Slides
Page 1
WEBCAST PRESENTATION 3Q25 & 9M25 FINANCIAL RESULTS EXPERIENCE THE BEST IN MEDICINE
Page 2
SAFE HARBOR This presentation 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 ability to increase tuition prices; our ability to anticipate and meet the evolving needs of student and teachers; our ability to source and successfully integrate acquisitions; general market, political, economic, and business conditions; and our 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 undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect 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 such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results 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 such statements 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 on the SEC Filings section of the investor relations section of our website at: https://ir.afya.com.br/. 2
Page 3
SOLID PERFORMANCE OPERATIONAL AND FINANCIAL HIGHLIGHTS OF THE NINE-MONTH PERIOD FINANCIALS OPERATIONAL NET INCOME & EARNINGS PER SHARE R$593.0 MM + 19.9% YoY R$6.40 + 19.7% YoY CASH FLOW FROM OPERATING ACTIVITIES R$1,291.5MM +10.6% YoY OPERATING CASH CONVERSION RATIO 101.5% REVENUE R$2,784.3MM +13.4% YoY ADJUSTED EBITDA R$1,291.7MM +18.5 % YoY ADJUSTED EBITDA MARGIN 46.4% +200 bps CONTINUING EDUCATION R$207.6MM +10.6% YoY MEDICAL PRACTICE SOLUTIONS R$128.2MM +9.3% YoY USERS IN AFYA’S ECOSYSTEM ~304k USERS POSITIVELY IMPACTED APPROVED MEDICAL SCHOOL SEATS 3,653 MEDICAL SCHOOL STUDENTS (end of period) 25,706 MEDICAL SCHOOL NET AVERAGE TICKET (Ex - Acquisitions R$/month) R$9,141 +3.4% YoY 3
Page 4
SOLID PERFORMANCE OPERATIONAL AND FINANCIAL HIGHLIGHTS OF THE NINE-MONTH PERIOD INCREASE IN GRADUATE JOURNEY STUDENTS GROSS MARGIN EXPANSION YoY STRONG B2B GROWTH CONTINUING EDUCATION INCREASE IN CLINICAL MANAGEMENT PAYERS STRONG B2P GROWTH MEDICAL PRACTICE SOLUTIONS GROSS MARGIN EXPANSION YoY START OF FUNIC (AFYA CONTAGEM) OPERATIONS 100 ADDITIONAL MEDICAL SEATS IN AFYA BRAGANÇA* UNDERGRADUATE PROGRAMS 4 *ON NOVEMBER 7, 2025, AFYA BRAGANÇA RECEIVED AUTHORIZATION FOR 100 ADDITIONAL MEDICAL SEATS, AFTER THE CLOSE OF THE THIRD QUARTER.
Page 5
5 We delivered a total of 700,000 free healthcare consultations, including more than 500,000 medical consultations. These achievements exceed the targets set for 2025, reflecting our strong partnership with the IFC (Sustainability Linked-Loan) and our public commitment to the United Nations (ODS-3) The launch of Instituto Afya marks a new chapter in the company’s journey, reinforcing its commitment to sustainability and social impact. With a strong focus on advancing research, science, and technology for the benefit of society, playing a strategic role in NCDs* Afya’s commitment to sustainability was recognized through the Valor 1000 Award by Valor Econômico, which evaluates companies based on their financial performance and ESG practices. The company was honored as the top performer in the Education sector in Brazil. *NON-COMMUNICABLE CHRONIC CONDITIONS – Such as Diabetes, Hypertension and Obesity ESG RESULTS DRIVE LONG-TERM VALUE CREATION
Page 6
OPERATIONAL OVERVIEW
Page 7
1,843.5 2,112.6 177.1 193.7 135.3 152.92,155.9 2,459.2 9M24 9M25 24,234 25,706 9M24 9M25 UNDERGRADUATE PROGRAMS REVENUE (R$ MM)NUMBER OF SEATS AND MEDICAL STUDENTS 3,593 3,653 MEDICAL SCHOOL NET AVERAGE TICKET (Ex- Acquisitions - R$/MONTH) OPERATIONAL METRICS +14.1% +6.1% OTHER UNDERGRADUATE HEALTH SCIENCE MEDICAL SCHOOL APPROVED SEATSTOTAL STUDENTS (End of period) 8,841 9,141 9M24 9M25 +3.4% 7 86% MEDICINE REVENUE
Page 8
175.0 186.6 12.7 21.0 187.7 207.6 9M24 9M25 29,780 31,168 9M24 9M25 15,678 9,969 9M24 9M25 RESIDENCY JOURNEY REVENUE (R$ MM) GRADUATE JOURNEY CONTINUING EDUCATION OPERATIONAL METRICS -36.4% +10.6% +6.6% +64.9% TOTAL STUDENTS (END OF PERIOD) +4.7% OTHER COURSES & B2B OFFERINGS BUSINESS TO PHYSICIAN BUSINESS TO BUSINESS 7,293 9,180 9M24 9M25 +25.9% 8
Page 9
102.8 114.1 14.5 14.1 117.3 128.2 9M24 9M25 248,775 227,941 9M24 9M25 MONTHLY ACTIVE USERS REVENUE – (R$ MM)TOTAL ACTIVE PAYERS (end of period) OPERATIONAL METRICS BUSINESS TO PHYSICIAN BUSINESS TO BUSINESS CLINICAL DECISION CLINICAL MANAGEMENT -8.4% MEDICAL PRACTICE SOLUTIONS MONTHLY ACTIVE USERS REPRESENTS THE NUMBER OF UNIQUE INDIVIDUALS THAT CONSUMED MEDICAL PRACTICE SOLUTIONS CONTENT IN EACH ONE OF OUR PRODUCTS IN THE LAST 30 DAYS OF A SPECIFIC PERIOD. +9.3% -2.5% +11.0% 166,780 157,963 33,503 37,523 200,283 195,486 9M24 9M25 -2.4% -5.3% +12.0% 9
Page 10
AFYA’S ECOSYSTEM INTEGRATED FOR EVERY STAGE OF THE PHYSICIANS CAREER UNDERGRADUATE PROGRAMS 25,706 CONTINUING EDUCATION 50,317 MEDICAL PRACTICE SOLUTIONS 227,941 303,964 USERS POSITIVELY IMPACTED BY AFYA’S ECOSYSTEM¹ ¹ECOSYSTEM OUTREACH DOES NOT CONTEMPLATE INTERCOMPANY FIGURES. NOTE THAT THERE MAY BE OVERLAP IN STUDENT NUMBERS WITHIN THE D ATA . 10
Page 11
FINANCIAL OVERVIEW
Page 12
841.2 928.5 3Q24 3Q25 41.4% 43.0% REVENUE – (R$ MM) 347.9 398.9 3Q24 3Q25 ADJUSTED EBITDA & ADJUSTED EBITDA MARGIN – (R$ MM and %) FINANCIAL METRICS +14.6% +10.4% PERFORMANCE EVOLUTION Adjusted EBITDA MarginAdjusted EBITDA 12 2,455.3 2,784.3 9M24 9M25 +13.4% 44.4% 46.4% 1,089.6 1,291.7 9M24 9M25 +18.5%
Page 13
1,167.5 1,291.5 9M24 9M25 124.1 159.4 41.2 33.3165.4 192.7 3Q24 3Q25 CASH FLOW FROM OPERATING ACTIVITIES & CASH CONVERSION – (R$ MM AND %) NET INCOME & ADJUSTED NET INCOME – (R$ MM) & EARNINGS PER SHARE - (R$) Cash Flow From Operating Activities Cash Conversion 1.33 1.71 109.7% 101.5% FINANCIAL METRICS +10.6% PERFORMANCE EVOLUTION Adjustments Earnings Per Share Net Income +28.4% +16.5% Adjusted Net Income 13 494.6 593.0 132.0 103.0626.7 696.0 9M24 9M25 5.35 6.40 +19.9% +11.1%
Page 14
²BASED ON THE ANNUALIZED INTERBANK CERTIFICATES OF DEPOSIT ("CDI") RATE FOR THE PERIOD AS A REFERENCE: 9M25: ~14.90% P.Y. ANDFOR 9M24: ~10.65% P.Y. Cost of Debt Gross Debt (R$MM) Duration (Years) Per year CDI² 2025 2024 2025 2024 2025 2024 2025 2024 Loans and financing: Softbank 863 828 0.6 1.6 9.1% 6.5% 66% 51% Loans and financing: Debentures 516 511 1.8 2.8 16.1% 12.1% 113% 112% Loans and financing: Others 6 309 1.0 1.0 8.6% 12.8% 63% 119% Loans and financing: IFC 529 497 3.1 4.1 15.3% 11.8% 108% 110% Accounts payable to selling shareholders 425 586 3.7 3.3 14.4% 10.7% 102% 100% Total¹ | Average ¹TOTAL AMOUNT REFERS ONLY TO THE "GROSS DEBT" COLUMNS SOLID CAPITAL STRUCTURE WITH A CONSERVATIVE LEVERAGING POSITION AND A LOW COST OF DEBT GROSS DEBT 1.9 2.62,339 2,731 FOR THE NINE MONTHS PERIOD ENDED ON SEPTEMBER 30, 13.0% 9.4% 93% 88% 14
Page 15
15 ON OCTOBER 15, WE ISSUED COMMERCIAL NOTES, WITH THE PROCEEDS INTENDED TO FUND THE REPURCHASE OF PREFERRED SHARES HELD BY SOFTBANK AND TO PREPAY OUR FIRST DEBENTURE ISSUANCE. NEW DEBENTURE ISSUANCE R$1.5 B I L L I O N STRENGTHENING CASH POSITION WITH DISCIPLINED CAPITAL MANAGEMENT LIABILITY MANAGEMENT LOANS AND FINANCING: FINANCIAL INSTITUTIONS 9M25 PRO- FORMA Loans and financing: Softbank R$ 863 - Loans and financing: Debentures R$ 516 R$ 1,500 Loans and financing: Others R$ 6 R$ 6 Loans and financing: IFC R$ 529 R$ 529 Accounts payable to selling shareholders R$ 425 R$ 425 TOTAL GROSS DEBT R$ 2,339 R$ 2,461 AVERAGE DEBT DURATION INCREASED FROM 1.9 TO 3.2 YEARS TOTAL COST OF DEBT INCREASED FROM 93% OF CDI TO 106% OF CDI* *BASED ON THE ANNUALIZED INTERBANK CERTIFICATES OF DEPOSIT ("CDI") RATE FOR THE PERIOD AS A REFERENCE: 9M25: ~14.90% P.Y.
Page 16
(R$ MM) NET DEBT RECONCILIATION *NET DEBT / ADJUSTED EBITDA IS CALCULATED BY NET DEBT (EXCLUDING THE EFFECT OF IFRS-16) DIVIDED BY ADJUSTED EBITDA (CONSIDERING THE MID GUIDANCE) 2024 NET DEBT/ADJ. EBITDA: 1.2 2025 NET DEBT/ADJ. EBITDA: 0.8* IMPRESSIVE CASH GENERATION 16 2,726 -911 1,815 -1,291 14 204 127 248 134 100 11 -18 1,342 997 2,339 R$ 473MM
Page 17
Q&A SESSION
Page 18
APPENDIX
Page 19
• ENACTED ON DECEMBER 27, 2024, EFFECTIVE JANUARY 1, 2025. • ALIGNS BRAZILIAN TAX LEGISLATION WITH OECD’S PILLAR TWO (GloBE RULES) INTRODUCING A MINIMUM TAXATION OF 15% VIA ADDITIONAL CSLL. • APPLIES TO MULTINATIONAL GROUPS WITH ANNUAL CONSOLIDATED REVENUES OF AT LEAST €750 MILLION IN AT LEAST TWO OF THE FOUR PRECEDING FISCAL YEARS. • DESIGNED AS A QUALIFIED DOMESTIC MINIMUM TOP-UP TAX UNDER THE OECD INCLUSIVE FRAMEWORK. LAW 15,079/2024 IMPACTS • INCREASE EFFECTIVE TAX RATE TO THE 15% GLOBAL MINIMUM THRESHOLD STARTING IN 2025. • THE ADDITIONAL INCOME TAX EXPENSE, AS A RESULT OF LAW 15.079/2024 FOR THE SIX-MONTH PERIOD, ENDED IN JUNE 2025 WAS R$56.6 MILLION. ACTIONS TAKEN • FILED A WRIT OF MANDAMUS ON MARCH 28, 2025, WITH THE BRAZILIAN FEDERAL COURT CHALLENGING THE ENFORCEABILITY OF THE ADDITIONAL CSLL. LEGAL ARGUMENTS BASED ON CONSTITUTIONAL AND STATUTORY ARGUMENTS. • AWAITING DECISION TO PREVENT COLLECTION, SCHEDULED FOR JULY 2026 (RELATED TO FISCAL YEAR 2025). • AFYA IS DEMONSTRATING TO THE LOWER HOUSE AND THE EXECUTIVE REPRESENTATIVES THE IMPACTS OF THIS ADDITIONAL TAXATION ON THE PROUNI. BRAZIL ADOPTS OECD PILLAR TWO RULES WITH DOMESTIC TOP-UP TAX MECHANISM 19
Page 20
RECONCILIATION BETWEEN ADJUSTED EBITDA AND NET INCOME 20 (in thousands of R$) For the three months period ended September 30, For the nine months period ended September 30, 2025 2024 % Chg 2025 2024 % Chg Net income 159,420 124,142 28.4% 592,999 494,641 19.9% Net financial result 99,583 99,844 -0.3% 289,386 242,761 19.2% Income taxes expense 21,221 12,432 70.7% 63,470 26,388 140.5% Depreciation and amortization 94,657 85,828 10.3% 281,110 249,135 12.8% Interest received 15,179 13,945 8.8% 39,921 34,979 14.1% Income share associate (2,791) (2,526) 10.5% (10,667) (9,726) 9.7% Share-based compensation 4,163 5,871 -29.1% 16,683 26,299 -36.6% Non-recurring expenses: 7,485 8,413 -11.0% 18,830 25,151 -25.1% - Integration of new companies 6,981 6,444 8.3% 17,769 17,722 0.3% - M&A advisory and due diligence 268 1,220 -78.0% 560 2,803 -80.0% - Expansion projects 236 198 19.2% 489 2,568 -81.0% - Restructuring expenses - 551 n.a. 12 2,058 -99.4% Adjusted EBITDA 398,917 347,949 14.6% 1,291,732 1,089,628 18.5% Adjusted EBITDA Margin 43.0% 41.4% 160 bps 46.4% 44.4% 200 bps
Page 21
RECONCILIATION BETWEEN ADJUSTED NET INCOME AND NET INCOME 21 (in thousands of R$) For the three months period ended September 30, For the nine months period ended September 30, 2025 2024 % Chg 2025 2024 % Chg Net income 159,420 124,142 28.4% 592,999 494,641 19.9% Amortization of Intangible Assets 21,626 26,946 -19.7% 67,490 80,592 -16.3% Share-based compensation 4,163 5,871 -29.1% 16,683 26,299 -36.6% Non-recurring expenses: 7,485 8,413 -11.0% 18,830 25,151 -25.1% - Integration of new companies 6,981 6,444 8.3% 17,769 17,722 0.3% - M&A advisory and due diligence 268 1,220 -78.0% 560 2,803 -80.0% - Expansion projects 236 198 19.2% 489 2,568 -81.0% - Restructuring expenses - 551 n.a. 12 2,058 -99.4% Adjusted Net Income 192,694 165,372 16.5% 696,002 626,683 11.1% Basic earnings per share - in R$ 1.71 1.33 28.5% 6.40 5.35 19.7% Adjusted earnings per share - in R$ 2.08 1.79 16.2% 7.54 6.81 10.7%
Page 22
THANK YOU! EXPERIENCE THE BEST IN MEDICINE Rua Paraíba, 330 Funcionários, Belo Horizonte, MG - ZIP CODE: 30130-140 +55 (31) 3515-7550 ir@afya.com.br