Afya (AFYA) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial results for the nine-month period, with double-digit growth in revenue, EBITDA, and net income year-over-year.

• Maintained 100% occupancy in all medical programs across Brazil, expanding medical school capacity and user base.

• Recognized for ESG leadership, awarded as top performer in the education sector in Brazil, and exceeded healthcare consultation targets.

• Ecosystem outreach reached over 300,000 users, reinforcing integrated medical education and practice.

• Full-year 2025 guidance reaffirmed, with strong cash generation and margin expansion.

Financial highlights

• Nine-month revenue grew 13.4% YoY to R$2,784.3 million; adjusted EBITDA up 18.5% to R$1,291.7 million, margin 46.4% (+200 bps YoY).

• Net income for nine months reached R$593.0 million, up 19.9% YoY; basic EPS at R$6.40, up 19.7%.

• Third quarter revenue was R$928.5 million (+10.4% YoY); adjusted EBITDA at R$398.9 million (+14.6% YoY), margin 43% (+160 bps YoY).

• Cash flow from operating activities for nine months was R$1,291.5 million (+10.6% YoY), with a cash conversion ratio of 101.5%.

• Net debt at end of Q3 2025 was R$1,342.2 million, reduced by R$472.7 million from end of 2024; net debt/EBITDA at 0.8x.

Outlook and guidance

• 2025 revenue guidance: R$3,670–3,770 million; Adjusted EBITDA: R$1,620–1,720 million; CAPEX: R$250–290 million.

• Tuition for 2026 expected to increase 5%-5.2% over 2025.

• Effective tax rate expected to converge to 15% in 2026 due to Pillar Two minimum taxation and new Brazilian tax law.

• Capital allocation will balance M&A, share buybacks, and dividends, with flexibility to pursue value-creating opportunities.

• Guidance assumes successful student intake for 2H25 and continued operational execution.