Afya (AFYA) Q2 2026 Earnings Call Transcript

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DATE

Thursday, Aug. 13, 2026, at 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer-Virgilio Deloy Gibbon
• Chief Financial Officer-Luis Andre Blanco

TAKEAWAYS

• Revenue -- BRL 1.985 billion for the first half, growing 7% year over year due to favorable pricing trends in medical courses and momentum in health science programs.
• Adjusted EBITDA -- BRL 918 million in the first half, representing a 3% increase over the prior year.
• Adjusted EBITDA Margin -- 46.2% for the first half, a contraction of 190 basis points reflecting an investment cycle in medical practice solutions and higher marketing expenses.
• Net Income -- BRL 463 million for the first half, a 7% increase year over year.
• Basic EPS -- BRL 5.10 for the six-month period, representing 9% growth supported by the company's share buyback program.
• Operating Medical Seats -- 3,768 seats as of June 30, 2026, a 6% increase reflecting the integration of new seats and organic capacity expansion.
• Undergraduate Medical Students -- More than 26,000 students, representing 3% growth compared to the first half of the previous year.
• Medical School Average Ticket -- BRL 9,443, increasing 4% year over year due to price adjustments implemented at the beginning of the year.
• Continued Education Revenue -- BRL 144 million in the first half, a 5% increase driven by an expansion in the student base.
• Continued Education Students -- 23% student base expansion in the first half.
• Medical Practice Solutions Revenue -- BRL 85 million, representing 2% growth year over year.
• Clinical Management Active Payers -- More than 50,000 payers, rising 20% year over year as a result of deeper penetration of the iClinic platform.
• Monthly Active Users -- 212,000 in the first half, an 8% decline year over year, attributed in part to competition from artificial intelligence tools in the clinical decision segment.
• Shareholder Distributions -- BRL 448 million returned through dividends and share repurchases, representing 106% of free cash flow to equity.
• Free Cash Flow to Equity -- BRL 423 million delivered in the first half of 2026, reflecting strong operating cash generation.
• Operating Cash Conversion -- 87.8% for the first half, maintaining levels consistent with the prior year.
• Gross Debt -- BRL 2.4 billion as of June 30, 2026, down from BRL 2.7 billion in June 2025.
• Net Debt to EBITDA Leverage -- 0.8x based on the 2026 adjusted EBITDA guidance midpoint.
• Average Cost of Debt -- 15.1% per year, or 106% of the CDI rate, with an extended average duration of 3.7 years.
• Adjusted EBITDA Guidance -- BRL 1.7 billion to BRL 1.8 billion for the full year 2026, which management reaffirmed.
• Capex Guidance -- BRL 340 million to BRL 380 million for the year, with management expecting an acceleration in spending during the second half.
• Effective Tax Rate -- Approximately 10% for the full year 2026, following regulatory clarifications related to Pillar Two global minimum tax.

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RISKS

• Luis Andre Blanco warned that clinical decision products like Whitebook are facing competition by AI tools that are pressuring the number of payers.
• Virgilio Deloy Gibbon noted a margin decrease of 190 basis points, reflecting the lower gross profit contribution from continued education and higher sales and marketing expenses.

SUMMARY

Management of Afya Limited (NASDAQ:AFYA) reported steady growth in its core medical education segment, underpinned by favorable pricing trends and expanded student capacity. The company is currently executing an investment cycle focused on its medical practice solutions and digital ecosystem, aimed at integrating AI features and enhancing practitioner engagement. Management emphasized a disciplined capital allocation strategy, prioritizing the return of more than 100% of free cash flow to equity through dividends and buybacks in the absence of M&A opportunities that meet a 20% minimum internal rate of return threshold. While facing competitive pressure in the digital health segment from artificial intelligence tools, the company is shifting its focus toward embedding clinical decision support within its broader practice management platforms.

• CFO Blanco reported a one-time BRL 20 million positive adjustment to the tax provision following new regulatory clarifications regarding the Pillar Two global minimum tax.
• CEO Gibbon stated, "After the decision last week, all the seats that were prohibited return to the institutions," referring to a recent injunction that suspended restrictions on certain medical school seats.
• Management noted that health science undergraduate programs grew 13%, illustrating the successful diversification of the healthcare-related educational portfolio.
• CFO Blanco indicated that the company still has a firepower of 1.4 million shares remaining in its current share buyback program to be executed by the end of the year.
• In response to AI competition, the company is reducing tickets for individual clinical decision tools while increasing functionalities within integrated management systems like iClinic.

INDUSTRY GLOSSARY

• CDI: Certificate of Interbank Deposit, the benchmark interest rate for the Brazilian financial market.
• ProUni: Program for University for All, a Brazilian federal program providing scholarships and tax exemptions to private higher education institutions.
• FIES: Student Financing Fund, a Brazilian government program that provides low-interest loans to students in private higher education.
• EnMed: Refers to regulatory medical examinations or performance assessments used by the Brazilian Ministry of Education to regulate medical school seat allocations.
• iClinic: Afya's software-as-a-service clinical management platform designed to streamline medical practice operations.
• Whitebook: A mobile application providing clinical decision support and medical reference content for healthcare professionals.
• Pillar Two: A global minimum tax framework established by the OECD to ensure large multinational enterprises pay a minimum effective tax rate across jurisdictions.

Full Conference Call Transcript

Renata Couto: Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgílio Gibbon; and our CFO, Luis Andre 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 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 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 Virgílio Gibbon, Afya's CEO.

Virgilio Deloy Gibbon: Thank you, Renata, and welcome to our second quarter and first half conference call for 2026 results. Starting with Slide #3. Once again, we delivered a solid performance in closing the first half of 2026 with revenue growth of 7% year-over-year, reached BRL 1.985 billion. 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 continued education, driven by a higher sales and marketing expenses associated with the investment cycle outlined at the beginning of the year across continued education and medical practice solutions.

Net income reached BRL 463 million, a 7% increase year-over-year. Basic EPS climbed to BRL 5.10, represents 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 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 undergrad medical students grew to more than 26,000 students, represented 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, reached BRL 9,443. In continued education, revenue increased almost 5% over last year, reaching BRL 144 million. And in medical practice solutions, we saw 2% growth in revenue compared to the first half of 2025, reached 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 #4. We will discuss the highlights across our 3 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 base 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. 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. 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 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. 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 to shareholders. Now 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 Andre Blanco: Thank you, Virgílio, and good evening, everyone. Starting with Slide #6 for discussions of key operational metrics by business unit. Starting with the undergraduated programs. Our medical student 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 undergraduated 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.

On the next page, I will present our continued educational metrics. We approach continuing educational 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 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 expansion of our broader continuing education portfolio.

Continuing educational revenue increased to BRL 144 million in the 6-month period of the 2026 compared to BRL 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 BRL 135 million, representing 94% of the continuing education revenue. Meanwhile, the B2B revenue totaled 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 of 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 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 totaled 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. For the first half of the year, adjusted EBITDA totaled BRL 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the 6-month period.

While margins were below those reported in the comparable periods last year, reflecting a combination of continuing investments to support growth initiatives and the investment cycle across continued 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 remained strong at 87.8%, broadly stable compared to the prior year. Net income for the second quarter of 2026 totaled BRL 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 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 6-month period, earnings per share reached BRL 5.10, up 9% from the BRL 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.

And now moving to my last 3 slides, I will cover our gross debt compositions 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 30th of June, gross debt totaled 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 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 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 generation 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 dividend during the second quarter of 2026, representing 40% of our 2025 net income, while continuing to execute the share purchase program. Our consistent growth in net income and cash generation 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 the strategic 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. Thankyou.

Renata Couto: [Operator Instructions] The first question comes from Marcelo Santos from JPMorgan.

Marcelo Santos: I have 2. The first, if you could talk a bit about the competitive intake in the second half and how you're seeing the pressure for tickets, the capacity to increase prices? That's the first question. And the second question is regarding medical practice solutions. It was a bit down this quarter. So just wanted to get a bit more detail and when we should see the increased investments start showing results in the revenue side.

Virgilio Deloy Gibbon: Related to our intake on the second half, we are once again aiming to have 100% of all of our occupancy fulfilled. While still not all the [ ProUni ] 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. So 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 discount for 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. So we are growing organically more than 18% in volume in health we're expecting to be above that for the second half. So that's on NPS, Blanco will help me here.

Luis Andre Blanco: Thank you for your question. Regarding the NPS, the general environment, what's happening that we are having been -- have 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 ticket on that and increase functionalities under embedded on the Whitebook. But 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 by this 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 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 on this -- under this segment. So 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.

Renata Couto: Second question comes from Flavio Yoshida from Bank of America.

Flavio Yoshida: I have 2 questions here from our side. The first one is on EBITDA, OK? So if we get the first half EBITDA and annualize it, it gets us to roughly BRL 1.8 billion for the year, which is pretty much the top of your guidance range, right? So 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? So this is my first question. And my second question is on capital allocation strategy going forward, right?

So 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? And also, if you could share with us how is the recent M&A environment for medical courses?

Luis Andre Blanco: 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 BRL 1.7 billion and BRL 1.8 billion. So 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 Afya will always be very, very conscious in terms of capital allocations. Since the IPO, we've made 22 business combinations, and we take capital allocations very, very, very, very serious.

If we don't have opportunities that attends the thresholds in terms of concentrations in medicine 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 unleverage, we simply do not do the business combination. So we are very careful on that. As we did not have this 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 0.8 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. And it's very important to going forward to have in mind that we have opening buyback in place that we've announced in August of last year, if I'm not wrong, and right now, from this 4 million shares in buyback that we've announced, we've performed 2.6 million shares. So we had a firepower of 1.4 million to perform until the end of this year.

Virgilio Deloy Gibbon: Yes, Flavio, just if I may add here and summarizing what Blanco wants to mention. So we keep aware about M&A opportunities considering this threshold. So 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 shareholders 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. So we are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solution.

So we are levering 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. So that's -- 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 the -- at least the threshold that we are aiming, OK?

Renata Couto: Next question comes from Lucca Marquezini from Itaú.

Lucca Marquezini: A question is regarding the continuing education segment. It's actually a follow-up from previous question. So we saw a decline in net revenue. So 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 a decline across the year or when you expect resumption in growth, please?

Virgilio Deloy Gibbon: Luca, it's Virgílio here. So for one side, we have -- you can see a growth on our number of students under the continued medical education segment. But for one side, we are seeing a revenue -- 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 more lower duration with a lower ticket and that impact mainly on the second quarter that also face seasonality on continued medical education, mainly on prep courses.

Having said that, we are seeing -- keeping at least close to a high 1-digit growth for the second half here. We are not foreseeing any jump or a decrease from what we were in terms of continuing education for the entire year. 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 3 segments.

Renata Couto: Next question comes from Lucas Nagano from Morgan Stanley.

Lucas Nagano: We have 2. The first is related to the new injunction from last week that suspended the EnMed restrictions. With that, are you now allowed to fill all your authorized seats? And would that be still valid after this year's addition of EnMed and so on for the next years as well? And the second question is related to income tax. The income tax expense this quarter was very low compared to the previous quarters and the minimum Pillar Two tax rate. So could you just give some color on that and the level going forward?

Virgilio Deloy Gibbon: I'll take the first one here regarding injunctions. Yes, the answer is yes. So after the decision last week, all the seats that were prohibited return to the institutions. On the other hand, we are very advanced on the intake process. So we didn't ask also ProUni and also FIES for that seats because they were not allowed at that moment. So for some campuses, for some institutions, yes, we will be able to fulfill these additional seats. But once again, remember that considering the issue in 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 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. But yes, we will be able to fulfill if we had time to fulfill the seeds.

Luis Andre Blanco: Lucas, Blanco speaking, I will take the second question regarding taxations. In the second -- during the first semester of 2026, we have some new clarifications under new [ reglementations ] that were clarifying the Pillar Two. And then we see an opportunity regarding the payments that we should do regarding the 2025 taxations that we paid on July this year, reducing the provision amount that we had on our balance sheet. So in big numbers, we had disbursed regarding these taxations from 2025, an amount of BRL 8 million, BRL 9 million approximately. And we had at the end of 2025, BRL 109 million as a provision, our best provisions at that time.

So we had this positive effect more or less of BRL 20 million. Having said that, for the year, as this [ recommendation ] has evolved, we think that in terms of tax, the effective tax rates that we're going to achieve this year will be very similar that we had at last year that will be around 10%, OK, for 2026.

Lucas Nagano: Just a follow-up. Assuming after the new results of EnMed, this year's dividend of EnMed, which should be out, I think, in December, would the injunction still be valid? So it was still suspend any restrictions that EnMed tries to impose?

Virgilio Deloy Gibbon: 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 EnMed 2026 release 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 will be released and considered for the new intake cycle of 2027. So that's what is -- so this injunction that was -- that changed the results last week is just related to the result that was released last year.

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

Renata Couto: [Operator Instructions] Next question comes from Renan Prata from Citi.

Renan Prata: So I have just one question regarding the CapEx. We saw the CapEx that is running, I mean, at 30% of your guidance of your full year guidance. So I just want to understand like how do you see this CapEx accelerating during the second half of the year? And also, if you could also provide some breakdown of this CapEx since it will be more intensified on PPE or intangible or license, I don't know. And that's it.

Luis Andre Blanco: I'll 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 accelerations 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 acceleration on the intangibles, mostly concentrated on the investment plan that we have around continued education and medical practice solutions.

Regarding the breakdown of these 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.

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

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