Summary of AFYA Q4 2025 Earnings Call

1Key Financial Results and Metrics

Revenue: BRL 3.697 billion for 2025, a 12% year-over-year increase.

Adjusted EBITDA: BRL 1.680 billion, up over 50% year-over-year, with a margin of 45.4%.

Net Income: BRL 768.4 million, an 18% increase year-over-year; basic EPS reached BRL 8.32, up 19%.

Operating Cash Flow: BRL 1.548 billion, a 6% increase, with a cash conversion rate of 93.7%.

Dividend: Announced cash dividend of BRL 307.4 million, representing 40% of net income, payable in April 2026.

2Strategic Updates and Business Highlights

Afya maintains its leadership in medical education with 3,755 approved medical seats and over 25,000 medical students, reflecting a 5% growth.

Continuing education revenue grew 11% year-over-year to BRL 284 million, while medical practice solutions revenue increased by 6% to BRL 171 million.

The ecosystem now includes 301,000 active users, indicating strong engagement among physicians and medical students.

Strategic focus on integrating products and services for physicians, enhancing the user experience, and expanding B2B offerings to drive future revenue growth.

3Forward Guidance and Outlook

For 2026, revenue is expected to be between BRL 3.950 billion and BRL 4.100 billion, with adjusted EBITDA anticipated between BRL 1.700 billion and BRL 1.800 billion.

The company does not foresee material impacts from ENAMED on 2026 guidance, anticipating a strong intake cycle.

CapEx for 2026 is projected to be between BRL 340 million and BRL 380 million, maintaining a healthy capital expenditure ratio of 8.6% to 9.3% of revenue.

4Bad News, Challenges, or Points of Concern

Adjusted EBITDA margin for Q4 2025 decreased by 50 basis points year-over-year to 42.6%.

B2B revenue in medical practice solutions was noted as soft, with challenges in leveraging the unified platform for monetization.

Concerns regarding the performance of certain campuses under ENAMED, although management expects minimal impact on future intakes due to proactive measures.

The guidance for 2026 implies a slight decrease in EBITDA margin compared to 2025, attributed to investments in continuing education and medical practice solutions.

5Notable Q&A Insights

Management emphasized the integration of products and services for physicians as a key investment area to enhance user experience and engagement.

Discussions around ENAMED indicated no expected material impact on 2026 guidance, with preparations underway for new evaluation processes.

M&A remains a priority, targeting the addition of 200 medical seats per year with a focus on institutions generating significant revenue from medicine programs.

The capital allocation strategy balances investments in growth, shareholder returns through dividends and buybacks, and maintaining a conservative leverage profile. Overall, Afya demonstrated strong financial performance in 2025, with a clear strategy for growth and shareholder returns, while also addressing potential challenges in the upcoming year.