It demonstrates how our strategy continues to position Afya for sustainable growth, transforming medical education across Brazil. We concluded our 13th semester after the IPO, delivering strong growth, profitability, and cash generation, and keeping 100% of occupancy in all of our medical programs in Brazil. Our revenue for the nine-month period grew over 13% year-over-year, reaching BRL 2,784 million, followed by an adjusted EBITDA growth of almost 19% year-over-year, reaching BRL 1,292 million. Adjusted EBITDA margin for the same period reached 46.4%, an increase of 200 basis points over last year.
We also reported a new record cash flow from operating activities, ended the nine-month period with BRL 1,292 million, 11% higher than last year, with a cash conversion of 101.5%. Our number of undergraduate medical students has reached more than 25,000 students, representing 6% growth compared to the same period last year. Furthermore, our medical school's net average ticket, excluding acquisition, increased over 3% in the nine-month period. In the Continuing Education segment, we continue to see solid results, presenting a revenue growth of 11% year-over-year, reaching BRL 208 million.
For Medical Practice Solutions, we ended the quarter with an increase in revenue of over 9% year-over-year, reaching BRL 128 million in the nine-month period. Starting with the undergrad segment, we saw important movements throughout the quarter, such as an impressive gross margin expansion and the successful beginning of FUNIC operation, acquired in May of 2025. In this nine-month period, we saw a significant increase in B2B revenues, with 65% over the last period. Lastly, in our medical practice solution segment, once again, we ended the quarter with a growth in the clinical management payers.
| Metric | Period | Current guidance |
|---|---|---|
| Effective tax rate | 2026 onward | Converge to ~15% (Pillar Two minimum), absent exceptions or legislative change |
| Gross tuition increase | 2026 | ~5% to 5.2% over 2025 |
| Medical seat additions | Per year | ~200 seats per year |
| FIES penetration of medical student base | 2026 | Stable around 17%-18% |
| Metric | YoY | Note |
|---|---|---|
| Nine-month revenue (BRL 2,784M) | +13% | Growth across all three business units led by undergraduate medical education |
| Q3 revenue (BRL 929M) | +10% | Continued strong operational performance |
| Nine-month adjusted EBITDA (BRL 1,292M, 46.4% margin) | +19% | Higher gross margins in undergrad and Continuing Education, cost initiatives in CE and Medical Practice Solutions, and improved SG&A efficiency |
| Nine-month net income (BRL 593M) | +20% | Stronger operational performance plus recognition of deferred tax assets, partly offset by OECD Pillar Two minimum-tax provisions |
| Undergraduate revenue (BRL 2,459M) | +14% | Higher tickets in medicine courses, maturation of medical school seats, and the FUNIC acquisition |
| Continuing Education revenue (BRL 208M) | +11% | Higher average tickets per student, with B2P +7% and B2B +65% |
| Medical Practice Solutions revenue (BRL 128M) | +9% | Expansion in clinical-management active payers and a more favorable product mix; B2P +11% |
| Medical students (25,000+) | +6% | Seat maturation and the FUNIC acquisition; approved seats up ~2% in Q3 (over 4% including the 100 new Bragança seats) |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Capital allocation and liability management | — | October liability management raised new commercial notes used to prepay debentures and repurchase SoftBank preferred shares (early redemption vs April 2026), yielding a financial gain; cash kept in place to fund M&A, buyback, or dividends | — |
| M&A and seat expansion | — | Continuing to pursue medical and medical-school assets, targeting ~200 seats per year; received authorization for 100 new seats at Afya Bragança (total 3,753) | — |
| FUNIC integration (acquired May 2025) | — | First class of 60 seats launched August 2025 in greater Belo Horizonte; low first-year margins with maturation over two to three years toward 50%-60% contribution margin | — |
| Digital solutions and AI | — | Whitebook working to resume premium-user growth after a late-2024 price increase by revamping feature bundles with AI; iClinic accelerating B2B penetration with AI features | — |
| Pillar Two global minimum tax | — | Provisioning during 2025 for Brazil-implemented Pillar Two taxation effective July 2026, driving effective tax rate toward 15% | — |
| ESG and social impact | — | 700,000 free consultations exceeded 2025 target under IFC sustainability-linked loan; launched Instituto Afya; named top education-sector performer in Valor 1000 for a fourth consecutive year | — |