Good morning, everyone. Thank you for being with us.

We're here to inform you the first quarter results of Yduqs. I have here our CFO, Aquino.

Let's talk about the results. First slide, please.

It's a quarter that once again shows the great power of Yduqs portfolio. We talk about this constantly.

It's very common in our speech. This is our positioning.

We are a higher education company focused on this horizontal portfolio with different verticals. We can bring stability and constancy in the growth of results of the company.

Yet another quarter that proves that this generates to record cash generation to the company, R$276 million cash generation first quarter. At market prices, this is a return of almost 20%.

We'll talk about how this drives our current buyback program. Let's talk about our portfolio strength of two major levers, Ibmec and IDOMED.

At this moment when we have challenges on demand, especially B and C classes, income, problems with indebtedness of community, A-class products suffer less with that. This reassures us as business, as corporation, as results that Ibmec, IDOMED can be strong and behave well when the market is growing.

Ibmec is growing 23% year-over-year, EBITDA 4 percentage points. That was happening before at Ibmec, a brand that is increasingly premium.

We bring the ticket view of first quarter 10% above previous year. Very well positioned in the market as one of the main brands in every marketplace with great growth opportunity.

We're going to talk about Ibmec in a specific slide. Added to that, we have IDOMED.

We knew it would be challenging for intake in medical schools because of the great offerings. We believe in the strength of our brand and the asserting strategy.

This is another growth, 10% over year-over-year. Stable margin, even considering investments and quality investments with a premium brand of every market it operates.

We have very strong results attaining highest intake, over 2,000 students for the first time in a challenging market scenario. The two brands together, we attain almost half of our business.

This is a company that has over 50 years. It started with single brand, focused on a specific audience, has been expanding, and we see the strength of portfolio, Ibmec, IDOMED, new brands to the company.

They're young within Yduqs, attaining half of the results of our company. It's changed the profile.

We have this constant results, strength of our business shown very clearly by cash generation. Our cash allocation where this cash continues in 2024, we showed that we wanted to reduce leverage.

If you hadn't paid dividend and our buyback, we would be at 1.2x bit early in 2026. We're clearly following this pace to get to this net debt EBITDA by 2027.

This is the growth path. Even with the investments, buyback, and constant dividend payment over the past years, we followed the pace to get to this level of deleveraging.

We keep our shares buyback program. Our priority is deleveraging.

We would actually take the timely opportunities of the market. What we have, FCFE yield, is a great opportunity for us.

It's another successful buyback program, just as the one we had in 2024 and '25 when we bring cash to the great driver. We made some adjustments in the revenue recognition, turning our results simpler to understand, more predictable, and cleaner.

A way of showing that is the drop in the DSO. When we look at revenue over year-over-year, the results in this cleaner way is actually reducing DSO and also our bad debt.

We have a drop in bad debt year-over-year, and we've been telling the market that will be continuous. It'll keep happening over the next quarters.

Let's talk about individual businesses and we'll go into detail on the next slides. Net revenue, EBITDA, consolidated company, we have a breakdown in each one of the brands we talked about, Ibmec, IDOMED.

We have Estácio Wyden here first, highlighting what we talked about, highlights Ibmec, IDOMED, 49% stake that was 32% in 2022. Since the pandemic, strong growth of two brands that continue to present new growth levers, high margins with very fast growth rates.

We'll talk about the opportunities we see both for IDOMED and Ibmec. It's important to say that we have this view that is in comparable basis year-over-year and exclude the fact that I have the loss in DIS addition or the DIS effect.

Second quarter 2025, we started having a drop of the DIS effect or addition. We talked about that in 2025.

First quarter 2026 has this relevant difference in terms of DIS addition. This improves the quality of our results and our earnings, and it reduces revenue, reduces bad debt and volatility over the years.

This is happening. We see lower bad debt now in a comparative year-over-year.

The first quarters, a drop in revenue that is not relevant to cash is accounting that will reflect into lower bad debt. This is important for comparable basis to bring this growth without the DIS number.

The number is there if you want to make the adjustment. It shows clearly what the impact is.

When we see comparable basis, we have a 5% growth in this environment that for families is more difficult in Brazil, 5% growth and with a margin growth 7% in EBITDA. Now with Estácio Wyden, we have a resilience at a time of regulatory change, very challenging time.

It's a year of transition. It's a year that we have the effectiveness of the changes of the legal regulatory framework.

This has been undermining the trust of consumers in the distance learning modality that was kind of pursued by this kind of regulation. Yet, it strengthened the semi-on-campus that we had been highlighting.

We named it as a modality under the new framework. It's a delivery format.

Semi-on-campus is very appreciated under the new framework. We see different intakes, semi-on-campus growing 67%.

We're leading this segment. We bet a lot along with the government, it's really reinforced by this framework, and we have great room for growth with the expansion of supply or offerings in the various centers.

We have our campuses on-campus, and we started offering that on the various centers and this great lever that we have of expansion. Through our hubs, we have the strategy that we've been adopting at campuses.

We have a footprint strategy actually privileging smaller campuses in more noble positions of retail, smaller campuses, better located, better positioned with great semi-on-campus offering possibilities. We have a strategy that we believe strongly that it's starting this year will yield great results in 2027.

We have no doubt about that. Speaking on the legal framework, the changes of the three delivery formats, it brings some challenges in this transition phase.

Along with the scenario of indebtedness in families, we have been observing that through market analysis, other segments, retail consumption, it's not different for education. It's a challenging year for this audience, for our families.

In comparable basis, excluding the DIS factor that is a third one that impacts this vision, this is just an accounting view. If we reduce that, we're keep on growing.

Very much driven by semi-on-campus. It's a transition year that will bring great positive fruits for Estácio Wyden.

We believe very much on the power of the two brands. We see great growth potential, Wyden, our umbrella of local brands.

We historically grew a lot with a single brand, Estácio, made acquisitions incorporated into the Estácio brand. We decided some years ago to create this second expansion strategy with local brands that are strong, that have a positioning in a second tier of population that allows us to have higher tickets, and we decided to keep the local brands and under the Estácio Wyden umbrella.

This has been having great growth potential in on-campus and digital. We have good positioning of the on-campus Wyden brand.

We're going to strengthen that on the digital, actually having the strength of the Wyden umbrella with great growth opportunities. Speaking of this outlook that is quite positive for the future, we have total intake without the performance we expected, the base with a slight drop because of this digital distance learning change.

It lost some strength in growth. When we look at ticket structure, very important.

On-campus, following the strategy we've been talking about, ticket recovery attains certain stability on its base. We've been fighting for growing ticket positioning, increasingly better positioning.

Recovering what we had lost, especially during the pandemic. This will bring some fruits.

We have healthier cycles with the reduction of DIS, better position ticket with a strategy that is less aggressive. We have better quality students who have 88% of renewal rates, and this should improve in the forthcoming years.

When we look at semi-on-campus and digital, the ticket is almost twice as much as digital. This migration of digital to semi brings us additional benefit.

It has much higher ticket with a behavior of students that we believe would tend to behave closer to the on-campus. We see that in the more mature cycle in renew rates, we see closer to digital, but it have great concentration of students in the first, second period.

That's where we have the highest rates of drop out. When they move on in their studies, we have students paying more with a ticket that is stronger with a trend of greater retention.

General quality of the student base will be higher than digital students. Digital students, we keep the ticket stable in a very challenging market, and we're not doing anything crazy there.

We're keeping it stable year-over-year, and that will be our strategy from now on. When we look at EBITDA, loss of margin in absolute numbers, most of it comes from the DIS decline.

If this factor were to be excluded, our margin would be stable. Again, even in an extremely challenging scenario of indebtedness of families, problems with revenue in a lot of the families, the revenue is being consumed.

It's election year, usually complex for consumption market, overall brings uncertainties. In this change of regulatory framework, the consumption decision of students has an horizon two up to six years.

They need to have certain stability when they look ahead. Obviously, a year with so many legal changes brings uncertainties.

Considering all the scenarios turning in 2026 a complex year, we bring results that are very robust for the Estácio Wyden brand. Here, getting to medicine, in the opening, we said it's a year that would be challenging considering the great offerings that we have in the market because of the consolidation of past years.

We worked hard in the past years to keep the IDOMED brand as the preferred brand in private education or medical education for our marketplace. In this more fierce competition scenario, this has been happening in 2026, IDOMED brand is positioning very well, 10% revenue growth pulled by great growth of intake, 8% of intake growth, attaining over 2,000 students for the first time, a symbolic brand or mark cornerstone for IDOMED.

Congratulations to the whole IDOMED team in a challenging time, keeping the margins relatively stable, and we keep on making investments, keeping quality, teaching, very well maintained structure, extremely high quality with the margin being kept at a very high level. We continue having ticket on lending very close to inflation to upperclassmen, also influenced by the intake.

We have a differentiated strategy here. We talked about that.

The new seats affect differently different markets. We have appropriate ticket to appropriate to each environment, and we have very high success in this strategy.

In Rio de Janeiro, a marketplace that was competitive, becoming more competitive, IDOMED is performing very well with great intake, excellent levels of NPS, very premium view of brands. Students leave for best residences and activities, we're very well positioned in Rio.

It's very important marketplace for us. On the second premium vertical, Ibmec, expanding its portfolio that was more restricted in the past, it's being very successful in courses related to technology, law school, and expanding its graduate studies, very important.

We haven't talked about that in the IDOMED. It's a very important lever, graduate studies.

This is very important for IDOMED and also for Ibmec. It's very large business here with a potential for growth that is huge.

Only good news here, 23% of revenue year-over-year, very strong growth, and margin close to 50%, 46% margin, growing 3.7 percentage points year-over-year with great growth, high growth, and high margin with growing margin within that. Intake is doing very well, growth in ticket, upperclassmen above inflation, but most importantly, intake ticket growing a lot, two digits growth, positioning Ibmec as a premium player in each one of its marketplaces.

We have 95% stable renew rate, increase in profitability, it's doing very well considering all its metrics. It's going to continue being a relevant growth lever.

We analyze new opportunities of growth levers that we have on our pipeline to carry out in the future. Getting to costs and expenses, I'm going to turn over to Aquino.

Talking about costs and expenses, I think the very relevant point here first to notice on the slides is that even going through a difficult macroeconomic moment with debtness of companies, quality of our revenue, engagement we had with students, we noticed reduction that is strong in our bad debt. When we have reduction of bad debt with lowest discounts and more penalties paid, the two lines impacting our financial results, we had an improvement of 2 percentage points compared to the first quarter '25.

Only in bad debt, the improvement was 0.7 percentage points. Estácio Wyden, the most impacted brands for macroeconomic context, had an improvement of 0.8 percentage points.

Additionally, if we make the comparison equivalent basis without the impact of the drop in DIS, we had an improvement of 1 percentage point compared to the previous year. Looking at numbers as reported, we had an increase 0.3 percentage points of M&S, and this is very related to the increase in allocation of M&S to the two premium brands that are growing very strongly, which is IDOMED, Ibmec.

Looking to the cost, G&A is related to two items. One-third of this variation comes from the increase of on-lending to main partners, and half of it is linked to more collections with positive effects on bad debt, and the other one related to the compliance of our centers to the regulatory framework.

It will have a negative impact to our cost of 0.3 percentage points of this year. Second important part is that with the increase of our premium portfolio of our brands, growth of Ibmec and IDOMED, we have an impact of cost of faculty.

Two-thirds of this vary in Estácio Wyden. We have more on-campus with the growth of semi-on-campus that increased the cost.

On comparable basis, our net income is growing 29% year-over-year. As we mentioned previously, the effect of DIS decline has an accounting impact, but it does not impact our cash.

You'll see on the next slide that the cash growth that we see compared year-over-year is much closer to the growth that we have when we make the adjustment of our net income because of the decline in DIS. In the quarter, helping our results, we had very positive financial results with interest, fines, and financial discounts that minimize the impact of the increase of the Selic or the interest rate in the quarter.

If you remember the first half of last year, Selic had a growing trajectory, reaching 15% in June, and we have a decreasing trajectory of Selic, the negative impact of Selic is greater on our part is the first quarter. We have depreciation and amortization.

We have small impact. On the next slide, we see, as always, the strength that we've had and our cash generation that has been recurring in our results in the past quarter.

In this quarter, we had a growth of 10% in cash generation compared year-over-year met by the free cash flow to equity, getting to R$276 million, record of first quarter. We never had such strong cash generation.

We accumulated in 12 months of R$525 million FCFE yield of 20%, such high return that we decided in this quarter to start a buyback program, as you will see in the next slide. Again, as we've mentioned previously, the fact that we have DIS decline does not reflect in our cash generation because it's much more accounting effect rather than business results.

We have a DIS decline, our cleaner results, more predictable with future drop of bad debt that we don't yet see in our results. This addition with the renewal of our students, the way we receive of private financing or loans.

With the measures we took the past years allowed us to actually have a reduction to 16 days, the DSO compared first quarter '25 to 2026. When we look at the end of first quarter, we close at a very cash position exceeding R$1 billion.

We'd see the amortization programs that we have this year in 2026 and 2027. We have amortizations that are quite easy or smooth we can do with our cash.

We start having amortizations plans in 2028 and 2029. We're going to work over this period to extend the debt, as we did in the past years.

This conservative attitude that we have to extend our debts allows us to tap into opportunities of the market, and we were able to leave from a spread of 2% practically the first quarter '23, one of the lowest in the Brazilian market, to below 1% in the first quarter '26. With this journey, we see our leverage.

We had our debt, we could reduce that, it would get 1.2 times our EBITDA if it hadn't been for the program we had following our strategy, our framework of capital allocation of having buyback, dividend payout, and M&A. In the past two years, we made major payments of dividends.

We paid dividends in April. This year, we decided to bring it earlier for February.

We had a drop in leverage that was less relevant had we kept it for April, but this will be reverted when we look at the results of second quarter. Additionally, we closed the UniFanor acquisition, yet another brand for our portfolio with on-campus operations and 60 seats for medicine.

We closed the payment this first quarter included in our net debt. We have R$75 million to be paid.

The share price, with dividend yield, FCFE yield actually allowed us to have FCFE yield. We have a buyback program.

We had R$30 million in this program. Now I'm going to call Rossano to continue with the presentation.

Thank you, Aquino. This is a traditional slide that we have every quarter.

We're very focused on the short-term results. Now it's time for us to soar the drone to have a more macro view.

Longer term, it's important for the business view that we have this feeling of ownership of the long-term value building, very consistent since 2019, before the pandemic, CAGR 7% year-over-year, very constant growth with margins keeping at very high levels, suffering very little during the pandemic, always above 30% year-over-year. We kept return to shareholders very constant, paying dividends every year, making several shares buyback programs, highlight 2024, 2025, almost R$300 million.

Now we launched this year a new buyback program of R$100 million we've been carrying out with discipline. All of this is driven or boosted by the great cash generation that we have in the past years.

We moved from negative cash flow in '22, moving to a cash flow in the past 12 months of R$525 million. We're going to show in guidance showing the trust we have in this growth of cash generation of these years.

Closing this slide, we have a transition. I'm going to say goodbye to Aquino.

He'll be back at the Q&A, and Marcel is going to talk about AI now. See you soon.

AI is increasingly a key part of our strategy. We've been talking about key investments that we've been making over the years, right, Marcel, setting up the basis so that we could take off and fly in our data structure so that we can bring features for the company, a leap that we started seeing this year.

Marcel is going to talk about our experience.

Thank you, Rossano. Good morning, once again, to comment on our AI initiatives that we've been carrying out at Yduqs quite broadly.

It's a strategic pillar for the company. We want to share what we've been doing in terms of expansion within the organization.

March this year, we took an important step launching Plai, which our platform of agents for Yduqs with the goal of having the company included in various processes. We had great addition in the part of creation of agents and training of all Yduqs associates.

Today, we have over 365 agents on topics and issues of the various areas. They're actually using the tools that are available to solve problems that happen on the day-to-day.

It's very much in our minds to have the AI tool supporting efficiency, productivity, increase in quality of our work, especially to serve our students. I have two examples of projects that were born in the Champions Program.

It's a program of replicating and expanding the literacy in AI of all our associates. The first one is the Nora project that was born thinking about digital product development.

It encompasses not only being a quality predictive in software development, but it reorganizes the whole ideation, planning, story creation, and implementation very close to digital product with also coding. The gains in rework, resource allocation, productivity are obvious and very fast.

I think it's a project that was born within a digital product cell to resolve an existing problem. Another one, how AI agents have been driving the operations, which we've been trying to help Aquino with the tools and the team.

Financial operations has developed within the bad debt project a tool that analyzes and reduces a lot of time spent in financial information that are quite spread in the organization. Those initiatives show the potential of the tool to have as a great accelerator of AI in the company, the associates.

That's wonderful, Marcel. In the past quarters, were some cases top-down, great cases of use in the organization of agents and customer service, sales, content production, things that we do in a centralized way and we open up.

This is a view that is bottom-up. We actually prepare our associates to have this ability and understand the day-to-day problem, how they're going to use AI to their benefit.

This is one of the great revolutions of AI. It's a technological leap that is so important,

democratizing the access of tools that used to be very restricted to technology. Now there are tools available to anyone in any area, in finance, technology, we have many people in marketing.

It is funny to see this change as how we have been facing this technological change in a dual way, bottom-up and top-down, and the two yielding great results to the organization with important training aspect. We start training internally and we think how we take that capacity-building program to students.

We've been discussing a lot the replacement of humans by AI, but we want to boost human capacity to deliver results. On our ESG slide, we highlight the publication last year of our Integrated Report 2025, once again.

2025 was super important year. We published our sustainability strategy for the 2025-2030 period, our leading role in this ESG.

We have four, education, governance, and several areas. We have important roles in these pillars, several certificates obtained 2025.

One of them, Yduqs once again has this leadership role in education. When we look at 2026, we have several accomplishments.

I'm going to talk about the literacy program. As I'm very fond of it.

We aim through our educational lever, we know it's a company that is focused in higher education, but we have this commitment and our surroundings to eliminate illiteracy in each one of our units' communities. We're trying to actually boost those programs.

We have important place there. We are present in 10 states in Brazil.

The idea is to expand the program to the whole of Brazil. We were at the Forum Women in Sport.

We are actually the only partners of the Brazilian Olympic Committee and innovation and employability. We've been developing several initiatives.

I'm going to highlight the professional experiences that we provide to our students, immersing students in fields of events, audiovisual, manufacturing, and scientific research. Employability is the core of our business and covered by this umbrella of ESG of the company.

Thank you, Marcel. Now we get to the guidance slide.

Traditionally, closing the first quarter of the year, the strongest in intake, we have more confidence to talk about our yearly view 2026 and the forthcoming years. As we commented over the presentation, we have this portfolio of businesses that is very strong, giving very great reassurance.

We see a scenario of growth for the business, all verticals. It's a more challenging year in the intake of Estácio Wyden because macroeconomic conditions, debtness level, the regulatory framework, but when we look ahead, we see great opportunities for growth, several levers of growth that we've been exploring within the Estácio Wyden, Ibmec.

Ibmec, IDOMED, as we mentioned previously, deploying their levers of growth, and we're finding other growth levers. We're delivering this growth in an environment that is challenging with high profitability, very strong cash generation.

We think it's a main indicator to look at the basis of our business and the outlook we have ahead. We have the impact.

We talked a bit about the penetration of DIS, a decline. It impacts revenue, the results, but almost no impact to cash.

Cash is the clearest indicator for you to envisage results over the next years. In the release, we have other results of initiatives that have impacted the results of 2025 and not impacted cash.

The profit should be recovered considering the cash. Our view of cash that we deliver R$500 million cash generation or free cash flow to equity.

Very strong. When we look at 2026, we see the growth again on this number that is already high.

We have a range from R$520 million to R$620 million over 2026. When we look ahead, we continue declaring here or stating our vision of growth of results in this interval between 2027 and 2030.

The earnings per share impacted by some of the accounting points we had in 2025. Even so, we see a range of growth.

We're expanding the range of our guidance. Last year, we had a range of only 3 cents per share, minimum and maximum of guidance.

Today, we are expanding that. Small variations on revenue, the number is not proportional.

Profit is very leveraged in this sense, they impact the earnings. We increased the range, guidance for growth of 2026.

When we look at '27 to '30, we see earnings per share going from 2 to 3.5 times in our maximum scale. Very confident in the future of company, our capability for growth with very high profitability, very strong cash generation.

This is our view of results for the next years. Now we get to the end of our presentation.

Thank you very much to all of you who have been with us up to now. It's been another quarter that strengthens our strategy.

We had a very strong cash generation quarter, which has been our main discourse over the past years. We're certain that this is what shows the strength of our business.

We have our guidance, the confidence we have on the continuity of this delivery. This has been done thanks to the strength of our portfolio.

First quarter very much defended by IDOMED, Ibmec, great growth with high profitability, growth on all verticals with several levers still to be developed. Great potential for growth in the future for those units.

When we look at Estácio Wyden, we see the great resilience in a macroeconomic environment that is very challenging, the availability of income of the population is so challenged, and the regulatory framework being put into effect creates challenges. These difficulties position Estácio as the leader in the segment, and I'm sure it will be even stronger in 2027, contributing to our journey of growth of cash generation.

We're sure that with our discipline in capital allocation, our framework that has been communicated has been executed with great discipline. We're a company that would generate great value to shareholders in the short, mid, long term.

Thank you very much for your time. We'll move on to Q&A now.

Hi. Good morning, Rossano, Aquino.

Thanks for the time for questions. We have two here.

First on receivables. You mentioned during the presentation shows how you're focused on generating cash.

We see a reduction in the DSO that is quite important. I'd like to know if this term is sustainable in this level, if you have room for improvement, and which would be the levers for this receivable to improve ahead if there is room.

The other question is regarding personnel cost. We see an increase that is more relevant there when we compare with the revenue evolution.

I'd like to understand looking ahead if this level is sustainable, if you have some more costs to come in as you move on along the year and until 2027.

Thank you. Good morning, Flavio.

Thank you for your question. I'm going to start answering the first, and then I'll turn over to Aquino to add.

Very sustainable. We had been talking about receivables.

This is a move we had been building. It's an important, integral part of the strategy of cleaning results that makes results more stable, more consistent, more predictable.

It's a message that we had been sharing since early last year, and it continues. Factors that gradual reduction, a decline of DIS that impacts the revenue year-over-year, it reduces bad debt and was featuring on fourth quarter last year.

This will be stronger this year. Provision for non-engaged students we started working on last year, it reduces the account of accounts receivable and bad debt.

Yes, it is sustainable. We have room for improvement.

There is still things to be captured and will happen this year. It's not by chance.

It's a planned action, structured one that will go in the direction of what we believe in terms of our market strategy. Aquino will answer your second question.

Good morning, Flavio. Thank you for your question.

I think Rossano covered the points quite well. We've been showing this decreasing strategy by average receivable standing time, this better strategy, the days of sales outstanding.

This has led us to consistently be reducing our DSO. Looking ahead, we have this effect that is temporary this year of the change in the Pravaler.

We received as students paid, and we started receiving in this semester the student are in the school. This is transient, and we had an improvement of R$90 million.

This year, we have about R$35 million to improve that will reduce our accounts receivable in the future. The decline in DIS has helped us in the past quarters, and we notice looking ahead that potentially it will stabilize.

This is what we've noticed. The DIS addition dropped a lot first quarter last year, even more so in the second semester last year.

We are at a level now very similar to what we had in the second half of last year. This part actually is related to your second question.

When we look at our drop in profitability, smaller margin as the number reported is linked to the decline in DIS. If we eliminated this effect, we would have an increase of 1 percentage point in our margin compare year-over-year.

Looking ahead, this DIS addition will be more stable second half when we compare it to last year. This effect, it'll no longer exist in the second half.

Regarding costs, what we had is increase of on-campus, our premium brands on the portfolio, IDOMED and Ibmec, and the semi-on-campus. The net should be an increase in margin that we would have seen if it hadn't been this decline in DIS.

We had increase in costs, we offset in the other lines, and we'll have a margin increase if that. Let me add towards of private financing or private loans, Aquino.

This is a move that is sustainable and stabilizes actually lower levels of accounts receivable. Before you had receivable model as students left the course, we received cash, and we turned.

Actually, everything students pay in the course. We kept the long-term accounts receivable as long-term accounts receivable is reduced, generates specific cash inputs.

It will further reduce that this year. Another help this year that will actually improve our DSO.

A structured action that will remain at the level that we have today and drop a bit considering the moves we are expecting to happen. Thank you, Flavio.

Thank you for your answers.

Hi, everyone. Thanks for taking my questions.

Two questions on the guidance. Looking at the GPS guidance, what's the level of recovery of distance learning that you're considering for second semester and what level of margin that is embedded in this guidance?

Second question is regarding the cash generation. You sold the property.

How much of the cash generation in the guidance comes from the sale of this property? How much of it is in the first quarter, just for us to try to understand this recurrence in cash generation?

Thank you. Caio, good questions, Caio.

How much you have in recovery of distance learning first quarter, when we look at it until the end, we see the strong migration of less distance learning and more on-campus. This should continue over the year.

First quarter is more impacted by intake when it's stronger, but in proportional terms, we don't see great fluctuation happening for the guidance to happen. We have upsides here if we have better performance over the year.

The margin, I think Aquino mentioned that we see it stable year-over-year on the guidance. We don't see great levers for growth nor margin reduction.

Our aim is that the margin should be relatively stable. Excellent question regarding the property that may generate the question.

The impact of cash of this property is about R$1 million, R$1.5 million that almost did not impact the cash of this year. We have some positive impact, but contributes very little for the year.

It was a sale on installments, negative impact that we had. It was precisely the sold amount that will be turned into cash of the accounting value.

Negative cash impact was zero, R$68 million, and the receivable will happen on installments. The impact of this quarter, very small, R$1 million or R$1.5 million in the quarter.

Anything to add, Aquino?

I think it was R$1.3 million in the quarter. In the year, R$5 million, around R$5 million, very little impact to the cash flow considering the sale of this building.

Good morning, everyone. Thanks for the opportunity of asking questions.

You've mentioned the fierce competition in medical schools. I'd like to have some more flavor of that.

What market suffered more? What was the ratio, candidate seats?

The second question, you just mentioned that see the margin on the guidance kind of stable. How is this broken down in the different business units that you've opened up, just to understand?

Thank you.

Marcelo, thanks for the question. I'd like to thank everyone, all the analysts for being here.

I know you are quite busy this week, everyone making their presentation. Thank you very much for honoring our call and asking your questions.

Great question on fierce competition. We've mentioned that this is an important year that is very important for medical schools.

Everybody was anxious regarding the market with this great volume of new seats, considering legal measures in the past years. We would see this impact more significant than previous, we see it happening, in fact.

What happened, market by market and it's very heterogeneous. Some marketplaces were very protected because they had a smaller volume of new seats, or maybe the brands were very consolidated.

Some marketplaces have 25, 30 years of market presence and were very solid there. In those places, nothing changed.

They had very similar competitive dynamics, and our behavior and our situation had no impacts. In other marketplaces, the most impacted marketplaces, we actually have two factors, isolated and added.

They're small marketplaces in inner states that depend on other larger marketplace to feed students, and they had too many additional seats offered. The market was more competitive.

Everybody was looking into that to understand the competitive environment. We saw on our call and other market partners, other companies working on medical education, what happened was an expansion of penetration of FIES to supply greater competitiveness on the market.

It was not a transforming volume, but that actually impacted intake. We had a successful intake.

We showed the number for the first time, IDOMED attaining the level of 2,000 students, highest intake in the history of IDOMED is a challenging environment. We had this cornerstone level of 2,000 new students.

This impacts initial effect of revenue. You have FIES, we have more quality students there.

FIES will have zero bad debt. The discount is an anticipation of recognized bad debt by the government, a much higher level of retention.

Students stay much more than ordinary tuition fee-paying students. Financially, you eliminate the disadvantage of initial NOR, and we have the FIES student with an additional benefit.

It's academically very strong with competitiveness and competing for the FIES seats in institutions that is very high. The filter is very tight, and students that join with very high scores, very high accomplished students, this will impact at the end when we have the general examination of the government, the ENADE examination, they're going to perform very well.

I'm going to leave the second question for Aquino to answer.

Morning, Marcelo. Thanks for your question.

As we've seen in the first quarter, if we look at our margin, the consolidated margin, we had a margin of IDOMED moving sideways and Ibmec growing up over year-over-year, and Estácio Wyden was impacted because of the decline in DIS. Looking ahead, our expectation is that we don't have decline DIS, the comparable basis is more favorable from now onwards and in the even numbers, the quarters, we have similar DIS.

The levels will be the same as last year, the IDOMED with similar margin, the Ibmec, we should have some margin gain compared year-over-year.

Thank you very much, very clear.

Marcelo, I'm going to allow Silvio to add that because the medicine question was very good. Tell us about the outlook on the quarter.

It's important for Silvio to give you some flavor of medicine from now on, very briefly. It is fact that some marketplaces, we've seen this move which we had more seats, a change in the demand.

We notice this cycle reinforces our view onwards. Some families that chose some courses that were new in places that are not so consolidated, we notice a return of the demand, a perception that quality, the offerings, technology, and infrastructure, they briefly is noticed as a differential.

We've seen some places as Rio de Janeiro, for example, that you followed that it was the first move of opening's courses, moved the distribution of demand.

This briefly was resumed because the courses are in places that do not deliver the level of service that is compatible. Even with the ticket that is R$1,000, R$2,000 below, is not worthwhile.

We mentioned that previous, we kept on investing on differentiation. Naturally, this would be rebalancing.

We keep on believing on that. Despite having more seats, the differential actually gives an impact to this kind of audience.

What do you need, one or two intakes to have this return, one or two cycles, and then you start noticing the return. Yes, precisely one or two intakes, and then we start noticing this resumption of schools with more tradition, not only our case, everyone, those adventurist schools with lower quality, they had a move of pulling the flow, and two cycles later, we see the return.

Not a cycle, we had 2,000 students of freshmen. We see the return.

Students go to other institutions with no benefits, and they have external transfer. This has been a clear movement in the industry.

Thank you.

Good morning, everyone. Thanks for taking my question.

I just like to understand specific point when we look at results. It's a very specific result looking at the earnings with more operations when we talk about fines, receivables on the side of revenue, and discounts, you see great improvement.

You had an increase of a bit over 20% in revenue and it dropped financial discounts. I'd like to understand a bit of the reason behind this, if we could continue on this part of operating financial results if we could call it so.

What would be the recurrence of this in the next quarters? Another point I'd like to dive into, you've talked a lot about cash generation, but I just like to see what it's implied here in the minds of the head of company for capital allocation.

You've been very assertive in the buyback program, you have dividend payments overall, just for us to understand if there is a wish of the company of trying to outline a specific policy of dividend payouts, every time the company shows cash generation of X and it attains a net debt of X, it actually pays out to shareholders. I don't know if you can explore these topics a bit.

That would be great.

Thanks, Vinicius. Great questions.

Second question, in our Yduqs Day, we launched our capital allocation strategy. We mentioned that the main focus would be reducing leverage.

We would generate cash and we'd use the cash fundamentally to reduce leverage until we would reach the multiple of 1x net debt EBITDA. We are on the track.

We would tap into opportunities. We would be opportunist, but considering opportunities.

We had R$300 million in buyback 2024, 2025, a new buyback program of R$100 million because of market conditions. We have our guidance, our framework.

We didn't know how the market would react. Obviously, we cannot be blind considering those opportunities we have.

We have to embrace them. A specific M&A just came up.

We recently had UniFanor, very well positioned institution in Fortaleza. We're very happy with the acquisition of on-campus.

It's a brand on digital, great school of medicine. We're sure that it's very accretive to the group and we'll keep on looking for small opportunities.

We're focused on getting 1x net debt EBITDA. This should happen in 2027.

We should attain this goal. Dividend payment happens or follows what we mentioned in the fact, also the minimum using adjusted net income to calculate the minimum.

We should have stable payment as we had in '25, similar in '26 until we attain the goal. From then on, the idea is to have a vision of payment of dividends more established until we get there.

This is the framework: total reducing leverage and payment of dividends close to minimum, similar to what we've been doing in '25 and '26. Let me turn over to Aquino to answer the second.

Excellent question, Vinicius. We actually had on our report, if you look at it in details, when we report bad debt, we report those two lines to show that this has been very positive effect that has helped our financial results, not only this quarter, but in the past ones, linked to our better renew rates and we've been able with a better collection and both academically, keep more engagement of students and lower short-term bad debt.

As we renew students, we need to offer less. This comes for the renewal and generates positive results.

In addition to improvement in bad debt, we have positive results on the two lines of our financial results. The expectation is to keep on this level, much better than previous year.

Thank you.

Good morning. Thanks for allowing me to ask questions.

I have two on our side. The first regards slightly higher dropout rate year-over-year on on-campus.

I'd like to better understand that if the company sees any risk of cannibalization of the on-campus offer to a higher offering of the semi-on-campus. Some courses can only be offered on on-campus, but for other courses overall, I'd like to know if you see a bit of this trend as a company.

Second is on the intake cycle of first quarter. We had the key turning of regulations.

What has worked, what hasn't, how the company has been addressing what did not work well for the intake in midyear? Thank you.

Thank you, Eduardo, for your questions. On your first point on dropout, it's really negligible on on-campus.

Nothing structural, and certainly has nothing to do with the expansion of semi-on-campus. The semi-on-campus at the campuses where you could actually have this migration has been happening for a long time, very little impacted now.

What is impacted on-campus on the campus is the positive in the starting of the in nothing when the core courses. It's not a great impact.

We're working hard to improve students' satisfaction. We're working hard on AI.

We should actually increase our level of retention that we have in our students. On intake, I'll turn over to Marcel, but overall, we actually are happy with the intake results.

As I said in a year, everybody can see the news, families are in debt. Now this is historical.

This makes the decision of students more difficult, they actually have to decide on higher education, and these are more challenging years. Considering that, it's been very good year considering the difficulty of implementing, well, on intake, you have the new regulatory framework fully implemented.

For intake, we have all the courses adapted to the framework. It's a year that is adaptive to get to the right level of prices for the students to understand on their options.

It takes a bit longer for the learning of students and the offerings to balance. This has been a scenario of intake, considering that we grew.

We knew on-campus growing a lot semi-on-campus grew a lot with the delivery official format. Now this is actually working.

We've been having great results. Let me turn over to Marcel to go into details here.

Thank you, Rossano, Eduardo. Just to add, we've been very prudent in the part of pricing tickets, especially on on-campus.

We've been following this wave for some semesters and we've been able to keep that quite well and control it. Something we managed to do quite well has been our marketing investments that were needed to get our intake.

Adding to what Rossano mentioned, in line with what we're looking ahead, I believe again we have this market pricing discovery in the semi-on-campus that we're following up for clients. This is becoming increasingly clearer the boundaries of each one of the products and we understand how the dynamics of those courses operate that are mostly on distance learning.

On on-campus, we've been working on portfolio improvement, expansion of course distribution, that something we've been working on generates a workfront that has been in operation the past quarters and now we are more robust and stronger to expand. This implies reviewing the course portfolio that we have in every marketplace and privilege the courses that are more on-campus that naturally have higher pricing.

Hi, Aquino, Aquino, and other directors. Thanks for the time.

Let me tap into the center question to ask about something else. Even if you try to offset the economics of those sites, we may understand that some places become unfeasible because they can no longer have pedagogy.

Some courses have become more unlikely. Do you see any potential reduction of the number of sites considering the new legal framework?

How many will be shut down, consolidate the profile of those locations that are more impacted? What kind of course will be offered on those centers if this actually changes the profile of what those centers will be in the future?

I'd like to go back to another topic of dropout rates, not looking at the past, but looking to the future. You comment a lot on the results on macroeconomic pressure, elections, greater indebtedness of families, less trust or confidence.

Do you see that would be a greater pressure on dropout rates in 2026, which you lose more than normal of the intake that you had in first quarter of the year? Thank you.

Thank you for the question, Cepeda. Second question, it's a good question.

We don't see this phenomenon happening at any other times. The mass education market is cyclic.

You see this phenomenon, credit tightness and then you have an economic relief, greater intake. We don't see this correlation with dropout rates happening as it happening in intake.

Much on the contrary, when you have lower intakes, lower volumes of intake, it's almost like a peeling of the student base. You have more qualified students coming in that have a greater trend of retaining, more financial possibilities leading to lower dropout rates historically.

This is not what we see. We don't consider that we have greater pressure for dropout rates.

We had similar scenarios, tight scenarios with interest rates, more indebtedness of families, we don't see that happening or impacting our dropout rates. This is what should happen this year.

I'll allow Rodolfo to keep talking about the various centers.

Thank you for the question, Cepeda. In this context, we're talking about legal framework and center sustainability, this has different impacts when we talk about locations.

Large, midsize companies will have more restricted impact. We see that as growth opportunity for semi-on-campus.

In small towns that we had been signaling since the legal framework was just closed was how much this could actually limit the access. In small towns, actually, what we see that they tend to have a movement of reduction.

This is not relevant. It's important to clarify considering the business model that we've been building, it is sustainable although with all the reductions, changes in portfolio, we've had semi-on-campus has offset part of that.

Some locations will be shut down. It's not of greater impact, considering the impact of those hubs, they had actually little impact.

We won't have impact in terms of the number of centers and results. I'd like to draw the attention to this point.

We are a company focused on results, but we also have this accountability in terms of social impact as a public policy. We think it's a topic to be addressed by the government to think about access in some places where obviously this move towards a more restrictive legal framework for distance learning excludes a certain segment of the population, certain marketplaces.

It's little representative for our profit and our results, but certainly has a social impact that may be an upside there possibly as a public policy should be resumed. Going back to our fundamentals, Brazil is a country for great opportunity for higher education penetration.

We have structural reasons for us to believe that still a country in which higher education has great value. Employability, when we think about students that coming out of higher education and not coming out of middle school, it's a great difference.

Studies show that clearly there is a great difference in value. We are exposed to the macroeconomic waves, but we keep it there.

Most of you as a professional covering this industry can see this positive outlook that education industry has in terms of growth in Brazil. This is a great fundamental of education.

This is the great fundamental for education in Brazil. Thank you very much for your questions.

Thank you, Rossano and Rodolfo.

Good morning. Thanks for the time.

Brief question. I'd like to understand this new opening brands.

Give a focus on IDOMED if this has any change in strategic bias, if you have an improvement in Ibmec. I'd like to understand the strategy for this business line, thinking about Ibmec specifically.

On Ibmec, I understand that an avenue, a segment of high growth with margin opportunity, I'd like to tap into what Aquino mentioned. You have margin for Ibmec, but thinking about matured center, how much do you expect of margin and results for the company as a whole?

This is it.

Renan, thank you for your questions. First, Ibmec is a super strategic vertical for us.

We've been opening its results since last year and we bet strongly that it is a business of growth, of high profitability, not common in education as a whole. It's a jewel that we have in our portfolio that has been growing consistently with high margins and growing in some quarters.

This will keep on happening. We still have opportunity for growth.

We constantly find new growth opportunities for Ibmec. It has good penetration in the main marketplaces it operates, growing in Brasília, the course is maturing, new campus in Rio.

We have a new positioning. The campus is not so new in São Paulo, Faria Lima, new areas with highlight in those cities.

We have possibilities of geographic expansion. We'll analyze carefully.

Throughout its life, it's underpenetrated, just as IDOMED, another opportunity. Two very strong brands in undergraduate studies that do not have a super share.

Throughout their lives, they have great room for expansion for Ibmec and IDOMED. In terms of margin, obviously, we will not keep expanding 4 percentage points in margin.

We still find room, we'll get close to stability. We should operate with a margin that is close to IDOMED today.

This will depend very much on the expand of Pravaler program, we're constantly studying that. I cannot give you such clear outlook, but we certainly have space for margin expansion and growth opportunities.

I think I've answered your questions. Very clear, Rossano.

Thank you.

Thank you very much, once again. I'd like to thank everyone's presence.

We know it's a very intense week for earning results calls, and we had great questions that helped us to clarify even more the content of our presentation. I hope you have reinforced your belief in ours that which is great in the capabilities of this business of increased profitability, cash generation, and also growth.

We talked about all the levers that we see. We have several others that we are sowing.

Main verticals that we reported, IDOMED, Ibmec, I just mentioned answering Renan's question. We talked a bit of Estácio Wyden.

Even though it's very mature, we still have fantastic opportunities for us of gaining a share, margins, expansion of penetration, fundamental reasons for us to believe in the expansion of business of higher education in Brazil. It will be a business that will generate a lot of cash for shareholders, return on capital, very disciplined, disclose, clear, consistent of the business.

I'd like to close our meeting. Once again, I'd like to thank everyone for your attendance.