Afya Limited Announces First-Quarter 2026 Financial ResultsMay 8, 2026
Solid Start to 2026 with Disciplined Execution Shareholder Value Creation
BELO HORIZONTE, Brazil, May 08, 2026--(BUSINESS WIRE)--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 first quarter and three-month period ended March 31, 2026. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
First Quarter 2026 Highlights
1Q26 Revenue increased 8.2% YoY to R$1,012.7 million. Revenue excluding acquisitions increased 7.7%, reaching R$1,008.4 million. 1Q26 Adjusted EBITDA increased 4.0% YoY, reaching R$511.4 million, with an Adjusted EBITDA Margin of 50.5%. Adjusted EBITDA Margin decreased -200 bps YoY. Adjusted EBITDA excluding acquisitions grew 3.7%, reaching R$510.4 million, with an Adjusted EBITDA Margin of 50.6%. 1Q26 Net Income increased 1.8% YoY, reaching R$261.8 million. Basic EPS growth was 3.0% in the same period. Operating Cash Conversion ratio of 92.5% and a Free Cash Flow of R$376.0 million, with a solid cash position of R$1,332.9 million. Over 304 thousand users in Afya’s ecosystem.
Table 1: Financial Highlights For the three months period ended March 31, (in thousand of R$) 2026 2026 Ex
Acquisitions* 2025 % Chg % Chg Ex
Acquisitions (a) Revenue 1,012,712 1,008,373 936,360 8.2% 7.7% (b) Adjusted EBITDA 1 511,419 510,352 491,971 4.0% 3.7% (c) = (b)/(a) Adjusted EBITDA Margin 50.5% 50.6% 52.5% -200 bps -190 bps Net income 261,763 - 257,036 1.8% - Basic Earnings per Share - in R$ 2.88 - 2.79 3.0% - *For the three months period ended March 31, 2026, "2026 Ex Acquisitions" excludes: FUNIC (January to March, 2026; Closing of FUNIC was in May 2025). (1) See more information on "Non-GAAP Financial Measures" (Item 08).
Message from Management
We begin 2026 with another quarter of solid execution, reflecting the consistency of our operating model and our ability to combine growth and cash generation while continuing to invest in Afya’s long-term strategic priorities. In the first quarter, our performance was once again supported by the strength of our Undergraduate segment, disciplined capital allocation and continued progress in expanding our physician-centric ecosystem.
During the quarter, we completed another successful intake cycle across our medical schools, maintaining 100% occupancy and achieving a 4.6% YoY increase in Medical School net average ticket, excluding acquisitions. This performance was supported by the strength of our academic offering, the effectiveness of our unified intake process, and the continued recognition of the Afya brand across Brazil. Revenue growth in the period also benefited from the continued maturation of medical seats and the contribution from recent seat authorization, and the acquisition of FUNIC. Our integrated model remains a key differentiator, helping us attract students and sustain efficient growth across our campuses
Story Continues
In Continuing Education and Medical Practice Solutions, we continued to advance the next phase of our strategy during the quarter. Both segments reflected higher investment levels, mainly in SG&A, product development and engagement initiatives. These investments are part of a broader strategic cycle aimed at strengthening Afya’s ecosystem and unlocking scalable long-term monetization. As our audience and engagement expand, we also reinforce our data advantage, improve users' experience, and build stronger foundations for future B2P and B2B opportunities. At the same time, this more integrated ecosystem continues to support a structurally low customer acquisition cost in Undergraduate, reinforcing an important competitive advantage of our business model. In Continuing Education, this progress was reflected in the growth of Graduate Journey students and B2P revenue growth. In Medical Practice Solutions, we highlight the increase in Clinical Management active payers, together with B2B revenue growth
Our capital allocation remained disciplined throughout the quarter. We further reduced leverage, reinforcing the quality of our capital structure while advancing our strategic priorities and returning value to shareholders. Consistent with this approach, we continued to execute our share repurchase program authorized in 2025, which provides for the repurchase of up to 4,000,000 Class A common shares through December 31, 2026.Since the launch of the program, we have already repurchased over 50% of the total amount authorized. In addition, in March 2026, our Board of Directors approved a cash dividend of R$307.4 million, equivalent to 40% of Afya’s 2025 consolidated net income, corresponding to a dividend amount of US$0.656489 per share. Taken together, these actions underscore our commitment to prudent capital allocation, shareholder remuneration, and long-term value creation.
Looking ahead, we remain focused on executing with consistency, strengthening our ecosystem, and reinforcing Afya’s role as the partner of choice for physicians in Brazil. We believe that our disciplined investment cycle, combined with the strength of our balance sheet, positions us well to deepen engagement across the physician journey, support sustainable growth, and create long-term value for our shareholders.
1. Key Events in the Quarter
On February 6, 2026, MEC authorized an increase of 63 medical seats for ITPAC – Instituto Tocantinense Presidente Antonio Carlos Porto S.A. ("Afya Abaetetuba"), located in the city of Abaetetuba, in the state of Pará. With this authorization, Afya’s Abaetetuba campus will offer a total of 113 medical seats.
As Afya Cametá—an approved but, non-operating medical school—and Afya Abaetetuba are located within the same health region, Afya Cametá will not become operational, thereby creating the capacity that enabled the approval of 63 additional medical seats at Afya Abaetetuba. With this addition, Afya now has a total of 3,768 approved medical seats across its portfolio.
On March 12, 2026, the Company’s Board of Directors approved dividend distribution in the amount of R$307.4 million, representing 40% of the Company’s consolidated net income for the year ended December 31, 2025 and a dividend per share of R$3.446838, paid in U.S. dollars on April 6, 2026, to the shareholders on record as of the close of business on March 25, 2026. The payment was made at the exchange rate (PTAX) published by the Brazilian Central Bank on March 13, 2026.
2. Subsequent Events
On May 5, 2026, Moody’s reaffirmed Afya’s credit rating at AAA.br and maintained a stable outlook. The reaffirmation of Afya’s AAA.br rating and stable outlook reflects revenue growth, a track record of above-industry-average margins, very strong credit metrics, exceptional cash generation, and robust liquidity. In addition, Afya’s credit profile reflects a strong competitive position and a predictable financial policy, including proactive liability management and prudent capital allocation, despite its appetite for M&As.
3. 2026 Guidance
The Company is reaffirming its 2026 guidance, which assumes the successful acceptance of new students for the first semester of 2026. The guidance for 2026 is defined in the following table:
Guidance for 20261 Revenue R$ 3,950 mn ≤ ∆ ≤ R$ 4,100 mn Adjusted EBITDA R$ 1,700 mn ≤ ∆ ≤ R$ 1,800 mn CAPEX R$ 340 mn ≤ ∆ ≤ R$ 380 mn (1) Excludes any acquisition that may be concluded after the issuance of the guidance.
4. 1Q26 Overview
Segment Information
The Company has three reportable segments as follows:
Undergraduate, previously denominated Undergrad, 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 provide access, demand and efficiency for the healthcare players.
Key Revenue Drivers – Undergraduate Programs
Table 2: Key Revenue Drivers Three months period ended March 31, 2026 2025 % Chg Undergraduate Programs MEDICAL SCHOOL Operating Seats 3,768 3,543 6.4 % Total Students (end of period) 26,494 25,879 2.4 % Average Total Students 26,494 25,879 2.4 % Average Total Students (ex-Acquisitions)* 26,352 25,879 1.8 % Revenue (Total - R$ '000) 765,925 714,713 7.2 % Revenue (ex-Acquisitions* - R$ '000) 761,596 714,713 6.6 % Medical School Net Avg. Ticket (ex- Acquisitions* - R$/month) 9,634 9,206 4.6 % UNDERGRADUATE HEALTH SCIENCE Total Students (end of period) 31,088 26,134 19.0 % Average Total Students 31,088 26,134 19.0 % Average Total Students (ex-Acquisitions)* 31,087 26,134 19.0 % Revenue (Total - R$ '000) 70,745 62,811 12.6 % Revenue (ex-Acquisitions* - R$ '000) 70,736 62,811 12.6 % OTHER EX- HEALTH UNDERGRADUATE Total Students (end of period) 39,358 34,995 12.5 % Average Total Students 39,358 34,995 12.5 % Average Total Students (ex-Acquisitions)* 39,358 34,995 12.5 % Revenue (Total - R$ '000) 55,795 49,848 11.9 % Revenue (ex-Acquisitions* - R$ '000) 55,795 49,848 11.9 % Total Revenue Revenue (Total - R$ '000) 892,465 827,372 7.9 % Revenue (ex-Acquisitions* - R$ '000) 888,127 827,372 7.3 % *For the three months period ended March 31, 2026, "2026 Ex Acquisitions" excludes: FUNIC (January to March, 2026; Closing of FUNIC was in May 2025).
Key Revenue Drivers – Continuing Education
Table 3: Key Revenue Drivers Three months period ended March 31, 2026 2025 % Chg Continuing Education Total Students (end of period)1 Residency Journey - Business to Physicians B2P 9,744 12,203 -20.2 % Graduate Journey - Business to Physicians B2P 9,855 8,542 15.4 % Other Courses - B2P and B2B Offerings 36,932 26,164 41.2 % Total Students (end of period) 56,531 46,909 20.5 % Revenue (R$ '000) Business to Physicians - B2P 74,083 65,444 13.2 % Business to Business - B2B 4,862 5,660 -14.1 % Total Revenue 78,946 71,103 11.0 % (1) The figure above does not contemplate intercompany transactions.
Key Revenue – Medical Practice Solutions
Table 4: Key Revenue Drivers Three months period ended March 31, 2026 2025 % Chg Medical Practice Solutions Active Payers (end of period) Clinical Decision 154,101 163,071 -5.5 % Clinical Management 46,707 40,324 15.8 % Total Active Payers (end of period) 200,808 203,395 -1.3 % Monthly Active Users (MaU) Total Monthly Active Users (MaU) 220,528 244,518 -9.8 % Revenue (R$ '000) Business to Physicians - B2P 38,216 37,231 2.6 % Business to Business - B2B 5,210 4,453 17.0 % Total Revenue 43,425 41,684 4.2 %
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 Continuing Education and users from Medical Practice Solutions. For the first quarter of 2026, Afya’s ecosystem reached 303,553 users.
Table 5: Key Revenue Drivers 1Q26 1Q25 % Chg YoY 4Q25 3Q25 2Q25 Users Positively Impacted by Afya 1 Undergraduate (Total Medical School Students - End of Period) 26,494 25,879 2.4 % 25,556 25,706 25,733 Continuing Education (Total Students - End of Period) 56,531 46,909 20.5 % 55,039 50,317 45,505 Medical Practice Solutions (Monthly Active Users) 220,528 244,518 -9.8 % 220,051 227,941 230,468 Ecosystem Outreach 303,553 317,306 -4.3 % 300,646 303,964 301,706 (1) Ecosystem outreach does not contemplate intercompany figures. Note that there may be overlap in student numbers within the data.
Revenue
Revenue for the first quarter of 2026 was R$1,012.7 million, an increase of 8.2% over the same period in the prior year. Excluding acquisitions, Revenue for the three-month period increased by 7.7% YoY to R$1,008.4 million.
The quarter revenue increase was mainly due to higher tickets in medicine courses, the increase in non-medical undergraduate students, the acquisition of FUNIC, and the advancement of the Continuing Education Segment.
Table 6: Revenue & Revenue Mix (in thousands of R$) For the three months period ended March 31, 2026 2026 Ex
Acquisitions* 2025 % Chg % Chg Ex
Acquisitions Revenue Mix Undergraduate 892,465 888,127 827,372 7.9 % 7.3 % Continuing Education 78,946 78,946 71,103 11.0 % 11.0 % Medical Practice Solutions 43,425 43,425 41,684 4.2 % 4.2 % Inter-segment transactions (2,124 ) (2,124 ) (3,799 ) -44.1 % -44.1 % Total Reported Revenue 1,012,712 1,008,373 936,360 8.2 % 7.7 % *For the three months period ended March 31, 2026, "2026 Ex Acquisitions" excludes: FUNIC (January to March, 2026; Closing of FUNIC was in May 2025).
Adjusted EBITDA
Adjusted EBITDA for the first quarter of 2026 increased by 4.0% to R$511.4 million, up from R$492.0 million in the same period of the prior year, with the Adjusted EBITDA Margin reducing by -200 basis points to 50.5%.
The reduction in Adjusted EBITDA Margin was primarily driven by higher costs and expenses in the Continuing Education and Medical Practice Solutions segments, mainly reflecting (a) lower gross margin compared with the first quarter of 2025; and (b) higher payroll, sales, and marketing expenses associated with the ongoing investment cycle in both segments.
Table 7: Reconciliation between Adjusted EBITDA and Net Income (in thousands of R$) For the three months period ended March 31, 2026 2025 % Chg Net income 261,763 257,036 1.8% Net financial result 94,350 94,994 -0.7% Income taxes expense 42,454 24,782 71.3% Depreciation and amortization 93,077 91,755 1.4% Interest received 1 13,547 14,532 -6.8% Income share associate (4,967) (4,285) 15.9% Share-based compensation 11,149 6,963 60.1% Non-recurring expenses: 46 6,194 -99.3% - Integration of new companies 2 - 5,970 n.a. - M&A advisory and due diligence 3 - 88 n.a. - Expansion projects 4 - 124 n.a. - Restructuring expenses 5 46 12 283.3% Adjusted EBITDA 511,419 491,971 4.0% Adjusted EBITDA Margin 50.5% 52.5% -200 bps (1) Represents the interest received on late payments of monthly tuition fees. (2) Consists of expenses related to the integration of newly acquired companies. (3) Consists of expenses related to professional and consultant fees in connection with due diligence services for our M&A transactions. (4) Consists of expenses related to professional and consultant fees in connection with the opening of new campuses. (5) Consists of expenses related to the employee redundancies in connection with the organizational restructuring of our acquired companies. (6) Financial information for 2025 is unaudited.
Net Income
Net Income for the first quarter of 2026 totaled R$261.8 million, representing a 1.8% YoY increase. This growth reflects stronger operating performance, partially offset by an additional CSLL provision related to the OECD’s Pillar Two global minimum tax.
Basic EPS for the three-month period ended March 31, 2026, reached R$2.88. An increase of 3.0% YoY, reflecting the higher Net Income and our capital allocation strategy.
Table 8: Net Income and Basic Earnings Per Share (in thousands of R$, except for earnings per share) For the three months period ended March 31, 2026 2025 % Chg Net income 261,763 257,036 1.8% Basic earnings per share - in R$ 1 2.88 2.79 3.0% (1) Basic earnings per share is calculated as net income attributable to Owners of the Company divided by the weighted average number of outstanding shares during the period.
Cash and Debt Position
As of March 31, 2026, Cash and Cash Equivalents totaled R$1,332.9 million, representing a 15.4% increase from March 31, 2025. Afya reduced its Net Debt, excluding the effect of IFRS 16, to R$1,151.3 million, a decrease of R$372.8 million compared to March 31, 2025. This reduction was achieved through solid Cash Flow from Operating Activities, despite the business combination with FUNIC, dividend payment, and Afya’s ongoing share repurchase program.
For the three-month period ended March 31, 2026, Afya generated R$473.2 million in Cash Flow from Operating Activities, up from R$470.2 million in the same period of the previous year, an increase of 0.6% YoY. The Operating Cash Conversion Ratio reached 92.5%.
Table 9: Operating Cash Conversion Ratio Reconciliation For the three months period ended March 31, (in thousands of R$) Considering the adoption of IFRS 16 2026 2025 % Chg (a) Net cash flows from operating activities 466,796 463,850 0.6% (b) Income taxes paid 6,357 6,386 -0.5% (c) = (a) + (b) Cash flow from operating activities 473,153 470,236 0.6% (d) Adjusted EBITDA 511,419 491,971 4.0% (e) Non-recurring expenses: 46 6,194 -99.3% - Integration of new companies 1 - 5,970 -100.0% - M&A advisory and due diligence 2 - 88 -100.0% - Expansion projects 3 - 124 -100.0% - Restructuring Expenses 4 46 12 283.3% (f) = (d) - (e) Adjusted EBITDA ex- non-recurring expenses 511,373 485,777 5.3% (g) = (c) / (f) Operating cash conversion ratio 92.5% 96.8% -430 bps (1) Consists of expenses related to the integration of newly acquired companies. (2) Consists of expenses related to professional and consultant fees in connection with due diligence services for M&A transactions. (3) Consists of expenses related to professional and consultant fees in connection with the opening of new campuses. (4) Consists of expenses related to the employee redundancies in connection with the organizational restructuring of acquired companies.
The following table shows more information regarding the cost of debt for 2026, 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 is 0.7x, marking an impressive reduction from 0.9x in the same period of the prior year, reinforcing Afya’s accelerated deleveraging trend.
Table 10: Gross Debt and Average Cost of Debt (in millions of R$) For the closing of the three months period ended in March 31, Cost of Debt Gross Debt Duration (Years) Per year %CDI² 2026 2025 2026 2025 2026 2025 2026 2025 Loans and financing: Softbank - 850 - 1.1 - 8.6 % - 69 % Loans and financing: Debentures 1,594 513 3.9 2.3 15.5 % 14.6 % 106 % 115 % Loans and financing: Others - 328 - 0.5 - 14.7 % - 115 % Loans and financing: IFC 530 522 2.8 3.6 15.8 % 14.0 % 108 % 110 % Accounts payable to selling shareholders 360 466 4.2 3.6 14.6 % 12.7 % 100 % 100 % Total¹| Average 2,484 2,679 3.7 2.2 15.4 % 12.2 % 105 % 97 % (1) Total amount refers only to the "Gross Debt" columns. (2) Based on the annualized Interbank Certificates of Deposit ("CDI") rate for the period as a reference: 1Q26: ~14.65% p.y. and for 1Q25: ~14.15% p.y.
Table 11: Cash and Debt Position (in thousands of R$) 1Q26 FY2025 % Chg 1Q25 % Chg (+) Cash and Cash Equivalents 1,332,866 1,125,381 18.4 % 1,154,888 15.4 % Cash and Bank Deposits 25,796 15,470 66.7 % 3,508 635.3 % Cash Equivalents 1,307,070 1,109,911 17.8 % 1,151,380 13.5 % (-) Loans and Financing 2,124,512 2,054,267 3.4 % 2,212,674 -4.0 % Current 132,099 60,668 117.7 % 373,275 -64.6 % Non-Current 1,992,413 1,993,599 -0.1 % 1,839,399 8.3 % (-) Accounts Payable to Selling Shareholders 359,667 440,597 -18.4 % 466,341 -22.9 % Current 57,325 110,640 -48.2 % 191,698 -70.1 % Non-Current 302,342 329,957 -8.4 % 274,643 10.1 % (-) Other Short and Long Term Obligations - - n.a. - n.a. (=) Net Debt (Cash) excluding IFRS 16 1,151,313 1,369,483 -15.9 % 1,524,127 -24.5 % (-) Lease Liabilities 1,077,075 1,065,746 1.1 % 989,184 8.9 % Current 55,478 55,772 -0.5 % 47,762 16.2 % Non-Current 1,021,597 1,009,974 1.2 % 941,422 8.5 % Net Debt (Cash) with IFRS 16 2,228,388 2,435,229 -8.5 % 2,513,311 -11.3 %
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 Medical Practice Solutions and content in Continuing Education.
For the three-month period ended March 31, 2026, CAPEX totaled R$44.8 million, representing 4.4% of Afya’s Net Revenue, including an acceleration in intangible investments in the first quarter associated with the ongoing investment cycle in Continuing Education and Medical Practice Solutions.
Table 12: CAPEX (in thousands of R$) For the three months period ended March 31, 2026 2025 % Chg Property and equipment 12,762 38,477 -66.8 % Intangible assets 32,016 17,735 80.5 % CAPEX 44,778 56,212 -20.3 % % of Revenue 4.4 % 6.0 % -160 bps
5. Conference Call and Webcast Information
When: May 7, 2026 at 5:00 p.m. EST. Who: Mr. Virgilio Gibbon, Chief Executive Officer Mr. Luis André Blanco, Chief Financial Officer Ms. Renata Costa Couto, IR Director Webcast: https://afya.zoom.us/j/98271618661
OR
Dial-in:
Brazil: +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668.
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: 982 7161 8661
Other Numbers: https://afya.zoom.us/u/aRK0ROGaH
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 and Operating Cash Conversion Ratio 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 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 and Operating Cash Conversion Ratio 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: ir@afya.com.br
10. Financial Tables
Unaudited interim condensed consolidated statements of financial position As of March 31, 2026 and December 31, 2025 (In thousands of Brazilian reais)
March 31, 2026 December 31, 2025 Assets (unaudited) Current assets Cash and cash equivalents 1,332,866 1,125,381 Trade receivables 777,975 717,373 Recoverable taxes 21,572 13,429 Income taxes recoverable 25,833 23,046 Other assets 66,179 62,947 Total current assets 2,224,425 1,942,176 Non-current assets Trade receivables 41,567 34,985 Deferred tax assets 4,676 12,552 Other assets 129,553 125,480 Investment in associate 50,607 46,518 Property and equipment 699,016 711,485 Right-of-use assets 902,538 896,758 Intangible assets 5,573,118 5,587,980 Total non-current assets 7,401,075 7,415,758 Total assets 9,625,500 9,357,934 Liabilities Current liabilities Trade payables 134,138 123,581 Loans and financing 132,099 60,668 Lease liabilities 55,478 55,772 Accounts payable to selling shareholders 57,325 110,640 Advances from customers 151,115 158,035 Dividends payable 308,332 192 Labor and social obligations 245,680 217,526 Taxes payable 37,385 36,043 Income taxes payable 117,657 112,638 Other liabilities 7,758 8,946 Total current liabilities 1,246,967 884,041 Non-current liabilities Loans and financing 1,992,413 1,993,599 Lease liabilities 1,021,597 1,009,974 Accounts payable to selling shareholders 302,342 329,957 Taxes payable 74,459 77,487 Income taxes payable 26,358 - Provision for legal proceedings 131,832 128,220 Other liabilities 42,985 43,471 Total non-current liabilities 3,591,986 3,582,708 Total liabilities 4,838,953 4,466,749 Equity Share capital 17 17 Additional paid-in capital 2,319,509 2,320,422 Treasury shares (372,786) (306,010) Share-based compensation reserve 213,964 202,815 Retained earnings 2,584,194 2,634,552 Equity attributable to the owners of the Company 4,744,898 4,851,796 Non-controlling interests 41,649 39,389 Total equity 4,786,547 4,891,185 Total liabilities and equity 9,625,500 9,357,934
Unaudited interim condensed consolidated statements of income and comprehensive income For the three-month periods ended March 31, 2026 and 2025 (In thousands of Brazilian reais, except for earnings per share information)
March 31, 2026 March 31, 2025 (unaudited) (unaudited) Revenue 1,012,712 936,360 Cost of services (314,649 ) (282,639 ) Gross profit 698,063 653,721 Selling, general and administrative expenses (287,661 ) (264,942 ) Allowance for expected credit losses (17,843 ) (16,558 ) Other income 4,871 2,506 Other expenses (3,830 ) (2,200 ) Operating income 393,600 372,527 Finance income 53,297 43,481 Finance expenses (147,647 ) (138,475 ) Net finance result (94,350 ) (94,994 ) Share of profit of equity-accounted investee, net of tax 4,967 4,285 Income before income taxes 304,217 281,818 Income taxes expenses Current (34,578 ) (31,928 ) Deferred (7,876 ) 7,146 Net income 261,763 257,036 Other comprehensive income - - Total comprehensive income 261,763 257,036 Net income / total comprehensive income attributable to: Owners of the Company 257,019 251,999 Non-controlling interests 4,744 5,037 261,763 257,036 Basic earnings per common share 2.88 2.79 Diluted earnings per common share 2.85 2.76
Unaudited interim condensed consolidated statements of cash flows For the three-month periods ended March 31, 2026 and 2025 (In thousands of Brazilian reais)
March 31, 2026 March 31, 2025 (unaudited) (unaudited) Operating activities Income before income taxes 304,217 281,818 Adjustments to reconcile income before income taxes Depreciation and amortization expenses 93,077 91,755 Write-off of property and equipment 362 305 Allowance for expected credit losses 17,843 16,558 Share-based compensation expenses 11,149 6,963 Net foreign exchange differences 893 476 Accrued interest 86,895 76,939 Accrued interest on lease liabilities 30,211 29,563 Share of profit of equity-accounted investee, net of tax (4,967 ) (4,285 ) Provision (reversal) for legal proceedings 5,409 408 Changes in assets and liabilities Trade receivables (85,027 ) (55,632 ) Recoverable taxes (10,930 ) (6,392 ) Other assets (6,965 ) (6,131 ) Trade payables 10,557 1,893 Taxes payable 1,362 10,787 Advances from customers (6,920 ) 214 Labor and social obligations 28,154 29,774 Provision for legal proceedings (1,259 ) - Other liabilities (908 ) (4,777 ) 473,153 470,236 Income taxes paid (6,357 ) (6,386 ) Net cash flows from operating activities 466,796 463,850 Investing activities Acquisition of property and equipment (12,762 ) (38,477 ) Acquisition of intangibles assets (32,016 ) (17,735 ) Dividends received - 5,598 Acquisition of assets and subsidiaries, net of cash acquired (65,005 ) (65,162 ) Payments of interest - (14,536 ) Net cash flows used in investing activities (109,783 ) (130,312 ) Financing activities Payments of principal of loans and financing (5,254 ) (769 ) Payments of interest (28,087 ) (44,980 ) Payments of principal of lease liabilities (13,792 ) (11,904 ) Payments of interest of lease liabilities (32,200 ) (29,167 ) Treasury shares repurchase (69,511 ) - Proceeds from exercise of stock options 1,930 1,622 Dividends paid (1,721 ) (3,991 ) Net cash flows from (used in) financing activities (148,635 ) (89,189 ) Net foreign exchange differences (893 ) (476 ) Net increase (decrease) in cash and cash equivalents 207,485 243,873 Cash and cash equivalents at the beginning of the period 1,125,381 911,015 Cash and cash equivalents at the end of the period 1,332,866 1,154,888
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Contacts
Investor Relations Contact:
Afya Limited
ir@afya.com.br
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