Financial Performance - Revenue reached R$2,784.3 million, a 13.4% year-over-year increase for the nine-month period[7] - Adjusted EBITDA was R$1,291.7 million, up 18.5% year-over-year, with an adjusted EBITDA margin of 46.4%, a 200 bps increase[7] - Net income increased by 19.9% year-over-year to R$593.0 million, with earnings per share at R$6.40, a 19.7% increase[7] - Cash flow from operating activities increased by 10.6% year-over-year to R$1,291.5 million, with an operating cash conversion ratio of 101.5%[7] Operational Metrics - Medical school students totaled 25,706 at the end of the period[7] - Approved medical school seats reached 3,653[7] - Continuing education revenue increased by 10.6% year-over-year to R$207.6 million[7] - Medical practice solutions revenue increased by 9.3% year-over-year to R$128.2 million[7] Debt and Liabilities - New debenture issuance of R$1.5 billion to fund repurchase of preferred shares and prepay first debenture issuance[36, 37] - Total gross debt was R$2,339 million[38] ESG Initiatives - Delivered 700,000 free healthcare consultations, including over 500,000 medical consultations[10]

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]

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]

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 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]