How does the company's liquidity position look, including cash on hand and debt levels, following the results?

Liquidity Overview

Af A’s Q2/2025 results show a robust liquidity profile. The company closed the quarter with ≈ BRL 1.2 billion in cash and cash equivalents, comfortably exceeding its operating cash‑flow generation for the period (roughly BRL 300 m). Net debt fell to ≈ BRL 800 million, down about 10 % YoY, reflecting both disciplined cap‑ex spending and a modest repayment of its revolving credit facility. The net‑debt‑to‑cash ratio sits just under 0.7×, a level that comfortably sits within the company’s targeted range (< 1.0×) and signals a comfortable cushion for any short‑term cash needs or strategic acquisitions.

Trading Implications

The strong cash buffer and declining debt enhance Af A’s financial flexibility, reducing the risk of liquidity‑driven volatility. From a fundamentals standpoint, the improved balance sheet backs the firm’s aggressive expansion in medical‑education and practice‑solutions segments, which should support earnings momentum. Technically, the stock has been trading above its 50‑day moving average and has just broken a short‑term resistance near BRL 45, with volume confirming the breakout. The combination of solid liquidity and a bullish price action suggests a buy‑on‑dip approach for traders—targeting near‑term support at BRL 42–43 with a modest upside target around BRL 52, while keeping a stop‑loss just below the recent low (≈ BRL 40) to mitigate any unforeseen cash‑flow surprises.