Company Overview - Afya is the largest hub of medical education and solutions for medical practice in Brazil[11] - The company's mission is to provide an ecosystem that integrates education and medical practice solutions for the entire medical journey[8] - As of May 2025, Afya has 3,653 medical seats after the last acquisition of Faculdade Única de Contagem[57] - Afya holds a 9% market share of private medical seats in Brazil, with a total of 3,653 seats out of 38,450 approved medical seats[59, 60] Financial Performance (1Q25) - Net revenue reached R$936 million[62] - Adjusted EBITDA was R$492 million, representing a 52.5% adjusted EBITDA margin[62] - Adjusted net income amounted to R$294 million[62] - Medical school net average ticket was R$9,240[63] Operational Metrics (1Q25) - The company has 37 undergraduate campuses and 20 medical graduate campuses[62] - Afya has 3,593 approved medical seats and 25,879 medical students[62, 70] - Continuing education enrolled students numbered 46,909[62] - Medical Practice Solutions has 244,518 monthly active users[62] Growth and Strategy - Undergraduate programs saw a 14.5% increase in net revenue[70] - Continuing Education experienced an 8.7% increase in net revenue[77] - Medical Practice Solutions reported a 13.7% increase in net revenue[83]

Financial Data and Key Metrics Changes - Net revenue increased by 16%, reaching R936 million, with adjusted EBITDA growing almost 24% year over year to R492 million, achieving a record margin of 52.5% [5][17][19] - Cash flow from operating activities rose by almost 10% to R470 million, reflecting a cash conversion rate of 96.8% [5][18] - Net income reached R257 million, marking a 23% growth year over year, with EPS of R2.79, also a 23% increase [5][19][20] Business Line Data and Key Metrics Changes - Undergrad segment net revenues increased over 17% to R827 million, with medical students growing 15% to almost 26,000 [12][16] - Continuing education segment net revenue rose almost 9% year over year to R71 million, with a notable 8% increase in B2B revenue [8][14] - Medical practice solutions segment saw a 14% growth in net revenue, reaching R42 million, driven by B2B contracts and active payers increasing to over 198,000 [8][15] Market Data and Key Metrics Changes - The ecosystem now includes over 370,000 active users, demonstrating substantial penetration among physicians and medical students in Brazil [8][16] - The company received a credit rating upgrade from Moody's from AAplus.br to AAA.br, reflecting strong growth and financial discipline [9][10] Company Strategy and Development Direction - The company focuses on expanding its educational systems and medical practice solutions, aiming to support students in becoming physicians and enhancing medical learning [21] - Strategic acquisitions, such as the Funiq acquisition, are expected to enhance operations and increase approved medical seats [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025, maintaining guidance for the year despite strong margin performance [29][30] - The intake process for medical students was reported as healthy, with a strong brand recognition contributing to a favorable candidate-to-seat ratio [31][32] Other Important Information - The company achieved all IFC-defined targets for 2024, which will trigger a reduction in interest rates, reinforcing its commitment to social impact and financial discipline [10] - The company received its first ESG rating from MSCI, debuting with a solid BBB score, indicating strong performance in data privacy and security [10] Q&A Session Summary Question: What drove the strong EBITDA margin performance? - Management attributed the margin expansion to higher gross margins from undergrad and continuing education segments, along with operational efficiencies from restructuring [27][28] Question: Are there challenges in the intake process due to expanded medical course offerings? - Management reported a healthy intake process with strong brand recognition, noting around seven to eight candidates per seat [31][32] Question: Any significant changes in the competitive landscape affecting average ticket prices? - Management indicated that while the average ticket grew 4%, it was impacted by retention issues from last year, but they expect future increases to be higher [36][38] Question: What is the expectation for the medical practice solutions segment given the decrease in monthly active users? - Management noted a transitional decline due to the portal change but expects improvements as the new system stabilizes [40][42] Question: Clarification on the minimum tax under OECD Pillar Two rules? - Management explained that the new law introduces minimal taxation for multinational groups, and they are currently provisioning for this tax [49][50] Question: How is the company preparing for the SoftBank convertible debt deadline? - Management stated they are prepared with cash flow generation to handle potential early redemption of the debt [53][54]

Financial Data and Key Metrics Changes - Net revenue increased by 16%, reaching R936 million, with adjusted EBITDA growing almost 24% year over year to R492 million, achieving a record margin of 52.5% [5][17] - Cash flow from operating activities rose by almost 10% to R470 million, with a cash conversion rate of 96.8% and a solid cash position of nearly R1.2 billion at the end of Q1 [5][18] - Net income reached R257 million, reflecting a 23% growth year over year, with EPS of R2.79, also a 23% increase compared to the previous year [5][19] Business Line Data and Key Metrics Changes - The undergraduate segment saw net revenues increase by over 17%, achieving R827 million, with a 4% rise in net average ticket to R9,240 [12][16] - Continuing education net revenue rose to R71 million, reflecting a growth of almost 9% year over year, driven by an 8% increase in B2B revenue [7][14] - Medical practice solutions segment expanded by 14% in net revenue, reaching R42 million, with B2P contributing R37 million and B2B R4 million [15][16] Market Data and Key Metrics Changes - The ecosystem now includes over 370,000 active users, demonstrating substantial penetration among physicians and medical students in Brazil [16] - The number of approved medical seats increased to 3,653 following the Funiq acquisition, with undergraduate medical students reaching almost 26,000, a 50% growth compared to Q1 2024 [6][12] Company Strategy and Development Direction - The company emphasizes a three-pillar business model focusing on strong growth, higher profitability, and cash generation, with ongoing operational restructuring to improve cost management [4][6] - Recent acquisitions and expansions, such as the Funiq acquisition and the ramp-up of new campuses, are expected to enhance operational capabilities and market presence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025, maintaining guidance for the year despite the robust performance in Q1 [27][28] - The company is optimistic about future opportunities, particularly in expanding its educational systems and medical practice solutions [21][22] Other Important Information - Moody's upgraded the company's national scale credit rating from AAplus.br to AAA.br, reflecting strong growth and financial discipline [9] - The company received its first ESG rating from MSCI, debuting with a solid BBB score, indicating strong performance in data privacy and security [10] Q&A Session Summary Question: What drove the strong EBITDA margin performance? - Management indicated that higher gross margins from the undergraduate and continuing education segments, along with operational efficiencies from restructuring, contributed to the margin expansion [25][26] Question: Are there challenges in the intake process due to increased medical course offerings? - Management reported a healthy intake process with strong brand recognition, noting around seven to eight candidates per seat, indicating no significant challenges in filling seats [29][30] Question: Any significant changes in the competitive landscape affecting price hikes? - Management acknowledged that while the average ticket grew in line with inflation, there were impacts from retention policies affecting pricing strategies [36][37] Question: What is the expectation for the medical practice solutions segment given the decrease in monthly active users? - Management explained that the decrease was due to the transition from the PepMed portal to the Afya portal, but they expect improvements as the changes stabilize [39][41] Question: Clarification on the OECD Pillar Two tax implications? - Management detailed that the new tax law introduces minimal taxation for multinational groups, and they are currently provisioning for potential impacts while seeking legal clarification [48][50] Question: How is the company preparing for the SoftBank convertible debt? - Management stated they are prepared with cash flow generation to meet obligations if the debt is not converted into equity, with provisions already in place for potential early redemption [51][53]

[Unaudited Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents Afya's financial position, income, equity changes, and cash flows for the interim period [Unaudited Interim Condensed Consolidated Statements of Financial Position](index=2&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20financial%20position) As of March 31, 2025, Afya's total assets increased to R$9.11 billion from R$8.83 billion at year-end 2024, driven by a rise in cash and cash equivalents. Total liabilities also grew to R$4.67 billion, primarily due to an increase in current liabilities, including loans and dividends payable. Consequently, total equity rose to R$4.44 billion Consolidated Statement of Financial Position (in thousands of BRL) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | 1,881,216 | 1,589,784 | | **Total Non-current Assets** | 7,230,658 | 7,239,755 | | **Total Assets** | **9,111,874** | **8,829,539** | | **Total Current Liabilities** | 1,322,967 | 1,140,195 | | **Total Non-current Liabilities** | 3,347,492 | 3,378,761 | | **Total Liabilities** | **4,670,459** | **4,518,956** | | **Total Equity** | **4,441,415** | **4,310,583** | | **Total Liabilities and Equity** | **9,111,874** | **8,829,539** | [Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20income%20and%20comprehensive%20income) For the three months ended March 31, 2025, Afya reported a 16.4% year-over-year increase in revenue to R$936.4 million. Net income grew by 23.4% to R$257.0 million, resulting in a diluted earnings per share of R$2.76, up from R$2.22 in the same period of 2024 Consolidated Statement of Income (in thousands of BRL, except EPS) | Account | March 31, 2025 (unaudited) | March 31, 2024 (unaudited) | | :--- | :--- | :--- | | **Revenue** | 936,360 | 804,239 | | **Gross Profit** | 653,721 | 534,735 | | **Operating Income** | 372,527 | 289,358 | | **Net Income** | 257,036 | 208,299 | | **Basic EPS** | 2.79 | 2.26 | | **Diluted EPS** | 2.76 | 2.22 | [Unaudited Interim Condensed Consolidated Statements of Changes in Equity](index=4&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20changes%20in%20equity) Total equity increased from R$4.31 billion at the start of 2025 to R$4.44 billion by March 31, 2025. The growth was primarily driven by a net income of R$257.0 million, partially offset by dividends declared amounting to R$134.8 million - Total equity increased by **R$130.8 million** in Q1 2025, reaching **R$4.44 billion**[6](index=6&type=chunk) - Key changes in equity for Q1 2025 include net income of **R$257.0 million**, share-based compensation of **R$7.0 million**, and dividends declared of **R$134.8 million**[6](index=6&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20cash%20flows) For the first quarter of 2025, the company generated R$463.9 million in net cash from operating activities, a significant increase from R$417.9 million in Q1 2024. Cash used in investing activities decreased to R$130.3 million, while cash used in financing activities was R$89.2 million. This resulted in a net increase in cash and cash equivalents of R$243.9 million, raising the ending balance to R$1.15 billion Consolidated Statement of Cash Flows (in thousands of BRL) | Activity | March 31, 2025 (unaudited) | March 31, 2024 (unaudited) | | :--- | :--- | :--- | | **Net cash flows from operating activities** | 463,850 | 417,860 | | **Net cash flows used in investing activities** | (130,312) | (260,998) | | **Net cash flows used in financing activities** | (89,189) | (99,005) | | **Net increase in cash and cash equivalents** | 243,873 | 58,047 | | **Cash and cash equivalents at end of period** | 1,154,888 | 611,077 | [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20unaudited%20interim%20condensed%20consolidated%20financial%20statements) This section provides detailed explanations and disclosures supporting the interim consolidated financial statements [Note 1: Corporate Information](index=6&type=section&id=1%20Corporate%20information) Afya Limited is a Cayman Islands-incorporated holding company listed on Nasdaq (AFYA), with Bertelsmann SE & Co. KGaA as its ultimate parent. It is the largest medical education group in Brazil by number of medical school seats. The company has been actively expanding its capacity, adding medical school seats through regulatory approvals and acquisitions, such as Unidom in 2024. As of March 31, 2025, Afya had 3,593 operating medical school seats - Afya is the largest educational group by number of medical school seats in Brazil, operating in **19 states**[11](index=11&type=chunk) - In Q1 2024, MEC authorized an increase of **40 medical school seats** for FIP Guanambi[12](index=12&type=chunk) - On July 1, 2024, Afya acquired Unidom, adding **300 operational medical school seats**, though **175** of these are subject to a final court decision[14](index=14&type=chunk)[15](index=15&type=chunk) - As of March 31, 2025, the company had **3,593 operating medical school seats**[17](index=17&type=chunk) [Note 2: Material Accounting Policies](index=7&type=section&id=2%20Material%20accounting%20policies) The unaudited interim financial statements are prepared in accordance with IAS 34 on a historical cost basis. The functional and presentation currency is the Brazilian real (R$). The statements consolidate all subsidiaries where Afya has control. Accounting policies are consistent with the 2024 annual financial statements, with no significant impact from new standards adopted in 2025 - The financial statements are prepared in accordance with **IAS 34 Interim Financial Reporting**[18](index=18&type=chunk) - The company's functional and presentation currency is the **Brazilian real (R$)**[19](index=19&type=chunk)[20](index=20&type=chunk) - The accounting policies are consistent with those from the annual financial statements for the year ended December 31, 2024[30](index=30&type=chunk) [Note 3: Segment Information](index=10&type=section&id=3%20Segment%20information) Afya operates in three reportable segments: Undergraduate, Continuing Education, and Medical Practice Solutions. The Undergraduate segment is the largest, contributing R$827.4 million in revenue for Q1 2025. The Continuing Education and Medical Practice Solutions segments generated R$69.9 million and R$39.1 million in external revenue, respectively. Seasonality primarily affects Continuing Education, with revenues concentrated in the first and last quarters - The company has three reportable segments: Undergraduate, Continuing education, and Medical practice solutions[32](index=32&type=chunk) Revenue by Segment (Q1 2025 vs Q1 2024, in thousands of BRL) | Segment | Q1 2025 External Revenue | Q1 2024 External Revenue | | :--- | :--- | :--- | | Undergraduate | 827,372 | 704,519 | | Continuing education | 69,855 | 63,999 | | Medical practice solutions | 39,133 | 35,721 | | **Total** | **936,360** | **804,239** | - Continuing education revenue from e-books is concentrated in the first and last quarters of the year[40](index=40&type=chunk) [Note 11: Financial Instruments and Risk Management](index=19&type=section&id=11%20Financial%20instruments%20and%20risk%20management) This note details the company's financial assets and liabilities, including loans, leases, and payables to selling shareholders. It also outlines the management of market risk (interest rate and foreign currency), credit risk, and liquidity risk. The company uses sensitivity analysis to monitor risks and maintains reserves to manage liquidity. The fair value of most financial instruments is determined using Level 2 inputs [Loans and Financing](index=20&type=section&id=11.2.1%20Loans%20and%20financing) As of March 31, 2025, total loans and financing stood at R$2.21 billion, a slight increase from R$2.20 billion at year-end 2024. Major credit lines include facilities from Softbank, IFC, and debentures, with interest rates primarily tied to the CDI rate Loans and Financing Breakdown (in thousands of BRL) | Financial Institution | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Banco Itaú Unibanco S.A. | 320,237 | 309,496 | | FINEP | 7,474 | 8,209 | | Softbank | 850,051 | 845,492 | | Debentures | 512,565 | 526,946 | | IFC | 522,347 | 505,018 | | **Total** | **2,212,674** | **2,195,161** | [Accounts Payable to Selling Shareholders](index=21&type=section&id=11.2.3%20Accounts%20payable%20to%20selling%20shareholders) Total accounts payable to selling shareholders decreased to R$466.3 million as of March 31, 2025, from R$530.8 million at year-end 2024. The reduction was mainly due to principal payments of R$65.2 million during the quarter. A significant portion relates to the Unidom acquisition, which is measured at fair value - The balance of accounts payable to selling shareholders decreased from **R$530.8 million** to **R$466.3 million** in Q1 2025, primarily due to principal payments of **R$65.2 million**[68](index=68&type=chunk)[69](index=69&type=chunk) - The company deems it probable that targets for contingent consideration payments, including those for Unidom's **175 medical school seats**, will be met[69](index=69&type=chunk) [Financial Instruments Risk Management](index=21&type=section&id=11.4%20Financial%20instruments%20risk%20management) The company is exposed to market risk (interest rate and currency), credit risk, and liquidity risk. Interest rate risk arises from floating-rate debt and cash equivalents. Foreign currency risk is minimal, related to small U.S. dollar cash holdings. Credit risk is managed through monitoring customer receivables and investing only with approved counterparties. Liquidity risk is managed by monitoring cash flows and maintaining credit facilities - The company is exposed to market risk (interest rate, foreign currency), credit risk, and liquidity risk[74](index=74&type=chunk) - A sensitivity analysis shows that a **150 basis point increase** in interest rates would decrease pre-tax profit by **R$10.0 million**[78](index=78&type=chunk) - Foreign currency risk is limited to U.S. dollar cash holdings of **R$9.1 million** as of March 31, 2025[79](index=79&type=chunk) [Note 12: Capital Management](index=25&type=section&id=12%20Capital%20management) The company's primary capital management objective is to maximize shareholder value while ensuring compliance with financial covenants on its loans, such as the net debt to adjusted EBITDA ratio. The company reported no breaches of these covenants during the period - The main objective of capital management is to maximize shareholder value and meet financial covenants[89](index=89&type=chunk) - There were no breaches of financial covenants for any loans and financing in the current period[90](index=90&type=chunk) [Note 14: Equity](index=26&type=section&id=14%20Equity) As of March 31, 2025, Afya's share capital was R$17, represented by 93.7 million shares. During the quarter, the Board of Directors approved the company's first dividend distribution of R$129.8 million. The company also holds 3.4 million treasury shares - On March 12, 2025, the Board approved a dividend distribution of **R$129,784 thousand**, representing **20%** of the 2024 consolidated net income[101](index=101&type=chunk) - As of March 31, 2025, the company held **3,427,738 treasury shares**[102](index=102&type=chunk) [Note 15: Earnings Per Share (EPS)](index=27&type=section&id=15%20Earnings%20per%20share%20%28EPS%29) For Q1 2025, basic EPS was R$2.79 and diluted EPS was R$2.76. The calculation for diluted EPS includes the potential dilutive effects of stock options, RSUs, and Softbank's convertible preferred shares EPS Calculation (Q1 2025 vs Q1 2024) | Metric | March 31, 2025 (unaudited) | March 31, 2024 (unaudited) | | :--- | :--- | :--- | | **Basic EPS (R$)** | 2.79 | 2.26 | | **Diluted EPS (R$)** | 2.76 | 2.22 | [Note 16: Revenue](index=28&type=section&id=16%20Revenue) Total revenue for Q1 2025 was R$936.4 million, up from R$804.2 million in Q1 2024. The majority of revenue (R$914.4 million) is recognized over time, primarily from tuition, digital content, and app subscriptions. The Undergraduate segment remains the primary revenue driver Revenue Breakdown (in thousands of BRL) | Category | March 31, 2025 (unaudited) | March 31, 2024 (unaudited) | | :--- | :--- | :--- | | Tuition fees | 1,165,751 | 980,975 | | Deductions (Discounts, Taxes, etc.) | (233,682) | (176,736) | | Other | 81,483 | 72,679 | | **Total Revenue** | **936,360** | **804,239** | - Revenue recognized over time (tuition, subscriptions) was **R$914.4 million**, while revenue recognized at a point in time was **R$22.0 million** in Q1 2025[106](index=106&type=chunk) [Note 19: Income Taxes](index=30&type=section&id=19%20Income%20taxes) The company's income tax expense for Q1 2025 was R$24.8 million, resulting in an effective tax rate of 8.8%. This rate is influenced by tax incentives from the PROUNI program. A new law implementing the OECD's Pillar Two global minimum tax became effective in 2025, resulting in an additional tax expense of R$23.2 million for the quarter. The company is legally challenging the enforceability of this new tax - A new law implementing the OECD's Pillar Two global minimum tax in Brazil became effective January 1, 2025, introducing a minimum effective taxation of **15%**[112](index=112&type=chunk)[113](index=113&type=chunk) - The additional income tax expense from the Pillar Two rule was **R$23.2 million** for Q1 2025[116](index=116&type=chunk) - The company filed a writ of mandamus on March 28, 2025, to challenge the enforceability of the new additional CSLL (Pillar Two tax)[115](index=115&type=chunk) - The effective tax rate for Q1 2025 was **8.8%**, compared to **5.0%** in Q1 2024[119](index=119&type=chunk) [Note 20: Legal Proceedings and Contingencies](index=31&type=section&id=20%20Legal%20proceedings%20and%20contingencies) As of March 31, 2025, the company had provisions for probable losses from legal proceedings totaling R$115.6 million, primarily related to labor, civil, and tax claims. An additional R$112.7 million in claims were assessed as having a possible risk of loss. The company holds an indemnification asset of R$77.0 million to cover liabilities from pre-acquisition events of its subsidiaries Provision for Legal Proceedings (Probable Loss, in thousands of BRL) | Type | March 31, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Labor | 34,515 | 31,455 | | Civil | 24,958 | 25,140 | | Taxes | 56,126 | 56,926 | | **Total** | **115,599** | **113,521** | - Contingencies with a possible risk of loss amounted to **R$112.7 million** as of March 31, 2025[125](index=125&type=chunk) - The company has a corresponding indemnification asset of **R$77.0 million** related to contingent liabilities from acquired subsidiaries, for which the selling shareholders are responsible[127](index=127&type=chunk) [Note 22: Subsequent Event](index=33&type=section&id=22%20Subsequent%20event) On May 7, 2025, after the reporting period, Afya acquired 100% of Faculdade Masterclass Ltda. (FUNIC) for an aggregate purchase price of R$100 million. This acquisition adds 60 medical school seats in Contagem, Minas Gerais, with operations expected to start in the second half of 2025. The deal also includes a contingent payment for up to 60 additional seats if approved by MEC - On May 7, 2025, Afya acquired FUNIC, a pre-operational medical school, for **R$100 million**[130](index=130&type=chunk)[131](index=131&type=chunk) - The acquisition adds **60 medical school seats**, with operations expected to begin in H2 2025[130](index=130&type=chunk) - The agreement includes a contingent consideration for up to **60 additional medical school seats** if approved by MEC within **36 months**[132](index=132&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Afya (AFYA) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this medical education company would post earnings of $0.36 per share when it actually produced earnings of $0.32, delivering a surprise of -11.11%.Over the last four quarters, the c ...

Financial Data and Key Metrics Changes - Net revenue increased by 14.9%, reaching BRL 3,000,304,300 [6][24] - Adjusted EBITDA grew by 25% year over year, amounting to BRL 1,000,455,600, with a margin of 44.1% [6][24] - Cash flow from operating activities rose by 34%, totaling BRL 1,453 million, with a cash conversion rate of 102% [6][25] - Net income for 2024 reached BRL 649 million, marking a 60.1% increase year over year [6][26] - EPS for the year was BRL 7.01, a 63% increase compared to the previous year [6][26] Business Line Data and Key Metrics Changes - The number of medical students grew by 13%, exceeding 24,000 students [18] - Approved medical seats increased by 13% year over year [18] - Continuing education segment net revenue increased by 8%, reaching BRL 255 million [20] - Medical Practice Solutions segment revenue grew by 15%, reaching BRL 162 million [22] Market Data and Key Metrics Changes - The ecosystem now includes 313,000 active users, comprising physicians and medical students [8][22] - The average ticket for medical school increased by 4.6%, reaching BRL 849 [19] Company Strategy and Development Direction - The company aims to maintain a disciplined capital allocation strategy, focusing on both organic and inorganic growth opportunities [33][39] - Plans to distribute dividends equivalent to 20% of consolidated net income for 2024, indicating a commitment to shareholder value while pursuing growth [13][33] - The company is targeting the acquisition of 200 seats per year to support growth [33][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance, citing operational efficiency and growth in key segments [34][55] - The company is optimistic about the continuing education segment, expecting further expansion in 2025 [48] - Management noted a healthy intake process for new students, with strong demand across various regions [70] Other Important Information - The company reported a significant social impact, with a calculated social return on investment of 3.58 times the investment made [11] - The company is committed to enhancing healthcare access and generating economic returns in the communities it serves [11] Q&A Session Summary Question: Sustainability of Dividend Levels - Management indicated that while no formal policy is established for future dividends, the capital allocation strategy remains focused on growth opportunities [33] Question: Top Line Guidance Drivers - Management highlighted confidence in achieving guidance, emphasizing operational efficiency and growth in key segments [34] Question: M&A Pipeline and Dividend Distribution - Management confirmed that M&A opportunities remain a priority, with a selective approach to acquisitions [39][41] Question: Tuition Fee Increases - Management stated that they are successfully passing tuition increases in line with inflation, supported by strong brand recognition [40][41] Question: Continuing Education Segment Outlook - Management expects continued expansion in the continuing education segment, driven by a large cohort of graduating students [48] Question: Profitability and Margin Expansion Drivers - Management attributed expected margin expansion to operational leverage and efficiency improvements across segments [55][58] Question: Regulatory Comments and Proficiency Exam Proposal - Management expressed support for higher quality standards in the sector, viewing regulatory changes as an opportunity for differentiation [72][73]

Afya Limited Consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Afya Limited Opinion on the Financial Statements We have audited the accompanying consolidated statements of financial position of Afya Limited (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, chang ...

Afya Limited (AFYA) , a leader in medical education and practice solutions in Brazil, has taken another significant step toward strengthening its market position. The company has announced a share purchase agreement to acquire 100% of Faculdade Única de Contagem (FUNIC) through its subsidiary, Afya Participações S.A.Located in Contagem, a city in the metropolitan area of Belo Horizonte, Minas Gerais, FUNIC will become Afya’s fifth medical school in the state. The acquisition brings an immediate addition of ...

Afya (NASDAQ: AFYA ) released 3Q24 results in mid-November, with little news in terms of growth and margins. The company follows the Brazilian school year, with critical quarters early in the year, when student enrollment and tuition prices are determined. Still, the company providedLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, unders ...