Core Insights - Afya reported strong financial performance for the fourth quarter and the full year, with significant year-over-year growth in revenue and adjusted EBITDA, reflecting the company's successful strategy in medical education and ecosystem integration [1][2][3] Financial Performance - Fourth-quarter revenue reached BRL 913 million, an 8% increase year-over-year, while adjusted EBITDA rose 6% to BRL 389 million, with an adjusted EBITDA margin of 42.6%, down 50 basis points from the previous year [1] - For the full year, Afya's revenue was BRL 3,697 million, up 12% year-over-year, and adjusted EBITDA was BRL 1,680 million, representing growth of over 50% year-over-year, with an adjusted EBITDA margin of 45.4%, up 130 basis points [2][6] - The company reported net income of BRL 768.4 million, an 18% increase, with basic EPS of BRL 8.32, up 19% [2] Strategic Initiatives - Afya is focused on transforming medical education in Brazil, achieving its seventh consecutive year of meeting or exceeding guidance since the second half of 2018 [3] - The company is prioritizing ecosystem integration and expansion, targeting approximately 200 medical seats per year through M&A, and has recently added 60 acquired seats along with authorization for 102 new seats [4][11] Cash Generation and Shareholder Returns - Afya demonstrated strong cash generation with operating cash flow of BRL 1,548 million, a conversion rate of 93.7%, and net debt of BRL 1,369 million, resulting in a leverage ratio of approximately 0.8x [5][14] - A cash dividend of BRL 307.4 million was announced, equating to BRL 3.45 per share, representing 40% of 2025 net income, with plans to return about 50% of consolidated net income to shareholders [15] Operational Highlights - The company maintained a leadership position in medical education with 3,755 approved medical seats and over 25,000 undergraduate medical students, a 5% increase year-over-year [7] - Continuing education revenue for the year was BRL 284 million, up 11% year-over-year, with a gross margin expansion of 363 basis points [8] - In medical practice solutions, revenue was BRL 171 million, a 6% increase year-over-year, with 196,000 paying users and a broader ecosystem reaching 301,000 active users [9] Future Guidance and Investment Plans - Afya provided guidance for 2026, projecting revenue between BRL 3.95 billion and BRL 4.1 billion and adjusted EBITDA between BRL 1.7 billion and BRL 1.8 billion, while cautioning about margin pressure due to planned investments [6][17] - The company plans to enhance integration across its services and products, aiming for improved B2B monetization and a unified experience for users [18][19]