Afya (AFYA) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 grew 15% year-over-year to R$1,855.8M, with Q2 revenue up 13.5% to R$919.4M; adjusted EBITDA for H1 2025 was R$892.8M, up 20.4% year-over-year, with a margin of 48.1%.

• Net income for H1 2025 was R$433.6M, up 17% year-over-year; basic EPS for H1 2025 was R$4.69, up 16.9%.

• Operating cash flow for H1 2025 was R$783.0M, up 14.6% year-over-year, with an operating cash conversion ratio of 88.8%.

• Medical school students increased 14% year-over-year to nearly 26,000, with ecosystem users reaching 302,000.

• Full-year 2025 guidance reaffirmed, supported by robust business fundamentals and disciplined execution.

Financial highlights

• Adjusted EBITDA margin for H1 2025 was 48.1%, up 220 bps year-over-year; Q2 margin was 43.6%.

• Adjusted net income for H1 2025 was R$503.3M, up 9.1% year-over-year.

• Net debt/EBITDA (ex-IFRS 16) at 0.97x; net debt reduced by R$194M to R$1,621M since end of 2024.

• Gross debt stood at R$2,720M as of June 30, 2025, with an average cost of debt at 12.7% per year.

• Cash and equivalents at R$1,099.1M as of June 30, 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed, with management maintaining a conservative approach due to seasonality and uncertainties in continuing education.

• 2025 revenue guidance: R$3,670M–R$3,770M; adjusted EBITDA: R$1,620M–R$1,720M; CAPEX: R$250M–R$290M (excluding FUNIC license).

• Effective tax rate expected to converge to 15% in the long run due to OECD Pillar Two rules, with current lower rates due to deferred tax assets.

• Guidance assumes successful new student intake for 2H25.

• Focus remains on integrating acquisitions and expanding the graduate journey.