Afya Limited announced robust financial and operating results for the second quarter and first-half ended June 30, 2025. For the first half of 2025, revenues reached BRL 1,856 million, a 15% year-over-year increase. Adjusted EBITDA expanded 20% to BRL 893 million, achieving a record 48.1% margin for the period, an all-time high since Afya became publicly traded in 2019.
Net income for the six-month period surged 70% year-over-year to BRL 434 million, reflecting strong operational performance. Operating cash flow grew 15% to BRL 783 million, resulting in an operational cash conversion ratio of 88.8%. The company's net debt reduced by BRL 194 million to BRL 1,621 million by the second quarter of 2025, even after dividend payments and the FUNIC acquisition.
The Undergraduate segment's revenue increased by 16% to BRL 1,642 million, with medicine programs accounting for 86% of this figure. The medical school net average ticket, excluding the UNIDOM acquisition, rose by over 3% year-over-year to BRL 9,140, although this was slightly below inflation due to FIES discounts on some campuses.
However, the Continuing Education segment's residency journey experienced a 29% decrease in students year-over-year in the first half of 2025, attributed to a challenging cycle and competitive landscape. The Medical Practice Solutions segment also saw a 9% reduction in monthly active users following a strategic transition to the Afya portal, a deliberate trade-off for more detailed user data.
Afya reaffirmed its full-year 2025 guidance, maintaining a conservative stance due to seasonality in Continuing Education. The company is actively challenging the new OECD Pillar Two tax legislation, effective January 2025, which introduces a minimum effective tax rate of 15% and is argued to negatively impact the PROUNI program.
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