Afya (AFYA) Q4 2025 earnings summary

Executive summary

• Achieved 11.9–12% year-over-year revenue growth to R$3,697.3 million and 18–18.4% net income growth to R$768.4 million for 2025, with EPS up 18.7–19% to R$8.32.

• Adjusted EBITDA rose 15.4% year-over-year to R$1,680.3 million, with a margin of 45.4%, up 130 bps.

• Maintained leadership in medical education with 3,755 approved seats and over 25,000 undergrad medical students, up 5.4%.

• Robust cash generation with free cash flow at R$1,056 million and cash flow from operations at R$1.548 billion, supporting both organic and inorganic growth.

• Board approved a new share repurchase program and declared a dividend of R$307.4 million, representing 40% of 2025 net income.

Financial highlights

• Fourth quarter 2025 revenue was R$913 million, up 7.5–8% year-over-year.

• Adjusted EBITDA for Q4 2025 was R$388.5 million, up 6.1%, with a margin of 42.6%.

• Free cash flow for 2025 was R$1,056 million, with a yield of 13.3%.

• Net debt reduced to R$1,369 billion, leverage at 0.8x adjusted EBITDA.

• Cash and cash equivalents increased 23.5% YoY to R$1,125.4 million.

Outlook and guidance

• 2026 revenue guidance: R$3,950–4,100 million; adjusted EBITDA: R$1,700–1,800 million, excluding future acquisitions.

• CAPEX for 2026 expected between R$340–380 million (8.6–9.3% of revenue).

• EBITDA margin expected to decrease by ~190 bps in 2026 due to investment in continuing education and medical practice solutions.

• No material impact from ENAMED expected for 2026; new exam edition may affect 2027.

• Focus on expanding digital products, increasing physician engagement, and maintaining low customer acquisition costs.