Financial Data and Key Metrics Changes - Revenue for the 12-month period grew 12% year-over-year, reaching BRL 3,697 million, with adjusted EBITDA growth of over 50% year-over-year, reaching BRL 1,680 million [4][5] - Adjusted EBITDA margin for the same period reached 45.4%, an increase of 130 basis points over last year [4] - Net income reached BRL 768.4 million, a growth of 18% year-over-year, with basic EPS reaching BRL 8.32, 19% higher than last year [5][26] - Cash flow from operating activities ended the 12-month period with BRL 1,548 million, over 6% higher than last year, with a cash conversion of 93.7% [4][25] Business Line Data and Key Metrics Changes - The undergraduate segment saw a 5% growth in the number of medical students, reaching over 25,000, with approved medical seats increasing by 5% [19] - Continuing education revenue grew 11% year-over-year, reaching BRL 284 million, with B2B revenue growth of 48% [7][22] - Medical practice solutions revenue increased by 6% year-over-year, reaching BRL 171 million [7][23] Market Data and Key Metrics Changes - The ecosystem reached 301,000 active users, reflecting strong engagement among physicians and medical students across Brazil [7] - The number of active payers in medical practice solutions reached 196,000, indicating growth in the user base [23] Company Strategy and Development Direction - The company aims to strengthen its position across the entire physician lifecycle, expanding audience reach and deepening engagement [11][12] - Investments will focus on integrating products and services for a unified experience, enhancing technology and data capabilities [12][15] - The strategy includes maintaining a low customer acquisition cost for undergraduate students, preserving competitive advantage [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another strong year in 2026, with revenue expected to range between BRL 3.95 billion and BRL 4.1 billion [16] - The company does not foresee any material impact from Enamed on its 2026 guidance, with expectations for improved results in the future [17][46] - The focus remains on creating value across the ecosystem, supporting ongoing medical learning and improving the medical journey [32] Other Important Information - A cash dividend of BRL 307.4 million was announced, representing 40% of the 2025 net income, payable in April 2026 [10] - The company maintains a conservative leverage profile with net debt at 0.8 times adjusted EBITDA [9][29] Q&A Session Summary Question: Transformation in Continuing Education and Medical Practice Solutions - The company plans to integrate products and services for a unified experience, enhancing technology and creating a membership concept [35][37] - Investments will focus on leveraging B2B experiences and monetizing offerings within the ecosystem [38] Question: Progress on Enamed and PROFIMED - Management does not foresee any impact from Enamed on 2026, with strong occupancy expected [45] - Preparations for new campuses include running simulations to improve performance [46][48] Question: M&A Strategy - The company aims to add 200 seats per year through M&A, targeting institutions with over 60% revenue from medicine programs [50] Question: Operational Expenses and CapEx - Operational expenses increased only 1% year-over-year, with a significant increase in intangible assets due to new investments [53][55] - The EBITDA margin guidance for 2026 reflects investments in continuing education and medical practice solutions [56][57] Question: Capital Allocation Priorities - The company prioritizes free cash flow generation, with a balanced approach to dividends, share buybacks, and acquisitions [61][63] - Future capital allocation will focus on maintaining a strong free cash flow while funding growth opportunities [66]

Core Viewpoint - Afya Limited has announced a cash dividend distribution of R$307.4 million, which constitutes 40% of its consolidated net income for the year ended December [1] Group 1: Company Announcement - The Board of Directors of Afya Limited approved the second distribution of a cash dividend [1] - The dividend distribution is scheduled for March 12, 2026 [1] - The amount of the dividend is R$307.4 million [1]

Core Viewpoint - Afya Limited has received authorization from the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education to increase medical seats at ITPAC by 63, enhancing its capacity in medical education in Brazil [1]. Company Summary - Afya Limited is recognized as the leading medical education group and provider of medical practice solutions in Brazil [1]. - The increase of 63 medical seats at ITPAC, located in Abaetetuba, signifies a strategic expansion in the company's educational offerings [1].

Core Thesis - Afya Limited is viewed as a compelling investment opportunity due to its strong market position in Brazil's medical education sector, despite recent volatility in its stock price [2][5] Company Overview - Afya Limited operates as a medical education group in Brazil, having evolved from a single family-run medical school in 1999 to a leading provider through acquisitions and organic growth [2][3] - The company went public on Nasdaq in 2019 and has since raised capital to support its expansion [2] Market Position - Afya is the leading medical education provider in Brazil, benefiting from a regulated seat-authorization system that protects incumbents from oversupply [3] - Major shareholders, including Bertelsmann, purchased shares at $26.90 in 2022 and are currently experiencing a value dislocation, indicating potential upside for new investors [3] Financial Performance - Revenue and profitability have increased significantly, supported by strong cash generation and modest leverage, despite challenges such as aggressive mergers and acquisitions and currency depreciation [4] - The company has maintained a stable share count while capitalizing on favorable long-term demand fundamentals, with Brazil expected to nearly double its physician base over the next decade [4] Management and Strategy - The management team, led by CEO Virgilio Gibbon since 2016, has shown consistent execution through the IPO process, acquisitions, and operational scaling [4] - Afya's operations are characterized by a mix of regulated scarcity and proven management, positioning it as an attractive candidate for further investment [5]