Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgilio Gibbon, and our CFO, Luis André 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 for 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 second quarter and first half conference call for 2026 results. Starting with slide number 3, once again we delivered a solid performance closing the first half of 2026 with revenue growth of 7% year-over-year, reaching R$ 1,985 million.

Adjusted EBITDA reached R$ 918 million, growing 3% year-over-year, with an adjusted EBITDA margin of 46.2%, a contraction of 190 basis points compared to the same period last year. This margin decrease primarily reflects the lower gross profit contribution from continuing education driven by a higher sales and market expenses associated with investment cycle outlined at the beginning of the year across continuing education and Medical Practice Solutions.

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

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

These results reflect the strength of our cash generation, disciplined execution, and our continuing commitment to create long-term shareholder value. Moving now to operational updates, we have 3,768 operating medical seats with an increase of over 6% year-over-year.

Furthermore, our number of undergrad medical students grew to more than 26,000 students, representing 3% growth compared to the first half of last year. Additionally, we increased the net average ticket of medical school by almost 4% year-over-year, reaching R$ 9,443.

In continuing education, having increased almost 5% over last year, reaching R$ 144 million. In Medical Practice Solutions, we saw 2% growth in revenue compared to the first half of 2025, reaching R$ 85 million.

Our ecosystem now accounts for 295,000 users, reflecting continuing meaningful penetration among physicians and medical students across the country. Moving to slide number 4, we will discuss the highlights across our three business segments.

The first half of 2026 was marked by favorable pricing trends in medicine course, where ticket rose by nearly 4% year-over-year. In addition, we continued to deliver strong student base growth momentum in health sciences course.

Compared to the previous years, health sciences course delivered 13% growth, reflecting the diversification of our health-related undergrad portfolio. The continuing education segment was once again marked by strong growth in our total student base, which expanded 23% in the first half of 2026, driven by higher intake in short-term programs, which carry a lower average ticket per student.

B2B revenue for the segment grew 8% compared to the same period of prior year. The Medical Practice Solutions segment delivered a 20% increase in clinical management active payers in the first half of this year.

In addition, B2B revenue for the first half grew 5% year-over-year. Lastly, shareholder returns remain a key priority.

Our disciplined capital allocation framework continues to create sustainable value for shareholders. At the corporate level, supported by strong cash generation, we returned R$ 448 million to our shareholders through dividends and share repurchase in the first half of 2026, representing 106% of our free cash flow to equity.

This reflects our disciplined approach to capital allocation. When acquisition opportunities do not meet our return criteria, we return capital to shareholders.

The strength of our cash generation gives us the flexibility to pursue acquisition when attractive and to consistently return capital to shareholders. Now, I will turn the call over to Luis Blanco, Afya's CFO, to provide further insights into the financial and operational metrics.

Thank you all.

Thank you, Virgilio, and good evening, everyone. Starting with slide number 6 for discussions of key operational metrics by business unit.

Starting with the undergraduate programs, our medical students base grew by 3% compared with the first half of 2025, reaching over 26,000 students, while operating medical school seats increased by over 6% year-over-year to 3,768. Our medical school net average ticket increased by 4%, reaching R$ 9,443 in the first half of 2026.

As a result, revenue for the undergrad segment grew over 7%, totaling R$ 1,762 million. It's worth mentioning that 85% of this revenue comes from medical programs and 93% from health-related courses, reinforcing our strategic focus and leadership in the sector.

On the next page, I will present our continuing education operational metrics. We approach continuing education through three main journeys.

Starting with the residency journey, which encompasses products focused on the residency preparations, the student base remained stable year-over-year, reaching 9,244 students at the end of the period. In the graduate journey, which focuses on the specialization tests preparations and graduated medical education, the total number of students increased by 13%, reaching 10,213 students, supported by the continued demand for advanced medical training programs.

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

This performance was primarily driven by B2P revenue, which increased 8% year-over-year to R$ 135 million, representing 94% of the continuing education revenue. Meanwhile, the B2B revenue totaling R$ 9 million, declining 25% year-over-year.

Moving to the next slide, I will discuss the Medical Practice Solutions operational metrics. The total active payers remaining broadly stable year-over-year at approximately 201,000, with clinical management active payers growing 20% to more than 50,000, reflecting the continued penetration on Afya iClinic.

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

On the next slide, we present Afya ecosystem. We are proud of the meaningful impact that Afya continues to make across Brazil healthcare ecosystem.

By the end of the second quarter of 2026, 295,000 users were actively engaging with our services and products, reflecting our solid relevance and reach in medical educational and medical solutions. Moving forward to page 10, I want to discuss our financial overview for the second quarter and the first half of 2026.

I'm pleased to present another solid set of results for Afya, reflecting the resilience of our business model and our continued focus on sustainability growth and operational efficiency. Revenue for the second quarter of 2026 reached R$ 972 million, representing a 6% increase compared to the same period of the prior year.

For the first half of 2026, revenue totaled R$ 1,985 million, 7% year-over-year increase. Adjusted EBITDA reached R$ 407 million in the second quarter of 2026, an increase of 1% compared to the prior year.

For the first half of the year, adjusted EBITDA totaled R$ 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the six-month period.

While margins were below those reported in the comparable periods last year, reflecting a combinations of continuing investments to support growth initiatives and the investment cycle across continuing educational and Medical Practice Solutions, profitability remained healthy. On the next page, cash flow from operating activities reached R$ 806 million in the first half of 2026 compared to R$ 783 million in the same period of the prior year, representing a growth of 3%.

Cash conversions remained strong at 87.8%, broadly stable compared to the prior year. Net income for the second quarter of 2026 totaled R$ 201 million, an increase of 14% compared to the same period of the prior year.

For the first half of the 2026, net income reached R$ 463 million, growing 7% year-over-year. Earnings per share increased to R$ 2.22 in the second quarter of 2026, up 17% from R$ 1.90 in the prior year, higher than the net income increase, reflecting the execution of our buyback program.

For the six-month period, earnings per share reached R$ 5.10, up 9% from the R$ 4.69 in the first half of 2025. Overall, these results reflect Afya's ability to continue to generate solid cash flow while delivering consistent growth in profitability and shareholder returns.

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

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

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

On the next page, we can look closely at the net debt variation. As of June 2026, our net debt totaled R$ 1,394 million, remaining virtually unchanged from the end of 2025, despite returning R$ 448 million to shareholders through dividends and treasury share repurchase during the first half of the year, reflecting our strong cash generations and disciplined capital allocation.

Our net debt positions continue to benefit from the solid cash flow from operating activities, which totaled R$ 806 million during the period, largely offsetting investments, leases, interest expenses, and shareholders distributions. Our Afya net debt excluding IFRS 16 divided by the midpoint of 2026 adjusted EBITDA guidance was 0.8 times.

In my last slide, we paid R$ 307 million in dividends during the second quarter of 2026, representing 40% of our 2025 net income, while continued to execute the share repurchase program. Our consistent growth in net income and cash generations has enabled us to enhance shareholder returns while remaining disciplined in our capital allocation decisions and focus on the long-term value creation.

In first half of 2026, we returned R$ 448 million to shareholders, surpassing our free cash flow to equity of R$ 423 million for the period, resulting in a 106% ratio. Our last 12 months free cash flow to equity yield stood at 11%, calculated on market capitalizations as of 30 of June 2026, and basic EPS growth reached 13% for a total equity return of 24% at constant valuation multiple.

This concludes our prepared remarks. The first half of 2026 reinforces what we have consistently demonstrated over time: a resilient business, a focused team, and a strategic path that is working.

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

Thank you.

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

Hi, good evening. Thanks for taking my questions.

I have two. The first, if you could talk a bit about the competitive intake in the second half, and how you're seeing the pressure for ticket, the capacity to increase prices.

That's the first question. The second question is regarding Medical Practice Solutions.

It was a bit down this quarter. Just wanted to get a bit more detail and when we should see the increased investments start showing results in the revenue side.

Thank you very much.

Hi, Marcelo. Virgilio here.

Related to our intake on the second half, we are once again aiming to have 100% of all of our occupancy fulfilled. All the Prouni and FIES cycle is a little bit late.

We are waiting for these enrollments to be completed by September. Once again, we have a solid and healthy intake.

The price, I think we are not changing price for the second half because we're doing the beginning of the year. We are not also giving any discount for our medicine programs.

On the health programs, we are seeing a very strong intake at this moment. We will also end on the beginning of September.

We are more than 20% above from last year at the same period. We are growing organically more than 18% in volume in health.

We're expecting to be above that for the second half. That's on MPS, Blanco will help me here.

Hi, Marcelo. It's Blanco speaking.

Thank you for your question. Regarding the MPS, the general environment of what's happened there, we have been having some pushbacks in terms of clinical decisions on Whitebook.

These pushbacks in terms of active payers are due to the competitions by the AI tools that are pressuring the number of payers. What we decided that we would to reduce a little bit the ticket on that and increase functionalities embedded on the Whitebook.

By the other side, on the clinical management system that are major and encompass iClinic, we have a very positive cycle. We are growing faster, but this growth is not sufficient to surpass a lot the decline on Whitebook.

The both together, on the business-to-physician side, we are growing semester by semester just 1.1%. Having said that, just remember that our investment cycle that we've announced in the beginning of the year encompass an investment cycle.

This investment cycle is both regarding CapEx that we are increasing the intangibles in the year if we compare to last year to increase functionalities in both in iClinic and Whitebook, and investments in teams increasing the number of the team members on the segment. We are under our plan to put more functionalities on the segment, increase audience first, and then in the future have this recover in terms of revenues.

Great. Thank you very much.

Thank you.

Next question comes from Flavio Yoshida from Bank of America.

Hi. Good evening, Virgilio, Blanco, Renata.

I have two questions here from our side. The first one is on EBITDA, okay?

If we get the first half EBITDA and annualize it, it gets us to roughly 1.8 billion for the year, which is pretty much the top of your guidance range, right? Since you guys didn't make any changes on the guidance, should we expect the second half EBITDA to come a bit below the first half, or you guys just prefer to be a little bit more conservative here on the guidance?

This is my first question. My second questions is on capital allocation strategy going forward, right?

If you guys could share with us some details on how do you guys plan to balance an eventual higher dividend distribution or a more active approach on M&A, right? Also if you could share with us how is the recent M&A environment for medical courses.

Thank you.

Thank you, Flavio. It's Blanco speaking.

I will start with that. Regarding the first one under the EBITDA, we are focused on delivering the EBITDA that we provided to the market.

That's between R$ 1.7 and R$ 1.8 billion. We guided the market, and we delivered as we always do regarding the guidance.

Regarding the capital allocation itself, what I can assure you that all Afya will always be very, very conscious in terms of capital allocations. Since IPO, we've made 22 business combinations and we take capital allocations very, very, very, very serious.

If we don't have opportunities that attain the thresholds in terms of concentration in medicine and mostly the IRR that these business combinations do not have a return on the capital employed in this business combinations that is above our thresholds that's 20% minimal, nominal, unleveraged, we simply do not do the business combinations. We're very careful on that.

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

It's very important going forward to have in mind that we have a opening buyback in place that we've announced in August of last year, if I'm not wrong. Right now from this 4 million shares in buyback that we've announced, we've performed 2.

2.6 million shares. We had a firepower of 1.4 million to perform until the end of this year.

Flavio, if I may add here and summarizing what Blanco also mentioned. We keep aware about M&A opportunities considering this threshold.

We have a good pipeline in our hand here. As you saw in the first semester, we distribute almost 100% of Actually, more than 100% of the cash that we generated to our shareholder through buyback and dividends, and also keeping a very low leveraging on our net debt.

In parallel, we are also investing a lot in terms of product. You can see the intangibles.

We are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solutions. We are levelling prescription into our clinical decision solution.

We are reaching more than 50,000 users on our clinical solution on our iClinic here, it's our main solution, and also embedding clinical decision support features that for one side is reducing the solo users on that, but they are also using this type of feature embedded on our clinical management solution. That's all.

We are funding not only our current internal investment, reducing our leverage, buying back shares, distributing through dividends, and keep aware with a lot of firepower to do some M&As, but we have to reach at least the threshold that we are aiming, okay?

All right. Super clear.

Thank you.

Next question comes from Lucca Marquezini from Itaú.

Good evening, everyone, and thank you for taking my question. My question is regarding the continuing education segment.

It's actually a follow-up from previous questions. We saw a decline in net revenues.

If you could just comment on the competitive environment and the factors that led to this decline, and also what are your expectations for the second half of the year, if we should continue to see a decline across the year or when you expect resumption in growth, please?

Hi, Lucca. It's Virgilio here.

For one side, you can see a growth on our number of students under the continuing medical education segment. For one side, we are seeing a lower rhythm on revenue growth from the first quarter.

The reason of that is that we have a different mix of products. Although we have much more students coming, we have a different mix of products with more lower duration with a lower ticket, and that impact mainly on the second quarter that also face seasonality on continuing medical education mainly on prep courses.

Having said that, we are keeping at least close to a high one-digit growth for the second half here. We are not foreseeing any jump or a decrease from what we were in terms of continuing medical education for the entire year.

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

Very clear. Thank you.

Thank you, Lucca.

Next question comes from Lucas Nagano from Morgan Stanley.

Hi, Virgilio, Blanco, Renata. Thanks for for taking my questions.

We have two. The first is related to the the new injunction from last week that suspended the Enamed restrictions.

With that, are you now allowed to fill all your your your authorized seats? Would that be still valid after this year's edition of Enamed, and so on for next year years as well?

The second question is related to income tax. The the income tax expense in the quarter was very low compared to the previous quarters and the the minimum Pillar Two tax rates.

Could you just give some color on on that and and the level going forward? Thank you.

Hi, Lucas. I will take the first one here regarding injunctions.

Yes. The answer is yes.

After the decision last week, all the seats that were prohibited returned to the institutions. On the other hand, we are very advanced on the intake process.

We didn't ask also Prouni and also FIES for that seats because they were not allowed at that moment. For some campuses, for some institutions, yes, we will be able to fulfill these additional seats.

Once again, remember that considering the edition in the beginning of the year, we had a very strong intake in terms of percentage of the entire year on the first half to minimize that effect. Even with considering these additional seats, we will leave some of them unfulfilled.

This will not impact, not even positive, not even negative, to our results on the second half. Yes, we will be able to fulfill if we had time to fulfill these seats.

Hi, Lucas. Blanco speaking.

I will take the second questions regarding taxations. During the first semester of 2026, we have some new clarifications under new regulations that were clarifying the Pillar Two, and then we see a opportunity regarding the payments that we should do regarding the 2025 taxations that we paid on July this year, reducing the provision amounts that we had on our balance sheet.

In big numbers, we had disbursed regarding this taxation from 2025 amounts of R$ 89 million approximately, and we had at the end of 2025 a R$ 109 million as a provision, our best provisions at that time. We had this positive effect more or less of 20 R$ 20 million.

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

Thank you. Just a follow-up.

Assuming after this year's edition of Enamed, which should be out I think in December, would the injunction continue to be valid, it will still suspend any restrictions that MEC tries to impose?

Lucas, what we understood from the new normative rule that they released is that, and also the conversation that we are having very close to Ministry of Education right now, is that as soon as we have the results from Enamed 2026 released, that is expected to be in the beginning of December, we will have all the updates from what was considered as a penalization from the current situation, and also the new results to be released and considered for the new intake cycle of 2027. This injunction that changed the results last week is just related to the results that was released last year.

The new one doesn't have anything related to the new Enamed that is coming now in beginning of September.

Very clear. Thank you.

You're welcome.

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

Hi, everyone. Good morning and thank you for the opportunity to take questions.

I have just one questions regarding the CapEx. We saw the CapEx that is running at 30% of your full-year guidance.

Just want to understand how do you see this CapEx accelerating during the second half of the year? Also, if you could also provide some breakdown of this CapEx if it will be more intensified on PP&E or intangible or license, I don't know.

That's it. Thank you.

Okay. Renan, Blanco speaking.

I will take this one. We are running CapEx for this year as expected.

We want to fulfill the guidance that we provided. That is between R$ 340 and R$ 380 million for the year.

We expect an acceleration of the CapEx in the second half. If we see the breakdown regarding the first semester, we're going to see that the CapEx regarding properties and equipments were down year-over-year, but we have a very high accelerations on the intangibles, mostly concentrated on the investment plan that we have around continuing educational and Medical Practice Solutions.

Regarding the breakdown of this expectations for ahead, we don't open the guidance of the CapEx between property and license, but we're going to see definitely an acceleration in the second half.

Very clear. Thank you.

As we do not have any other questions, we end this call. We appreciate the presence of you all.

Have a good night.