Afya (AFYA) Q4 2024 earnings summary

Executive summary

• Net revenue for FY24 reached BRL 3,304.3 million, up 14.9% year over year, with adjusted EBITDA of BRL 1,455.6 million, up 25% and a margin of 44.1%.

• Net income for FY24 was BRL 648.9 million, a 60.1% increase year over year, and EPS rose 62.9% to BRL 7.01.

• Cash flow from operating activities hit BRL 1,453.2 million, up 34% year over year, with a cash conversion ratio of 102.2%.

• Approved medical seats expanded by over 13% to 3,593, and undergrad medical students grew 13% to over 24,000.

• The ecosystem reached 313,000 active users, reflecting strong penetration among physicians and students.

Financial highlights

• Fourth quarter 2024 net revenue was BRL 849 million, up 16.3% year over year.

• Adjusted EBITDA for Q4 2024 rose 27% to BRL 366 million, with a margin of 43.1%.

• Full-year adjusted EBITDA margin expanded by 360 basis points to 44.1%.

• Adjusted net income for 2024 was BRL 820.3 million, up 38.8% year over year; adjusted EPS was BRL 8.91, up 39.9%.

• Cash and cash equivalents increased 64.7% year over year to BRL 911 million.

Outlook and guidance

• 2025 net revenue guidance is BRL 3,670–3,770 million; adjusted EBITDA guidance is BRL 1,620–1,720 million, with margin expected at 44.1%.

• 2025 Capex expected between BRL 250–290 million; Mais Médicos 3 Capex not included.

• Dividend payout of 20% of 2024 net income (BRL 129.8 million) approved, payable April 2025.

• Management confident in achieving 2025 guidance, supported by strong intake and operational leverage.

• Guidance excludes acquisitions concluded after issuance, notably FUNIC.