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- **Revenue & Profit Growth**: 13% YoY revenue, 19% YoY EBITDA, 20% YoY net income, driven by medical education expansion. 
- **Strategic Moves**: Acquired FUNIC, repurchased SoftBank shares, and extended debt duration. 
- **Tax Impact**: 2026 effective tax rate expected to rise to 15% due to Pillar Two. 
- **Segment Strengths**: Continuing Ed B2B up 65%, Medical Practice B2P up 11%, ecosystem users reach 304,000. 
- **ESG Leadership**: Delivered 700,000 free consultations, recognized as Brazil's top ESG education company.

**【CEO Summary Section】**
- **Revenue Growth**: 13% year-over-year (YoY) for the 9-month period, driven by medical education expansion and acquisitions (e.g., FUNIC). Adjusted EBITDA rose 19% to BRL 1.292 billion, with a margin of 46.4% (up 200bps YoY). 
- **Operational Highlights**: 25,000+ medical students (6% YoY growth), 3,753 approved medical seats (2% YoY), and 304,000 active ecosystem users. Continuing Education revenue grew 11% YoY, with B2B revenue up 65%. 
- **ESG Initiatives**: Delivered 700,000 free healthcare consultations, exceeding UN SDG targets. Launched Instituto Afya for chronic disease research. 

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 2025 revenue BRL 929 million (+10% YoY), adjusted EBITDA BRL 399 million (+15% YoY). 9-month net income BRL 593 million (+20% YoY), EPS BRL 6.40 (+20% YoY). 
- **Segment Breakdown**: 
  - **Undergraduate**: 14% revenue growth, 86% from medical students. 
  - **Continuing Ed**: 11% revenue growth, B2B up 65%. 
  - **Medical Practice**: 9% revenue growth, B2P up 11%. 
- **Liquidity**: Cash flow from operations BRL 1.292 billion (101.5% cash conversion). Net debt BRL 1.342 billion (0.8x 2025 EBITDA guidance). 

**【Q&A Highlights】**
- **Tax Strategy**: 2025 effective tax rate 9.7% (vs. 5.1% 2024), due to Pillar Two tax provisioning. 2026 rate expected to converge to 15%. 
- **Capital Allocation**: Prioritize M&A (e.g., medical assets), buybacks, and dividends. Repurchased SoftBank shares, extended debt duration to 3.2 years. 
- **Segment Trends**: 
  - **Medical Practice**: Margins up 7pts QoQ due to cost efficiency. iClinic AI adoption accelerating. 
  - **Continuing Ed**: Residency Journey students down 36% due to product bundling, but revenue stable. 
  - **FUNIC Integration**: 60 seats in 1st year, margins to improve as classes mature (2-3 years).

Afya Limited (AFYA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AFYA

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