Impressive Adjusted EBITDA Margin Expansion and Cash Generation
Full Year 2025 Guidance Reaffirmed
BELO HORIZONTE, Brazil--(BUSINESS WIRE)--November 12, 2025--
Afya Limited (Nasdaq: AFYA; B3: A2FY34) ("Afya" or the "Company"), the leading medical education group and medical practice solutions provider in Brazil, reported today its financial and operating results for the three and nine-month period, which ended September 30, 2025 (third quarter 2025). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
Third Quarter 2025 Highlights
-- 3Q25 Revenue increased 10.4% YoY to R$928.5 million. Revenue excluding
acquisitions increased 10.1%, reaching R$926.2 million.
-- 3Q25 Adjusted EBITDA increased 14.6% YoY, reaching R$398.9 million,
with an Adjusted EBITDA Margin of 43.0%. Adjusted EBITDA Margin increased
160 bps YoY. Adjusted EBITDA excluding acquisitions grew 15.2%, reaching
R$400.7 million, with an Adjusted EBITDA Margin of 43.3%.
-- 3Q25 Net Income increased 28.4% YoY, reaching R$159.4 million, and
Adjusted Net Income increased 16.5% YoY, reaching R$192.7 million. Basic
EPS growth was 28.5% in the same period.
Nine Months 2025 Highlights
-- 9M25 Revenue increased 13.4% YoY to R$2,784.3 million. Revenue
excluding acquisitions grew 9.8%, reaching R$2,696.7 million.
-- 9M25 Adjusted EBITDA increased 18.5% YoY reaching R$1,291.7 million,
with an Adjusted EBITDA Margin of 46.4%. Adjusted EBITDA Margin increased
200 bps YoY. Adjusted EBITDA excluding acquisitions grew 13.8%, reaching
R$1,239.9 million, with an Adjusted EBITDA Margin of 46.0%.
-- 9M25 Net Income increased 19.9% YoY, reaching R$593.0 million, and
Adjusted Net Income increased 11.1% YoY, reaching R$696.0 million. Basic
EPS growth was 19.7% in the same period.
-- Operating Cash Conversion ratio of 101.5%, with a solid cash position
of R$ 996.8 million.
-- 304 thousand users in Afya's ecosystem.
Table 1: Financial Highlights
For the three months period ended September 30, For the nine months period ended September 30,
---------------------------------------------------- --------------------------------------------------------
(in thousand of 2025 Ex % Chg Ex 2025 Ex % Chg Ex
R$) 2025 Acquisitions* 2024 % Chg Acquisitions 2025 Acquisitions* 2024 % Chg Acquisitions
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(a) Revenue 928,505 926,179 841,185 10.4% 10.1% 2,784,265 2,696,721 2,455,314 13.4% 9.8%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(b) Adjusted
EBITDA (2) 398,917 400,720 347,949 14.6% 15.2% 1,291,732 1,239,908 1,089,628 18.5% 13.8%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(c) = (b)/(a)
Adjusted EBITDA 160 200
Margin 43.0% 43.3% 41.4% bps 190 bps 46.4% 46.0% 44.4% bps 160 bps
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Net income 159,420 - 124,142 28.4% - 592,999 - 494,641 19.9% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Adjusted Net
income 192,694 - 165,372 16.5% - 696,002 - 626,683 11.1% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
*For the three months period ended September 30, 2025, "2025 Ex Acquisitions" excludes: FUNIC (July to September, 2025; Closing
of FUNIC was in May 2025).
*For the nine months period ended September 30, 2025, "2025 Ex Acquisitions" excludes: UNIDOM (January to June, 2025; Closing of
UNIDOM was in July 2024), and FUNIC (May to September, 2025; Closing of FUNIC was in May 2025).
(2) See more information on "Non-GAAP Financial Measures" (Item 08).
Message from Management
This quarter demonstrates once again Afya's ability to combine transformation with financial discipline. We advanced in initiatives that strengthen our ecosystem, and accelerate innovation, while maintaining a prudent approach to capital allocation. These achievements reinforce our confidence in the strategy and our capacity to deliver sustainable growth and long-term value for all stakeholders. We saw steady advances across our three segments, reflecting our commitment to integrate education and medical practice solutions throughout the medical journey.
In Undergraduate, we concluded another intake cycle, ensuring full occupancy across all our medical schools, which reinforces Afya's differentials and the ability to attract and retain top candidates nationwide. This approach ensures consistency in admissions, strengthens our brand positioning, and optimizes operational efficiency.
In Continuing Education, we sustained impressive growth in B2B Revenue, while strengthening the graduate journey. In Medical Practice Solutions we achieved a notable increase in active payers within Clinical Management, reinforcing the value of our solutions in supporting physicians' daily practice. Our ecosystem continues to enhance learning outcomes and employability, strengthening our reputation within the medical community.
We advanced AI--enabled enhancements to Afya Whitebook, iClinic and ReceitaPro further supporting clinical productivity and evidence--based decision--making at the point of care. In parallel, we launched Instituto Afya, aligned with the UN 2030 Agenda to address chronic disease challenges. Together, these initiatives strengthen our ecosystem and support long--term value creation.
During October, we took coordinated actions to strengthen our capital structure. We issued commercial notes totaling R$1.5 billion in two series, maturing in 2028 and 2030, with interest rates of CDI+0.70% and CDI+0.85% per year, respectively. Using the proceeds, we repurchased all 150,000 Series A perpetual convertible preferred shares from SoftBank for R$831.6 million and fully repaid R$500 million related to Afya Participações first debenture issuance. These actions extend debt duration, and reinforce our disciplined approach to capital management.
Looking ahead, we remain confident in our ability to keep delivering sustainable growth. Our integrated ecosystem, operational excellence and innovation agenda position Afya to execute with quality and consistency. We reaffirm our 2025 guidance and are proud of the progress achieved so far - energized by the opportunities ahead as we continue to transform the medical journey and physician career success in Brazil.
1. Key Events in the Quarter
-- On August 13, 2025, the Company's board of directors approved a new
share repurchase program. Afya may repurchase up to 4,000,000 of its
outstanding Class A common shares, in the open market, based on
prevailing market prices, or in privately negotiated transactions,
beginning from August 15, 2025 until the early of the completion of the
repurchase or December 31, 2026, depending upon market conditions. The
share purchases may be made from time to time through open-market
transactions and are subject to market and business conditions, levels of
available liquidity, cash requirements for other purposes, regulatory,
and other relevant factors. The share repurchase program will take place
in accordance with the conditions established by the Board of Directors.
Afya intends to repurchase the shares for use in its stock option program,
consideration in futures business combinations transactions and general
corporate purposes.
2. Subsequent Events
-- On October 15, 2025, Afya Brazil issued commercial notes for private
placement ("Commercial Notes"), sold to Opea Securitizadora S.A. ("Opea"),
a Brazilian securitization corporation pursuant to Section 45 of
Brazilian Law No. 14,195/2021, as amended. Opea issued a debenture backed
by the Commercial Notes on the same terms and conditions. The
aggregate principal amount of the Commercial Notes is R$1,500,000,
divided into two series, the first of which in the aggregate amount of
R$500,000 ("First Series") and the second in the aggregate amount of
R$1,000,000 ("Second Series"). The First Series will mature on October
15, 2028 and the Second Series will mature on October 15, 2030. The
interest rate applicable to the First Series and Second Series will be
equal to CDI plus a spread of 0.70% and 0.85% per year, respectively,
based on 252 business days. The Commercial Notes are subject to
certain obligations including financial covenants, and the Company shall
maintain net debt (excluding lease liabilities) to adjusted EBITDA ratio
below or equal to 3.0 x, at the end of each fiscal year, until maturity
date, applicable from December 31, 2025 and thereafter. Adjusted EBITDA
considers net income plus (i) income taxes expenses, (ii) net financial
result (excluding interest expenses on lease liabilities), (iii)
depreciation and amortization expenses (excluding right-of-use assets
depreciation expenses), (iv) share-based compensation expenses, (v) share
of income of associate, (vi) interest received and (vii) non-recurring
expenses. The Commercial Notes has sureties provided by the following
subsidiaries of the Company: Unigranrio, IESP and DelRey.
-- On October 22, 2025, Afya Brazil fully repaid the aggregate outstanding
amount related to the first issuance of debentures originally issued on
December 16, 2022. The debentures were issued with a final maturity date
of January 15, 2028, with the principal to be amortized in two equal
installments payable on January 15, 2027, and January 15, 2028.
-- On November 3, 2025, the Company repurchased all 150,000 Series A
perpetual convertible preferred shares of a nominal or par value of
US$0.00005 each in the capital of the Company ("Series A Preferred
Shares") for an aggregate purchase price of R$831,600, following the
Share Repurchase Agreement with SBLA Holdco LLC, an affiliate of
Softbank. All repurchased Series A Preferred Shares were cancelled by the
Company.
-- On November 7, 2025, MEC authorized the increase of 100 medical school
seats of ITPAC Porto located in the city of Bragança, State of
Pará. With this authorization, Afya reaches 150 medical school seats
on this campus, and 3,753 total approved medical school seats.
3. 2025 Guidance
The Company is reaffirming its guidance for 2025, as defined in the following table, which considers the successful acceptance of new students for the second semester of 2025:
Guidance for 2025
------------------------ -------------------------------------------
Revenue R$ 3,670 mn <= <= R$ 3,770 mn
------------------------ -------------------------------------------
Adjusted EBITDA R$ 1,620 mn <= <= R$ 1,720 mn
------------------------ -------------------------------------------
CAPEX (1) R$ 250 mn <= <= R$ 290 mn
------------------------ -------------------------------------------
(1) Excludes the license CAPEX related to the acquisition of FUNIC.
4. 3Q25 Overview
Segment Information
The Company has three reportable segments as follows:
Undergraduate, which provides educational services through undergraduate courses related to medical school, undergraduate health science and other ex-health undergraduate programs.
Continuing education, which provides medical education (including residency preparation programs, specialization test preparation and other medical capabilities), specialization and graduate courses in medicine, delivered through digital and in-person content; and
Medical Practice Solutions, which provides clinical decision, clinical management and doctor-patient relationships for physicians and provides access, demand and efficiency for the healthcare players.
Key Revenue Drivers -- Undergraduate Programs
Table 2: Key Revenue Drivers Nine months period ended September 30,
------------------------------------------
2025 2024 % Chg
---------------------------------- --------------- --------------- --------
Undergraduate Programs
---------------------------------- --------------- --------------- --------
MEDICAL SCHOOL
---------------------------------- --------------- --------------- --------
Approved Seats 3,653 3,593 1.7%
---------------------------------- --------------- --------------- --------
Operating Seats (1) 3,603 3,543 1.7%
---------------------------------- --------------- --------------- --------
Total Students (end of period) 25,706 24,234 6.1%
---------------------------------- --------------- --------------- --------
Average Total Students 25,773 23,168 11.2%
---------------------------------- --------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 24,683 23,168 6.5%
---------------------------------- --------------- --------------- --------
Revenue (Total - R$ '000) 2,112,619 1,843,545 14.6%
---------------------------------- --------------- --------------- --------
Revenue (ex- Acquisitions* - R$
'000) 2,030,656 1,843,545 10.1%
---------------------------------- --------------- --------------- --------
Medical School Net Avg. Ticket
(ex- Acquisitions* -
R$/month) 9,141 8,841 3.4%
---------------------------------- --------------- --------------- --------
UNDERGRADUATE HEALTH SCIENCE
---------------------------------- --------------- --------------- --------
Total Students (end of period) 26,980 25,950 4.0%
---------------------------------- --------------- --------------- --------
Average Total Students 26,276 25,028 5.0%
---------------------------------- --------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 25,757 25,028 2.9%
---------------------------------- --------------- --------------- --------
Revenue (Total - R$ '000) 193,656 177,053 9.4%
---------------------------------- --------------- --------------- --------
Revenue (ex- Acquisitions* - R$
'000) 191,520 177,053 8.2%
---------------------------------- --------------- --------------- --------
OTHER EX- HEALTH UNDERGRADUATE
---------------------------------- --------------- --------------- --------
Total Students (end of period) 35,074 27,855 25.9%
---------------------------------- --------------- --------------- --------
Average Total Students 34,386 27,745 23.9%
---------------------------------- --------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 33,409 27,745 20.4%
---------------------------------- --------------- --------------- --------
Revenue (Total - R$ '000) 152,938 135,296 13.0%
---------------------------------- --------------- --------------- --------
Revenue (ex- Acquisitions* - R$
'000) 149,493 135,296 10.5%
---------------------------------- --------------- --------------- --------
Total Revenue
---------------------------------- --------------- --------------- --------
Revenue (Total - R$ '000) 2,459,213 2,155,895 14.1%
---------------------------------- --------------- --------------- --------
Revenue (ex- Acquisitions* - R$
'000) 2,371,669 2,155,895 10.0%
---------------------------------- --------------- --------------- --------
*For the nine months period ended September 30, 2025, "2025 Ex Acquisitions"
excludes: UNIDOM (January to June, 2025; Closing of UNIDOM was in July 2024),
and FUNIC (May to September, 2025; Closing of FUNIC was in May 2025).
(1) The difference between approved and operating seats refers to Cametá,
a campus that is still pre-operational.
Key Revenue Drivers -- Continuing Education
Table 3: Key Revenue Drivers Nine months period ended September 30,
------------------------------------------
2025 2024 % Chg
---------------------------------- -------------- ------------- -----------
Continuing Education
---------------------------------- -------------- ------------- -----------
Total Students (end of
period)(1)
---------------------------------- -------------- ------------- -----------
Residency Journey - Business to
Physicians B2P 9,969 15,678 -36.4%
---------------------------------- -------------- ------------- -----------
Graduate Journey - Business to
Physicians B2P 9,180 7,293 25.9%
---------------------------------- -------------- ------------- -----------
Other Courses - B2P and B2B
Offerings 31,168 29,780 4.7%
---------------------------------- -------------- ------------- -----------
Total Students (end of period) 50,317 52,751 -4.6%
---------------------------------- -------------- ------------- -----------
Revenue (R$ '000)
---------------------------------- -------------- ------------- -----------
Business to Physicians - B2P 186,625 175,002 6.6%
---------------------------------- -------------- ------------- -----------
Business to Business - B2B 20,993 12,730 64.9%
---------------------------------- -------------- ------------- -----------
Total Revenue 207,618 187,731 10.6%
---------------------------------- -------------- ------------- -----------
(1) The figure above does not contemplate intercompany transactions
Key Revenue -- Medical Practice Solutions
Table 4: Key Revenue Drivers Nine months period ended September 30,
------------------------------------------
2025 2024 % Chg
---------------------------------- --------------- -------------- ---------
Medical Practice Solutions
---------------------------------- --------------- -------------- ---------
Active Payers (end of period)
---------------------------------- --------------- -------------- ---------
Clinical Decision 157,963 166,780 -5.3%
---------------------------------- --------------- -------------- ---------
Clinical Management 37,523 33,503 12.0%
---------------------------------- --------------- -------------- ---------
Total Active Payers (end of
period) 195,486 200,283 -2.4%
---------------------------------- --------------- -------------- ---------
Monthly Active Users (MaU)
---------------------------------- --------------- -------------- ---------
Total Monthly Active Users (MaU) 227,941 248,775 -8.4%
---------------------------------- --------------- -------------- ---------
Revenue (R$ '000)(1)
---------------------------------- --------------- -------------- ---------
Business to Physicians - B2P 114,081 102,812 11.0%
---------------------------------- --------------- -------------- ---------
Business to Business - B2B 14,111 14,478 -2.5%
---------------------------------- --------------- -------------- ---------
Total Revenue 128,193 117,290 9.3%
---------------------------------- --------------- -------------- ---------
(1) Revenue from 'Shosp', the clinical management software, was reclassified
from B2B to B2P.
Key Operational Drivers -- Users Positively Impacted by Afya
The Users Positively Impacted by Afya represents the total number of medical students from the Undergraduate segment, students from the Continuing Education and users from Medical Practice Solutions. For the third quarter of 2025, Afya's ecosystem reached 303,964 users.
Table 5: Key Revenue Drivers Nine months period ended September 30,
------------------------------------------
2025 2024 % Chg
---------------------------------- -------------- -------------- ----------
Users Positively Impacted by Afya
(1)
---------------------------------- -------------- -------------- ----------
Undergraduate (Total Medical
School Students - End of
Period) 25,706 24,234 6.1%
---------------------------------- -------------- -------------- ----------
Continuing Education (Total
Students - End of Period) 50,317 52,751 -4.6%
---------------------------------- -------------- -------------- ----------
Medical Practice Solutions
(Monthly Active Users) 227,941 248,775 -8.4%
---------------------------------- -------------- -------------- ----------
Ecosystem Outreach 303,964 325,760 -6.7%
---------------------------------- -------------- -------------- ----------
(1) Ecosystem outreach does not contemplate intercompany figures. Note that
there may be overlap in student numbers within the data.
Seasonality of Operations
Undergraduate tuition revenues are related to the intake process, and monthly tuition fees charged to students and do not significantly fluctuate during each semester.
Continuing education revenues are mostly related to: (i) monthly intakes and tuition fees on medical education, which do not have a considerable concentration in any period; (ii) Residency journey product revenues, derived from e-books transferred at a point of time, which are concentrated at in the first and last quarter of the year due to the enrollments.
Medical Practice Solutions are comprised mainly of Afya Whitebook and Afya iClinic revenues, which do not have significant fluctuations regarding seasonality.
Revenue
Revenue for the third quarter of 2025 was R$928.5 million, an increase of 10.4% over the same period in the prior year. For the nine-month period ended September 30, 2025, Revenue was R$2,784.3 million, reflecting a 13.4% increase over the same period of last year. Excluding acquisitions, Revenue in the third quarter increased by 10.1% YoY to R$926.2 million. For the nine-month period ended September 30, 2025, excluding acquisitions, Revenue was R$2,696.7 million, reflecting a 9.8% increase over the same period of last year.
The quarter revenue growth was mainly driven by (a) Undergraduate, higher tickets in medicine courses, the maturation of medical school seats and the acquisition of FUNIC; (b) Continuing Education, expansion in Graduate Journey students, increasing the average ticket per student across the segment; and (c) Medical Practice Solutions, which delivered growth primarily due to an expansion in Clinical Management active payers and a more favorable product mix.
Table 6: Revenue & Revenue Mix
(in thousands of
R$) For the three months period ended September 30, For the nine months period ended September 30,
----------------- ----------------------------------------------------- --------------------------------------------------------
2025 Ex % Chg Ex 2025 Ex % Chg Ex
2025 Acquisitions* 2024 % Chg Acquisitions 2025 Acquisitions* 2024 % Chg Acquisitions
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Revenue Mix
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Undergraduate 817,712 815,386 741,729 10.2% 9.9% 2,459,213 2,371,669 2,155,895 14.1% 10.0%
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Continuing
Education 70,098 70,098 60,225 16.4% 16.4% 207,618 207,618 187,731 10.6% 10.6%
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Medical
Practice
Solutions 44,189 44,189 40,436 9.3% 9.3% 128,193 128,193 117,290 9.3% 9.3%
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Inter-segment
transactions (3,494) (3,494) (1,205) 190.0% 190.0% (10,759) (10,759) (5,602) 92.1% 92.1%
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
Total Reported
Revenue 928,505 926,179 841,185 10.4% 10.1% 2,784,265 2,696,721 2,455,314 13.4% 9.8%
----------------- ------- ------------- ------- ------ ------------ --------- ------------- --------- ----- ------------
*For the three months period ended September 30, 2025, "2025 Ex Acquisitions"
excludes: FUNIC (July to September, 2025; Closing of FUNIC was in May 2025).
*For the nine months period ended September 30, 2025, "2025 Ex Acquisitions" excludes: UNIDOM (January to June, 2025; Closing of
UNIDOM was in July 2024), and FUNIC (May to September, 2025; Closing of FUNIC was in May 2025).
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2025 increased by 14.6% to R$398.9 million, up from R$347.9 million in the same period of the prior year, with the Adjusted EBITDA Margin rising by 160 basis points to 43.0%. For the nine-month period ended September 30, 2025, Adjusted EBITDA was R$1,291.7 million, an increase of 18.5% over the same period of the prior year, accompanied by an Adjusted EBITDA Margin increase of 200 basis points in the same period.
The increase in Adjusted EBITDA Margin was mainly driven by: (a) higher gross margin in the Undergraduate and Continuing Education segments; (b) restructuring initiatives within Continuing Education and Medical Practice Solutions; and (c) improved efficiency in Selling, General, and administrative expenses.
Table 7: Reconciliation between
Adjusted EBITDA and Net Income
(in thousands For the three months period ended For the nine months period
of R$) September 30, ended September 30,
---------------------------------- -------------------------------
2025 2024 % Chg 2025 2024 % Chg
-------------- ------- -------------- --------- --------- --------- ---------
Net income 159,420 124,142 28.4% 592,999 494,641 19.9%
-------------- ------- -------------- --------- --------- --------- ---------
Net financial
result 99,583 99,844 -0.3% 289,386 242,761 19.2%
-------------- ------- -------------- --------- --------- --------- ---------
Income taxes
expense 21,221 12,432 70.7% 63,470 26,388 140.5%
-------------- ------- -------------- --------- --------- --------- ---------
Depreciation
and
amortization 94,657 85,828 10.3% 281,110 249,135 12.8%
-------------- ------- -------------- --------- --------- --------- ---------
Interest
received (1) 15,179 13,945 8.8% 39,921 34,979 14.1%
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