R$448 Million Returned to Shareholders
106% of 1H26 FCFE Distributed Through Dividends and Share Repurchases
BELO HORIZONTE, Brazil--(BUSINESS WIRE)--August 13, 2026--
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 six-month period, which ended June 30, 2026 (second quarter 2026). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards ("IFRS").
Second Quarter 2026 Highlights
-- 2Q26 Revenue increased 5.7% YoY to R$972.1 million. Revenue excluding
acquisitions increased 5.4%, reaching R$969.3 million.
-- 2Q26 Adjusted EBITDA increased 1.4% YoY, reaching R$406.5 million, with
an Adjusted EBITDA Margin of 41.8%. Adjusted EBITDA Margin decreased -180
bps YoY. Adjusted EBITDA excluding acquisitions grew 1.2%, reaching
R$405.6 million, with an Adjusted EBITDA Margin of 41.8%.
-- 2Q26 Net Income increased 14.0% YoY, reaching R$201.3 million. Basic
EPS growth was 16.7% in the same period.
First-Half 2026 Highlights
-- 1H26 Revenue increased 7.0% YoY to R$1,984.8 million. Revenue excluding
acquisitions increased 6.6%, reaching R$1,977.6 million.
-- 1H26 Adjusted EBITDA increased 2.8% YoY, reaching R$918.0 million, with
an Adjusted EBITDA Margin of 46.2%. Adjusted EBITDA Margin decreased -190
bps YoY. Adjusted EBITDA excluding acquisitions grew 2.6%, reaching
R$915.7 million, with an Adjusted EBITDA Margin of 46.3%.
-- 1H26 Net Income increased 6.8% YoY, reaching R$463.1 million. Basic EPS
growth was 8.6% in the same period.
-- Operating Cash Conversion ratio of 87.8% and a Cash Flow from Operating
Activities of R$ 805.5 million, with a solid cash position of R$1,006.5
million. R$447.9 million returned to shareholders in 1H26 through
dividends and share repurchases, surpassing Free Cash Flow to Equity of
R$423.4 million in the period and reflecting a payout ratio of 105.8%.
-- 295 thousand users in Afya's ecosystem.
Table 1:
Financial
Highlights
------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
For the three months period ended June 30, For the six months period ended June 30,
---------------------------------------------------- --------------------------------------------------------
(in thousand of 2026 Ex % Chg Ex 2026 Ex % Chg Ex
R$) 2026 Acquisitions* 2025 % Chg Acquisitions 2026 Acquisitions* 2025 % Chg Acquisitions
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(a) Revenue 972,097 969,267 919,400 5.7% 5.4% 1,984,809 1,977,641 1,855,760 7.0% 6.6%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(b) Adjusted
EBITDA (1) 406,539 405,629 400,844 1.4% 1.2% 917,958 915,740 892,814 2.8% 2.6%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(c) = (b)/(a)
Adjusted EBITDA -180 -190
Margin 41.8% 41.8% 43.6% bps -180 bps 46.2% 46.3% 48.1% bps -180 bps
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Net income 201,294 - 176,542 14.0% - 463,057 - 433,578 6.8% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Basic Earnings
per Share - in
R$ 2.22 - 1.90 16.7% - 5.10 - 4.69 8.6% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
*For the three months period ended June 30, 2026, "2026 Ex Acquisitions" excludes: FUNIC (April to May, 2026; Closing of FUNIC
was in May 2025).
*For the six months period ended June 30, 2026, "2026 Ex Acquisitions" excludes: FUNIC (January to May, 2026; Closing of FUNIC
was in May 2025).
(1) See more information on "Non-GAAP Financial Measures" (Item 08).
Message from Management
During the first half of 2026, Afya continued to execute its strategy with discipline, delivering revenue growth while advancing the investment cycle outlined for the year. The resilience of our Medical Education business supported another quarter of profitable growth and strong cash generation.
In Undergraduate, Revenue reached R$1,762.2 million in the first half of 2026, a 7.4% year-on-year increase, driven by our Medical School and Health Sciences undergraduate programs. Revenue from Medical Schools totaled R$1,499.4 million in the first half, a 6.5% increase year-on-year, supported by a 3.9% increase in Medical School net average ticket and the continued expansion of our medical student base, which expanded 2.7% year-over-year from 25,733 to 26,421 students. Revenue was further supported by the continued expansion of our Health Sciences student base, which grew 18.0% year-over-year from 25,718 to 30,350 students, reflecting the diversification of our health-related undergraduate portfolio and the strength of Afya's brand within the health segment.
In Continuing Education, Revenue reached R$143.9 million in the first half, a 4.6% increase year-on-year, driven by a higher intake in short-term programs that carry a lower average ticket per student. The total base reached 56,237, a 23.6% year-on-year increase. In Medical Practice Solutions, Revenue reached R$85.3 million in the first half, a 1.5% increase year-on-year. Clinical Management active payers grew 20.4% year-on-year to 50,499, reflecting the continued execution of the product investment cycle in our 2026 strategy.
Our capital allocation discipline remains grounded in value creation. We continuously evaluate acquisition opportunities and deploy capital only when transactions meet our strategic and financial return thresholds. When opportunities do not satisfy these criteria, we return excess capital to shareholders through dividends and our share repurchase program. Supported by our strong cash generation, this approach resulted in R$447.9 million returned to shareholders in the first half of 2026, of which R$314.9 million was distributed as dividends, equivalent to 40% of Afya's 2025 consolidated net income, and R$133.0 million was deployed in share repurchases, representing 2.7 million shares or approximately 3% of total shares outstanding under our current buyback program. This amount represents 106% of 1H26 Free Cash Flow to Equity, while Net Debt excluding IFRS16 remained broadly stable compared to December 2025. This discipline, combined with our earnings trajectory, translates into a compelling return profile: our last twelve months free cash flow to equity yield of 11% and EPS growth of 13% combine to imply a 24% potential annual equity return at a constant valuation multiple.
Looking ahead, we remain confident in the strength of our strategy and the quality of our platform. We will keep investing in our ecosystem, supporting physicians at every stage of their careers, and creating sustainable value for students, physicians and shareholders.
1. Key Events in the Quarter
-- On May 5, 2026, Moody's reaffirmed Afya's credit rating at AAA.br and
maintained a stable outlook. The reaffirmation of Afya's AAA.br rating
and stable outlook reflects revenue growth, a track record of
above-industry-average margins, very strong credit metrics, exceptional
cash generation, and robust liquidity. In addition, Afya's credit profile
reflects a strong competitive position and a predictable financial policy,
including proactive liability management and prudent capital allocation,
despite its appetite for M&As.
2. Subsequent Events
-- On July 29, 2026, the Company announced that Marcelo Ken Suhara was
appointed, on July 27, 2026, as Chair Member of its Audit, Risks and
Ethics Committee. Mr. Suhara, who currently serves as an independent
member of Afya's Board of Directors and a member of the Audit, Risks and
Ethics Committee and the Audit Committee financial expert, succeeds
João Paulo Seibel de Faria as the Chair Member of the Audit, Risks
and Ethics Committee and will continue to serve as the Audit Committee
financial expert and an independent member of the Board of Directors.
The appointment follows the passing of João Paulo Seibel de Faria,
who served as the Chair Member of the Audit, Risks and Ethics Committee
and as an independent member of the Company's Board of Directors. The
Company expresses its deepest gratitude to Mr. Faria for his dedication,
leadership and meaningful contributions to Afya's governance and
long-term success throughout his tenure. The Board of Directors and
management team extend their sincere condolences to Mr. Faria's family
and loved ones.
3. 2026 Guidance
The Company is reaffirming its 2026 guidance, which assumes the successful acceptance of new students for the second semester of 2026. The guidance for 2026 is defined in the following table:
Guidance for 2026(1)
---------------------------- ----------------------------------------------
Revenue R$ 3,950 mn <= <= R$ 4,100 mn
---------------------------- ----------------------------------------------
Adjusted EBITDA R$ 1,700 mn <= <= R$ 1,800 mn
---------------------------- ----------------------------------------------
CAPEX R$ 340 mn <= <= R$ 380 mn
---------------------------- ----------------------------------------------
(1) Excludes any acquisition that may be concluded after the issuance of the
guidance.
4. 2Q26 Overview
Segment Information
The Company has three reportable segments as follows:
Undergraduate, previously denominated Undergrad, 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 Six months period ended June 30,
------------------------------------
2026 2025 % Chg
---------------------------------------- ------------- ------------- ------
Undergraduate Programs
---------------------------------------- ------------- ------------- ------
MEDICAL SCHOOL
---------------------------------------- ------------- ------------- ------
Operating Seats (1) 3,768 3,543 6.4%
---------------------------------------- ------------- ------------- ------
Total Students (end of period) 26,421 25,733 2.7%
---------------------------------------- ------------- ------------- ------
Average Total Students 26,458 25,806 2.5%
---------------------------------------- ------------- ------------- ------
Average Total Students
(ex-Acquisitions)* 26,339 25,806 2.1%
---------------------------------------- ------------- ------------- ------
Revenue (Total - R$ '000) 1,499,444 1,407,348 6.5%
---------------------------------------- ------------- ------------- ------
Revenue (ex-Acquisitions* - R$ '000) 1,492,276 1,407,348 6.0%
---------------------------------------- ------------- ------------- ------
Medical School Net Avg. Ticket (ex-
Acquisitions* - R$/month) 9,443 9,089 3.9%
---------------------------------------- ------------- ------------- ------
UNDERGRADUATE HEALTH SCIENCE
---------------------------------------- ------------- ------------- ------
Total Students (end of period) 30,350 25,718 18.0%
---------------------------------------- ------------- ------------- ------
Average Total Students 30,719 25,926 18.5%
---------------------------------------- ------------- ------------- ------
Average Total Students
(ex-Acquisitions)* 30,719 25,926 18.5%
---------------------------------------- ------------- ------------- ------
Revenue (Total - R$ '000) 147,475 130,604 12.9%
---------------------------------------- ------------- ------------- ------
Revenue (ex-Acquisitions* - R$ '000) 147,475 130,604 12.9%
---------------------------------------- ------------- ------------- ------
OTHER EX- HEALTH UNDERGRADUATE
---------------------------------------- ------------- ------------- ------
Total Students (end of period) 37,367 33,090 12.9%
---------------------------------------- ------------- ------------- ------
Average Total Students 38,363 34,043 12.7%
---------------------------------------- ------------- ------------- ------
Average Total Students
(ex-Acquisitions)* 38,363 34,043 12.7%
---------------------------------------- ------------- ------------- ------
Revenue (Total - R$ '000) 115,262 103,549 11.3%
---------------------------------------- ------------- ------------- ------
Revenue (ex-Acquisitions* - R$ '000) 115,262 103,549 11.3%
---------------------------------------- ------------- ------------- ------
Total Revenue
---------------------------------------- ------------- ------------- ------
Revenue (Total - R$ '000) 1,762,181 1,641,501 7.4%
---------------------------------------- ------------- ------------- ------
Revenue (ex-Acquisitions* - R$ '000) 1,755,013 1,641,501 6.9%
---------------------------------------- ------------- ------------- ------
* For the six-month period ended June 30, 2026, "2026 Ex Acquisitions"
excludes: FUNIC (January to May, 2026); Closing of FUNIC was in May 2025).
(1) Reported medical school seats do not reflect any potential reductions
resulting from ENAMED.
Key Revenue Drivers -- Continuing Education
Table 3: Key Revenue Drivers Six months period ended June 30,
------------------------------------
2026 2025 % Chg
---------------------------------------- ------------ ----------- ---------
Continuing Education
---------------------------------------- ------------ ----------- ---------
Total Students (end of period)(1)
---------------------------------------- ------------ ----------- ---------
Residency Journey - Business to
Physicians B2P 9,244 9,224 0.2%
---------------------------------------- ------------ ----------- ---------
Graduate Journey - Business to
Physicians B2P 10,213 9,055 12.8%
---------------------------------------- ------------ ----------- ---------
Other Courses - B2P and B2B Offerings 36,780 27,226 35.1%
---------------------------------------- ------------ ----------- ---------
Total Students (end of period) 56,237 45,505 23.6%
---------------------------------------- ------------ ----------- ---------
Revenue (R$ '000)
---------------------------------------- ------------ ----------- ---------
Business to Physicians - B2P 134,800 125,379 7.5%
---------------------------------------- ------------ ----------- ---------
Business to Business - B2B 9,054 12,141 -25.4%
---------------------------------------- ------------ ----------- ---------
Total Revenue 143,854 137,520 4.6%
---------------------------------------- ------------ ----------- ---------
(1) The figure above does not contemplate intercompany transactions.
Key Revenue -- Medical Practice Solutions
Table 4: Key Revenue Drivers Six months period ended June 30,
------------------------------------
2026 2025 % Chg
------------------------------------ ------------ ------------ --------
Medical Practice Solutions
------------------------------------ ------------ ------------ --------
Active Payers (end of period)
------------------------------------ ------------ ------------ --------
Clinical Decision 150,048 159,373 -5.9%
------------------------------------ ------------ ------------ --------
Clinical Management 50,499 41,950 20.4%
------------------------------------ ------------ ------------ --------
Total Active Payers (end of period) 200,547 201,323 -0.4%
------------------------------------ ------------ ------------ --------
Monthly Active Users (MaU)
------------------------------------ ------------ ------------ --------
Total Monthly Active Users (MaU) 212,158 230,468 -7.9%
------------------------------------ ------------ ------------ --------
Revenue (R$ '000)
------------------------------------ ------------ ------------ --------
Business to Physicians - B2P 75,904 75,051 1.1%
------------------------------------ ------------ ------------ --------
Business to Business - B2B 9,391 8,953 4.9%
------------------------------------ ------------ ------------ --------
Total Revenue 85,294 84,004 1.5%
------------------------------------ ------------ ------------ --------
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 Continuing Education and users from Medical Practice Solutions. For the second quarter of 2026, Afya's ecosystem reached 294,816 users.
Table 5: Key Revenue
Drivers
2Q26 2Q25 % Chg YoY 1Q26 4Q25 3Q25
---------------------- ------- ------- --------- ------- ------- -------
Users Positively
Impacted by Afya
---------------------- ------- ------- --------- ------- ------- -------
Undergraduate (Total
Medical School
Students - End of
Period)(1) 26,421 25,733 2.7% 26,494 25,556 25,706
---------------------- ------- ------- --------- ------- ------- -------
Continuing Education
(Total Students -
End of Period)(1) 56,237 45,505 23.6% 56,531 55,039 50,317
---------------------- ------- ------- --------- ------- ------- -------
Medical Practice
Solutions (Monthly
Active Users) 212,158 230,468 -7.9% 220,528 220,051 227,941
---------------------- ------- ------- --------- ------- ------- -------
Ecosystem Outreach 294,816 301,706 -2.3% 303,553 300,646 303,964
---------------------- ------- ------- --------- ------- ------- -------
(1) Ecosystem outreach does not contemplate intercompany figures. Note that
there may be overlap in student numbers within the data.
Revenue
Revenue totaled R$972.1 million in the second quarter of 2026, increasing 5.7% year over year. Excluding acquisitions, Revenue reached R$969.3 million, representing 5.4% organic growth. For the first half of 2026, Revenue totaled R$1,984.8 million, up 7.0% year over year. Excluding acquisitions, Revenue reached R$1,977.6 million, representing 6.6% organic growth.
Revenue growth in the quarter was primarily driven by the continued strength of our Medical Schools, supported by higher net average tickets and the ongoing maturation of operating medical school seats, and the continued expansion of the Health Sciences student base by 18.0%, which together increased organically by 6.6% year over year.
Table 6: Revenue & Revenue Mix
(in thousands of
R$) For the three months period ended June 30, For the six months period ended June 30,
------------------ ---------------------------------------------------- ---------------------------------------------------------
2026 Ex % Chg Ex 2026 Ex % Chg Ex
2026 Acquisitions* 2025 % Chg Acquisitions 2026 Acquisitions* 2025 % Chg Acquisitions
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Revenue Mix
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Undergraduate 869,716 866,886 814,129 6.8% 6.5% 1,762,181 1,755,013 1,641,501 7.4% 6.9%
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Continuing
Education 64,908 64,908 66,417 -2.3% -2.3% 143,854 143,854 137,520 4.6% 4.6%
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Medical
Practice
Solutions 41,869 41,869 42,320 -1.1% -1.1% 85,294 85,294 84,004 1.5% 1.5%
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Inter-segment
transactions (4,396) (4,396) (3,466) 26.8% 26.8% (6,520) (6,520) (7,265) -10.3% -10.3%
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Revenue (Total -
R$ '000) 972,097 969,267 919,400 5.7% 5.4% 1,984,809 1,977,641 1,855,760 7.0% 6.6%
------------------ ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
*For the three months period ended June 30, 2026, "2026 Ex Acquisitions" excludes: FUNIC (April to May, 2026; Closing of FUNIC was
in May 2025).
*For the six months period ended June 30, 2026, "2026 Ex Acquisitions" excludes: FUNIC (January to May, 2026; Closing of FUNIC was
in May 2025).
Adjusted EBITDA
Adjusted EBITDA reached R$406.5 million in the second quarter of 2026, an increase of 1.4% year over year, while Adjusted EBITDA Margin was 41.8%, down 180 basis points from the prior-year period. For the first half of 2026, Adjusted EBITDA totaled R$918.0 million, up 2.8% year over year, with an Adjusted EBITDA Margin of 46.2%, down 190 basis points.
The decrease in Adjusted EBITDA Margin primarily reflects a lower gross profit contribution from Continuing Education, driven by a less favorable revenue mix, as well as higher payroll, sales, and marketing expenses associated with the investment cycle across Continuing Education and Medical Practice Solutions.
Table 7: Reconciliation between Adjusted EBITDA and Net Income
(in thousands For the three months For the six months period ended
of R$) period ended June 30, June 30,
------------------------- ---------------------------------
2026 2025 % Chg 2026 2025 % Chg
-------------- ------- ------- ------- ------- -------- --------------
Net income 201,294 176,542 14.0% 463,057 433,578 6.8%
-------------- ------- ------- ------- ------- -------- --------------
Net financial
result 98,939 94,809 4.4% 193,289 189,803 1.8%
-------------- ------- ------- ------- ------- -------- --------------
Income taxes
expense 1,984 17,468 -88.6% 44,438 42,250 5.2%
-------------- ------- ------- ------- ------- -------- --------------
Depreciation
and
amortization 90,568 94,698 -4.4% 183,645 186,453 -1.5%
-------------- ------- ------- ------- ------- -------- --------------
Interest
received (1) 10,017 10,210 -1.9% 23,564 24,742 -4.8%
-------------- ------- ------- ------- ------- -------- --------------
Income share
associate (4,355) (3,591) 21.3% (9,322) (7,876) 18.4%
-------------- ------- ------- ------- ------- -------- --------------
Share-based
compensation 8,092 5,557 45.6% 19,241 12,520 53.7%
-------------- ------- ------- ------- ------- -------- --------------
Non-recurring
expenses: - 5,151 n.a. 46 11,344 -99.6%
-------------- ------- ------- ------- ------- -------- --------------
- Integration
of new
companies
(2) - 4,819 n.a. - 10,788 n.a.
-------------- ------- ------- ------- ------- -------- --------------
- M&A advisory
and due
diligence
(3) - 203 n.a. - 291 n.a.
-------------- ------- ------- ------- ------- -------- --------------
- Expansion
projects (4) - 129 n.a. - 253 n.a.
-------------- ------- ------- ------- ------- -------- --------------
-
Restructuring
expenses (5) - - n.a. 46 12 283.3%
-------------- ------- ------- ------- ------- -------- --------------
Adjusted
EBITDA 406,539 400,844 1.4% 917,958 892,814 2.8%
Adjusted
EBITDA -180
Margin 41.8% 43.6% bps 46.2% 48.1% -190 bps
-------------- ------- ------- ------- ------- -------- --------------
(1) Represents the interest received on late payments of monthly tuition
fees.
(2) Consists of expenses related to the integration of newly acquired
companies.
(3) Consists of expenses related to professional and consultant fees in
connection with due diligence services for our M&A transactions.
(4) Consists of expenses related to professional and consultant fees in
connection with the opening of new campuses.
(5) Consists of expenses related to the employee redundancies in connection
with the organizational restructuring of our acquired companies.
Net Income
Net Income for the second quarter of 2026 totaled R$201.3 million, an increase of 14.0% year over year. For the first half of 2026, Net Income reached R$463.1 million, up 6.8% from the same period of 2025. The increase reflects continued operating performance and a tax impact resulting from the implementation of the OECD Pillar Two rules in Brazil.
Basic EPS reached R$ 2.22 for the second quarter of 2026, an increase of 16.7% year over year, and R$5.10 for the six-month period ended June 30, 2026, an increase of 8.6% YoY. The EPS growth is higher than net income, reflecting our capital allocation strategy.
Table 8: Net Income and Basic Earnings Per Share
----------------------------------------------------------------------------
(in thousands
of R$, except
for earnings For the three months period For the six months period
per share) ended June 30, ended June 30,
----------------------------- -----------------------------
2026 2025 % Chg 2026 2025 % Chg
-------------- -------- -------- --------- -------- -------- ---------
Net income 201,294 176,542 14.0% 463,057 433,578 6.8%
-------------- -------- -------- --------- -------- -------- ---------
Basic earnings
per share -
in R$ (1) 2.22 1.90 16.7% 5.10 4.69 8.6%
-------------- -------- -------- --------- -------- -------- ---------
(1) Basic earnings per share is calculated as net income attributable to
Owners of the Company divided by the weighted average number of outstanding
shares during the period.
Cash and Debt Position
As of June 30, 2026, Cash and Cash Equivalents totaled R$1,006.5 million, a decrease of 10.6% over December 31, 2025. Net Debt, excluding the effect of IFRS 16, reached R$1,394.0 million, increasing by R$24.5 million from year-end 2025, despite returning R$447.9 million to shareholders through dividends and share repurchases during the first half of 2026. For the six-month period ended June 30, 2026, Afya generated R$805.6 million in Cash Flow from Operating Activities, up from R$783.0 million in the same period of the previous year, an increase of 2.9% YoY. The Operating Cash Conversion Ratio reached 87.8%.
Table 9: Operating Cash
Conversion Ratio Reconciliation For the six months period ended June 30,
--------------------------------------------
(in thousands of R$) Considering the adoption of IFRS 16
--------------------------------------------
2026 2025 % Chg
-------------------------------- ------------- ------------- --------------
(a) Net cash flows from
operating activities 797,839 771,596 3.4%
-------------------------------- ------------- ------------- --------------
(b) Income taxes paid 7,708 11,385 -32.3%
-------------------------------- ------------- ------------- --------------
(c) = (a) + (b) Cash flow from
operating activities 805,547 782,981 2.9%
-------------------------------- ------------- ------------- --------------
(d) Adjusted EBITDA 917,958 892,814 2.8%
-------------------------------- ------------- ------------- --------------
(e) Non-recurring expenses: 46 11,344 -99.6%
-------------------------------- ------------- ------------- --------------
- Integration of new companies
(1) - 10,788 -100.0%
-------------------------------- ------------- ------------- --------------
- M&A advisory and due diligence
(2) - 291 -100.0%
-------------------------------- ------------- ------------- --------------
- Expansion projects (3) - 253 -100.0%
-------------------------------- ------------- ------------- --------------
- Restructuring Expenses (4) 46 12 283.3%
-------------------------------- ------------- ------------- --------------
(f) = (d) - (e) Adjusted EBITDA
ex- non-recurring expenses 917,912 881,470 4.1%
-------------------------------- ------------- ------------- --------------
(g) = (c) / (f) Operating cash
conversion ratio 87.8% 88.8% -100 bps
-------------------------------- ------------- ------------- --------------
(1) Consists of expenses related to the integration of newly acquired
companies.
(2) Consists of expenses related to professional and consultant fees in
connection with due diligence services for M&A transactions.
(3) Consists of expenses related to professional and consultant fees in
connection with the opening of new campuses.
The following table provides more information on the cost of debt for the first half of 2026, including loans and financing, as well as accounts payable to selling shareholders. Afya's capital structure remains solid, with a conservative leveraging position and a low cost of debt. Afya's Net Debt (excluding the effect of IFRS16) divided by Adjusted EBITDA mid guidance for 2026 would be 0.8x.
Table 10: Gross Debt and Average Cost of Debt
------------------------------------------------------------------------------
(in millions of
R$) For the closing of the six months period ended in June 30,
------------------------------------------------------------
Cost of Debt
----- ----- ----- -------- -----------------------------
Duration
Gross Debt (Years) Per year %CDI(2)
------------ --------------- ------------- --------------
2026 2025 2026 2025 2026 2025 2026 2025
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Loans and
financing:
Softbank - 856 - 0.8 - 8.6% - 66%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Loans and
financing:
Debentures 1,538 532 3.9 2.1 15.2% 15.3% 106% 114%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Loans and
financing:
Others - 318 - 0.3 - 15.3% - 114%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Loans and
financing: IFC 510 508 2.8 3.3 15.5% 14.6% 108% 109%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Accounts payable
to selling
shareholders 353 506 4.4 3.3 14.3% 13.5% 100% 101%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
Total(1)|
Average 2,400 2,720 3.7 1.9 15.1% 12.7% 106% 95%
---------------- ----- ----- ----- -------- ----- ------ ------ ------
(1) Total amount refers only to the "Gross Debt" columns.
(2) Based on the annualized Interbank Certificates of Deposit ("CDI") rate for
the period as a reference: 1H26: 14.66% p.y. and for 1H25: 13.70% p.y.
Table 11: Cash and Debt
Position
----------------------------- --------- --------- ------ --------- ------
(in thousands of R$)
2Q26 FY2025 % Chg 2Q25 % Chg
----------------------------- --------- --------- ------ --------- ------
(+) Cash and Cash Equivalents 1,006,490 1,125,381 -10.6% 1,099,107 -8.4%
----------------------------- --------- --------- ------ --------- ------
Cash and Bank Deposits 16,301 15,470 5.4% 9,167 77.8%
----------------------------- --------- --------- ------ --------- ------
Cash Equivalents 990,189 1,109,911 -10.8% 1,089,940 -9.2%
----------------------------- --------- --------- ------ --------- ------
(-) Loans and Financing 2,047,895 2,054,26 -0.3% 2,213,967 -7.5%
----------------------------- --------- --------- ------ --------- ------
Current 126,364 60,668 108.3% 1,216,994 -89.6%
----------------------------- --------- --------- ------ --------- ------
Non-Current 1,921,531 1,993,599 -3.6% 996,973 92.7%
----------------------------- --------- --------- ------ --------- ------
(-) Accounts Payable to
Selling Shareholders 352,548 440,597 -20.0% 506,113 -30.3%
----------------------------- --------- --------- ------ --------- ------
Current 55,780 110,640 -49.6% 198,970 -72.0%
----------------------------- --------- --------- ------ --------- ------
Non-Current 296,768 329,957 -10.1% 307,143 -3.4%
----------------------------- --------- --------- ------ --------- ------
(-) Other Short and Long Term
Obligations - - n.a. - n.a.
----------------------------- --------- --------- ------ --------- ------
(=) Net Debt (Cash) excluding
IFRS 16 1,393,953 1,369,483 1.8% 1,620,973 -14.0%
----------------------------- --------- --------- ------ --------- ------
(-) Lease Liabilities 1,070,292 1,065,746 0.4% 1,011,09 5.9%
----------------------------- --------- --------- ------ --------- ------
Current 57,630 55,772 3.3% 48,960 17.7%
----------------------------- --------- --------- ------ --------- ------
Non-Current 1,012,662 1,009,974 0.3% 962,131 5.3%
----------------------------- --------- --------- ------ --------- ------
Net Debt (Cash) with IFRS 16 2,464,245 2,435,229 1.2% 2,632,064 -6.4%
----------------------------- --------- --------- ------ --------- ------
CAPEX
Capital expenditure consists primarily of investments in property and equipment and intangible assets, including the expansion and maintenance of Afya's campuses and headquarters, leasehold improvements, and the development of new solutions in the Medical Practice Solutions and educational content in Continuing Education.
For the first half of 2026, Capex totaled R$120.0 million, representing 6.0% of Revenue for the period and remaining aligned with the Company's 2026 investment plan.
Table 12: CAPEX
------------------------------------------------------------------------------
(in thousands of R$) For the six months period ended June 30,
--------------------------------------------
2026 2025 % Chg
-------------- ------------- -------------
Property and equipment 41,003 81,617 -49.8%
-------------------------------- -------------- ------------- -------------
Intangible assets 78,960 143,455 -45.0%
-------------------------------- -------------- ------------- -------------
- Licenses - 99,629 n.a.
-------------------------------- -------------- ------------- -------------
- Others 78,960 43,826 80.2%
-------------------------------- -------------- ------------- -------------
CAPEX 119,963 225,072 -46.7%
-------------------------------- -------------- ------------- -------------
% of Revenue (1) 6.0% 6.8% -80 bps
-------------------------------- -------------- ------------- -------------
(1) % of Revenue excludes one-off effects, which refers to R$ 99.6 million in
May 2025, related to the acquisition of FUNIC, which added 60 medical seats to
Afya's portfolio.
5. Conference Call and Webcast Information
When: August 13, 2026, at 5:00 p.m. EDT.
Who: Mr. Virgilio Gibbon, Chief Executive Officer
Mr. Luis André Blanco, Chief Financial Officer
Ms. Renata Costa Couto, IR Director
Webcast: https://afya.zoom.us/j/98271618661
OR
Dial-in:
Brazil: +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668.
United States: +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799.
Webinar ID: 982 7161 8661
Other Numbers: https://afya.zoom.us/u/aRK0ROGaH
6. About Afya Limited (Nasdaq: AFYA; B3: A2FY34)
Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering medical practice solutions to help doctors enhance their healthcare services through their whole career. For more information, please visit www.afya.com.br.
7. Forward -- Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including risks and uncertainties related to statements about our competition; our ability to attract, upsell and retain students; our capacity to increase tuition prices; our ability to anticipate and meet the evolving needs of students and teachers; our capacity to source and successfully integrate acquisitions; as well as general market, political, economic, and business conditions. Additionally, these statements include financial targets such as revenue, share count and IFRS and non-IFRS financial measures including gross margin, operating margin, net income (loss) per diluted share, and free cash flow. These statements are not guarantees of future performance and undue reliance should not be placed on them.
The Company assumes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances occurring after its publication, nor to incorporate new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from those expressed or implied by the forward-looking statements we make.
Readers should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent management's beliefs and assumptions only as of the date they are made. Further information on these and other factors that could affect the Company's financial results is included in filings made with the United States Securities and Exchange Commission (SEC) from time to time, including the section titled "Risk Factors" in the most recent annual report on Form 20-F. These documents are available in the SEC Filings section of the investor relations section of our website at: https://ir.afya.com.br/.
8. Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which are prepared and presented in accordance with IFRS accounting standards as issued by the International Accounting Standards Board--IASB, Afya presents Adjusted EBITDA and Operating Cash Conversion Ratio which are non-GAAP financial measures, for the convenience of investors. A non-GAAP financial measure is generally defined as one that intends to measure financial performance but excludes or includes amounts that would not be equally adjusted in the most comparable GAAP measure.
Afya calculates Adjusted EBITDA as net income plus/minus net financial result, plus income taxes expense, plus depreciation and amortization, plus interest received on late payments of monthly tuition fees, plus share-based compensation, plus/minus income share associate, plus/minus non-recurring expenses/income. Operating Cash Conversion Ratio is calculated as the Cash flow from Operating Activities plus income taxes paid, minus/plus non-recurring expenses/income divided by Adjusted EBITDA.
Free Cash Flow to Equity is calculated as the change in Net Debt ex-IFRS 16 between the beginning of the current period and the end of the current period, plus cash paid for acquisitions of subsidiaries or business combinations, plus dividends paid to the Company's shareholders, plus cash used in treasury share repurchases.
The non-GAAP supplemental financial measures are provided with the intend to help investors in assessing the overall performance of Afya's business regarding its core operations, cash generation and profitability. The non-GAAP financial measures described in this release are not substitutes for the IFRS measures. In addition, the calculations of Adjusted EBITDA and Operating Cash Conversion Ratio are not standardized financial measures and may differ from the calculations used by other companies, including competitors in the education services industry, and therefore, Afya's measures may not be comparable to those of other companies.
9. Investor Relations Contact
E-mail: ir@afya.com.br
10. Financial Tables
Unaudited interim condensed consolidated statements of financial position
As of June 30, 2026 and December 31, 2025
(In thousands of Brazilian reais)
June 30, 2026 December 31, 2025
------------- -----------------
Assets (unaudited)
Current assets
Cash and cash equivalents 1,006,490 1,125,381
Trade receivables 819,716 717,373
Recoverable taxes 31,954 13,429
Income taxes recoverable 26,522 23,046
Other assets 65,509 62,947
------------- -----------------
Total current assets 1,950,191 1,942,176
------------- -----------------
Non-current assets
Trade receivables 32,988 34,985
Deferred tax assets 7,299 12,552
Other assets 116,149 125,480
Investment in associate 54,962 46,518
Property and equipment 701,624 711,485
Right-of-use assets 887,580 896,758
Intangible assets 5,575,840 5,587,980
------------- -----------------
Total non-current assets 7,376,442 7,415,758
------------- -----------------
Total assets 9,326,633 9,357,934
------------- -----------------
Liabilities
Current liabilities
Trade payables 145,985 123,581
Loans and financing 126,364 60,668
Lease liabilities 57,630 55,772
Accounts payable to selling shareholders 55,780 110,640
Advances from customers 104,313 158,035
Dividends payable 762 192
Labor and social obligations 252,923 217,526
Taxes payable 35,348 36,043
Income taxes payable 98,629 112,638
Other liabilities 8,134 8,946
------------- -----------------
Total current liabilities 885,868 884,041
------------- -----------------
Non-current liabilities
Loans and financing 1,921,531 1,993,599
Lease liabilities 1,012,662 1,009,974
Accounts payable to selling shareholders 296,768 329,957
Taxes payable 73,070 77,487
Income taxes payable 50,012 -
Provision for legal proceedings 116,451 128,220
Other liabilities 41,451 43,471
------------- -----------------
Total non-current liabilities 3,511,945 3,582,708
------------- -----------------
Total liabilities 4,397,813 4,466,749
------------- -----------------
Equity
Share capital 17 17
Additional paid-in capital 2,295,632 2,320,422
Treasury shares (410,431) (306,010)
Share-based compensation reserve 222,056 202,815
Retained earnings 2,781,312 2,634,552
------------- -----------------
Equity attributable to the owners of the
Company 4,888,586 4,851,796
------------- -----------------
Non-controlling interests 40,234 39,389
------------- -----------------
Total equity 4,928,820 4,891,185
------------- -----------------
Total liabilities and equity 9,326,633 9,357,934
============= =================
Unaudited interim condensed consolidated statements of income and comprehensive income
For the three and six-month periods ended June 30, 2026 and 2025
(In thousands of Brazilian reais, except for earnings per share information)
Three-month periods ended Six-month periods ended
---------------------------- ----------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue 972,097 919,400 1,984,809 1,855,760
Cost of services (373,387) (342,707) (688,036) (625,346)
------------- ------------- ------------- -------------
Gross profit 598,710 576,693 1,296,773 1,230,414
------------- ------------- ------------- -------------
Selling, general
and
administrative
expenses (286,339) (276,376) (574,000) (541,318)
Allowance for
expected credit
losses (20,245) (16,495) (38,088) (33,053)
Other income 8,609 3,728 13,480 6,234
Other expenses (2,873) (2,322) (6,703) (4,522)
Operating income 297,862 285,228 691,462 657,755
------------- ------------- ------------- -------------
Finance income 41,077 40,997 94,374 84,478
Finance expenses (140,016) (135,806) (287,663) (274,281)
------------- ------------- ------------- -------------
Net finance result (98,939) (94,809) (193,289) (189,803)
Share of profit of
equity-accounted
investee, net of
tax 4,355 3,591 9,322 7,876
Income before
income taxes 203,278 194,010 507,495 475,828
------------- ------------- ------------- -------------
Income taxes
expenses
Current (4,607) (35,635) (39,185) (67,563)
Deferred 2,623 18,167 (5,253) 25,313
Net income 201,294 176,542 463,057 433,578
------------- ------------- ------------- -------------
Other
comprehensive
income - - - -
Total
comprehensive
income 201,294 176,542 463,057 433,578
============= ============= ============= =============
Net income / total
comprehensive
income
attributable to:
Owners of the
Company 197,118 172,332 454,137 424,331
Non-controlling
interests 4,176 4,210 8,920 9,247
------------- ------------- ------------- -------------
201,294 176,542 463,057 433,578
============= ============= ============= =============
Basic earnings per
common share 2.22 1.90 5.10 4.69
Diluted earnings
per common share 2.21 1.88 5.06 4.64
Unaudited interim condensed consolidated statements of cash flows
For the six-month periods ended June 30, 2026 and 2025
(In thousands of Brazilian reais)
June 30, 2026 June 30, 2025
------------- -------------
(unaudited) (unaudited)
Operating activities
Income before income taxes 507,495 475,828
Adjustments to reconcile income before
income taxes
Depreciation and amortization expenses 183,645 186,453
Write-off of property and equipment 1,085 536
Write-off of intangible assets 104 81
Allowance for expected credit losses 38,088 33,053
Share-based compensation expenses 19,241 12,520
Net foreign exchange differences 2,365 2,049
Accrued interest 169,664 158,613
Accrued interest on lease liabilities 62,495 59,727
Share of profit of equity-accounted
investee, net of tax (9,322) (7,876)
Provision (reversal) for legal proceedings (25,942) 2,656
Changes in assets and liabilities
Trade receivables (138,434) (111,519)
Recoverable taxes (22,001) (16,395)
Other assets 24,389 (5,641)
Trade payables 22,404 6,241
Taxes payable (6,688) (743)
Advances from customers (53,722) (52,185)
Labor and social obligations 35,397 37,085
Provision for legal proceedings (3,447) -
Other liabilities (1,269) 2,498
------------- -------------
805,547 782,981
------------- -------------
Income taxes paid (7,708) (11,385)
------------- -------------
Net cash flows from operating activities 797,839 771,596
------------- -------------
Investing activities
Acquisition of property and equipment (41,003) (81,617)
Acquisition of intangibles assets (78,960) (103,455)
Dividends received 878 8,803
Acquisition of assets and subsidiaries, net
of cash acquired (81,675) (81,463)
Payments of interest - (14,536)
------------- -------------
Net cash flows used in investing activities (200,760) (272,268)
------------- -------------
Financing activities
Payments of principal of loans and financing (5,254) (1,543)
Payments of interest (178,721) (110,399)
Payments of principal of lease liabilities (27,273) (24,222)
Payments of interest of lease liabilities (64,366) (58,793)
Treasury shares repurchase (133,011) -
Proceeds from exercise of stock options 9,902 24,249
Dividends paid (314,882) (138,479)
------------- -------------
Net cash flows used in financing activities (713,605) (309,187)
------------- -------------
Net foreign exchange differences (2,365) (2,049)
------------- -------------
Net increase (decrease) in cash and cash
equivalents (118,891) 188,092
============= =============
Cash and cash equivalents at the beginning of
the period 1,125,381 911,015
Cash and cash equivalents at the end of the
period 1,006,490 1,099,107
Reconciliation between Change in Net Debt Position and Free Cash Flow to Equity
Reconciliation between Change in Net Debt
Position and Free Cash Flow to Equity
(in thousands of For the three months period For the six months period
R$) ended June 30, ended June 30,
------------------------------- ----------------------------
2026 2025 % Chg 2026 2025 % Chg
---------------- --------- --------- --------- --------- --------- ------
Net debt
ex-IFRS16,
previous 1,151,313 1,524,127 -24.5% 1,369,483 1,814,918 -24.5%
---------------- --------- --------- --------- --------- --------- ------
Net debt
ex-IFRS16,
current 1,393,953 1,620,973 -14.0% 1,393,953 1,620,973 -14.0%
---------------- --------- --------- --------- --------- --------- ------
Change in Net
Debt Position (242,640) (96,846) 150.5% (24,470) 193,945 n.a.
---------------- --------- --------- --------- --------- --------- ------
(+)
Acquisitions - 100,000 n.a. - 100,000 n.a.
---------------- --------- --------- --------- --------- --------- ------
(+) Dividends
paid 313,161 134,488 132.9% 314,882 138,479 127.4%
---------------- --------- --------- --------- --------- --------- ------
(+) Share
Repurchases 63,500 - n.a. 133,011 - n.a.
---------------- --------- --------- --------- --------- --------- ------
Free Cash Flow
to Equity 134,021 137,642 -2.6% 423,423 432,424 -2.1%
---------------- --------- --------- --------- --------- --------- ------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260813136104/en/
CONTACT: Investor Relations Contact
E-mail: ir@afya.com.br
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