Afya Q2 2026 Earnings Report

Afya EPS Results

• Actual EPS: $0.43
• Consensus EPS: $0.40
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Afya Revenue Results

• Actual Revenue: $187.80 million
• Expected Revenue: $189.62 million
• Beat/Miss: Missed by -$1.82 million
• YoY Revenue Growth: N/A

Afya Announcement Details

• Quarter: Q2 2026
• Date: 8/14/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 13, 2026
• Conference Call Time: 5:00PM ET

Afya (NASDAQ:AFYA) Ltd. operates as a leading provider of medical education and training services in Brazil. The company offers a comprehensive suite of educational programs that span undergraduate medical degrees, residency exam preparation, continuing medical education (CME) and digital learning platforms. Through a network of partner institutions and its own campus operations, Afya supports students at every stage of the medical training continuum, from enrollment in medical schools to ongoing professional development for practicing physicians.

At the core of Afya’s offerings is its undergraduate medical program, delivered through a combination of in-person courses at affiliated campuses and fully digital curricula. The company’s postgraduate offerings include intensive preparatory courses for Brazil’s national medical residency exams, as well as specialized training modules in fields such as radiology, cardiology and emergency medicine. Afya has also developed a robust digital ecosystem, featuring on-demand video lectures, interactive case simulations and performance analytics, enabling healthcare professionals across Brazil to access high-quality learning resources remotely.

Geographically, Afya’s footprint extends across multiple Brazilian states, with a presence in major urban centers such as São Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. The company partners with local universities and teaching hospitals to expand its program reach, while its digital platforms serve users nationwide. In recent years, Afya has pursued strategic acquisitions of medical schools and educational technology firms, bolstering its scale and broadening its content library for both students and practicing clinicians.

Headquartered in Rio de Janeiro and incorporated in the Jersey, Channel Islands, Afya was founded to consolidate the fragmented medical education market in Brazil and has grown to become the country’s largest dedicated medical education group. Under the leadership of Chief Executive Officer Bruno Mello, the company continues to innovate in curriculum design, digital delivery and clinical training partnerships, positioning itself as a key driver of healthcare workforce development in Latin America.

Afya Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-half revenue grew 7% to BRL 1.985 billion, while net income increased 7% to BRL 463 million and EPS rose 9% to BRL 5.10. Medical undergraduate revenue benefited from 3% student growth and a nearly 4% increase in average tuition.
• Negative Sentiment: Adjusted EBITDA margin contracted 190 basis points to 46.2%, mainly because of higher sales and marketing investments in continuing education and medical practice solutions. Management maintained its full-year EBITDA guidance of BRL 1.7–1.8 billion, implying a potentially slower second half versus the first.
• Positive Sentiment: Cash generation remained strong, with BRL 806 million in operating cash flow, BRL 423 million in first-half FCFE, and 87.8% cash conversion. Afya returned BRL 448 million to shareholders through dividends and buybacks, exceeding first-half FCFE, while net leverage remained low at 0.8x EBITDA.
• Negative Sentiment: Medical Practice Solutions revenue grew only 2% to BRL 85 million, and monthly active users declined 8% year over year. Management cited competitive pressure from AI tools affecting Whitebook payers, although clinical-management payers grew 20% and further product investment is intended to support future recovery.
• Neutral Sentiment: Continuing education revenue rose 5% to BRL 144 million, but growth was constrained by a shift toward shorter-duration, lower-ticket programs and seasonal weakness. Management expects high-single-digit growth in the second half and said it remains on track to meet its 2026 guidance.

Presentation

[Renata Couto, Director of Investor Relations at Afya]

Thank you for joining us for our conference call. I am here today with our CEO, Virgilio Gibbon, and our CFO, Luis 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.

[Renata Couto, Director of Investor Relations at Afya]

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.

[Virgilio Gibbon, CEO at Afya]

Thank you, Renata, and welcome to our second quarter and first half conference call for 2026 results. Starting with slide number three. Once again, we delivered a solid performance closing the first half of 2026 with revenue growth of 7% year-over-year. Revenue reached BRL 1,985 million. Adjusted EBITDA reached BRL 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 our higher sales and marketing expenses associated with the investment cycle outlined at the beginning of the year across continuing education and medical practice solutions. Net income reached BRL 463 million, a 7% increase year-over-year.

[Virgilio Gibbon, CEO at Afya]

Basic EPS climbed to BRL 5.10, representing a 9% increase over the previous year, reflecting our capital allocation strategy. Operating cash conversion remains strong at 87.8%, rather in line with the prior year. Turning now to Free Cash Flow to Equity, we delivered BRL 423 million in the first half of 2026. These results reflect the strength of our cash generation, disciplined execution, and our continued commitment to create long-term shareholder value. Moving now to our operational updates. We have 3,768 operating medical seats, with an increase of over 6% year-over-year. Furthermore, our number of undergraduate 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 fees of medical school by almost 4% year-over-year, reaching BRL 9,443.

[Virgilio Gibbon, CEO at Afya]

In continued education, we had an increase almost 5% over last year, reaching BRL 144 million BRL. In Medical Practice Solution, we saw 2% growth in revenue compared to the first half of 2025, reaching BRL 85 million. Our ecosystem now accounts for 295,000 users, reflecting continued meaningful penetration among physicians and medical students across the country. Moving to slide number four, we'll discuss the highlights across our three business segments. The first half of 2026 was marked by favorable pricing trends in medicine course, where tickets rose by nearly 4% year over year. In addition, we continue to deliver strong student-based growth momentum in health science course. Compared to the previous years, health science course delivered 13% growth, reflecting the diversification of our health-related undergrad portfolio.

[Virgilio Gibbon, CEO at Afya]

The continued 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. B2P revenue for the segment grew 8% compared to the same period of prior year. The Medical Practice Solution 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 BRL 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.

[Virgilio Gibbon, CEO at Afya]

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 acquisitions when attractive and to consistently return capital.

[Virgilio Gibbon, CEO at Afya]

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

[Luis Blanco, CFO at Afya]

Thank you, Virgilio, and good evening, everyone. Starting with slide number six 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 BRL 9,443 in the first half of 2026. As a result, revenue for the undergraduate segment grew over 7%, totaling BRL 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.

[Luis Blanco, CFO at Afya]

On the next page, I will present our continuing education metrics. We approach continuing education through three main journeys. Starting with the residency journey, which encompass 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 focused on the specialization test preparations and graduated medical education, the total number of students increased by 13%, reaching 10,213 students, supported by the continued demands for advanced medical training programs. Lastly, other B2P and B2B offerings continued to grow strongly with the 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 BRL 144 million in the six-month period of 2026, compared to BRL 138 million in the same period of 2025, representing growth of 5%.

[Luis Blanco, CFO at Afya]

This performance was primarily driven by B2P revenue, which increased 8% year-over-year to BRL 135 million, representing 94% of the continuing education revenue. Meanwhile, the B2B revenue totaling BRL 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 BRL 85 million in the first half of 2026. On the next slide, we present Afya Ecosystem. We are proud of the meaningful impact Afya continues to make across Brazil healthcare ecosystem.

[Luis Blanco, CFO at Afya]

By the end of the second quarter of 2026, 295,000 users were actively engaging with our service 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 BRL 972 million, representing a 6% increase compared to the same period of the prior year. For the first half of 2026, revenue totaling BRL 1,985 million, 7% year-over-year increase. Adjusted EBITDA reached BRL 470 million in the second quarter of 2026, an increase of 1% compared to the prior year.

[Luis Blanco, CFO at Afya]

For the first half of the year, adjusted EBITDA totaling BRL 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the six-month year. While margins were below those reported in the comparable periods last year, reflecting the 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 BRL 806 million in the first half of 2026, compared to BRL 783 million in the same period of the prior year, representing a growth of 3%. Cash conversions remaining strong at 87.8%, broadly stable compared to the prior year. Net income for the second quarter of 2026 totaling BRL 201 million, an increase of 14% compared to the same period of the prior year.

[Luis Blanco, CFO at Afya]

For the first half of 2026, net income reached BRL 463 million, growing 7% year-over-year. Earnings per share increased to BRL 2.22 in the second quarter of 2026, up 17% from BRL 1.90 in the prior year, higher than the net income increase, reflecting the execution of our buyback program. For the six-month periods, earnings per share reached BRL 5.10, up 9% from the BRL 4.69 in the first half of 2025. Overall, these results reflect our 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 go over our gross debt positions and cost of debt, our net debt reconciliation, and close with our shareholder return.

[Luis Blanco, CFO at Afya]

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 30th of June, gross debt totaling BRL 2.4 billion compared to the BRL 2.7 billion as of 30th of June of 2025. At the same time, the average debt durations 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.

[Luis Blanco, CFO at Afya]

As of June 2026, our net debt totaling BRL 1,394 million, remaining virtually unchanged from the end of 2025, despite returning BRL 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 BRL 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 0.8x. In my last slide, we paid BRL 307 million in dividends during the second quarter of 2026, representing 40% of our 2025 net income, while continuing to execute the share purchase program.

[Luis Blanco, CFO at Afya]

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 BRL 448 million to shareholders, surpassing our Free Cash Flow to Equity of BRL 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 30th 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 that is working.

[Luis Blanco, CFO at Afya]

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.

[Renata Couto, Director of Investor Relations at Afya]

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

[Marcelo Santos, Analyst at 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 take, if the capacity 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 on when we should see the increased investment start showing results on the revenue side. Thank you very much.

[Virgilio Gibbon, CEO at Afya]

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. While it's still not all the PROUNI year cycle is a little bit late, so we are waiting for these enrollments to be completed by September. So once again, we have a solid and healthy intake. The price, I think we are not changing price for the second half because we are doing the beginning of the year, so we are not also giving any discounts for our medicine programs. On the health sector, on the health programs, we are seeing a very strong intake. At this moment, we're still ending the process in the beginning. We will also end on the beginning of September. We are more than 20% above from last year at the same period.

[Virgilio Gibbon, CEO at Afya]

We are growing organically more than 18% in volume and health. We are expecting to be above that for the second half. That is on MPS, Blanco will help me here.

[Luis Blanco, CFO at Afya]

Hi, Marcelo, it is Blanco speaking. Thank you for your question. Regarding the MPS, the general environment, what is happening there is we are having some pushbacks in terms of clinical decisions, on major 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 tickets on that and increase the functionalities under invested on the Whitebook. By the other side, on the clinical management system that our major encompass iClinic, we have a very positive cycle. We are growing faster, but this growth is not sufficient to surpass a lot of decline on Whitebook. They are both together on the business to physician sides, we are growing semester by semester just 1.1%.

[Luis Blanco, CFO at Afya]

Having said that, just remember that our investment cycle that we have announced in the beginning of the year encompass 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 both in iClinic and Whitebook. And investments in teams, under the teams increasing the number of the team members under this 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.

[Marcelo Santos, Analyst at JPMorgan]

Right. Thank you very much.

[Luis Blanco, CFO at Afya]

Thank you.

[Renata Couto, Director of Investor Relations at Afya]

Second question comes from Flavio Yoshida from Bank of America.

[Flavio Yoshida, Analyst at Bank of America]

Hi. Good evening Virgilio, Blanco, Renata. I have two questions here from our side. The first one is on EBITDA. If we get the first half EBITDA and analyze it gets us to roughly BRL 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 question 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?

[Flavio Yoshida, Analyst at Bank of America]

Also if you could share with us how is the recent M&A environment for medical courses. Thank you.

[Luis Blanco, CFO at Afya]

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 promised to the market, that's between BRL 1.7 billion and BRL 1.8 billion. We guided the market, and we delivered as we always do regarding the guidance. Regarding the capital allocation itself, I can assure you that Afya will always be very conscious in terms of capital allocations. Since the IPO, we've made 22 business combinations, and we take capital allocations very serious. If we don't have opportunities that attend the thresholds in terms of concentration demands and mostly the IRR, that these business combinations do not have a return on the capital employed in these business combinations that is above our thresholds, that's 20% minimal nominal unleveraged, we simply do not do the business combination. We are very careful on that.

[Luis Blanco, CFO at Afya]

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 are very comfortable with this 0.8x 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 to, going forward, to have in mind that we have opening buyback in place that we've announced at the August of last year, if I'm not wrong. Right now, from these 4 million shares in buyback that we've announced, we've performed 2.6 million shares. We have the firepower of 1.4 million to perform until the end of this year.

[Virgilio Gibbon, CEO at Afya]

Yeah, Flavio, if I may add here and summarizing what Blanco wants to mention. We keep aware about the many opportunities considering this threshold. We have a good pipeline in our hand here. As you saw in the first semester, we distribute almost 100%, 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, so you can see the intangible. We are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solution. We are leveraging 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.

[Virgilio Gibbon, CEO at Afya]

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 our way up with a lot of firepower to do some M&As, but we have to reach at least the threshold that we are in. Okay?

[Flavio Yoshida, Analyst at Bank of America]

All right. Super clear. Thank you.

[Renata Couto, Director of Investor Relations at Afya]

Next question comes from Lucca Marquezini from Itaú.

[Lucca Marquezini, Analyst at Itaú]

Good evening, everyone, and thank you for taking our question. Our question is regarding the continuing education segment. It's actually a follow-up from the previous question. We saw a decline in that revenue. 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 this year, if we should continue to see decline across the year, or when you expect resumption in growth, please?

[Virgilio Gibbon, CEO at Afya]

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. But for one side, we are seeing a lower rhythm on revenue growth from the first quarter. But the reason of that is that we have a different mix of product. Although we have much more students coming, we have a different mix of product with a more lower duration, with a lower ticket, and that impact mainly on the second quarter that also face seasonality on continuing medical educations, mainly on prep courses. Having said that, we are keeping at least close to a high single digit growth for the second half year. We are not foreseeing any jump or a decrease from what we were in terms of continuing education for the entire year.

[Virgilio Gibbon, CEO at Afya]

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

[Lucca Marquezini, Analyst at Itaú]

Very clear. Thank you.

[Virgilio Gibbon, CEO at Afya]

Thank you, Lucca.

[Renata Couto, Director of Investor Relations at Afya]

Next question comes from Lucas Nagano from Morgan Stanley.

[Lucas Nagano, Analyst at Morgan Stanley]

Hi, Virgilio, Blanco, Renata. Thanks for taking our questions. We have two. The first is related to the new injunction from last week that suspended the ENADE restrictions. With that, are you now allowed to fill all of your authorized seats? Would that be still valid after this year's edition of ENADE and so on for next years as well? The second question is related to income tax. The income tax expense quarter was very low compared to the previous quarters and the minimum Pillar Two tax rates. Could you just give some color on that and your life going forward? Thank you.

[Virgilio Gibbon, CEO at Afya]

Hi, Lucas. I'll 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 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 issue at the beginning of the year, we had a very strong intake in terms of percentage of the entire year in the first half to minimize that effect. Even considering these additional seats, we will leave some of them unfulfilled. This will not impact, not even positive, not even negative, to our results in the second half.

[Virgilio Gibbon, CEO at Afya]

But yes, we will be able to fulfill if we have time to fulfill these seats.

[Luis Blanco, CFO at Afya]

Hi, Luca. Blanco speaking. I will take the second questions regarding taxations. During the first semester of 2026, we have some new classifications under new regulations that were clarifying the Pillar Two. We see 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 sheets. In big numbers, we had disbursed regarding these taxations from 2025, an amount of BRL 89 million approximately, as we had at the end of 2025, BRL 109 million as a provision, our best provisions at that time. We had this positive effect, more or less of BRL 20 million.

[Luis Blanco, CFO at Afya]

Having said that, for the year, as these 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 as last year. That will be around 10% for 2026.

[Lucas Nagano, Analyst at Morgan Stanley]

Thank you. Just a follow-up. Assuming after the new results of ENADE this year, the edition of ENADE, which should be out, I think, in December, would the injunction still be valid? Would it still suspend any restrictions that MEC tries to impose?

[Virgilio Gibbon, CEO at Afya]

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 Minister of Education right now, is that as soon as we have the results from ENADE 2026 released, they are 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 will be released and considered for the new intake cycle of 2027. This injunction that changed the results last week is just related to the result that was released last year. The new one does not have anything related to the new ENADE that is coming now in beginning of September.

[Lucas Nagano, Analyst at Morgan Stanley]

Okay. Very clear. Thank you.

[Virgilio Gibbon, CEO at Afya]

You are welcome.

[Renata Couto, Director of Investor Relations at Afya]

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

[Renan Prata, Analyst at Citi]

Hi, everyone. Good morning, and thank you for the opportunity to take questions. I have just one question regarding the CapEx. We saw the CapEx that is running at 30% of your full year guidance. Just want to understand how you see this CapEx accelerating during the second half of the year. Also, if you could also provide some breakdown of this CapEx and see it will be more intensified on PPE or intangible or license. That is it. Thank you.

[Luis Blanco, CFO at Afya]

Okay. Renan, Blanco speaking, and 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 BRL 340 million and BRL 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 are going to see that the CapEx regarding properties and equipment were down year-over-year. But we have a very high acceleration on the intangibles, mostly concentrated on the investment plan that we have around continuing education and medical practice solutions. Regarding the breakdown of these expectations for ahead, we do not open the guidance of the CapEx between property and license. But we are going to see definitely an acceleration in the second half.

[Renan Prata, Analyst at Citi]

Very clear. Thank you.

[Renata Couto, Director of Investor Relations at Afya]

Okay. Since we do not have any other questions, we end this call. We appreciate the presence of you all. Have a good night.

Participants

Executives

• Renata Couto, Director of Investor Relations
• Virgilio Gibbon, CEO
• Luis Blanco, CFO

Analysts

• Marcelo Santos, Analyst at JPMorgan
• Flavio Yoshida, Analyst at Bank of America
• Lucca Marquezini, Analyst at Itaú
• Lucas Nagano, Analyst at Morgan Stanley
• Renan Prata, Analyst at Citi