Afya (AFYA) investor relations material

Executive summary

• Revenue grew 8.2% year-over-year to R$1,012.7 million in 1Q26, driven by higher medical course tickets and increased student base, with organic growth (excluding acquisitions) at 7.7%.

• Adjusted EBITDA rose 4.0% to R$511.4 million, with a margin of 50.5%, down 200 bps YoY due to higher costs in Continuing Education and Medical Practice Solutions.

• Net income increased 1.8% year-over-year to R$261.8 million; EPS up 3.0% to R$2.88.

• Free cash flow reached R$376.0 million, up 2.6% year-over-year, with a cash conversion of 92.5%.

• Ecosystem reached over 304,000 active users, reflecting strong brand and operational execution.

Financial highlights

• Undergraduate segment revenue up 8% to R$892 million; 86% from medicine, 94% from health-related courses.

• Continuing Education revenue increased 11% year-over-year to R$79 million; Medical Practice Solutions revenue up 4.2% to R$43.4 million.

• Medical school operating seats increased to 3,768, with total undergraduate students up 6.4% YoY.

• Gross margin remained broadly stable at 69% year-over-year.

• Net debt reduced by 24.5% YoY to R$1,151 million (ex-IFRS 16), even after treasury repurchase.

Outlook and guidance

• 2026 guidance reaffirmed: revenue R$3,950–4,100 million, adjusted EBITDA R$1,700–1,800 million, CAPEX R$340–380 million.

• Guidance incorporates minimal impact from upcoming Enamed exam results and excludes future acquisitions.

• Continued focus on expanding health-related undergraduate programs and disciplined M&A targeting medicine-focused institutions.

• Investments in Medical Practice Solutions expected to impact revenue from 2027 onward.