Impressive Adjusted EBITDA Margin Expansion and Cash Generation
Full Year 2025 Guidance Reaffirmed
BELO HORIZONTE, Brazil–(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 three and six-month period, which ended June 30, 2025 (second quarter 2025). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
Second-Quarter 2025 Highlights
- 2Q25 Revenue increased 13.5% YoY to R$919.4 million. Revenue excluding acquisitions increased 8.5%, reaching R$879.0 million.
- 2Q25 Adjusted EBITDA increased 16.6% YoY reaching R$400.8 million, with an Adjusted EBITDA Margin of 43.6%. Adjusted EBITDA Margin increased 110 bps YoY. Adjusted EBITDA excluding acquisitions grew 10.1%, reaching R$378.6 million, with an Adjusted EBITDA Margin of 43.1%.
- 2Q25 Net Income increased 8.8% YoY, reaching R$176.5 million, and Adjusted Net Income decreased 0.4% YoY, reaching R$209.4 million. Basic EPS growth was 8.4% in the same period.
First-Half 2025 Highlights
- 1H25 Revenue increased 15.0% YoY to R$1,855.8 million. Revenue excluding acquisitions grew 9.7%, reaching R$1,770.5 million.
- 1H25 Adjusted EBITDA increased 20.4% YoY reaching R$892.8 million, with an Adjusted EBITDA Margin of 48.1%. Adjusted EBITDA Margin increased 220 bps YoY. Adjusted EBITDA excluding acquisitions grew 13.1%, reaching R$839.2 million, with an Adjusted EBITDA Margin of 47.4%.
- 1H25 Net Income increased 17.0% YoY, reaching R$433.6 million, and Adjusted Net Income increased 9.1% YoY, reaching R$503.3 million. Basic EPS growth was 16.9% in the same period.
- Operating Cash Conversion ratio of 88.8%, with a solid cash position of R$ 1,099.1 million.
- ~302 thousand users in Afya’s ecosystem.
| Table 1: Financial Highlights | |||||||||||
| For the three months period ended June 30, | For the six months period ended June 30, | ||||||||||
| (in thousand of R$) |
2025 |
2025 Ex Acquisitions* |
2024 |
% Chg |
% Chg Ex Acquisitions |
|
2025 |
2025 Ex Acquisitions* |
2024 |
% Chg |
% Chg Ex Acquisitions |
| (a) Revenue |
919,400 |
879,015 |
809,890 |
13.5% |
8.5% |
1,855,760 |
1,770,542 |
1,614,129 |
15.0% |
9.7% |
|
| (b) Adjusted EBITDA 2 |
400,844 |
378,587 |
343,827 |
16.6% |
10.1% |
892,814 |
839,189 |
741,679 |
20.4% |
13.1% |
|
| (c) = (b)/(a) Adjusted EBITDA Margin |
43.6% |
43.1% |
42.5% |
110 bps | 60 bps |
48.1% |
47.4% |
45.9% |
220 bps | 150 bps | |
| Net income |
176,542 |
– |
162,200 |
8.8% |
– |
433,578 |
– |
370,499 |
17.0% |
– |
|
| Adjusted Net income |
209,409 |
– |
210,346 |
-0.4% |
– |
503,306 |
– |
461,311 |
9.1% |
– |
|
| *For the three months period ended June 30, 2025, “2025 Ex Acquisitions” excludes: UNIDOM (April to June, 2025; Closing of UNIDOM was in July 2024), and FUNIC (May to June, 2025; Closing of FUNIC was in May 2025). | |||||||||||
| *For the six months period ended June 30, 2025, “2025 Ex Acquisitions” excludes: UNIDOM (January to June, 2025; Closing of UNIDOM was in July 2024), and FUNIC (May to June, 2025; Closing of FUNIC was in May 2025). | |||||||||||
| (2) See more information on “Non-GAAP Financial Measures” (Item 08). | |||||||||||
Message from Management
We are pleased to report that Afya continues to deliver strong operational and financial results. This quarter’s performance highlights the high predictability of our business model and the successful execution of our strategy, which consistently combines robust growth, increased profitability, and solid cash generation, Afya’s three strategic pillars for long-term value creation. This quarter was marked by significant revenue growth and gross margin expansion in both our Undergraduate and Continuing Education segments, reflecting the steady expansion of our business and our ongoing commitment to operational excellence. We are also pleased to reaffirm that Afya remains on track to meet our full-year 2025 guidance, supported by disciplined execution and strong business fundamentals.
Once again, we delivered a strong performance, closing the first half of 2025 with a notable increase in Adjusted EBITDA Margin, reaching 48.1%. This margin expansion was primarily driven by the solid results of our Undergraduate segment, supported by cost initiatives and our shared services center, helping to boost efficiency, and unlock operational synergies across selling, general, and administrative expenses.
Another important development in the higher education landscape is the recent rollout of ENAMED, Brazil’s National Medical Education Performance Exam. This standardized test for final-year medical students, now officially integrated into the regulatory framework, represents a pivotal step in quality assurance and benchmarking across medical schools nationwide. Afya’s educational ecosystem is able to support students more effectively in their preparation for ENAMED, while reinforcing its leadership in delivering outcomes-based, high-impact learning across all stages of the medical journey.
With the closing of the acquisition of Funic, a campus that will begin its operation in the second half of 2025, we are pleased to reinforce our solid market position by expanding our undergraduate footprint into the metropolitan area of Belo Horizonte, capital of Minas Gerais. This acquisition adds 60 new medical seats, bringing Afya’s total number of approved medical seats to 3,653 as of today.
In 2Q25, we continued to recognize the impacts of the global minimum tax related to the additional CSLL established by Law No. 15,079/2024. Although the cash disbursement is only expected in July 2026, we have started provisioning this obligation throughout 2025. In response, Afya filed a writ of mandamus with the Brazilian Federal Court seeking to suspend the enforceability of this new charge. In parallel, Afya is demonstrating to the Lower House and the Executive representatives the impacts of this additional taxation on the Prouni. We remain committed to defending the Company’s legal and financial interests while maintaining the highest standards of compliance, transparency, and fiscal discipline.
In line with our commitment to delivering long-term value to shareholders and reinforcing our confidence in Afya’s strategic direction, our Board of Directors approved a new share repurchase program. This initiative authorizes the repurchase of up to 4,000,000 Class A shares. The program is intended to support our stock option plan, future business combinations, and general corporate purposes. We believe this initiative reflects the strength of our balance sheet, the resilience of our business model, and our disciplined capital allocation strategy.
As we look to the future, Afya remains steadfast in its purpose: to empower healthcare professionals through an integrated ecosystem that spans education, clinical practice, and continuous development. Our commitment to innovation and excellence drives us to keep enhancing the medical journey at every stage. We are very proud of our business and our achievements so far, and we are excited about our future plans.
1. Key Events in the Quarter
- On May 7, 2025, Afya Participações announced the closing of its acquisition of 100% of the total share capital of Faculdade Masterclass Ltda. (“FUNIC”), located in Contagem, a city in the metropolitan area of Belo Horizonte, the capital of the State of Minas Gerais.
The acquisition contributes 60 medical school seats to Afya. FUNIC is pre-operational, with leased real estate prepared for a medical school operation, to be started in the second semester of 2025.
The aggregate purchase price is R$ 100 million, net of the estimated Net Debt deducted from the down payment. The price and payment conditions were: (i) R$ 60 million, net of the estimated Net Debt, paid in cash on May 07, 2025; and (ii) R$ 40 million to be paid in three annual installments adjusted by CDI.
Additionally, the acquisition includes a contingent consideration for up to 60 additional medical school seats. If approved by MEC within 36 months from the closing date, it will result in an additional payment of R$1,000 per approved seat.
Afya expects an EV/EBITDA of 3.3x at full maturity and post synergies in 2030 with expected Revenues of R$ 52.4 million, of which 100% will come from Medicine.
2. Subsequent Event
- On August 13, 2025, the Company’s board of directors approved a new share repurchase program. Under the 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 earlier 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 on August 13, 2025. Afya intends to repurchase the shares for use in its stock option program, consideration in futures business combinations transactions and general corporate purposes.
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:
| Guidance for 2025 | ||
| Revenue | R$ 3,670 mn ≤ ∆ ≤ R$ 3,770 mn | |
| Adjusted EBITDA | R$ 1,620 mn ≤ ∆ ≤ R$ 1,720 mn | |
| CAPEX 1 | R$ 250 mn ≤ ∆ ≤ R$ 290 mn | |
| (1) Excludes the license CAPEX related to the acquisition of FUNIC. | ||
4. 2Q25 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 provide access, demand and efficiency for the healthcare players.
Key Revenue Drivers – Undergraduate Programs
| Table 2: Key Revenue Drivers | Six months period ended June 30, | ||
|
2025 |
2024 |
% Chg | |
| Undergraduate Programs | |||
| MEDICAL SCHOOL | |||
| Approved Seats |
3,653 |
3,203 |
14.0% |
| Operating Seats 1 |
3,543 |
3,153 |
12.4% |
| Total Students (end of period) |
25,733 |
22,661 |
13.6% |
| Average Total Students |
25,806 |
22,635 |
14.0% |
| Average Total Students (ex-Acquisitions)* |
24,212 |
22,635 |
7.0% |
| Revenue (Total – R$ ‘000) |
1,407,348 |
1,202,599 |
17.0% |
| Revenue (ex- Acquisitions* – R$ ‘000) |
1,327,745 |
1,202,599 |
10.4% |
| Medical School Net Avg. Ticket (ex- Acquisitions* – R$/month) |
9,140 |
8,855 |
3.2% |
| UNDERGRADUATE HEALTH SCIENCE |
|
||
| Total Students (end of period) |
25,718 |
24,252 |
6.0% |
| Average Total Students |
25,926 |
24,567 |
5.5% |
| Average Total Students (ex-Acquisitions)* |
25,146 |
24,567 |
2.4% |
| Revenue (Total – R$ ‘000) |
130,604 |
120,471 |
8.4% |
| Revenue (ex- Acquisitions* – R$ ‘000) |
128,468 |
120,471 |
6.6% |
| OTHER EX- HEALTH UNDERGRADUATE |
|
||
| Total Students (end of period) |
33,090 |
26,816 |
23.4% |
| Average Total Students |
34,043 |
27,690 |
22.9% |
| Average Total Students (ex-Acquisitions)* |
32,576 |
27,690 |
17.6% |
| Revenue (Total – R$ ‘000) |
103,549 |
91,097 |
13.7% |
| Revenue (ex- Acquisitions* – R$ ‘000) |
100,103 |
91,097 |
9.9% |
| Total Revenue |
|
||
| Revenue (Total – R$ ‘000) |
1,641,501 |
1,414,166 |
16.1% |
| Revenue (ex- Acquisitions* – R$ ‘000) |
1,556,283 |
1,414,166 |
10.0% |
| *For the six months period ended June 30, 2025, “2025 Ex Acquisitions” excludes: UNIDOM (January to June, 2025; Closing of UNIDOM was in July 2024), and FUNIC (May to June, 2025; Closing of FUNIC was in May 2025). | |||
| (1) The difference between approved and operating seats refers to Cametá, a campus that is still pre-operational. And FUNIC, a campus that started its operations in the second half of 2025. | |||
Key Revenue Drivers – Continuing Education
| Table 3: Key Revenue Drivers | Six months period ended June 30, | ||
|
2025 |
2024 |
% Chg |
|
| Continuing Education | |||
| Total Students (end of period)1 | |||
| Residency Journey – Business to Physicians B2P |
9,224 |
13,058 |
-29.4% |
| Graduate Journey – Business to Physicians B2P |
9,055 |
8,100 |
11.8% |
| Other Courses – B2P and B2B Offerings |
27,226 |
22,921 |
18.8% |
| Total Students (end of period) |
45,505 |
44,079 |
3.2% |
| Revenue (R$ ‘000) | |||
| Business to Physicians – B2P |
125,379 |
118,940 |
5.4% |
| Business to Business – B2B |
12,141 |
8,566 |
41.7% |
| Total Revenue |
137,520 |
127,506 |
7.9% |
| (1) Total Students figure excludes intercompany transactions. | |||
Key Revenue – Medical Practice Solutions
| Table 4: Key Revenue Drivers | Six months period ended June 30, | ||
|
2025 |
2024 |
% Chg | |
| Medical Practice Solutions | |||
| Active Payers (end of period)1 | |||
| Clinical Decision |
159,373 |
162,313 |
-1.8% |
| Clinical Management |
36,685 |
33,398 |
9.8% |
| Total Active Payers (end of period) |
196,058 |
195,711 |
0.2% |
| Monthly Active Users (MaU) | |||
| Total Monthly Active Users (MaU) |
230,468 |
253,497 |
-9.1% |
| Revenue (R$ ‘000)2 | |||
| Business to Physicians – B2P |
75,051 |
67,163 |
11.7% |
| Business to Business – B2B |
8,944 |
9,691 |
-7.7% |
| Total Revenue |
84,004 |
76,854 |
9.3% |
| (1) Total Active Payers figure excludes intercompany transactions. | |||
| (2) Revenue from ‘Shosp’, the clinical management software, was reclassified from B2B to B2P. | |||
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 second quarter of 2025, Afya’s ecosystem reached 301,706 users.
| Table 5: Key Revenue Drivers | Six months period ended June 30, | ||
|
2025 |
2024 |
% Chg | |
| Users Positively Impacted by Afya 1 | |||
| Undergraduate (Total Medical School Students – End of Period) |
25,733 |
22,661 |
13.6% |
| Continuing Education (Total Students – End of Period) |
45,505 |
44,079 |
3.2% |
| Medical Practice Solutions (Monthly Active Users) |
230,468 |
253,497 |
-9.1% |
| Ecosystem Outreach |
301,706 |
320,237 |
-5.8% |
| (1) Ecosystem outreach does not contemplate intercompany figures. Note that there may be overlap in student numbers within the data. | |||
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 second quarter of 2025 was R$919.4 million, an increase of 13.5% over the same period in the prior year. For the six-month period ended June 30, 2025, Revenue was R$1,855.8 million, reflecting a 15.0% increase over the same period of last year. Excluding acquisitions, Revenue in the second quarter increased by 8.5% YoY to R$879.0 million. For the six-month period ended June 30, 2025, excluding acquisitions, Revenue was R$1,770.5 million, reflecting a 9.7% increase over the same period of last year.
The quarter revenue increase was mainly due to higher tickets in medicine courses, the maturation of medical school seats and the acquisition of Unidom.
| Table 6: Revenue & Revenue Mix | |||||||||||
| (in thousands of R$) | For the three months period ended June 30, | For the six months period ended June 30, | |||||||||
|
2025 |
2025 Ex Acquisitions* |
2024 |
% Chg |
% Chg Ex Acquisitions |
|
2025 |
2025 Ex Acquisitions* |
2024 |
% Chg |
% Chg Ex Acquisitions |
|
| Revenue Mix | |||||||||||
| Undergraduate |
814,129 |
773,744 |
709,647 |
14.7% |
9.0% |
1,641,501 |
1,556,283 |
1,414,166 |
16.1% |
10.0% |
|
| Continuing Education |
66,417 |
66,417 |
62,091 |
7.0% |
7.0% |
137,520 |
137,520 |
127,506 |
7.9% |
7.9% |
|
| Medical Practice Solutions |
42,320 |
42,320 |
40,281 |
5.1% |
5.1% |
84,004 |
84,004 |
76,854 |
9.3% |
9.3% |
|
| Inter-segment transactions |
(3,466) |
(3,466) |
(2,129) |
62.8% |
62.8% |
(7,265) |
(7,265) |
(4,397) |
65.2% |
65.2% |
|
| Total Reported Revenue |
919,400 |
879,015 |
809,890 |
13.5% |
8.5% |
1,855,760 |
1,770,542 |
1,614,129 |
15.0% |
9.7% |
|
| *For the three months period ended June 30, 2025, “2025 Ex Acquisitions” excludes: UNIDOM (April to June, 2025; Closing of UNIDOM was in July 2024), and FUNIC (May to June, 2025; Closing of FUNIC was in May 2025). | |||||||||||
| *For the six months period ended June 30, 2025, “2025 Ex Acquisitions” excludes: UNIDOM (January to June, 2025; Closing of UNIDOM was in July 2024), and FUNIC (May to June, 2025; Closing of FUNIC was in May 2025). | |||||||||||
Adjusted EBITDA
Adjusted EBITDA for the second quarter of 2025 increased by 16.6% to R$400.8 million, up from R$343.8 million in the same period of the prior year, with the Adjusted EBITDA Margin rising by 110 basis points to 43.6%. For the six-month period ended June 30, 2025, Adjusted EBITDA was R$892.8 million, an increase of 20.4% over the same period of the prior year, accompanied by an Adjusted EBITDA Margin increase of 220 basis points in the same period.
The increase in Adjusted EBITDA Margin was mainly driven by: (a) higher gross margin in the Undergraduate and Continuing Education segments; (b) the continued ramp-up of the four Mais Médicos campuses launched in 3Q22; (c) restructuring initiatives within Continuing Education and Medical Practice Solutions; and (d) improved cost efficiency in Selling, General, and administrative expenses.
| Table 7: Reconciliation between Adjusted EBITDA and Net Income | |||||||
| (in thousands of R$) | For the three months period ended June 30, | For the six months period ended June 30, | |||||
|
2025 |
2024 |
% Chg |
|
2025 |
2024 |
% Chg |
|
| Net income |
176,542 |
162,200 |
8.8% |
433,578 |
370,499 |
17.0% |
|
| Net financial result |
94,809 |
68,551 |
38.3% |
189,803 |
142,917 |
32.8% |
|
| Income taxes expense |
17,468 |
3,091 |
465.1% |
42,250 |
13,956 |
202.7% |
|
| Depreciation and amortization |
94,698 |
84,038 |
12.7% |
186,453 |
163,307 |
14.2% |
|
| Interest received 1 |
10,210 |
8,619 |
18.5% |
24,742 |
21,034 |
17.6% |
|
| Income share associate |
(3,591) |
(3,028) |
18.6% |
(7,876) |
(7,200) |
9.4% |
|
| Share-based compensation |
5,557 |
11,799 |
-52.9% |
12,520 |
20,428 |
-38.7% |
|
| Non-recurring expenses: |
5,151 |
8,557 |
-39.8% |
11,344 |
16,738 |
-32.2% |
|
| – Integration of new companies 2 |
4,819 |
5,408 |
-10.9% |
10,788 |
11,278 |
-4.3% |
|
| – M&A advisory and due diligence 3 |
203 |
1,336 |
-84.8% |
291 |
1,583 |
-81.6% |
|
| – Expansion projects 4 |
129 |
1,765 |
-92.7% |
253 |
2,370 |
-89.3% |
|
| – Restructuring expenses 5 |
– |
48 |
n.a. |
12 |
1,507 |
-99.2% |
|
| Adjusted EBITDA |
400,844 |
343,827 |
16.6% |
892,814 |
741,679 |
20.4% |
|
| Adjusted EBITDA Margin |
43.6% |
42.5% |
110 bps |
48.1% |
45.9% |
220 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. | |||||||
Net Income
Net Income for the second quarter of 2025, totaled R$176.5 million, reflecting an 8.8% increase YoY. Adjusted Net Income reached R$209.4 million, a decrease of 0.4% over the same period in the prior year. For the six-month period, Afya achieved a Net Income of R$433.6 million, 17.0% higher than the same period of 2024, and an Adjusted Net Income of R$503.3 million, which was 9.1% higher than the previous period. This growth was primarily driven by improved operational performance that was partially offset by a higher tax rate compared to the previous year due to the provision of additional CSLL towards OECD’s Pillar Two global minimum tax effects.
Basic EPS for the six-month period ended June 30, 2025, reached R$4.69. An increase of 16.9% YoY, reflecting the higher Net Income.
| Table 8: Adjusted Net Income | |||||||
| (in thousands of R$) | For the three months period ended June 30, | For the six months period ended June 30, | |||||
|
2025 |
2024 |
% Chg |
|
2025 |
2024 |
% Chg |
|
| Net income |
176,542 |
162,200 |
8.8% |
433,578 |
370,499 |
17.0% |
|
| Amortization of Intangible Assets 1 |
22,159 |
27,790 |
-20.3% |
45,864 |
53,646 |
-14.5% |
|
| Share-based compensation |
5,557 |
11,799 |
-52.9% |
12,520 |
20,428 |
-38.7% |
|
| Non-recurring expenses: |
5,151 |
8,557 |
-39.8% |
11,344 |
16,738 |
-32.2% |
|
| – Integration of new companies 2 |
4,819 |
5,408 |
-10.9% |
10,788 |
11,278 |
-4.3% |
|
| – M&A advisory and due diligence 3 |
203 |
1,336 |
-84.8% |
291 |
1,583 |
-81.6% |
|
| – Expansion projects 4 |
129 |
1,765 |
-92.7% |
253 |
2,370 |
-89.3% |
|
| – Restructuring expenses 5 |
– |
48 |
n.a. |
12 |
1,507 |
-99.2% |
|
| Adjusted Net Income |
209,409 |
210,346 |
-0.4% |
503,306 |
461,311 |
9.1% |
|
| Basic earnings per share – in R$ 6 |
1.90 |
1.76 |
8.4% |
4.69 |
4.02 |
16.9% |
|
| Adjusted earnings per share – in R$ 7 |
2.27 |
2.29 |
-1.1% |
5.47 |
5.03 |
8.7% |
|
| (1) Consists of amortization of intangible assets identified in business combinations. | |||||||
| (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) Basic earnings per share: Net Income/Weighted average number of outstanding shares. | |||||||
| (7) Adjusted earnings per share: Adjusted Net Income attributable to equity holders of the Parent/Weighted average number of outstanding shares. | |||||||
Cash and Debt Position
As of June 30, 2025, Cash and Cash Equivalents totaled R$1,099.1 million, an increase of 20.6% over December 31, 2024. Net Debt, excluding the effect of IFRS 16, reached R$1,621.0 million, compared to December 31, 2024, Afya reduced its Net Debt by R$193.9 million due to solid Cash Flow from Operating Activities, even considering the business combination with FUNIC and the dividends payment.
For the six-month period ended June 30, 2025, Afya generated R$783.0 million in Cash Flow from Operating Activities, up from R$683.4 million in the same period of the previous year, an increase of 14.6% YoY, boosted by operational results. The Operating Cash Conversion Ratio reached 88.8%.
| Table 9: Operating Cash Conversion Ratio Reconciliation | For the six months period ended June 30, | ||
| (in thousands of R$) | Considering the adoption of IFRS 16 | ||
|
2025 |
2024 |
% Chg |
|
| (a) Net cash flows from operating activities |
771,596 |
667,169 |
15.7% |
| (b) Income taxes paid |
11,385 |
16,208 |
-29.8% |
| (c) = (a) + (b) Cash flow from operating activities |
782,981 |
683,377 |
14.6% |
| (d) Adjusted EBITDA |
892,814 |
741,679 |
20.4% |
| (e) Non-recurring expenses: |
11,344 |
16,738 |
-32.2% |
| – Integration of new companies 1 |
10,788 |
11,278 |
-4.3% |
| – M&A advisory and due diligence 2 |
291 |
1,583 |
-81.6% |
| – Expansion projects 3 |
253 |
2,370 |
-89.3% |
| – Restructuring Expenses 4 |
12 |
1,507 |
-99.2% |
| (f) = (d) – (e) Adjusted EBITDA ex- non-recurring expenses |
881,470 |
724,941 |
21.6% |
| (g) = (c) / (f) Operating cash conversion ratio |
88.8% |
94.3% |
-550 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. | |||
Contacts
Investor Relations Contact:
Afya Limited
ir@afya.com.br
