Afya Limited Announces Third Quarter and Nine Months 2026 Financial Results
BELO HORIZONTE, Brazil--( BUSINESS WIRE)--Afya Limited (Nasdaq: AFYA; B3: A2FY34) (“Afya” or the “Company”), the leading medical education group and medical practice solutions provider in Brazil, reported today its financial and operating results for the three and nine-month period, which ended September 30, 2026 (third quarter 2026). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (“IFRS”).
These materials are not an offer for sale of securities in the United States, nor a solicitation of votes or proxies. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. person absent registration or an exemption from registration under the Securities Act. The issuer does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States.
Third Quarter 2026 Highlights
Nine Months 2026 Highlights
2026
2026 Ex Acquisitions*
2025
% Chg
% Chg Ex Acquisitions
2026
2026 Ex Acquisitions*
2025
% Chg
% Chg Ex Acquisitions
985,161
985,161
928,505
6.1%
6.1%
2,969,970
2,962,802
2,784,265
6.7%
6.4%
433,818
433,818
398,917
8.7%
8.7%
1,351,776
1,349,558
1,291,732
4.6%
4.5%
44.0%
44.0%
43.0%
100 bps
100 bps
45.5%
45.6%
46.4%
-90 bps
-80 bps
170,974
-
159,420
7.2%
-
634,031
-
592,999
6.9%
-
1.88
-
1.71
10.0%
-
6.98
-
6.40
9.1%
-
Message from Management
Afya closed the third quarter of 2026 with solid financial and operating results, supported by the continued strength of our Medical Education business. Revenue increased 6.1% year over year to R$985.2 million, while Adjusted EBITDA increased 8.7% to R$433.8 million. Adjusted EBITDA Margin reached 44.0%, up 100 basis points from the same period last year.
For the nine months of 2026, Revenue reached R$2,970.0 million, up 6.7% year over year. Adjusted EBITDA reached R$1,351.8 million, up 4.6%, with an Adjusted EBITDA Margin of 45.5%. Net Income increased 6.9% to R$634.0 million, while Basic EPS increased 9.1% to R$6.98.
Undergraduate remained the main driver of our performance. We concluded another successful intake cycle, maintaining full occupancy across our Medical School programs. The continued maturation of our medical school seats, the increase in the Medical School net average ticket, and the expansion of the average student base in Health Sciences and other undergraduate programs supported the growth delivered in the nine months of the year. Following the authorization of 17 additional seats at Afya Cruzeiro do Sul, our total approved medical school seats reached 3,785.
Academic excellence remains at the core of our Medical Education strategy. We currently have nine Medical Schools accredited by SAEME-CFM, providing independent external validation of the quality of our medical programs. Recognized by the World Federation for Medical Education, SAEME-CFM reinforces our commitment to academic excellence and continuous improvement across our network. We also continued to advance our ESG performance, with our MSCI ESG Rating improving from BBB to AA. This progress resulted in Afya being recognized for the first time as an ESG Leader within the Diversified Consumer Services industry and positioned us as the highest-rated education company in Latin America.
Continuing Education ended the quarter with over 55 thousand students, up 10.0% year over year, supported by growth in the Graduate Journey and Other Courses even with lower B2B revenue. In Medical Practice Solutions, active payers increased 2.2% year over year to 206 thousand. Revenue in both segments remained broadly stable in the first nine months of 2026 as we continued to invest in scalable platforms and deeper engagement across the physician journey.
Cash generation remained strong. Cash Flow from Operating Activities reached R$1,332.7 million in the nine months of 2026, with an Operating Cash Conversion Ratio of 99.5%. We ended September with Cash and Cash Equivalents of R$1,288.9 million and Net Debt, excluding the effect of IFRS 16, of R$1,199.8 million, down R$169.7 million from December 31, 2025. During the period, we returned R$459.3 million to shareholders through dividends and share repurchases while continuing to reduce Net Debt. Based on the midpoint of our 2026 Adjusted EBITDA Guidance, Net Debt excluding IFRS 16 represented approximately 0.7 times Adjusted EBITDA.
On September 23, 2026, Afya entered into a binding merger agreement with Yduqs, bringing together two complementary education platforms. Under the terms of the agreement, each Class A and Class B common share of the Company would be converted into the right to receive common shares issued by Yduqs, such that, at closing, the Company’s shareholders and Yduqs shareholders would hold 69.0% and 31.0%, respectively, of the Combined Company on a fully diluted basis. The proposed transaction remains subject to approval by Afya's and Yduqs' shareholders, antitrust and other customary approvals and closing conditions. Afya and Yduqs will continue to operate independently until completion.
On Afya Day 2026, we reinforced the strategic priorities that will guide the next phase of our growth. Our Medical Education business remains the foundation of our model, while Continuing Education and Medical Practice Solutions expand our relationship with physicians throughout their professional journey. We also presented how technology, data and artificial intelligence can support more personalized learning experiences, increase engagement and enhance the solutions offered across our physician-centric ecosystem.
As we enter the final quarter of 2026, we remain focused on the consistent execution of our strategy, operational efficiency, cash generation and disciplined capital allocation. Supported by the performance delivered in the nine months of the year and the resilience of our business model, we reaffirm our Full-Year 2026 Guidance.
1. Key Events in the Quarter
This release is not an offer of securities in the United States or a solicitation of votes or proxies, in the United States or to any person who has not satisfied applicable eligibility conditions. Only Afya shareholders who (i) deliver a valid certification that they are a QIB, an institutional accredited investor, or a non-U.S. person, or (ii) are persons to whom an offer of common shares of the Combined Company can otherwise be made pursuant to an available exemption from registration under the Securities Act, will be entitled to receive common shares of the Combined Company as merger consideration. U.S. persons who are not QIBs, institutional accredited investors or persons to whom an offer can otherwise be made pursuant to an exemption from the registration requirements of the Securities Act are expected instead to receive net cash proceeds from a post-closing sale process.
2. 2026 Guidance
The Company is reaffirming its 2026 guidance, which assumes the successful acceptance of new students for the second semester of 2026. The guidance for 2026 is defined in the following table:
3. 3Q26 Overview
Segment Information
The Company has three reportable segments as follows:
Undergraduate, previously denominated Undergrad, which provides educational services through undergraduate courses related to medical school, undergraduate health science and other ex-health undergraduate programs;
Continuing Education, which provides medical education (including residency preparation programs, specialization test preparation and other medical capabilities), specialization and graduate courses in medicine, delivered through digital and in-person content; and
Medical Practice Solutions, which provides clinical decision, clinical management and doctor-patient relationships for physicians and provides access, demand and efficiency for the healthcare players.
Key Revenue Drivers – Undergraduate Programs
2026
2025
% Chg
3,785
3,603
5.1%
26,398
25,706
2.7%
26,438
25,773
2.6%
26,359
25,773
2.3%
2,252,845
2,112,619
6.6%
2,245,678
2,112,619
6.3%
9,466
9,108
3.9%
31,593
26,980
17.1%
31,010
26,276
18.0%
31,010
26,276
18.0%
216,803
193,656
12.0%
216,803
193,656
12.0%
37,327
35,074
6.4%
38,017
34,386
10.6%
38,017
34,386
10.6%
172,346
152,938
12.7%
172,346
152,938
12.7%
2,641,995
2,459,213
7.4%
2,634,827
2,459,213
7.1%
Key Revenue Drivers – Continuing Education
2026
2025
% Chg
9,595
9,969
-3.8%
9,386
9,180
2.2%
36,345
31,168
16.6%
55,326
50,317
10.0%
194,954
186,625
4.5%
13,838
20,993
-34.1%
208,791
207,618
0.6%
Key Revenue – Medical Practice Solutions
2026
2025
% Chg
153,848
157,963
-2.6%
51,903
43,403
19.6%
205,751
201,366
2.2%
218,717
227,941
-4.0%
113,643
114,081
-0.4%
14,635
14,111
3.7%
128,278
128,193
0.1%
Key Operational Drivers – Users Positively Impacted by Afya
The Users Positively Impacted by Afya represents the total number of medical students from the Undergraduate segment, students from Continuing Education and users from Medical Practice Solutions. For the third quarter of 2026, Afya’s ecosystem reached 300,441 users, up 1.9% from 2Q26. The sequential increase was primarily driven by a 3.1% rise in Medical Practice Solutions monthly active users to 218,717.
3Q26
3Q25
% Chg YoY
2Q26
1Q26
4Q25
26,398
25,706
2.7%
26,421
26,494
25,556
55,326
50,317
10.0%
56,237
56,531
55,039
218,717
227,941
-4.0%
212,158
220,528
220,051
300,441
303,964
-1.2%
294,816
303,553
300,646
Revenue
Revenue totaled R$985.2 million in the third quarter of 2026, increasing 6.1% year over year. For the nine-month period ended September 30, 2026, Revenue totaled R$2,970.0 million, up 6.7% year over year. Excluding acquisitions, Revenue reached R$2,962.8 million, representing 6.4% organic growth.
Revenue growth in the nine months of 2026 was driven by the continued strength of our Medical Schools, supported by a 3.9% increase in medical school’s net average ticket, the expansion of the average student base in Health Sciences by 18.0% and in other undergraduate programs by 10.6%. Together, these drivers contributed to organic Revenue growth of 6.4% year over year.
2026
2026 Ex Acquisitions*
2025
% Chg
% Chg Ex Acquisitions
2026
2026 Ex Acquisitions*
2025
% Chg
% Chg Ex Acquisitions
879,814
879,814
817,712
7.6%
7.6%
2,641,995
2,634,827
2,459,213
7.4%
7.1%
64,937
64,937
70,098
-7.4%
-7.4%
208,791
208,791
207,618
0.6%
0.6%
42,984
42,984
44,189
-2.7%
-2.7%
128,278
128,278
128,193
0.1%
0.1%
(2,574)
(2,574)
(3,494)
-26.3%
-26.3%
(9,094)
(9,094)
(10,759)
-15.5%
-15.5%
985,161
985,161
928,505
6.1%
6.1%
2,969,970
2,962,802
2,784,265
6.7%
6.4%
Adjusted EBITDA
Adjusted EBITDA reached R$433.8 million in the third quarter of 2026, up 8.7% year over year, while Adjusted EBITDA Margin was 44.0%, up 100 basis points from the prior-year period. The margin expansion was primarily driven by higher gross margins in the Undergraduate segment and partially offset by gross margin compression in the Continuing Education and Medical Practice Solutions segments.
For the nine-month period ended September 30, 2026, Adjusted EBITDA totaled R$1,351.8 million, up 4.6% year over year, with an Adjusted EBITDA Margin of 45.5%, down 90 basis points. The decrease in Adjusted EBITDA Margin was primarily driven by lower gross margins in Continuing Education and Medical Practice Solutions associated with the ongoing investment cycle in both segments and higher sales and marketing expenses.
2026
2025
% Chg
2026
2025
% Chg
170,974
159,420
7.2%
634,031
592,999
6.9%
106,919
99,583
7.4%
300,208
289,386
3.7%
29,785
21,221
40.4%
74,223
63,470
16.9%
92,647
94,657
-2.1%
276,292
281,110
-1.7%
18,083
15,179
19.1%
41,647
39,921
4.3%
(2,878)
(2,791)
3.1%
(12,200)
(10,667)
14.4%
6,385
4,163
53.4%
25,626
16,683
53.6%
11,903
7,485
59.0%
11,949
18,830
-36.5%
-
6,981
n.a.
-
17,769
n.a.
11,903
268
4341.4%
11,903
560
2025.5%
-
236
n.a.
-
489
n.a.
-
-
n.a.
46
12
283.3%
433,818
398,917
8.7%
1,351,776
1,291,732
4.6%
44.0%
43.0%
100 bps
45.5%
46.4%
-90 bps
Net Income
Net Income for the third quarter of 2026 totaled R$171.0 million, up 7.2% year over year. For the nine-month period ended September 30, 2026, Net Income reached R$634.0 million, up 6.9% from the same period of 2025. The increase in the quarter mainly reflects operating performance partially offset by higher net finance expenses and income tax expenses. For the nine-month period, the increase reflects continued operating performance and a tax impact resulting from the implementation of the OECD Pillar Two rules in Brazil.
Basic EPS reached R$ 1.88 for the third quarter of 2026, up 10.0% year over year, and R$ 6.98 for the nine-month period ended September 30, 2026, up 9.1% YoY. The higher growth in Basic EPS compared to Net Income reflects the impact of the Company's share repurchase program.
2026
2025
% Chg
2026
2025
% Chg
170,974
159,420
7.2%
634,031
592,999
6.9%
1.88
1.71
10.0%
6.98
6.40
9.1%
Cash and Debt Position
As of September 30, 2026, Cash and Cash Equivalents totaled R$1,288.9 million, up 14.5% from December 31, 2025. Net Debt, excluding the effect of IFRS 16, reached R$1,199.8 million, down R$169.7 million from year-end 2025, even considering the R$459.3 million distributed to shareholders through dividends and share repurchases during the nine months of 2026 and the payment of the Pillar 2 Tax at the end of July.
For the nine-month period ended September 30, 2026, Afya generated R$1,332.7 million in Cash Flow from Operating Activities, up from R$1,291.5 million in the same period of the previous year, an increase of 3.2% YoY. The Operating Cash Conversion Ratio reached 99.5%.
2026
2025
% Chg
1,233,353
1,277,763
-3.5%
99,326
13,712
624.4%
1,332,679
1,291,475
3.2%
1,351,776
1,291,732
4.6%
11,949
18,830
-36.5%
-
17,769
-100.0%
11,903
560
2025.5%
-
489
-100.0%
46
12
283.3%
1,339,827
1,272,902
5.3%
99.5%
101.5%
-200 bps
The following table provides more information on the cost of debt for the nine-month period of 2026, including loans and financing, as well as accounts payable to selling shareholders. Afya’s capital structure remains solid, with conservative leverage and a low cost of debt. Afya’s Net Debt (excluding the effect of IFRS16) divided by Adjusted EBITDA mid-guidance for 2026 would be 0.7x.
2026
2025
2026
2025
2026
2025
2026
2025
-
863
-
0.6
-
9.1%
-
66%
1,594
516
3.9
1.8
15.2%
16.1%
106%
113%
-
6
-
1.0
-
8.6%
-
63%
530
529
2.8
3.1
15.5%
15.3%
108%
108%
365
425
4.4
3.7
14.3%
14.4%
100%
102%
2,489
2,339
3.7
1.9
15.2%
13.0%
106%
93%
3Q26
FY2025
% Chg
3Q25
% Chg
1,288,877
1,125,381
14.5%
996,826
29.3%
1,970
15,470
-87.3%
8,609
-77.1%
1,286,907
1,109,911
15.9%
988,217
30.2%
2,124,021
2,054,267
3.4%
1,913,667
11.0%
201,724
60,668
232.5%
916,828
-78.0%
1,922,297
1,993,599
-3.6%
996,839
92.8%
364,640
440,597
-17.2%
425,331
-14.3%
57,693
110,640
-47.9%
106,810
-46.0%
306,947
329,957
-7.0%
318,521
-3.6%
-
-
n.a.
-
n.a.
1,199,784
1,369,483
-12.4%
1,342,172
-10.6%
1,092,907
1,065,746
2.5%
1,060,905
3.0%
60,527
55,772
8.5%
52,561
15.2%
1,032,380
1,009,974
2.2%
1,008,344
2.4%
2,292,691
2,435,229
-5.9%
2,403,077
-4.6%
CAPEX
Capital expenditure consists primarily of investments in property and equipment and intangible assets, including expansion and maintenance of Afya’s campuses and headquarters, leasehold improvements, and development of new solutions in Medical Practice Solutions and educational content in Continuing Education.
For the nine-month period ended September 30, 2026, Capex totaled R$215.7 million, representing 7.3% of Revenue for the period a reduction of 28.8% YoY. Excluding the impact related to the acquisition of FUNIC would represent an increase of 6.0% year over year.
2026
2025
% Chg
80,308
123,641
-35.0%
135,396
179,513
-24.6%
-
99,629
n.a.
135,396
79,884
69.5%
215,704
303,154
-28.8%
7.3%
7.3%
0 bps
4. Conference Call and Webcast Information
When:
November 12, 2026, at 5:00 p.m. EST.
Who:
Mr. Luis André Blanco, Chief Financial Officer
Ms. Renata Costa Couto, IR Director
Webcast:
https://afya.zoom.us/j/98271618661
OR
Dial-in:
Brazil: +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668.
United States: +1 929 205 6099 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 646 931 3860 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 346 248 7799 or +1 360 209 5623.
Webinar ID: 982 7161 8661
Other Numbers: https://afya.zoom.us/u/aRK0ROGaH
5. About Afya Limited (Nasdaq: AFYA; B3: A2FY34)
Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering medical practice solutions to help doctors enhance their healthcare services through their whole career. For more information, please visit www.afya.com.br.
6. Forward – Looking Statements
This press release 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 capacity to increase tuition prices; our ability to anticipate and meet the evolving needs of students and teachers; our capacity to source and successfully integrate acquisitions; as well as general market, political, economic, and business conditions. Additionally, these statements include 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 assumes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances occurring after its publication, nor to incorporate 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 of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from those 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 they 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 in the SEC Filings section of the investor relations section of our website at: https://ir.afya.com.br/.
7. Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which are prepared and presented in accordance with IFRS accounting standards as issued by the International Accounting Standards Board—IASB, Afya presents Adjusted EBITDA and Operating Cash Conversion Ratio which are non-GAAP financial measures, for the convenience of investors. A non-GAAP financial measure is generally defined as one that intends to measure financial performance but excludes or includes amounts that would not be equally adjusted in the most comparable GAAP measure.
Afya calculates Adjusted EBITDA as net income plus/minus net financial result, plus income taxes expense, plus depreciation and amortization, plus interest received on late payments of monthly tuition fees, plus share-based compensation, plus/minus income share associate, plus/minus non-recurring expenses/income. Operating Cash Conversion Ratio is calculated as the Cash flow from Operating Activities plus income taxes paid, minus/plus non-recurring expenses/income divided by Adjusted EBITDA.
Free Cash Flow to Equity is calculated as the change in Net Debt ex-IFRS 16 between the beginning of the current period and the end of the current period, plus cash paid for acquisitions of subsidiaries or business combinations, plus dividends paid to the Company's shareholders, plus cash used in treasury share repurchases.
The non-GAAP supplemental financial measures are provided with the intend to help investors in assessing the overall performance of Afya’s business regarding its core operations, cash generation and profitability. The non-GAAP financial measures described in this release are not substitutes for the IFRS measures. In addition, the calculations of Adjusted EBITDA and Operating Cash Conversion Ratio are not standardized financial measures and may differ from the calculations used by other companies, including competitors in the education services industry, and therefore, Afya’s measures may not be comparable to those of other companies.
8. Investor Relations Contact
E-mail: ir@afya.com.br
9. Financial Tables
Unaudited interim condensed consolidated statements of financial position
As of September 30, 2026 and December 31, 2025
(In thousands of Brazilian reais)
September 30, 2026
December 31, 2025
Assets
(unaudited)
Current assets
Cash and cash equivalents
1,288,877
1,125,381
Trade receivables
833,175
717,373
Recoverable taxes
36,146
13,429
Income taxes recoverable
18,203
23,046
Other assetsc
63,319
62,947
Total current assets
2,239,720
1,942,176
Non-current assets
Trade receivables
37,715
34,985
Deferred tax assets
5,869
12,552
Other assets
110,089
125,480
Investment in associate
57,840
46,518
Property and equipment
713,914
711,485
Right-of-use assets
902,599
896,758
Intangible assets
5,588,848
5,587,980
Total non-current assets
7,416,874
7,415,758
Total assets
9,656,594
9,357,934
Liabilities
Current liabilities
Trade payables
174,778
123,581
Loans and financing
201,724
60,668
Lease liabilities
60,527
55,772
Accounts payable to selling shareholders
57,693
110,640
Advances from customers
153,443
158,035
Dividends payable
-
192
Labor and social obligations
294,334
217,526
Taxes payable
37,107
36,043
Income taxes payable
86,994
112,638
Other liabilities
8,414
8,946
Total current liabilities
1,075,014
884,041
Non-current liabilities
Loans and financing
1,922,297
1,993,599
Lease liabilities
1,032,380
1,009,974
Accounts payable to selling shareholders
306,947
329,957
Taxes payable
71,330
77,487
Provision for legal proceedings
110,088
128,220
Other liabilities
41,210
43,471
Total non-current liabilities
3,484,252
3,582,708
Total liabilities
4,559,266
4,466,749
Equity
Share capital
17
17
Additional paid-in capital
2,295,208
2,320,422
Treasury shares
(415,557)
(306,010)
Share-based compensation reserve
228,441
202,815
Retained earnings
2,947,647
2,634,552
Equity attributable to the owners of the Company
5,055,756
4,851,796
Non-controlling interests
41,572
39,389
Total equity
5,097,328
4,891,185
Total liabilities and equity
9,656,594
9,357,934
Unaudited interim condensed consolidated statements of income and comprehensive income
For the three and nine-month periods ended September 30, 2026 and 2025
(In thousands of Brazilian reais, except for earnings per share information)
Three-month periods ended
Nine-month periods ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Revenue
985,161
928,505
2,969,970
2,784,265
Cost of services
(366,749)
(339,916)
(1,054,785)
(965,262)
Gross profit
618,412
588,589
1,915,185
1,819,003
Selling, general and administrative expenses
(306,222)
(286,162)
(880,222)
(827,480)
Allowance for expected credit losses
(11,250)
(18,082)
(49,338)
(51,135)
Other income
4,071
3,263
17,551
9,497
Other expenses
(211)
(10,175)
(6,914)
(14,697)
Operating income
304,800
277,433
996,262
935,188
Finance income
57,618
59,185
151,992
143,663
Finance expenses
(164,537)
(158,768)
(452,200)
(433,049)
Net finance result
(106,919)
(99,583)
(300,208)
(289,386)
Share of profit of equity-accounted investee, net of tax
2,878
2,791
12,200
10,667
Income before income taxes
200,759
180,641
708,254
656,469
Income taxes expenses
Current
(28,355)
(36,734)
(67,540)
(104,296)
Deferred
(1,430)
15,513
(6,683)
40,826
Net income
170,974
159,420
634,031
592,999
Other comprehensive income
-
-
-
-
Total comprehensive income
170,974
159,420
634,031
592,999
Net income / total comprehensive income attributable to:
Owners of the Company
166,335
155,167
620,472
579,499
Non-controlling interests
4,639
4,253
13,559
13,500
170,974
159,420
634,031
592,999
Basic earnings per common share
1.88
1.71
6.98
6.40
Diluted earnings per common share
1.88
1.70
6.95
6.34
Unaudited interim condensed consolidated statements of cash flows
For the nine-month periods ended September 30, 2026 and 2025
(In thousands of Brazilian reais)
September 30, 2026
September 30, 2025
(unaudited)
(unaudited)
Operating activities
Income before income taxes
708,254
656,469
Adjustments to reconcile income before income taxes
Depreciation and amortization expenses
276,292
281,110
Write-off of property and equipment
1,187
3,149
Write-off of intangible assets
209
7
Allowance for expected credit losses
49,338
51,135
Share-based compensation expenses
25,626
16,683
Net foreign exchange differences
2,591
2,430
Accrued interest
257,118
248,290
Accrued interest on lease liabilities
95,225
91,414
Share of profit of equity-accounted investee, net of tax
(12,200)
(10,667)
Provision (reversal) for legal proceedings
(39,654)
18,980
Changes in assets and liabilities
Trade receivables
(167,870)
(124,063)
Recoverable taxes
(17,874)
(20,020)
Other assets
42,006
(1,846)
Trade payables
51,197
14,238
Taxes payable
(5,053)
1,409
Advances from customers
(4,592)
(14,011)
Labor and social obligations
76,808
78,499
Provision for legal proceedings
(5,465)
(5,209)
Other liabilities
(464)
3,478
1,332,679
1,291,475
Income taxes paid
(99,326)
(13,712)
Net cash flows from operating activities
1,233,353
1,277,763
Investing activities
Acquisition of property and equipment
(80,308)
(123,641)
Acquisition of intangibles assets
(135,396)
(139,513)
Dividends received
878
8,802
Payments of acquisition of assets and subsidiaries
(81,676)
(144,076)
Payments of interest
-
(49,608)
Net cash flows used in investing activities
(296,502)
(448,036)
Financing activities
Payments of principal of loans and financing
(5,254)
(301,692)
Payments of interest
(178,721)
(185,230)
Payments of principal of lease liabilities
(42,203)
(36,869)
Payments of interest of lease liabilities
(96,982)
(89,732)
Treasury shares repurchase
(140,330)
(11,128)
Proceeds from exercise of stock options
11,671
25,733
Dividends paid
(318,945)
(142,568)
Net cash flows used in financing activities
(770,764)
(741,486)
Net foreign exchange differences
(2,591)
(2,430)
Net increase (decrease) in cash and cash equivalents
163,496
85,811
Cash and cash equivalents at the beginning of the period
1,125,381
911,015
Cash and cash equivalents at the end of the period
1,288,877
996,826
Reconciliation between Change in Net Debt Position and Free Cash Flow to Equity
Reconciliation between Change in Net Debt Position and Free Cash Flow to Equity
2026
2025
% Chg
2026
2025
% Chg
1,393,953
1,620,973
-14.0%
1,369,483
1,814,918
-24.5%
1,199,784
1,342,172
-10.6%
1,199,784
1,342,172
-10.6%
194,169
278,801
-30.4%
169,699
472,746
-64.1%
-
-
n.a.
-
100,000
n.a.
4,063
4,089
-0.6%
318,945
142,568
123.7%
7,319
11,128
-34.2%
140,330
11,128
1161.1%
205,551
294,018
-30.1%
628,974
726,442
-13.4%