduate studies, I'm learning.

Very good. Congratulations again on such a great journey, your undergraduate courses, the use of XL Whitebook. And now your psychiatry course, there's so -- we have this need for more psychiatrists and lots of problems in mental health. So it's good to have you, and I hope you're really successful. And you want to also study endocrinology.

Yes, I'm also in love. I'm passionate about endocrinology and psychiatry. I have a nephew that has autism. He's in the spectrum of autism. And he has also -- there's also the food problem. So I think I'll also start this other postgraduate course in endocrinology. I'm really proud to be here to be talking to you. I talked to all colleagues since I learned about Afya and got to know the school for the first time, they really prepare us, train us for what we're going to face later on.

So as a student, I already felt like a doctor. And now as a psychiatry student, I already feel like a psychiatrist because I can understand what people need every day. It really makes me stand out. I'm really proud to be here.

Well, that's -- there's a good reason to be proud. Thank you so much. This was excellent to learn more about you and your journey. I think everyone liked it as much as I did. I hope you're really successful in your postgraduate studies and throughout your career. Thank you.

Okay. And we will now continue. First, of course, we had a perspective of a student -- a medical student who are now doing her post-graduate course at Afya. We'll now talk about the major innovation we are already putting into practice in these 3 verticals, graduation, continuing education and solutions for medical practice. So we will now have 3 of our medical directors, and we'll see the major innovation that is upcoming.

So we'll have the pleasure of receiving 3 colleagues and friends, Dr. Itamar Gonçalves, who represents our Undergraduate courses at Afya, then Dr. Isabela Dupin, who represents our Continuing Education courses and Dr. Ronaldo Gismondi, he will discuss solutions for medical practice. A very warm welcome, everyone.

So dear Itamar, let me start with you. Loyani really discussed that or told how welcome she felt how different that was, how positive that experience was when she was welcomed by our team. And we are also using the -- what we call the academic memorial that is widely used at Afya. The idea is that we can really welcome our students in the best possible way and also providing our teachers, our professors an individual view of every student. Can you tell us more about this new innovation, our academic memorial?

Okay, Gustavo. Good morning, everyone. Loyani says that she felt really welcomed. What does that mean? What does it mean to welcome someone when we look at the best trends in medical education, Welcoming means going beyond figures. We already have figures but how can we really use our words, not only figures, but also start a new era, a qualitative era with more words. What does that mean? That means that when we're evaluating our students, we not only look into the learning itself. In other words, I don't go until the end of every term and only then we'll decide whether students can move on.

Our evaluation starts from day 1. In every school term, day 1 of every school term, it's learning to develop learning. So evaluation is now a more qualitative action. And this is something that only Afya does in Brazil. I can assure you. All our educational project was totally preserved, and we added to it. And Erico gave us this mission of adding an additional 2 weeks every school term, every semester for our memorial initiative that starts on day 1 with each and every student that is seen individually by each professor.

So at the beginning of their semesters, a student is welcomed by Afya this way. And we listen to these students on many different levels. We listen to students depending on the new curricular guidelines that were published last month for 2025. This is how we prepared, and we've been doing this since January 2025. So we listen to students based on every level of these curricular guidelines. And of course, again, commensurate with their level in every semester, and we put up a skills tree for every student. So we understand their qualitative positions considering these new curriculum guidelines. As a result, we are the only teaching educational company that reaches this level. And those that do not do this just do half the work even in number terms.

So we need to increase quality. So the academic memorial, it starts with the beginning of the school term. Then midterm in another week, we also ask our students, how they're feeling, how they're seeing their progress in that term. So at the beginning of the term, together with our center of teachers, we have these centers in every student that provide psychological in addition to educational support. So students can structure. They really write an individual learning plan with individual guidelines or individual targets, sorry, at the beginning of the semester.

Then midterm, we ask our students, how about your targets that you wrote that you set in your individual learning plan? Are you being able to attain that? Do you feel that you're making progress? So we now ensure that we have -- we can look at students at this very detailed level, granular level and with the amount of data that we get. And this adds to what Afya has already been doing, and this is our progress test, individual progress test. We currently analyze -- we do quantitative analysis of how students go from term 1 to the last term per dimension, if it's surgery or what surgery topic they have a gap to fill.

In addition, we add the addition of these figures to individual analysis of every student. So we have both quantitative, the numbers and words or qualitative evaluation. And this is aligned with the best international practices and that generates a student register that they carry from semester to semester. When an Afya student starts a new term or a new semester, all the professors that will welcome that student at that moment and also midterm at the beginning and the middle of each term, they know how much progress the student made in the previous semester. This is why it's called a memorial. It's a story. It's an individual journey of every student at Afya.

Well, that was excellent, Itamar. Just imagine 33 medical schools, 26,000 students, medical students, so many variables. So you use AI in big data to be able to provide individualized feedback to each student and also help professors. This technology is really so impactful when you're evaluating each student. And as we said, very welcoming. Is there any other technology you'd like to discuss in addition to the academic Memorial?

Well, yes, the memorial in itself is -- it means quality for every student. When you open up the Memorial of each group, it's just mind-boggling. I mean you have so much information about each group, about each class. If I spend 10 seconds to read every qualitative entry of students, I'll spend 67 hours to read -- just to read, not to mention processing that information. So a memorial that was approved by our data protector office, DBO, we already use an AI engine in our data lake on Afya's data lake. So we can get insights about the persona of every student. For every student, I can define that profile. I can map it out using AI and also suggesting points for improvement.

So reinforcing their positive points and also explaining about -- the students about DCMs and the class they are a part of. So it's a psychometric qualitative tool. When I take this data and then a professor will talk to the student. Just imagine how long that professor would take to read everything, all the qualitative trajectory. So AI now integrates all that information to that processing of mass data. So when a professor talks to student -- needs to talk to student, they get all the information about the student profile, both qualitative and quantitative. Everything is there ready for that interaction to happen.

And then they can work on the individual learning plan in 2025. For instance, this is written in the DCM that was published last month. And we've been doing this just January, and that's just Afya that does it. Yes, that's a high reputation, welcoming of students, professors, and we talked about 70 days, doubling medical knowledge. Just imagine without the Memorial 67 hours to read all these variables.

And I also remember, I graduated about 30 years ago. So it was so hard to learn so many procedures and seeing patients also giving bad news to patients or the family. And so I started visiting Afya schools, and I was charmed with our simulation centers. And it was really impressive.

If I had that sort of education in the past, I'd definitely be a better doctor. Can you tell us more about that?

Well, Afya is very proud of our simulation center. Simulation in health care, it's still a national gap in Brazil, but not at Afya. I don't know if you understand the difference of practical training in our simulation centers and real life. These are both practices, right? In our simulation center, practice is standardized. And what do we mean by that? Well, we have all these learning outcomes mapped. In our simulation center, we can ensure that all students will execute and we'll show how they would react and conduct practical medical procedures.

So the simulation center has the advantage of using mistakes for learning purposes. We learn by making mistakes and that it's a safe learning environment. That's why our simulation centers are accredited by international societies. Simulation centers accreditation. Well, most of those are for hospitals. Afya is a world pioneer in gaining accreditation for graduation simulation center. Afya has the largest number of accredited centers in the world. We have a multisite project with the SSH. We have this unified matrix, unified governance. So of course, we have a different perspective.

And we are pioneers in tying this process to our undergraduate courses. We have 3 accredited simulation sites. We are also accredited by the Chilean and Brazilian societies, simulation societies. That ensures safety for our students in their learning processes. We have the largest standardized patient program in Brazil, the largest program in Brazil. So our students will not train with other students. They have standardized patients that are represented by professional actors. This is according to best international practices. Soon, we will be talking about virtual patients.

And then we have our American Heart Afya Center. our students, they work in clinical practice. So it's not just a cardiac arrest simulation. Our students learn how to give bad news. They learn how to do ECGs. They learn how to operate portable equipment. That -- this is all integrated. And by the way, they can make mistakes. In the real world, which is different from the simulation, there's no tolerance to error. We cannot make mistakes with real patients. And here, students learn from their mistakes. So when they're in a practical situation, a real situation, they won't make mistakes.

Our students have 2 certifications. An Afya student has a diploma, and they also have the American Heart Association accreditation that provides safety in their training, and it also provides safety for patients.

Thank you, Itamar. I think we have a video, right, to show our simulation center. I've seen it but I think our guests could have an idea of how it works. Yes, this is a video that was recorded in one of our accredited units, [indiscernible] is one of our units. And we want to show you the potential of our centers.

[Presentation]

Gustavo, we also have a partnership with a research center. Afya is a partner of simulation industry, and it's a new fellowship program for simulation. So we train students, and we train physicians and employees that will be working with our students in public health units and in hospitals.

We also train physicians. We currently have 3 fellows. It is the only Brazilian company that has fellows in health simulation. These fellows are dedicated to the simulation center. They receive a fellowship that is greater than medical residence programs. They spend 1 year with us. Understanding and protecting best practices is really important. So we are training simulation leaders.

Amazing. And we have other 2 innovations, right? You mentioned digital patients. And I learned from you about the fifth dimension in physical examination.

Sure, Gustavo. Well, AI is not replacing patients. is not replacing physicians or practical activities. However, we have these green areas where students can train and retrain several times. So psychiatric patients, for instance, we don't have simulations for that. But now we can have e-brains, virtual patients. These are patients mediated by AI. All of our units have an AI committee that is approved by Afya's Control and Command Center. We follow all governance processes, respecting data privacy laws and also allowing us to make use of these technologies.

I will quickly make a demonstration of an e-brain. So that you understand how a student talks to this technology. It's an embedded technology in one of our simulators. It can be embedded in a desk trainer or in a hybrid station with an actor. So accessing our Afya Workspace. This is a patient that is coming to assess surgical risk and a student has to talk to the patient. So AI will have this conversation. And after the conversation, AI will provide feedback to the student.

[Presentation]

Amazing Itamar. So first, she was [ Dona Maria. ] She was Ms. Maria and then she gave you feedback about surgery risk, ASA 2 and now 3. Can you talk a little bit about ultrasound in undergraduate courses? We understand that there's this fifth dimension, right? Students can use ultrasound for physical examination.

Yes. I don't know if you've heard about the fifth dimension in physical examination. This is a reality at Afya. What is this? Well, this is when students make decisions in real time using a portable ecographic device, portable ultrasound device. Because in the past, you had to call a radiologist. And of course, we still do. But now physicians have a portable equipment in their smartphone. They can connect the ultrasound machine to their cell phones. With that, they can make effective and quick decisions by the bedside, by the patient's bedside.

But they need to understand how to do that when they're students. So I -- what I'm trying to say is that now our students carry their cell phones as an ultrasound machine. And we have this in all our Afya units. Virgilio was mentioning anatomy, they increased their medical abilities until they reach real patients with the portable ultrasound equipment. Of course, now we have many minimally invasive procedures, robotic surgeries. So this is a 3-dimensional understanding of the situation allowed by ultrasound equipment. That's what we mean by the fifth dimension in physical examination. We start that in undergraduation with our students.

Congratulations, Itamar. Thank you for presenting all this innovation, simulation centers, digital patients, and we even saw the live demo and also the physical -- the fifth dimension. As a radiologist, I can say that this is amazing.

Now let's hear from Dr. Isabela Dupin. She leads the dermatology graduate course at Afya. Isabela, can you tell us a little bit about Afya Play? What is it? What is the goal of Afya Play?

Well, Afya Play is a free educational platform for medical students across Brazil, again, free of charge. And from their first semester in undergraduate medical school, they have access to over 5,000 interactive resources. So 3D anatomy, videos, podcasts, flash cards, our students really like flash cards, mental maps. And it's also -- we have a smart study planner, which is tailor-made to their needs. This platform covers 800 topics in 51 specialties. And of course, this is aligned with the Brazilian national curriculum guidelines. We have a video to show the Afya Play platform. Let's watch it.

[Presentation]

I'd like to stress that with 26,000 students at Afya and all medical students in Brazil, those that are not in the Afya system, like with our master classes in undergraduate courses also continuing education for doctors never doctor and medical student in Brazil.

Now Isabelle, there's a second innovation, and that's Afya Assist. Can you tell us more about Afya Assist?

That's amazing, Gustavo. With the free attention or treatment, we make medical education more a capillary. And then we have Afya Assist. This provides support to medical learning for students. It's a virtual assistant, a conversational assistant that is on our platforms that is available for every student since year 1 within Afya Play and also for students that look for to do their residency exams after they graduate and also for our Afya pay per specialist students.

So what does this Afya Assist or virtual assistant do? It gives you information on our student searches. So that is a very safe searching environment for them because it's a closed environment. It's really focused. So there's this safe creatorship that will give information about scientific updates, continuing, again, learning evidence-based protocols that provide safety, of course, in medical practice and also personalized these search according to student's demand, and that based on our platform, again within the Afya environment. We've a video to show this.

[Presentation]

That's so good. Thank you, Isabela. So we've just seen the innovation and also the trajectory of medical students, doctors, undergraduate studies, continue education.

And we will now discuss the solutions to medical practice because almost every day, there's something new. So I'll talk to Dr. Ronaldo Gismondi, who is Director of this area, together with Lelio de Souza, our Vice President. So Gismondi will tell us about the major innovation. [indiscernible], of course, talked about the Whitebook. She said, I cannot be on coat without a Whitebook. And now it was a son -- well, now you have a grandson. Tell us more about that.

Well, let me tell you, Whitebook was created based on Eduardo's study notes, maybe the best student that we had in the Federal University of Niteroi, the first text for his notes for his students and he's still there, doing such a great job. Now you've seen how doctors get trained, how Afya stands out in the market. And this is why we are leaders in this segment. And this will, of course, show or reflect our financial figures, which is your core. And then there's a growing number of doctors in Brazil that need to stand out. It's so important. That's why specialization is important. And there's not enough vacancy -- residency vacancies for everyone.

So we have postgraduate courses and also face-to-face courses in many regions in Brazil. As a result of that, the market will grow much more. That will improve everyone's figures. Everyone will be happy at the end of the day. And we want to provide medical assistance to the entire ecosystem, the entire journey from the beginning until they get very old. As you know, doctors never retire. So we want to follow them throughout their trajectory but we start with their major pain when doctors go to practice and there's no medicine without practice, they feel very insecure. So -- and they're very inexperienced.

So to help them feel more secure and really get rid of this fear of making mistakes, we give them the Whitebook, which is given to Afya in turns for free. It's so desired that 80% of doctors when they finish their graduation, they subscribe Whitebook to have it at their side. It is an interactive tool from its beginning. It has content of all medical specialties. It's also updated regularly. It's also based on scientific sources. It's also peer reviewed. There's over 200 doctors who work with us.

So this Whitebook already has calculators. It already had diagnostic criteria. It also had flow charts that doctors could click on and then it would help them flow through each appoint, medical appointment. There's impossible now to talk about technology without AI. Not only graduate -- undergraduate continuing education courses have AI, we've also added AI for clinical decision-making. Now you may ask why will a doctor use the white book AI because if you already have a generic AI, well, it's a matter of trust. Generic AI use database from the entire Internet, and there's many poor information sources.

So Whitebook AI uses only our own content. In other words, our AI will not hallucinate in our AI. We have 2 use cases. You can either talk to our AI like with any AI LLM by asking a question but also you may also add to the system, your patient information. This person at this age feeling this, I examine this person, I did these exams and then what do I do? So it will give you an answer based on the information it has, Brazilian medical data. And they will also give the primary source of that information if they need to go further. This is why this product is so successful.

And we'll now show you a video showing how this -- the Whitebook works in practice. And I also have my Whitebook on my phone. You can try it. We also have that on our megaphone.

[Presentation]

I have an invitation to all of you. Everyone has a friend who's a doctor. If they've been graduated for less than 10 years, ask them about Whitebook. If they know Whitebook and what they think, I can ensure you that they will give you a great evaluation. Our NPS is the best in the market. You know that it's so hard to work in technology. So we are a market leader. And this is a highly consolidated product.

Ronaldo, that was great. Now I wonder how about doctors who have been practicing for over 10 years. They're in their medical office. They still use Whitebook. But they have their own iClinic, their electronic medical records. They say, I don't want AI here. I want to reduce this amount of red tape. So what are we now launching in iClinic?

As years go by, when you feel insecure and slow, of course, you're faster and much more secure and you have more -- and many more patients. So we have a product that's our iClinic, our electronic medical records that has been updated. So when we listen to our users and interview doctors, we ask them, what do you really need? What do you need the most? And they say, I need automation. I want to stop doing boring things to have more time to dedicate myself to talking to my patients.

So if I'm a patient, I can appoint -- schedule an appointment with the doctor or on our website. So this patient gets a link to confirm that appointment and the doctor can see it everywhere from their offices on their phones, they can see their agenda everywhere. They know where their patients will attend. 70% of our doctors have work in medical insurance in HMOs and very common to have no shows, and that's what doctors and clinics hate if I have a patient that is not -- that is missing or that has the practice of missing, they say, oh, this particular patient is a coming, they miss their appointments easily. And of course, the less you see them, the less you remember.

So the AI summarizes the latest appointments, and they say or show what doctors should pay more attention to. And then what most doctors want is the ability of the AI listen from your appointment and transcribe it. I know many of you use transcription tools but they're open. So our tool, it's all encoded following data protection law. So that's good for both doctors and patients. They're all protected. And the transcribed information is the information that is saved in the medical record with a digital signature.

We will show you how iClinic works in practice.

[Presentation]

Have you ever felt when you go to a doctor in an HMO system or insurance, they don't even look at you, right? They're just taking note, that makes a huge difference. Sometimes they're writing or they need to renew a particular prescription that people say, just send me this particular prescription. I need this exam, send me a prescription for an exam. How can we improve this? Okay.

So when you're in the medical universe, you have Whitebook helping doctors make more correct, accurate and faster decisions. You have iClinic organizing their agenda but then the final act, so to speak, of a medical appointment asking for an exam or getting a medical report or getting a drug prescription. That's what we want when we see a doctor. So Afya has a product that does this for doctors. That's Afya ReceitaPRO. It was already on Whitebook, on iClinic too. You have over 6 million prescriptions. It's now a stand-alone product, and we decided to make it stand-alone, we also updated it.

We also provide all commercial names to doctors, drug administration price suggestions. We explain where people can get that particular drug at the lowest price. So with ReceitaPRO, we also have AI, again, to make doctors' lives easier. So you can type a prescription in. You can also dictate that or even photograph a manual prescription. The doctor might renew that prescription, not only from their offices but also on their smartphones, on their smart watches or even on WhatsApp. Everyone that takes controlled drugs have already felt this. Oh my God, I need a new prescription. I'm running out of my medication and you need fast responses.

In the old system, doctors needed to be in their offices or even with their phones at hand. Now it has become so much easier. Some doctors only like to write their prescriptions by hand. Well, now they can take pictures and they're digitized automatically. Let me show you how ReceitaPRO works.

[Presentation]

The free version of -- I mean, you just imagine that many of you sometimes you need to go there in person. Our process -- this partnership process is super-fast. You register in Afya Restate Pro. If you're a doctor, of course, you need your Board registration number and they say, do you like -- would you like a free subscription? And it can do this in 10 minutes. I tried it yesterday. You just register, you get a voucher, they then make a video call with you and you get your digital signature ready. So you have much more value, more users, more data.

Thank you, Ronaldo. It is a pleasure to receive these 3 great professionals in education continuing education and medical innovation at Afya. Thank you so much. Well, we've covered the main innovations for medical practice.

Now I have the pleasure of inviting my dear friend, Luis Blanco, who is going to talk about other types of innovation, financial resources. You have the floor, Blanco.

Thank you, Gustavo. Thank you, Isabela, Itamar, and Ronaldo. Besides the innovation we've seen, we also have financial innovations for physicians. My name is Luis Blanco. I'm Afya's CFO. And CFOs are also thinking of solutions to increase the productivity of physicians in their everyday lives.

So I wanted to say that we've launched a marketplace with financial solutions for physicians. So Afya Pay is our first product. This is a partnership with Stone, more than a payment solution. This will simplify the everyday life of physicians. They can receive payment with credit card, PIX transfer in person with a POS machine or through remote payment. And this is fully integrated to iClinic. No, you don't need anything else for the transaction. It's fully integrated to the White Clinic, which is a system that physicians use every day. Afya Pay helps physicians transform or transform their financial management in a safer manner. And physicians can focus on what they do best, which is providing excellent health care to patients.

The second product in our financial marketplace is to receive anticipated payment. Thinking of a unique financial management, this allows physicians to receive payment beforehand, all their financial resources regardless whether they come from Afya Pay or not. We look at the physicians' tax ID. We talk to credit card brands and we conduct the transaction. We can then pay beforehand. For physicians, this is fully integrated to iClinic. And we don't create an additional debt or an additional cost because of debt. We optimize this within iClinic. Physicians can then access this product.

Well, we will launch other products for physicians. The first is a pension plan. We know that planning for the future -- for the financial future is super important. And physicians are not formally hired usually, right? So to help with long-term financial planning, we decided to come together with a partner, Vinci. You know them, right? Physicians can hire a pension plan for the long term through our marketplace.

There's another product that we will launch this year, which is E&O insurance. This is something we see for our physicians. It's a need of theirs. So they have to protect their medical practice and they can hire an E&O insurance directly in our portal. It's very simple, seamless and this is directly integrated into our marketplace. We -- this is a partnership with Forza Seguros, and it will ensure a legal protection for physicians, 24/7.

Well, we've seen the main competitive edges, our products, our innovations. What's amazing is that we deliver all these features to physicians to increase their productivity, their assertiveness and we still build sustainable value for our shareholders, you.

So let's look at our track record here. Well, we had our IPO in 2019, as you know. So let's look at our guidance. Here, you see the evolution of the figures. Top guidance since 2019. As you can see, year after year, we've delivered consistent results within guidance or sometimes above guidance. And we had -- we did not have one single failure since our IPO. That shows the foreseeability of our model, our discipline and our execution.

In the second semester of 2019, our revenue was BRL 424 million, 2024, BRL 3.3 billion. That's the net income. adjusted EBITDA. Second semester of 2019, BRL 168 million and in 2024, BRL 1.4 billion. What do we have in store for 2025? Well, we have a strong guidance, of course, once again, net revenue, BRL 3.7 billion, BRL 3.8 billion and adjusted EBITDA BRL 1.6 billion, BRL 1.7 billion. So we are very much set to deliver another great year as promised earlier this year.

Well, let's look at our cash flow. At the top part of the slide, you see the evolution of our cash flow. 2021, BRL 667 million and in 2024, BRL 1.4 billion. And in the first semester of '25, BRL 783 million. Sound cash conversion ratio. So the cash flow looking at operating activities and EBITDA, our cash conversion ratio is of over 100%.

And we have consistently delivered 90% or plus in cash conversion. How is that allocated? Well, we have 4 lines. First, we have CapEx. That does not include acquisitions. But that is the funding of all the innovations you've just seen, intangible asset innovations, but also CapEx connected to our graduation operations, real estate and so on. Then we have acquisitions. That's the second line. And I'm going to give more detail on that. 22 acquisitions conducted since the IPO. We've allocated BRL 4.5 billion for acquisitions.

But our growth is also supported by providing return to shareholders, dividends. In 2025, for the first time, we paid dividends, BRL 130 million were paid in April. And in '21 and '22, we also had share repurchase programs. In August, we have announced the fifth repurchase program. And with that, we are -- we will be executing this program in 2025. This shows amazing consistency in cash generation and capital allocation. It supports our growth and it provides return to our shareholders. And we do all that by keeping our net debt under control. And our net debt adjusted EBITDA ratio is extremely conservative. So less than 1x, that's 0.97.

Well, as I said in the previous slide, we're going to now look at our M&A track record. 22 acquisitions since the IPO. 11 for undergraduate assets, 3 for continuing education assets and 8 acquisitions of medical practice solution assets. These assets add up to BRL 4 billion invested. So that's in the undergraduate assets and BRL 500 million in continuing education and medical practice assets. We are very careful in our asset selection. These operations are well executed. We preserve the legacy of the companies we've acquired. Eduardo is a case in point, and he's here with us. And this generates high strategic value for Afya. That's how we have this ecosystem that serves our students and physicians in their everyday practices. Of course, this is all supported by a sound cash generation.

Well, speaking of innovation, there was lots of talk about innovation today. 42% of the physicians, as Eduardo said, want to become entrepreneurs in the health area. Well, looking at the long term, we know that creating an ecosystem is about meeting all physician needs. That means facing several challenges. So we look at H2 and H3, and we want to fund that with Corporate Venture Capital initiatives, CVC. We have pitches for health techs at Afya every week, every Friday, every Friday, health techs come in to pitch their ideas because we want to be connected with the innovation ecosystem in Brazil, not just in Brazil and other regions as well.

And here, I have 4 investments conducted so far. This is all in our balance sheet. The first one was Lean Saúde. This is a health platform founded by Eduardo and Francisco. It optimizes medical resource use, reducing claims. This was in 2023. Then in 2024, 2 investments of corporate venture capital. First, Caveo. It's a physician -- it's a fintech for physicians. They combine accounting banking and AI to simplify doctors' financial routines. They are also now working with shifts, physician shifts. They have a platform for that. And they also have a very nice solution of Banking-as-a-Service for physicians.

Then in June '24, we invested in Wellbe. They want to bring more efficiency to payers. They integrate health insurance data with primary care. That brings more efficiency and low cost -- lower health costs for payers, whether these are insurance companies or corporations. Then in August 25, we invested in Marisa Care founded by Dr. Joel. This uses AI agents to support doctors and institutions in patient care. It brings more demand to health providers. They identify patient by patient at the primary care level, organizing data and expanding access to preventive medicine.

So this is a way to build our future with our partners as well. And there's value in our road map to support physicians all over Brazil. Well, I'm really proud as a CFO to see the company's strategy bringing results, whether that's organic based on organic or inorganic growth. And that's how we can reduce our leveraging levels, which is clear in this slide. When we see our net debt adjusted EBITDA ratio with a very healthy debt cost.

And if I may just recap, the debt we have with SoftBank. It started in 2021, BRL 822 million. That's the size of the debt. The cost is of 6.5%. This is in reais, okay? It's a convertible debt. So at $25.35 a share, that would mean more or less 6 million shares. In April 26, we have the possibility of an early redemption. So we decided to prepay the debt with SoftBank. So last week, we announced an issuance of BRL 1.5 billion with Afya participations 2 series, Series 1, BRL 500 million, CD plus 0.7% and Series 2, BRL 1 billion, CDI plus 0.85%. Both series have maturity for -- well, 3 years, Series 1 and 5 years Series 2, Series 2 payments in '29 and 2030.

Well, why did we decide to issue these debentures to prepay the debt. We have debentures existing in our balance, but we have the issuance also to pay SoftBank. Well, first, we want to increase the duration, 6.5%. We know that's not what the market is pricing. That was becoming short term, and we wanted to have cash in order to have more flexibility in our capital allocation strategy. But it's also about the cost of the debt, 0.7%, 0.85%, we can reduce the cost of the debt for existing debentures, which we're paying 1.8%. And now we have a AAA rating by Moody's. And we also increased duration.

Finally, considering tax changes that are taking place in the Brazilian legislation, there will be a taxation of dividends for dividends issued against foreign investors. So this taxation could have impact for us next year. And that's another reason why we decided to pay the debt right now. And that is included in our strategy to manage our debt.

So this is my last slide with some final remarks, and I'm representing everyone at Afya when I say this. Afya is at its best. We have a unique ecosystem, integrating medical education technology and clinical practice. We connect all the stages in the physician's journey. We are leaders in undergraduate medical education, and we're present in all regions of Brazil. We want to train future physicians with excellence and innovation. In continuing education, we support physicians' development to become specialists. And this, as you saw, is really important for physicians.

We want to support their lifelong development through digital platforms and tools that unite content and technology. In medical practice, we are repositioning the daily lives of doctors with solutions that increase efficiency as well as their assertiveness with iClinic and their own prescription, RaceitaPRO. And that is supported by a very solid model, combining predictable growth, cash generation and disciplined execution. Currently, Afya is a unique company, a profitable company that can keep growing sustainably and generating value to medical doctors and shareholders. And more than numbers. We are moved by the purpose of changing health care for those that have medicine as their vocation.

This is a legacy we have been building together. We are strong, and we keep as enthusiastic as we've ever been, and we are really hopeful for what is upcoming.

We now invite everyone to our Q&A session. Thank you.

[Operator Instructions]

Good morning, everyone. Thank you for inviting us. -- so I heard you talking at the beginning and now about continuing education. So oftentimes, we are asked about how we have a greater supply of medical courses in Brazil. And people talk about the scarcity of continuing education for doctors. There's difficulty having residency programs and also post graduate courses have not evolved or developed in the same pace.

So how prepared are you in this more competitive environment in the next 5 or 6 years?

Okay. I think I can take your question, Vinicius. We've shown you how we are preparing, right? We started in 2019 with the purchase of IPEMED. It was the greatest full graduate center, and that was highly practical. And then you see we have 25 hubs and over 70 programs, educational programs. And we are also evolving to the concept of a hub experience in these 25 units. So doctors are -- they can not only have practical experience, have their training, their specialization, also experience preparing for all the activities that's a practical element and also their own appointments receive their patients in this concept of membership that started -- we started designing and launched.

So you follow a very positive market dynamic with lots of significant growth, and it's attractive not only in terms of higher income, but also a better personal life because they don't need to be on all the time to get -- to be on the time to get more control of their lives and careers. This is part of our strategy. We keep expanding the operation. We have all the preparatory exams that are not only the study prep for residency, but also for all specialization. In other words, we're betting our cards on organic growth in this market that is expected to be really interesting in the next 6 years.

Can I just ask you something else? When you compare this to what the competition has been doing, the other similar groups, what they've been doing in terms of continuing education. Do you think you are well ahead of them?

Well, the difference is really significant. When you look at this volume or scale at the national level on our hubs, there's nothing that's close to us. Maybe in the state of Pará, we have 6 units in the Capital City of Belém, we have -- we don't have a undergradate course there, but we have specialization courses there. So there's this migration of professionals, those that not only go to smaller towns and also those that come to the capital city for specialization courses. And you have 200 or 300 students there in partnerships. It's a completely different scale. And we have -- if you have 50,000, it's completely different. And I'm not excluding, of course, small players that have highly qualified products, but again, local brands with some good reputation, good partnership with hospitals, which is a completely different approach to us.

Can I add those that were not here last year, I'm Denis. I work in the continuing education unit. And I think this answer has 3 or 4 components. First, capillarity. We made this decision of moving forward. We're present in more states in continuing education than all the other undergraduate courses. So capillarity is one of the major points that make us stand out. We are really close to doctors, and we might be in capital cities, but this capital city is also a hub for the smaller towns and cities. Those that live in the state of Pará can more easily go to the capital city Belém than go to other cities or other capital cities.

Number two, portfolio. When you consider the competition. We're not considering only education groups, but we see other health care groups that are doing continuing education, influencers also. In other words, everyone is on this bandwagon. And I think that we have a wide portfolio. You can help doctors do their residency doctors that already finished their residency doctors that want to change their specialty or those that want to have double specialization. So this is a portfolio that is that diverse that really very few can deliver all of that together.

Now there's a third element in this is integrating all these elements together. When you look at integration, physical channels, digital channels, I don't see anyone matching us.

Thank you, Next question, please.

Mirela of Bank of America. I have 2 questions. First, a follow-up from Vinicius' question. What do you expect from [ Educom ] when you consider the importance of this segment to the entire business, what 5 years, 3 years? What is your expectation of becoming more representative? How will that represent your total? And then number two, about B2B. We have seen you entering that market. We saw the difficulties there. It takes time to address all these initiatives. Maybe can you give us a summary of what happened in the last 3 years in this segment? What was the performance -- what was the performance level? What you're expecting from now on?

I'll take one part about continuing education. Number one, you see the dynamics of this market, right? This market is, we have lots of generalist doctors. There's a wider gap between generalists and specialist doctors. There's more competition between doctors. They need specialization. This is really positive for continuing education. This is growth that is wholly organic with shorter life cycles. So you go to the market, you put out a product, we have our -- we have shorter life cycles. You need to make the most of that wave, so to speak.

So we grow more than the market. This is growth of -- in the next 2 digit -- 10% to 20% totally organic growth in the next 2 to 3 years. So we grew a lot. We remained flat in profitability, but we're expecting to grow more mature, having more mature hubs with -- so our margin can scale up. It's more about intangible capital, but it is extremely important and possible not only in B2C, but also as major differentiation channels. So B2B will be closer to these experts, and that's about 50,000 people that, in a way, are with us on some platform or on some of these hubs.

Then you mentioned B2B, right? Ah, B2P, business to physicians. Okay. Business to pharma, okay. Okay, right. B2P is business to physician is analog to B2C. All right. Okay. Good. Clear. So B2P, we were expecting to scale that up faster with the pharma industry. We grew in the last 2 years, we've grown 20% to 30% our B2P contracts. It was ramping up. But there were 2 limiting factors to this growth.

First, penetration. In other words, digital prescription is vital when you want to monetize and digital prescription accounts to 10% to 20% of all prescriptions in the market. It's not that significant to many molecules that we have today in the market. So that's one limiting factor. The industry is still based on physical channels. and that's really recurrent.

Now the other point or limiting factor is traditionalism. The pharma industry depends on their sales reps. As you know, about 4 years ago, there was a movement in some of the great pharma, they were just laying off. One of them laid off 100% of their sales reps, and then they needed to rehire them. They thought that during the pandemic as everything became digitized, but this did not turn out to happen. And it's not just about if, it's not about if, it's about when. We are insured. We -- our position is very good that this will keep growing and that return on investment is easy to measure, and it reduces fraud.

I can give you one example of a very common, when you buy antibiotics in a drug store and the drugstore, the sales reps say, okay, I can put this on a CRM without -- in other words, pretending that this was a physician's medical prescription because it was totally analog, but everything will become digital. It's a matter of time. Everything will become 100% digital. Do you want to say something?

When you think about the number of contracts and cases, we have over 160 contracts that still -- we are innovating. 90% of the budget is not an innovation. 90% is about our daily marketing and sales activities. Of course, the pandemic gave us a proxy that did not stay because people could not make medical appointments. So people believed digital channels would take off, but this still -- it didn't happen, and it's still very strong the way it's always been. But we are proving this model every day, increasingly more.

So one thing is about scale, the volume of doctors and prescriptions and data. So the more representative digital channels become, the more they are used and then measuring that return, that feedback. That's what we call medical engagement stimuli. So have the sales reps, they always be there. They've always been there. They will still be there for a long time. But there's more stimulus when you consider, for example, educational content, medical content that focuses on particular topics like rare diseases, for instance, something that doctors do not prescribe because they don't have enough knowledge because they have a completely different professional life, daily life.

So if this is diagnosed early, I have much better treatment, much more successful treatment. And it's all about knowledge, and this is something we can provide as we show here. So things will scale up. Maybe the timing will be a little longer than we expected. But yes, it will. Now when you think about what happened in other countries, there are some countries that have companies that want to have digital access, but it was already there 10, 15 years before until it finally sped up and scaled up exponentially.

There's a lot of investment in differentiation and also charming doctors in their daily lives, increasing engagement, penetration, coverage. You see how much effort you put into adding AI to all our solutions to increase compliance, especially young people that are graduating from medical school. They shouldn't do ChatGPT irresponsibly. And then one thing is you may have one player doing this, but no one is doing. But maybe there's another one doing prescription. There's someone doing B2C all alone that doing medical records only or a marketing agency that's producing content. But there's no one with an integrated vision, integrating all the points, that's only Afya.

We -- it's about timing. We are speeding up our investment. We are segregating our sales forces to subsegment the industry. Pharma, for instance, and others with a more niche value proposition. This is our bet. So we need to scale it up correctly, sustainably according to market maturation levels.

Samuel?

This is Samuel, BTG Pactual. Let's discuss undergraduate courses. You talked about brand differentiation and all the initiatives you've had in the last few years. Can you talk about competition now? How do you feel competition these days? Are you more concerned about any particular city? And also there are many players that are using PS. What do you think would be an optimal point?

So geography or competition in different geographies and then or PS or funding. We see increased competition. And when you look -- we should look at different places in isolation. There are 2 cities where we had a small player, a local player that were taking radical measures. So if you come from Afya, you get 50% discount in your tuition. Just imagine that you would get students in year 2 study our tuition was BRL 13,000, and they would pay BRL 6,000 rather than BRL 13,000 and there with the same person and people paying different prices, different tuition prices. That will be complicated.

I think these are some desperate initiatives really. And they kind of heard us taking maybe 5 students with them. There will be some report with the public prosecutor's office. And this will not be sustainable. In other words, we are still working hard in our initiatives that capturing students, not only for the course for the entire journey. I was so proud to see that former student of ours and how passionate she is about us. And we equally admire her so much. It's a great story we want to really replicate.

And then funding for students is a tool that is increasingly more used. So you have lots of agencies. For example, B2, you have almost no C. We always have students from the funding for higher education students or the FIS system. And in some of our units, we have about 16%, 17% of our student base have this funding, FIS funding. So some of these units, we purchased them. We may have a large number of students that you [indiscernible]. So we set that process rather than capturing 150, we would capture 300, 350.

So we use the FIS funding system to attract more people in that particular unit and also the medical units where you also have about, well, poor people and even with a different tuition when you go to -- from a larger city to a smaller town, you have much less. The difference is marginal when you consider the efficiency between one unit -- in a smaller town in a normal unit, and these are the units where we are at more than 10%.

So you will not see Afya bringing students with FIS or the student loan program or at a discount. We have many partnerships for funding in our marketplace, many creative solutions, solutions that are more efficient than traditional funding. Many students are looking for private funding now for their studies. And we have these partners in our system.

If I may add? Good morning. I'm Eric. I'm responsible for undergraduate courses. Yes, it is more competitive. We have many new courses and schools. Everything we just showed you this morning shows that there is consolidation and that's how we need to set ourselves apart. It's important to understand that deciding to study medicine involves the whole family. Because of that, parents, grandparents, sometimes even uncles are part of the decision. They visit our units. They all come to our units.

We -- some of these students have physicians in their families. And when they visit our units, they see that we are special. And that shows that we can consolidate in the regions we're present. Another interesting point, we have many remote areas in our country. We have a structure for medical education in all capitals. That's what we call 4 plus 2. So students can spend 4 years doing their studies in a remote university. And the 2 years of residence, they can keep in their region or they can go to a capital. Virgilio and Denis mentioned the city of Belém, great example.

We have many units in the state of Parã. We are still not in the capital Belém with a graduation, but we use the structure to support us in the 2 years of residence Europe when they can go to the capital. This is really interesting for students because they will work with hospitals and they will be -- they will have access to a larger network of hospitals. It's been super helpful.

From the brand perspective -- my name is Stella, by the way. I'm Marketing and Sustainability VP. The brand has had amazing growth. I've been with this market -- with this industry for 30 years, and this is a brand that grows faster. It's a very consistent proposal. When a student joins one of our institutions, they don't join just one single university. They join our ecosystem. So this is a choice for their whole career.

This brand is very strong and sets us apart. Students understand that this has value for their whole career as physicians, not just for their undergraduate studies. They have Afya Play. They have the white book. It's a package. They become an Afya member, a member of our community. That means more learning opportunities, knowledge exchange. And this community will probably make it easier to find a job. So this is something that really sets us apart.

I'm Eduardo Rezende from UBS. Still talking about undergraduate courses, I wanted to ask about Mais Medicos III, a public program. This program has been suspended earlier this year. And I wanted to understand, do you have any interaction with the Ministry of Health in Brazil? What is your base case when it comes to this call for proposals? Are you looking at a downsized possibility? Could that accelerate your M&A pipeline? Could it have an impact on your guidance?

Yes, we are in contact with Brazil with the Ministry of Health, not just the Ministry of Education. Mais Medicos is a huge national program. So this program needs to be balanced. That's how we see it. We had many positions open for physicians in different cities of Brazil. They want to reach 90 cities with this program. So everyone who is accredited in that region, you might win the bid, but there is no beds for the patients. And then the media is going to cause problems and even the ministry, you have a school of medicine there, but you don't have the beds for the patients. So there is pressure.

So the Ministry of Education is also involved, and they decided to suspend the program. They want to look at the cities that need beds, that have new beds, and they might reduce the number of positions. They have to see whether it's feasible to open a medical school in a specific region. So yes, this is a moment to rebalance this program.

Regarding M&A opportunities, it's the same strategy regardless of the federal program. We are always looking for good assets. And we are looking at 200 positions. We have this allocation strategy. We are deleveraging our company. We are buying back shares, paying back dividends and we have the slow leveraging levels.

If I may add regarding the M&A strategy, our most recent operations were focused on capital cities, and that is connected to the Mais Medicos federal program. So if there is a change, we can balance our portfolio of assets. We have -- we acquired an operation in Contagem, Minas Gerais, Salvador in the State of Bahia. So our acquisitions are always focused on urban centers. But yes, there is a change after this suspension, we can reassess our target for M&A.

Yes. And with the new debenture, the cash is preserved.

This speaker is not asking his question on the microphone.

Well, we have a very well-tested playbook from IPO until today, 22 acquisitions. But that started before the IPO moment. So yes, we had a track record for different types of institutions. And this is mature in our company. Suppose you are acquiring a local brand, a very strong local brand or if you are acquiring a university center that is a regional -- strong regional brand or you might be acquiring a university, a university that is present in the whole state.

So for all these 3 situations, a smaller acquisition, maybe a university center, and then we have UNIGRANRIO, which is a national brand. We have strategies for all these cases, strategies for the first 90 days. Top line is the first lever and then we have COGS. We implement our educational model. We look at partnerships, then we change the career plan for professors. So we base our work on these guidances. After we have this revenue line or the COGS line correct, then we start working with the academic systems with management. We bring this to our shared services center.

That means 10 percentage points of margin just because of synergies. The brand is the last part. You need to win over the society, the orbits around that unit and that they say, yes, you are generating value for students and professors. They do understand that there is value to this acquisition. They see that it's an important journey for health professionals. It's important to be part of an ecosystem such as Afya. And then we change the brand. If the NPS is not high, we don't use our brand.

Of course, all changes cause pain, right? We wait for the academic community for professors and students to acknowledge the importance of our presence. And that's when we use our brand. We have about 100 people working full time with integration. So it's a well-tested model in our company.

You mentioned the soundness of the results, right? When we look at M&A models, we do the math, right? We don't acquire anything just for the multiple. No, we have models. And these models are based on the experiences we had in our own units, looking at the results, the sound results we have. So the assumptions are what we see in our units. Could we increase our assumptions? That was your question.

Well, we increase if the operation is better. But we've had 11 acquisitions in undergrad after M&A. Because of that, we have become faster in the integration. There's less pain in the integration process. We had the Contagem acquisition. Then we have UNIDOM closing was on July '24. And in April '25, it was fully integrated, fully migrated into the Afya brand. So it happens fast. And that is why we can capture or take advantage of our integrated system. We do this very fast today. It's a game changer for top line and EBITDA.

If I may add, UNIDOM is a very interesting case. Closing July 1, '24. Classes were about to begin August 1, '24. So we had 1 month before classes began. We needed to be swift to start with our academic model at day 1, August 1. This was really important for us because this will have an impact 6 years later when the students take their exams to become full-fledged physicians. So in just 30 days, we implemented our academic model, and we started classes on August 1 with our model.

Our partnership with medical educators was key. We have our clinical practices in the city of Salvador and that was connected to the students so that undergrad students could use that academic clinic as we call it. So this synergy is very helpful in the swift integration process in everything we do so that we can ramp up faster.

Yes, that's the importance of the ecosystem. You can use graduate and undergraduate courses. So lifetime value is very important. Afya is one of the few players that are still making acquisitions. Very few players are acquiring. There's a lot of offering. So we are well positioned, and we can be very selective in our choices and in the price we pay.

We know time is over. We have time for 2 questions.

I'm Leandro from Citi. Looking at undergraduate, you talk about candidates position, the ratio year-on-year. Can you talk about the quality of these candidates? We have feedback from list management and this is a little bit behind inflation. Can you talk about the funnel, the ticket outlook, the spending outlook? And now piggybacking on the Mais Medicos question. I would like to talk about regulation. The ministry says that the EduMed program is going to be different. It's going to require different proficiency levels.

Well, as for the profile, there were no changes. We are improving the process. Our brand is more renowned among physicians. And I think that offsets other impacts. Yes, there is competition, but our students have a similar profile. We don't see major changes. If we look at the income of our students, 75%, 80% of our students are -- come from an income bracket of above BRL 15,000 a month. And then we have students coming with public funding systems.

It has always been like that, and we saw no changes in the profile of our students. Average spending or our average spending has grown above inflation rates. The problem is the public funding program. UNIDOM Pedro is a case in point. There's a 27% discount. We -- well, the gross spending is over inflation, but the net spending is different. That has no impact in our profitability. We are still very competitive. And the gross spending is what matters from a market perspective. What was your third question again?

Efficiency tests.

Well, we support the quality bar has to be very high. Many schools will be shut down, and they should be shut down. There's no quality. They have no professors. The syllabus is ridiculous. We see terrible things in many schools. They have accreditation to open schools but the quality terrible. So yes, these schools will go belly up, and we will receive e-mails from real estate brokers selling these buildings of the schools that will be shut down. I do hope that the Ministry of Education is severe in its assessment of medical schools.

If you have no capacity, if you have not prepared your students, you will be hit hard. Of course, we can perform better than average. We have sold preparation to help students in ENAMED, which is a national exam for physicians. So Afya wants the bar to be very high. Of course, you need people to inspect these medical schools and to shut down schools that should not be open. So that's how we see this. We fully support the Ministry of Education in these efforts. We want to have an annual exam for medical schools to solve this problem. Yes, that's our position.

And one more question.

[indiscernible] form JPMorgan. I want to talk medical practice solutions, a topic we haven't discussed yet. What is a healthy level? What are potential growth drivers? And finally, AI, do you understand AI as a disruption risk in your segment or as an opportunity for your growth? How would you answer these 2 questions?

Thank you for your questions. I'll start. As for guidance, we don't provide guidance per segment. It's a consolidated guidance, and we believe that medical practice has a great growth potential. And how do we do this? How do we seek medical practice? Medical practice is about increasing assertiveness and productivity for doctors, right? We provide the best tools. We engage a qualified audience. So they have effective use and daily activity use that's very high with high engagement levels.

Now these tools that we call B2P, business to physicians, these tools, they have a recurrent revenue. In other words, every doctor pays a sum every month, and it's limited because, of course, there's a limited number of physicians in this country. If we have 100% of our doctors, we will have 635,000 doctors. So growth in B2P or medical practice is not a result of B2P, but rather as a result of this connectivity. In other words, doctors engaged to our tools and the healthcare industry.

And what is the healthcare industry? In other words, what values can we provide the healthcare industry and where are they? We have 3 major parts. Number one, access. So the whole time that was presented with medical advertising, delivery of free samples. That's what we call access of the industry. Now what industry has access to these doctors? The pharmaceutical industry. Part 2, demand. Demand to whom? To providers, healthcare providers, hospitals, drug stores, laboratories, diagnostic laboratories. And number three, the payors, who are the payors, HMOs, health insurers and corporate plans. What do they want? They want a lower cost of service, cost to serve.

So a good part of this -- of the growth in medical practice comes from B2P. And when you consider the focus, how is that -- how was that addressed? Our H1 is the pharmaceutical part. So we went deep into that part with Maria presenting 4 cases. And the products are focused on the pharma industry. So we decided to avoid attacking in this first moment so that in the future, we can then address providers, payors. How do we participate in the value chain with the CVC to provide efficiency to payors, because at the end of the day, payors, they have an MLR of 70% of the market.

That's about BRL 350 billion a year. In other words, a good part of the growth is -- will be -- will come from B2C. And you have these major -- the 3 major value propositions. When you think about metrics, when you think about undergraduate courses, we have 25,000 students, that's a lifetime of 6 years. And it's continuing education with solutions to medical practice, then the lifespan is much longer, of course, much longer lifetime. Even when student -- it's from graduate students to their retirement. Of course, it doesn't generate as much money. It doesn't monetize as much as our 25,000 students.

And what's the -- you see that in the financial market, right, $6 million. And what's the profit? It's 40% of doctors in the United States, and we have 40% of doctors in Brazil using our solutions every day. And we've been testing and scaling up monetization thesis that accounts for 30% of our market share, doctors, students. We were really aggressive with 2 assets, a qualified audience. In other words, doctors that use our solutions intensely, both to keep learning more and continuing education platforms and also medical practice support and that generates another extremely valuable asset.

So these are the 2 major assets we have, and they provide scaling up cash both in the industry, pharma, pharmaceutical industry providers, payors, marketplace. In other words, we have health insurers. We have financial companies that are also providing these services, also instrumental doctors and we really want to serve this public, this audience. So this is crucial for us to increase the capacity of our ecosystem, and we're also testing out and scaling up our monetization thesis. Thank you.

I apologize everyone, we ran over time. Our Investor Relations team is available for your questions, the executive team. In the question about AI, just one more thing. I'll talk to you later about AI, okay? Our executives also if you're available, they're all available to talk to you. Thank you so much, everyone, for coming. If you have any questions, our Investor Relations team is available not only today, and Virgilio will now close.

Thank you, Renata. Thank you, everyone, for coming. I know everyone is so busy and it's not easy to move about in Sao Paulo. We prepared this event in detail to talk not only about numbers and predictions, but to show you what we are building. We wanted to show our doctors to show you in practice, show you how our students, our former students, all recognize and see us. We're working really hard, a lot of dedication. We're developing products for our 3 segments.

And I'll take the Q about AI. AI is not anything special. It's our everyday life. It's impossible not to use AI in teaching, learning and support to doctors in their daily professional, decision-making practices, in the summary of patient -- record patient data. Without AI, doctors will not survive, doctors and everything, this is a greater impact than when the Internet came and education became a commodity. The Internet became the distributor of content. We became moderators of that content.

Now students will come -- go to their schools and they'll see more content. They will have thoughts and reasoned more by -- on content generated by machines rather than people. And these changes, everything curricula have to be rewritten. AI is critical, but it's a great opportunity. At Afya, we are following up the entire AI journey. So you see the needs of those that are really now mature and older. How can we prepare people that are beginning their careers in day 1? Lelio also mentioned that we strongly believe in STM, the whole ecosystem we are putting up. It really makes you stand out. There's an intrinsic value that even -- we cannot even measure.

You see lots of references outside, people that haven't even started monetizing, but there's an audience, there's a behavior, there's data, there's insight of a whole community, it's niche. And that's what we're doing. We have 30%, 40% when you consider the entire student base, we're testing lots of monetization channels. The whole industry is growing more mature. The Brazilian healthcare education career, it's still super traditional. Data integration is inexistent. It's not there. It's nonexistent. It's in infancy when compared to other countries. And no one is looking at this. We say this is like a jewel that we have that we're cutting it, polishing it and that it's super received what we have in continuing education.

So whenever it will generate so much value, we don't even -- it's unmatched really. So this is our greatest bet in the future. That's our diamond that we are cutting and polishing here. Thank you, everyone. Have a great day. Those that have a little more time, please stay here. Let's have some coffee together. Okay, you're very welcome. Thank you.

Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgilio Gibbon; and our CFO, Luis Andre Blanco. During this presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties and other factors that may cause Afya's actual results to differ materially from those contemplated by these forward-looking statements.

Forward-looking statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives and its related benefits. These risks include those more fully described in our filings with the Securities and Exchange Commission.

The forward-looking statements in this presentation are based on the information available to us as of date hereof. You should not rely on them as predictions of future events, and we disclaim any obligation to update any forward-looking statements, except as required by law.

In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures.

Now let me turn the call over to Virgilio Gibbon, Afya's CEO.

Thank you, [indiscernible], and welcome to our second quarter and first half conference call for 2025 results.

Starting with the Slide #3. We are pleased to report that Afya continues to deliver strong operational and financial results. This quarter's performance highlights the high predictability of our business model and the successful execution of our strategy, which consistently combines robust growth, increased profitability and solid cash generation, Afya's three strategic pillars for long-term value creation.

This quarter, once again, was marked by significant revenue growth and gross margin expansion in both our Undergrad and Continuing Education segments, reflecting the steady expansion of our business and our ongoing commitment to operational excellence. We are also pleased to reaffirm that Afya remains on track to meet our full year 2025 guidance, supported by disciplined execution and strong business fundamentals.

Once again, we delivered strong performance closing the first half of 2025 with a notable growth of 15% in revenues, reaching BRL 1,856 million. Adjusted EBITDA reached BRL 893 million, expanding 20% year-over-year with an impressive margin of 48.1%, an increase of 220 bps over last year. This margin expansion was primarily driven by the solid results of our Undergrad and Continuing Education segments supported by cost initiatives and our shared service center, helping to boost efficiency and unlock operations synergy across selling, general and administrative expenses.

In addition, supported by the increase in adjusted EBITDA, our basic EPS climbed to BRL 4.69, representing a 17% increase over the previous year. Even after accounting for the effects of the new tax legislation aligned with the OECD Pillar Two rules, we continue to deliver higher value to our shareholders.

Moving to our operational updates. We have 3,653 approved seats with the closing of FUNIC acquisition, which contributed an additional 60 seats to our portfolio. Furthermore, our number of undergrad medical students has reached almost 26,000 students, representing nearly 14% growth compared to the first half of 2024.

In addition, the medical school net average ticket, excluding the UNIDOM acquisition, reached BRL 9,140 over 3% increase year-over-year. In Continuing Education, revenue increased almost 8% over last year, reaching BRL 138 million and in Medical Practice Solutions, we saw over 9% growth in revenues compared to the first half of last year, reaching BRL 84 million. Lastly, our ecosystem reached 302,000 active users, reflecting strong engagement and deep penetration among physicians and medical students across Brazil.

Moving to Slide #4, where we'll discuss the highlights across our 3 business segments. Starting with the Undergraduate segment, medicine costs continue to show strong performance with a student base increase of 14%. This growth, in addition to integration of UNIDOM and the ramp-up of 4 Mais Medicos campuses launched in the third quarter of 2022 contributed to a gross margin expansion for the segment. Additionally, as already mentioned, we completed the acquisition of FUNIC, which added 60 new medical seats to our portfolio, with operations started in the second semester of 2025, further strengthening our academic capacity and presence.

The Continuing Education segment was marked by an increase in graduate journey students in addition to our gross margin expansion, driven by our ongoing operational restructuring, which continues to contribute to improving costs. Medical Practice Solutions segment, growth was driven by clinical management payers, an increase of 10% year-over-year. B2P, business to physician, revenues for the first semester also saw a growth of almost 12% compared to the same period of the prior year.

On the next slide, I would like to share Afya's new share repurchase program approved by the Board of Directors. We plan to repurchase up to 4 million Class A shares by December 31, 2026 through open market transactions or privately negotiated deals. This initiative reflects our strong commitment of creating shareholder value and ensuring sustainable business performance. It also reaffirms the strength and the robustness of our balance sheet, while reflecting our disciplined and forward-looking capital allocation strategy aligned with the current economic and political landscape.

And now I will turn the call over to Luis Blanco, Afya's CFO, to provide further insight into the financial and operational metrics. Thank you.

Thank you, Virgilio, and good evening, everyone. Starting with Slide #7 for discussions of key operational metrics by business unit, starting with the Undergraduate programs. The number of medical students grew almost 14% year-over-year, reaching nearly 26,000 students, while the number of approved medical seats increased 14%, totaling 3,653 seats, considering the FUNIC acquisition. Our medical school net average tickets, excluding the UNIDOM acquisitions, rose by over 3%, reaching BRL 9,140 in the end of the first semester. As a result, revenue for the Undergraduate segment grew over 16%, totaling BRL 1,642 million. It's worth mentioning that 86% of this revenue comes from the medicine programs and [ 94% ] from health-related courses, reinforcing our strategic focus and leadership in the sector.

In the next page, I will present our Continuing Education metrics. We approach Continuing Education through 3 main journeys, starting with the graduate journey, the most relevant within Continuing Education. It presented a 12% growth, reaching 9,055 students and other courses and B2B offerings also saw a solid growth of 19% compared to the same period of last year. The residency journey which include products focus on the medical residency preparation ended the quarter with 9,224 students, a 29% decrease year-over-year. Revenue for Continuing Education rose to BRL 138 million, up from BRL 128 million in the first semester of 2024, representing an 8% growth. This includes a 5% increase in B2P revenue and an impressive 42% increase in B2B.

Continuing on the next slide, I'll discuss the Medical Practice Solutions operational metrics. The first graph shows our total active payers, which generate revenues in business to physicians. This semester, we maintained a solid of 196,000 paying users, in line with the same period of the prior year. The second chart highlights our monthly active users, which accounts for 230,000, a reduction of 9% in comparison to the same period of the prior year. Finally, the third chart presents the revenue for the segment, which grew over 9% year-over-year, reaching BRL 84 million. Of this, BRL 75 million come from B2P, up 12% and BRL 9 million from B2B, 8% down compared to the same period of the prior year.

On the next slide, we present Afya ecosystem. We are proud of the meaningful impact of Afya continues to make across Brazil health care ecosystem. By the end of the second quarter of 2025, 302,000 users were actually engaging with our service and products, reflecting our solid relevance and reach in medical education and medical solutions.

Moving forward to Page 11, I want to discuss our financial overview for the second quarter and the first half of 2025. Starting with the next slide. With great satisfaction, I present another strong quarterly performance for Afya. Revenue for the second quarter of 2025 reached BRL 919 million, reflecting a 14% increase over the same quarter of the prior year. And for the 6-month period, revenue was BRL 1,856 million, an increase of 15% over the same period of last year. This growth is mainly driven by a 3.2% increase in the net average ticket for medical courses, maturations of medical seats and acquisitions of UNIDOM. In the second quarter of 2025, adjusted EBITDA increased 17% to BRL 401 million with an adjusted EBITDA margin of 43.6%, marking an increase of 110 basis points compared to the second quarter of 2024. For the 6 months period, adjusted EBITDA was BRL 893 million, an increase over 20% in comparison to the same period of the prior year, with adjusted EBITDA margins of 48.1%, an increase of 220 basis points in the same period.

The adjusted EBITDA margin expansion is mainly due to a gross margin expansions within Undergraduate and Continuing Education segments, completion of UNIDOM integration, the ramp-up of the 4 Mais Medicos campuses that started operations in the third quarter of 2022, operational restructuring efforts in our Continuing Education and Medical Practice Solutions segments, and more efficiency in selling, general and administrative expenses.

On the next page, cash flow from operating activities grew 15%, totaling BRL 783 million, driven by our robust operational performance. The operational cash conversion ratio was 88.8% in the second half of 2025. Net income for the second quarter of 2025 amounted to BRL 177 million, a 9% increase from the same period of 2024. For the 6-month period that ended in June 2025, we saw an increase in net income reaching BRL 434 million, representing an increase of 70% year-over-year. Our net income this quarter reflects not only our strong operational performance, but also the impact of the new tax legislations implementing to the OECD Pillar Two growth. Our base EPS reached BRL 1.90 for the quarter, an 8% increase compared to the previous year and BRL 4.69 per share in the first 6 months period, a growth of 17%.

And now moving to my 2 last slides will discuss our cash and net debt positions, also giving more color on our cost of debt. This slide presents a table detailing our gross debt compositions and total cost of debt, covering our primary obligations. The SoftBank transactions, the debentures, other financial liabilities, the IFC financing and accounts payables to selling shareholders. Afya capital structure remains solid with a conservative leverage position and the low cost of debt. Afya's net debt, excluding IFRS 16 divided to the midpoint of the 2025 adjusted EBITDA was only 0.97x.

On the next page, we can look closely at our net debt variation. As of the second quarter of 2025, our net debt has reduced to BRL 1,621 million when compared to the end of 2024, a reduction of BRL 194 million even considering the payment of dividends and acquisition of FUNIC, reflecting our strong operational performance and capital allocation discipline.

This concludes our prepared remarks. We are proud of our strong performance we've delivered this quarter. Our focus on improving the medical journey through an integrated educational system and Medical Practice Solutions remains strong, helping students to become doctors, supporting ongoing medical learning and making physicians more accurate and efficient. Looking ahead, we are excited about the opportunities in front of us, and confident in our ability to keep creating value in the entire ecosystem.

I will now open the conference for the Q&A session. Thank you.

[Operator Instructions] Our first question comes from Lucca from Itau BBA.

Our question regards the main leverages here for profitability expansion in the quarter. So you mentioned that one of the levers was improved efficiency in SG&A expenses. If you could provide just more color on each of the segments these efficiencies are focused on? And then going forward, if you expect any further dilution in SG&A expenses? That would be very helpful.

Thank you, Lucca. Blanco speaking. I will take your first questions. We always chase the higher efficiency performance by our shared service. So during this period, we had some additional centralizations regarding some service that was still on the Undergraduate units. We centralized it in our shared service. On top of that, remember that last year, on the Continuing Education segment and the practical management -- Medical Solutions segments, we made a huge transformations beginning on the first quarter, centralizing all the teams from different products from different units in a single team.

So all of that help us to have the expansion that we presented in our margins during 2024. And these initiatives are keeping providing results during this year. So it's a little bit what we are doing and we are keep doing -- capturing all the synergies that we can within the 3 segments.

It's Virgilio, just to add here some points. Just remembering that, well, remember that we launched 4 Mais Medicos campuses 2.5 years ago and they are still maturing. So it's leveraging operational leverage as we have a very efficient G&A corporate structure. So as the top line goes up, you'll have all the synergies being captured to the bottom line. Also UNIDOM, UNIDOM is still maturing. It's a huge operation in Salvador. So it's improving the gross margin from the campus side and also helping to leverage and push our bottom line EBITDA margin.

And the simple -- it's worth to mention here that, well, this first half, it's an all-time high first half EBITDA margin since we became publicly traded in 2019. So we are talking about efficiency. So that's the beauty of all the model that we designed in the past and now we have the full maturation of most of our campuses, of our operation, and also as Blanco mentioned, also capturing value and leverage from Continuing Education and Digital Services.

The next question will come from Flavio from Bank of America.

Thank you for the opportunity to ask questions. I have two on my side. The first one is on the guidance, more specifically on the EBITDA guidance and taking into consideration what you just mentioned about some more efficiency and more leverage. So if we annualize the first half EBITDA, we reached to roughly BRL 1.8 billion, right, for the year, which is slightly above the top of the guidance range. So given that there wasn't any guidance revision here, should we expect the EBITDA for the second half to be slightly below the first half? Or you guys just prefer to be a little bit more conservative here?

And then my second question is on tax rate, okay? So if we consider the -- not only the second quarter but also the first half figures, we see an effective tax rate close to 9%, right, which is below the 15% tax rate proposed under the global minimum tax of the OECD. So it will be great if you guys could share some more color on what should we expect for the second half of this year related to the tax rate here.

Okay. Flavio, thank you for your question. I will take the first one and Blanco can help me with the tax rate. So regarding the guidance, we prefer to keep on the conservative side here mostly because we have like a seasonality on Continuing Education. So the road map of the new cohort of the new season, it's after September. So we are in the very beginning here. So we still have some uncertainty ahead even considering that we have a successful intake on the Undergrad segment, that's the most important business. So our side here, we are confident with our guidance and we prefer to keep the same range as we released in the first semester.

And Flavio, regarding the tax rate, you are completely right. The minimum tax rate is 50%, but on the first quarter and here in the second quarter, we could recognize 2 tax deferred assets in our balance sheet. And with these recognitions, we could reduce the effective tax rate in this semester. But coming ahead, we don't -- the impact of the Pillar Two is this 15% in the long run. There is adoption effect that is growing. But at the end of the day, keeping it, the effective tax rates change to convert to 15%.

Our next question will come from Marcelo Santos from JPMorgan.

Thanks for the opportunity. My 2 questions are about the medical business. The first is, could you please comment a bit on the competitive outlook for the second half intake? How did that go? How did you see competition, whatever you could add there? And the second question would be a bit about medical tickets. So could you discuss a bit? I mean, it grew 3.3%, if I'm not mistaken. And it's a bit below inflation. What are the effects that drive this maybe mix, maybe ramp up? So I just want to hear from you guys. Thank you.

I'm sorry. So we were on mute here. So just repeating here what was mentioned, Marcelo. So regarding the medical competition, as everybody knows here, we had a lot of new approvals on medical seats and also institutions during the first half. And we didn't have a new cohort of new or fresh students coming from the high school. So the competition on the second half to fulfill the seat was higher. We reduced the candidates ratio from 7% last year to around 5% this year, but we have a good trend on the enrollments. We already started our classes. So it's something that -- we keep our 100% of occupancy.

For that we are -- we just launched our first half 2026 intake for next year. It's very beginning. We are very confident on that because now we don't have so much new seats coming as an expected, but we have a new and fresh cohort of students coming graduating from the high school. So the candidate ratio was reduced from 7% to 5%. It was a little bit more competition in some of the cities that we operate.

About medical tickets, although we passed our gross tuition a little bit above inflation as we are having more discount coming from FIES, the net effect was a little bit below inflation, but we continue to pass around inflation, our strategy moving ahead. So the main effect here was the 27% discount coming from FIES, depending on the campuses, we have around 10% to 15% of our student base enrolled on medical programs on that campus level.

Perfect. Just following up on this. I mean, regarding this is a bit more competitive second half, did this entail discounts or you're able to pursue your normal pricing policy despite this a bit more intense competition?

0 discount. The same policy.

The next question will come from Samuel from BTG.

Just one question on our end about this new taxation that you guys were commenting before. I imagine the company is seeking to challenge the tax charge here through legal or like the administrative means. My question is, if you guys could like elaborate on that opportunity, if you guys see like a more likelihood or more likely scenario through administrative efforts or through legal process.

It's Blanco speaking. I'll take this question. It's very good to have this question to make clear for you guys how we see that. We have 2 fronts that we are working right now regarding the new structure of taxation, one is to define it in the justice level, we enter a protection -- asking for protections regarding these new taxation, questioning some points about how it was defined and implemented. We don't have any concrete outcome from this questioning for this challenging yet, but we are questioning on the justice level.

And in parallel of that, we are presenting to the executive and the lower house representatives that these taxations at the end of the day, how it was implemented, it takes all the benefit from the PROUNI program. At the end of the day, as PROUNI is not qualified as a qualified credit under this pillar, all the effect of the PROUNI is withdraw from the Pillar Two calculations. And because of the major -- because of it, we have these higher taxations. So we are showing that, that PROUNI is being directly affected.

We have more than 10,000 students in medicine, other health and other courses being supported by PROUNI, and we don't want to reveal it -- our policy regarding PROUNI, we want to keep it because it's a very important program for the population itself. And with these Pillar Two taxations, these make PROUNI at risk for the company that are affected by Pillar Two. So we have these 2 fronts. It's very hard right now to define a probability regarding which one become -- take this to success, but we are working these 2 fronts.

Our next question will come from Mauricio Cepeda from Morgan Stanley.

We have 2 questions. The first one about the M&A environment. Are we seeing that because we have seen some transactions that are being performed in Brazil by your competitors that seem to be cheaper than what we saw in the past. So are you seeing the sellers being pressured somehow? Can you take advantage of this new environment? And how did this wave that you did -- or how this wave of seats have changed the environment during the diligence process? And the second question is about a little bit this buyback program. We understand that 4 million shares is a significant portion of your free [ flow ] and then some -- several times your daily traded volume. So how are you considering this trade-off between the return to shareholders versus the stock liquidity?

Thank you, Mauricio. I'll take the questions and Vig, please, jump in if you want. Regarding the M&A environment, we're always chasing the right opportunity, the right profile at the right price. Good brand, good reputations and good location, good municipality are becoming even more relevant for defining the price from the transactions. So with these new entities coming to the market with all these [ judicialization ], I would say that comes through the markets. Of course, we have offers, and we stake together with good locations with good reputations that we can take a part and get the right pricing for it. So location, reputation is very, very important in this scenario.

Regarding the buyback itself, as you mentioned, that's relevant. It's something about 4% of our numbers of shares and have an impact in terms of liquidity. But we see that as an opportunity in capital allocation in all the shareholder remunerations. We discussed it last -- in the last past months. We decided that the combination between dividends and buybacks would make sense to return to shareholders to increase the shareholders' remuneration.

So with the buyback, we can take opportunity about the price. So we can take a price to action strategy on that. And for the shareholders for the long term, we increased EPS in a very constant manner. Of course, we are going to follow up liquidity to see if it's a pressure in the short term. When we implemented the buyback itself, it could increase the trading volume but in the long run, we'll increase value for our shareholders because we are increasing the EPS.

[Operator Instructions] Our next question will come from Renan Prata from Citibank.

Just a very quick question here. I think the colleagues cover on my point. But it caught my attention that the residents journey dropped significantly year-over-year. And I just want to know if there is like any meaningful trend on the market or this is just a [ centrality ] on this quarter. And lastly, you guys comment on the release about the ENAMED exams. So I just wanted to hear your thoughts regarding these new exams. I mean -- is there any additional CapEx that you envisage to put Afya to benefit from these new standards? Or I don't know, just want to hear your thoughts on this new exams.

Okay, Renan, Virgilio here. So regard the residents' journey, we had a very low cycle on 2024 or end of 2024 that reduced a lot the intake over 2023. So as the seasonality -- the highest seasonality is on the fourth -- end of third and fourth quarter. So we are just in the beginning. So we changed a lot our approach and our product on end of the first half. In July and August, we have seen a very good trend, but it's a very small intake when compared to the entire year. So we will have an increase of all volume coming on September. So it's too soon.

I think the main point here is that we are seeing that residency, it's a very high competitive landscape. In 2024, we didn't have a successful intake, reduced and we are -- since then, we are reducing the overall revenues. But on the other side, the ENAMED, as you mentioned, I think it's a very important opportunity on Continuing Education besides the graduate business that is continuing to grow and pushing our revenues as the most important product on Continuing Education.

But ENAMED, the CapEx required is marginal because we have all the assets in place, as also we can leverage what we are using on residence prep and all the learning objectives that we already have on our learning and our curriculum here in Afya. So it's marginal. It's just a good opportunity, not only on B2C, but also on B2B, leverage the relationship that we had with some institution not only for [ NRE ], but also now for ENAMED, okay?

As there are no further questions at this time, I would like to thank everyone for joining us today. On behalf of the Investor Relations team, we remain available for any follow-up questions. We look forward to talking with you again during our next conference call. Thank you.