Core Insights - Afya Limited reported strong financial results for Q3 and the first nine months of 2025, reaffirming its full-year guidance and demonstrating significant growth in revenue and adjusted EBITDA margins [1][4][10]. Financial Performance - Q3 2025 revenue increased by 10.4% year-over-year to R$928.5 million, while revenue excluding acquisitions rose by 10.1% to R$926.2 million [4][25]. - For the nine-month period, revenue reached R$2,784.3 million, reflecting a 13.4% increase year-over-year, with revenue excluding acquisitions growing by 9.8% to R$2,696.7 million [4][25]. - Adjusted EBITDA for Q3 2025 was R$398.9 million, up 14.6% year-over-year, with an adjusted EBITDA margin of 43.0%, an increase of 160 basis points [4][28]. - For the nine-month period, adjusted EBITDA increased by 18.5% to R$1,291.7 million, with a margin of 46.4%, up 200 basis points [4][28]. Net Income and Earnings - Q3 2025 net income rose by 28.4% to R$159.4 million, while adjusted net income increased by 16.5% to R$192.7 million [4][32]. - For the nine-month period, net income reached R$593.0 million, a 19.9% increase, and adjusted net income was R$696.0 million, up 11.1% [4][32]. Cash Flow and Debt Management - As of September 30, 2025, cash and cash equivalents totaled R$996.8 million, a 9.4% increase from the previous year, with net debt reduced to R$1,342.2 million [4][36]. - The operating cash conversion ratio was 101.5%, with cash flow from operating activities increasing by 10.6% year-over-year to R$1,291.5 million [4][37]. Strategic Initiatives - The company has made significant advancements in its integrated ecosystem, focusing on enhancing educational services and medical practice solutions [5][10]. - Afya has launched AI-enabled enhancements to its platforms, supporting clinical productivity and decision-making [8]. - The company issued R$1.5 billion in commercial notes to strengthen its capital structure and repurchased shares from SoftBank, demonstrating a disciplined approach to capital management [9][41]. Segment Performance - The Undergraduate segment saw a 14.6% increase in revenue, driven by higher ticket prices and increased student enrollment [4][15]. - Continuing Education experienced growth in B2B revenue, while Medical Practice Solutions reported an increase in active payers, reflecting the value of its offerings [7][19].