Afya Limited Announces Third Quarter and Nine Months 2025 Financial Results

Impressive Adjusted EBITDA Margin Expansion and Cash Generation

Full Year 2025 Guidance Reaffirmed

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 nine-month period, which ended September 30, 2025 (third quarter 2025). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).

Third Quarter 2025 Highlights

• 3Q25 Revenue increased 10.4% YoY to R$928.5 million. Revenue excluding acquisitions increased 10.1%, reaching R$926.2 million.
• 3Q25 Adjusted EBITDA increased 14.6% YoY, reaching R$398.9 million, with an Adjusted EBITDA Margin of 43.0%. Adjusted EBITDA Margin increased 160 bps YoY. Adjusted EBITDA excluding acquisitions grew 15.2%, reaching R$400.7 million, with an Adjusted EBITDA Margin of 43.3%.
• 3Q25 Net Income increased 28.4% YoY, reaching R$159.4 million, and Adjusted Net Income increased 16.5% YoY, reaching R$192.7 million. Basic EPS growth was 28.5% in the same period.

Nine Months 2025 Highlights

• 9M25 Revenue increased 13.4% YoY to R$2,784.3 million. Revenue excluding acquisitions grew 9.8%, reaching R$2,696.7 million.
• 9M25 Adjusted EBITDA increased 18.5% YoY reaching R$1,291.7 million, with an Adjusted EBITDA Margin of 46.4%. Adjusted EBITDA Margin increased 200 bps YoY. Adjusted EBITDA excluding acquisitions grew 13.8%, reaching R$1,239.9 million, with an Adjusted EBITDA Margin of 46.0%.
• 9M25 Net Income increased 19.9% YoY, reaching R$593.0 million, and Adjusted Net Income increased 11.1% YoY, reaching R$696.0 million. Basic EPS growth was 19.7% in the same period.
• Operating Cash Conversion ratio of 101.5%, with a solid cash position of R$ 996.8 million.
• ~304 thousand users in Afya's ecosystem.

Message from Management

This quarter demonstrates once again Afya's ability to combine transformation with financial discipline. We advanced in initiatives that strengthen our ecosystem, and accelerate innovation, while maintaining a prudent approach to capital allocation. These achievements reinforce our confidence in the strategy and our capacity to deliver sustainable growth and long-term value for all stakeholders. We saw steady advances across our three segments, reflecting our commitment to integrate education and medical practice solutions throughout the medical journey.

In Undergraduate, we concluded another intake cycle, ensuring full occupancy across all our medical schools, which reinforces Afya's differentials and the ability to attract and retain top candidates nationwide. This approach ensures consistency in admissions, strengthens our brand positioning, and optimizes operational efficiency.

In Continuing Education, we sustained impressive growth in B2B Revenue, while strengthening the graduate journey. In Medical Practice Solutions we achieved a notable increase in active payers within Clinical Management, reinforcing the value of our solutions in supporting physicians' daily practice. Our ecosystem continues to enhance learning outcomes and employability, strengthening our reputation within the medical community.

We advanced AI‑enabled enhancements to Afya Whitebook, iClinic and ReceitaPro further supporting clinical productivity and evidence‑based decision‑making at the point of care. In parallel, we launched Instituto Afya, aligned with the UN 2030 Agenda to address chronic disease challenges. Together, these initiatives strengthen our ecosystem and support long‑term value creation.

During October, we took coordinated actions to strengthen our capital structure. We issued commercial notes totaling R$1.5 billion in two series, maturing in 2028 and 2030, with interest rates of CDI+0.70% and CDI+0.85% per year, respectively. Using the proceeds, we repurchased all 150,000 Series A perpetual convertible preferred shares from SoftBank for R$831.6 million and fully repaid R$500 million related to Afya Participações first debenture issuance. These actions extend debt duration, and reinforce our disciplined approach to capital management.

Looking ahead, we remain confident in our ability to keep delivering sustainable growth. Our integrated ecosystem, operational excellence and innovation agenda position Afya to execute with quality and consistency. We reaffirm our 2025 guidance and are proud of the progress achieved so far - energized by the opportunities ahead as we continue to transform the medical journey and physician career success in Brazil.

1. Key Events in the Quarter

• On August 13, 2025, the Company's board of directors approved a new share repurchase program. Afya may repurchase up to 4,000,000 of its outstanding Class A common shares, in the open market, based on prevailing market prices, or in privately negotiated transactions, beginning from August 15, 2025 until the early of the completion of the repurchase or December 31, 2026, depending upon market conditions.
  
  
  
  The share purchases may be made from time to time through open-market transactions and are subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, regulatory, and other relevant factors. The share repurchase program will take place in accordance with the conditions established by the Board of Directors. Afya intends to repurchase the shares for use in its stock option program, consideration in futures business combinations transactions and general corporate purposes.

2. Subsequent Events

• On October 15, 2025, Afya Brazil issued commercial notes for private placement ("Commercial Notes"), sold to Opea Securitizadora S.A. ("Opea"), a Brazilian securitization corporation pursuant to Section 45 of Brazilian Law No. 14,195/2021, as amended. Opea issued a debenture backed by the Commercial Notes on the same terms and conditions.
  
  
  
  The aggregate principal amount of the Commercial Notes is R$1,500,000, divided into two series, the first of which in the aggregate amount of R$500,000 ("First Series") and the second in the aggregate amount of R$1,000,000 ("Second Series"). The First Series will mature on October 15, 2028 and the Second Series will mature on October 15, 2030.
  
  
  
  The interest rate applicable to the First Series and Second Series will be equal to CDI plus a spread of 0.70% and 0.85% per year, respectively, based on 252 business days.
  
  
  
  The Commercial Notes are subject to certain obligations including financial covenants, and the Company shall maintain net debt (excluding lease liabilities) to adjusted EBITDA ratio below or equal to 3.0 x, at the end of each fiscal year, until maturity date, applicable from December 31, 2025 and thereafter. Adjusted EBITDA considers net income plus (i) income taxes expenses, (ii) net financial result (excluding interest expenses on lease liabilities), (iii) depreciation and amortization expenses (excluding right-of-use assets depreciation expenses), (iv) share-based compensation expenses, (v) share of income of associate, (vi) interest received and (vii) non-recurring expenses.
  
  
  
  The Commercial Notes has sureties provided by the following subsidiaries of the Company: Unigranrio, IESP and DelRey.
• On October 22, 2025, Afya Brazil fully repaid the aggregate outstanding amount related to the first issuance of debentures originally issued on December 16, 2022. The debentures were issued with a final maturity date of January 15, 2028, with the principal to be amortized in two equal installments payable on January 15, 2027, and January 15, 2028.
• On November 3, 2025, the Company repurchased all 150,000 Series A perpetual convertible preferred shares of a nominal or par value of US$0.00005 each in the capital of the Company ("Series A Preferred Shares") for an aggregate purchase price of R$831,600, following the Share Repurchase Agreement with SBLA Holdco LLC, an affiliate of Softbank. All repurchased Series A Preferred Shares were cancelled by the Company.
• On November 7, 2025, MEC authorized the increase of 100 medical school seats of ITPAC Porto located in the city of Bragança, State of Pará. With this authorization, Afya reaches 150 medical school seats on this campus, and 3,753 total approved medical school seats.

3. 2025 Guidance

The Company is reaffirming its guidance for 2025, as defined in the following table, which considers the successful acceptance of new students for the second semester of 2025:

4. 3Q25 Overview

Segment Information

The Company has three reportable segments as follows:

Undergraduate, 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

Key Revenue Drivers – Continuing Education

Key Revenue – Medical Practice Solutions

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 the Continuing Education and users from Medical Practice Solutions. For the third quarter of 2025, Afya's ecosystem reached 303,964 users.

Seasonality of Operations

Undergraduate tuition revenues are related to the intake process, and monthly tuition fees charged to students and do not significantly fluctuate during each semester.

Continuing education revenues are mostly related to: (i) monthly intakes and tuition fees on medical education, which do not have a considerable concentration in any period; (ii) Residency journey product revenues, derived from e-books transferred at a point of time, which are concentrated at in the first and last quarter of the year due to the enrollments.

Medical Practice Solutions are comprised mainly of Afya Whitebook and Afya iClinic revenues, which do not have significant fluctuations regarding seasonality.

Revenue

Revenue for the third quarter of 2025 was R$928.5 million, an increase of 10.4% over the same period in the prior year. For the nine-month period ended September 30, 2025, Revenue was R$2,784.3 million, reflecting a 13.4% increase over the same period of last year. Excluding acquisitions, Revenue in the third quarter increased by 10.1% YoY to R$926.2 million. For the nine-month period ended September 30, 2025, excluding acquisitions, Revenue was R$2,696.7 million, reflecting a 9.8% increase over the same period of last year.

The quarter revenue growth was mainly driven by (a) Undergraduate, higher tickets in medicine courses, the maturation of medical school seats and the acquisition of FUNIC; (b) Continuing Education, expansion in Graduate Journey students, increasing the average ticket per student across the segment; and (c) Medical Practice Solutions, which delivered growth primarily due to an expansion in Clinical Management active payers and a more favorable product mix.

Adjusted EBITDA

Adjusted EBITDA for the third quarter of 2025 increased by 14.6% to R$398.9 million, up from R$347.9 million in the same period of the prior year, with the Adjusted EBITDA Margin rising by 160 basis points to 43.0%. For the nine-month period ended September 30, 2025, Adjusted EBITDA was R$1,291.7 million, an increase of 18.5% over the same period of the prior year, accompanied by an Adjusted EBITDA Margin increase of 200 basis points in the same period.

The increase in Adjusted EBITDA Margin was mainly driven by: (a) higher gross margin in the Undergraduate and Continuing Education segments; (b) restructuring initiatives within Continuing Education and Medical Practice Solutions; and (c) improved efficiency in Selling, General, and administrative expenses.

Net Income

Net Income for the third quarter of 2025, totaled R$159.4 million, reflecting an 28.4% increase YoY. Adjusted Net Income reached R$192.7 million, an increase of 16.5% over the same period in the prior year. For the nine-month period, Afya achieved a Net Income of R$593.0 million, 19.9% higher than the same period of 2024, and an Adjusted Net Income of R$696.0 million, which was 11.1% higher than the previous period. This growth reflects stronger operational performance, combined with the recognition of deferred tax assets, partially offset by the additional CSLL provision related to the OECD's Pillar Two global minimum tax effects.

Basic EPS for the nine-month period ended September 30, 2025, reached R$6.40. An increase of 19.7% YoY, reflecting the higher Net Income.

Cash and Debt Position

As of September 30, 2025, Cash and Cash Equivalents totaled R$996.8 million, representing a 9.4% increase from December 31, 2024. Afya reduced its Net Debt, excluding the effect of IFRS 16, to R$1,342.2 million, a decrease of R$472.7 million compared to December 31, 2024. This reduction was achieved through solid Cash Flow from Operating Activities, despite the business combination with FUNIC, dividend payments, and Afya's share repurchase program.

For the nine-month period ended September 30, 2025, Afya generated R$1,291.5 million in Cash Flow from Operating Activities, up from R$1,167.5 million in the same period of the previous year, an increase of 10.6% YoY, boosted by operational results. The Operating Cash Conversion Ratio reached 101.5%.

The following table shows more information regarding the cost of debt for 9M25, considering loans and financing and 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 2025 would be 0.8x, marking an impressive reduction from 1.3x in the same period of the prior year, and a sequential reduction from 0.97x in the previous quarter, reinforcing Afya's accelerated deleveraging trend.

The issuance of R$1,500 million in debentures on October 15, 2025, together with the prepayment of the SoftBank convertible, the first issuance of debentures by Afya Participações S.A., and other Loans and Financing, demonstrate Afya's disciplined approach to capital allocation and proactive liability management, resulting in an extended average debt duration of 3.2 years on a pro forma basis.

CAPEX

Capital expenditure consists of the purchase of property and equipment and intangible assets, including expenditure mainly related to the expansion and maintenance of Afya's campuses and headquarters, leasehold improvements, and the development of new solutions in the Medical Practice Solutions and content in the Continuing Education.

For the nine-month period ended September 30, 2025, CAPEX totaled R$ 303.2 million. Excluding the license payment related to the FUNIC acquisition, CAPEX was R$ 203.5 million, representing 7.3% of Afya's revenue for the period.

ESG Metrics

ESG commitment is a crucial part of Afya's strategy and is deeply ingrained in the Company's core values. Afya has been advancing year after year on its core pillars and, since 2021, ESG metrics have been disclosed in the Company's quarterly financial results in three key metrics, Governance and Employee Management, Environmental and Social.

The 2024 Sustainability Report can be found at: https://ir.afya.com.br/annual-report/

5. Conference Call and Webcast Information

OR

Dial-in:

Brazil: +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668 or +55 21 3958 7888.

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: 995 2743 1135

Other Numbers: https://afya.zoom.us/u/advMyerzrb

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, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS, 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. The calculation of Adjusted Net Income is the Net Income plus amortization of customer relationships and trademark, plus share-based compensation, plus/minus non-recurring expenses/income. The calculation of Adjusted EPS is the Adjusted Net Income minus the non-controlling interests divided by the Weighted average number of outstanding shares.

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, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS 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: [email protected]

10. Financial Tables

View source version on businesswire.com: https://www.businesswire.com/news/home/20251112863513/en/

Investor Relations Contact:

Afya Limited

[email protected]