Financial Performance - Revenue for the three-month period ended September 30, 2025, increased to R$928,505, a 10.4% rise from R$841,185 in the same period of 2024[4] - Gross profit for the nine-month period ended September 30, 2025, reached R$1,819,003, up 17.6% from R$1,546,885 in 2024[4] - Net income for the nine-month period ended September 30, 2025, was R$592,999, representing a 20.2% increase compared to R$494,641 in 2024[4] - Revenue for the nine-month period ended September 30, 2025, was R$2,795,024, a 13.6% increase from R$2,460,916 in the same period of 2024[39] - Net income for the nine-month period ended September 30, 2025, was R$592,999, reflecting a 19.9% increase compared to R$494,641 in the same period of 2024[39] - For the nine-month period ended September 30, 2025, net income attributable to equity holders of the parent was R$579,499, compared to R$481,583 for the same period in 2024, representing a year-over-year increase of 20.3%[113] - Basic earnings per share for the nine-month period ended September 30, 2025, was R$6.40, compared to R$5.35 in 2024, marking an increase of 19.6%[4] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$9,187,159, an increase of 4.1% from R$8,829,539 at the end of 2024[2] - Total current liabilities increased to R$1,800,271, a significant rise of 57.9% from R$1,140,195 at the end of 2024[2] - Total equity attributable to equity holders of the parent increased to R$4,746,073 as of September 30, 2025, from R$4,269,955 at the end of 2024, reflecting an increase of 11.2%[2] - Current liabilities as of September 30, 2025, were R$1,811,030, compared to R$1,148,783 as of December 31, 2024, indicating a significant increase of 57.7%[34] - Total financial liabilities as of September 30, 2025, amounted to R$5,611,224, with loans and financing contributing R$2,304,184 and lease liabilities at R$2,218,793[90] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were R$996,826, up from R$911,015 at the end of 2024, reflecting an increase of 9.4%[2] - The company reported a net cash flow from operating activities of R$1,277,763 for the nine-month period ended September 30, 2025, compared to R$1,148,175 in 2024, an increase of 11.3%[8] - The company incurred finance expenses of R$433,049 for the nine-month period ended September 30, 2025, compared to R$322,420 in 2024, indicating a rise of 34.4%[4] - The net finance result for the nine-month period ended September 30, 2025, was a loss of R$289,386, compared to a loss of R$242,761 in 2024[118] Acquisitions and Expansion - Afya Limited acquired Unidom Participações S.A. for a total consideration of R$620,762, which includes R$340,773 paid in cash and R$279,989 payable in up to ten annual installments[12][14] - The acquisition of Unidom added 300 operational medical school seats, with 125 seats authorized and 175 seats pending final court confirmation[13] - Afya Brazil acquired Faculdade Masterclass Ltda. for R$100,000, contributing an additional 60 medical school seats, with R$60,000 paid in cash and R$40,000 payable in three annual installments[16][17] - The company plans to continue expanding its educational offerings, including increasing medical school seats, which will require additional investments[59] Educational Operations - As of September 30, 2025, Afya had a total of 3,603 operating medical school seats across its institutions[20] - The primary revenue source for Afya is from its operational companies in Brazil, with the Brazilian Real as the functional currency[22] - The company operates through three reportable segments: Undergraduate, Continuing Education, and Medical Practice Solutions[29][30] Tax and Compliance - The effective income tax rate for the nine-month period ended September 30, 2025, was 9.7%, compared to 5.1% in 2024[127] - The company recognized an additional income tax expense of R$84,419 for the nine-month period due to the OECD's Pillar Two global minimum tax[124] - The company had no breaches of financial and non-financial covenants for any loans and financing during the current period, ensuring compliance with all obligations[93] Shareholder Information - The company approved dividends of R$60,471 for the nine-month period ended September 30, 2025, compared to R$58,236 in the same period of 2024, marking an increase of 3.9%[106] - The weighted average number of outstanding shares for the nine-month period ended September 30, 2025, was 90,524,215, an increase from 90,083,878 in the same period of 2024[113] - The outstanding treasury shares were 3,025,116, down from 3,493,238 as of September 30, 2024, reflecting a reduction of 13.4%[109] Other Financial Metrics - Tuition fees for the nine-month period ended September 30, 2025, reached R$3,510,791, up 16.7% from R$3,008,529 in 2024[114] - Total costs and expenses for the nine-month period ended September 30, 2025, were R$1,843,877, an increase of 8.9% from R$1,693,382 in 2024[117] - The company’s payroll expenses for the nine-month period ended September 30, 2025, were R$1,025,502, an increase from R$927,717 in 2024[117]

Core Insights - Afya Limited, a leading medical education group and medical practice solutions provider in Brazil, has received authorization from the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education (MEC) to increase medical seats by 100 at ITPAC Porto Nacional [1] Company Summary - The increase in medical seats is specifically for ITPAC Porto Nacional – Instituto Tocantinense Presidente Antonio Carlos Porto S.A. (AFYA Faculdade de Ciências Médicas Bragança) [1]

Core Insights - The event is the fifth edition of Afya Day, focusing on the company's commitment to physicians and showcasing its innovations and products [1][2] - The agenda includes presentations from various business units and discussions on trends in the medical career, emphasizing the company's physician-centric approach [2][3] - The introduction of the new Medical VP, Gustavo Meirelles, highlights the company's leadership changes and its focus on enhancing product offerings [3] Company Focus - The company emphasizes a strong focus on physicians and their needs, indicating a commitment to understanding and addressing the medical community's requirements [2] - Presentations will cover innovations and products, showcasing the company's efforts to drive results and cash flow [3] Leadership and Structure - The introduction of Gustavo Meirelles as the new Medical VP signifies a strategic move to strengthen the executive board with medical expertise [3] - The event includes an institutional panel moderated by Virgilio Gibbon, indicating a structured approach to discussions and presentations [2]

Core Points - Afya Limited, a leading medical education group and medical practice solutions provider in Brazil, has announced a Share Repurchase Agreement with SBLA Holdco LLC, an affiliate of Softbank [1] - The agreement involves the repurchase of all 150,000 Series A Perpetual Convertible Preferred Shares, each with a nominal or par value of US$0.00005 [1]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Medical Education Landscape in Brazil - In 2025, Brazil is projected to have 635,706 physicians, equating to 2.98 professionals per 1,000 inhabitants[31] - Brazil will have 1.15 million physicians, a ratio of 5.25 per 1,000 inhabitants[32] - Afya is the leader in medical seats in Brazil, with 3,653 seats across 33 cities in 14 states, serving 25,733 medical students[77] Afya's Unique Ecosystem and Solutions - Afya's ecosystem includes medical schools, industry relationships, and solutions for medical practice, residency, and professional education[17] - Afya's Impact Project shows a 12% average increase in physician density in analyzed municipalities[45] - Afya's ecosystem has over 300,000 monthly users and 57 partnerships with the pharmaceutical industry[141] - Over 33% of physicians and medical students in Brazil use Afya's products through an integrated ecosystem[140] Continuing Education and Digital Behavior - Afya has expanded its continuing education program to 25 on-site hubs with over 70 courses[114] - 16% of physicians indicate they have reached the peak of their careers[60] - 84% of physicians indicate that they have not yet reached the peak of their careers[62] - 50% of physicians use digital tools for medical updates and news[65] Financial Performance and Capital Discipline - Afya reaffirmed its 2025 guidance for revenue and adjusted EBITDA[222] - Afya's track record includes the acquisition of 11 undergraduate assets and 8 medical practice solutions assets, with a total value of over R$4.5 billion invested since the IPO[229] - The company issued a new debenture of R$1.5 billion[245]

Group 1 - The core announcement is that Afya Limited, a leading medical education group in Brazil, has approved the first issuance of book-entry commercial notes through its subsidiary Afya Participações S.A. [1] - The commercial notes will be issued in two series for private placement [1] - The notes will be sold to Opea Securitizadora S.A., a Brazilian securitization corporation [1]

Group 1 - The results indicate no significant change in the trend for the year, which had already been addressed after the 1Q25 results [1] - Quipus Capital adopts a long-only investment strategy, focusing on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The majority of Quipus Capital's recommendations will be holds, reflecting a cautious approach in a bullish market [1] Group 2 - The article emphasizes the importance of understanding competitive dynamics within industries for making informed investment decisions [1] - A very small fraction of companies are deemed suitable for a buy recommendation at any given time, highlighting a selective investment strategy [1]

Financial Data and Key Metrics Changes - Company reported a revenue growth of 15% year-over-year, reaching $1,856 million for the first half of 2025 [4] - Adjusted EBITDA increased by 20% year-over-year, totaling $893 million, with a margin of 48.1%, up 220 basis points from the previous year [4][17] - Basic EPS rose to 4.69, representing a 17% increase compared to the previous year [4] Business Line Data and Key Metrics Changes - Undergraduate segment revenue grew over 16%, totaling R$1,642 million, with a 14% increase in the number of medical students [10] - Continuing education revenue increased by 8% year-over-year, reaching R$138 million, driven by a 12% growth in graduate journey students [11] - Medical practice solutions segment saw a revenue growth of over 9%, reaching R$84 million, with B2P revenues up nearly 12% [12][13] Market Data and Key Metrics Changes - The ecosystem reached 302,000 active users, indicating strong engagement among physicians and medical students across Brazil [14] - The number of approved medical seats increased to 3,653, reflecting a 14% growth year-over-year [10] Company Strategy and Development Direction - Company remains focused on operational excellence, aiming for robust growth, increased profitability, and solid cash generation as strategic pillars for long-term value creation [3] - A new share repurchase program was approved, allowing the company to buy back up to 4 million Class A shares by the end of 2026, reflecting a commitment to shareholder value [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year 2025 guidance, supported by strong business fundamentals and disciplined execution [4] - The competitive landscape for medical education is expected to be more intense in the second half of the year, but the company is optimistic about maintaining occupancy rates [45] Other Important Information - The company is actively addressing the implications of new tax legislation aligned with OECD Pillar Two rules, with ongoing legal and administrative efforts to challenge the tax charge [52][53] Q&A Session Summary Question: What are the main levers for profitability expansion in the quarter? - Management highlighted improved efficiency in SG&A expenses and centralization of services as key factors contributing to margin expansion [22][24] Question: Can you provide insights on the EBITDA guidance for the second half? - Management prefers to remain conservative due to seasonality in continuing education, despite strong performance in the first half [35][36] Question: What is the competitive outlook for the second half intake? - Management noted increased competition due to new approvals of medical seats and a reduced candidate ratio, but expressed confidence in maintaining occupancy [44][45] Question: What are the implications of the new taxation? - Management is pursuing both legal and administrative avenues to challenge the new tax legislation, emphasizing its impact on the ProUni program [52][53] Question: How is the M&A environment perceived? - Management indicated that they are looking for the right opportunities at favorable prices, with a focus on good locations and reputations [58][61] Question: What is the strategy behind the share buyback program? - Management explained that the buyback program aims to enhance shareholder value while considering liquidity impacts [62][64]

Financial Performance - Revenue reached R$1,855.8 million, a 15.0% year-over-year increase[7] - Adjusted EBITDA was R$892.8 million, up 20.4% year-over-year, with an adjusted EBITDA margin of 48.1%, a 220 bps increase[7] - Net income increased by 17.0% year-over-year to R$433.6 million, with earnings per share at R$4.69, a 16.9% increase[7] - Cash flow from operating activities increased by 14.6% year-over-year to R$783.0 million[7] Operational Highlights - Medical school students increased by 14% to 25,733[9, 7] - Continuing education revenue increased by 7.9% year-over-year to R$137.5 million[7, 19] - Medical Practice Solutions revenue increased by 9.3% year-over-year to R$84.0 million[7, 22] - The number of users in Afya's ecosystem positively impacted reached 302,000[7, 25] Capital Allocation - Afya's board approved a new share repurchase program of up to 4 million Class A shares[12] Regulatory Impact - Brazil adopted OECD Pillar Two rules, potentially increasing the effective tax rate to a 15% global minimum, with an additional income tax expense of R$56.6 million for the six-month period ended in June 2025[42, 45]