Afya Limited Announces Fourth Quarter and Twelve Months 2025 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 fourth quarter and full-year period ended December 31, 2025. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).

Fourth Quarter 2025 Highlights

Full Year 2025 Highlights

2024

912,990

910,828

849,015

7.5%

7.3%

3,697,255

3,607,549

3,304,329

11.9%

9.2%

388,519

388,049

366,014

6.1%

6.0%

1,680,251

1,627,957

1,455,642

15.4%

11.8%

42.6%

43.1%

-50 bps

45.4%

45.1%

44.1%

130 bps

175,444

154,279

13.7%

768,443

648,920

18.4%

205,738

193,607

6.3%

901,740

820,290

9.9%

Message from Management

We are pleased to present another year of strong operational and financial performance. In 2025, we once again met our revenue and Adjusted EBITDA guidance, achieving our seventh consecutive year of meeting or exceeding guidance since 2H19. This track record reinforces the strength of our business model, the quality of our execution, and the commitment of our teams. In addition, we delivered our second-highest Adjusted EBITDA margin, reaching 45.4% and an EPS growth of 18.7% in the same period, further supporting our ability to invest in growth and create long-term value for our shareholders.

This consistent performance gives us a solid foundation as we move into the next phase of our journey and look ahead to our 2026 guidance. We remain focused on combining sustainable growth with financial discipline while staying close to the needs of physicians and the Brazilian healthcare ecosystem.

In our Undergraduate segment, 2025 was marked by strong and sustainable revenue growth across Medical Schools, and other health related programs. This result reflects the maturity of our medical seats and the strength of Afya’s academic offering and brand. As we enter 2026, we start the year with 3,705 operating medical school seats, including 100 additional seats authorized at Afya Bragança. Our unified intake process across all medical schools is a key enabler, helping us attract and retain top candidates nationwide. This integrated approach brings consistency to admissions, reinforces Afya’s position as a leading medical education group, and supports greater operational efficiency across our campuses.

In Continuing Education and Medical Practice Solutions, 2025 was a year of higher efficiency and stronger synergies between the segments, which boosted gross margin expansion. We increased the total number of Continuing Education students by 8.9%, and for Medical Practice Solutions, we highlight the 9.4% growth in B2P revenue, demonstrating the value of our solutions and the segment's scalability.

Looking ahead to 2026, we are entering a new phase for Afya. Our ambition is to be recognized as the go-to brand for every physician in Brazil, in every stage of their medical career. In this new investment cycle, we will focus on expanding our audience and strengthening our digital products. Our goal is to increase adoption, deepen engagement, and continue growing our physician base. By making our ecosystem stronger and more integrated, we are able to sustain a structurally low customer acquisition cost for Undergraduate students, maintaining our competitive advantage and preserving efficient growth even in a more challenging environment. In this way, we are consolidating Afya as the long-term partner that supports physicians throughout their careers and building a solid platform for future B2B revenue opportunities.

On the solid basis of our guidance achievement for 2025, we are now presenting our guidance for 2026. We expect Revenue to range between R$3,950 million and R$ 4,100 million, and Adjusted EBITDA to be between R$1,700 million and R$1,800 million, excluding any acquisition that may be concluded after the issuance of this guidance.

From a capital allocation perspective, our strong cash generation and solid balance sheet allow us to support our organic and inorganic growth strategy while also returning value to shareholders. In 2025, our Board of Directors approved a new share repurchase program authorizing the buyback of up to 4,000,000 Class A common shares through December 31, 2026. On March 12, 2026, our Board of Directors declared a cash dividend of R$307.4 million, corresponding to 40% of Afya’s 2025 consolidated net income, supported by our 2025 Free Cash Flow of R$1,056 million reinforcing our commitment to shareholder remuneration, the strength of our financial position and our disciplined capital allocation strategy.

Looking ahead, we will keep strengthening our ecosystem, supporting physicians at every stage of their careers and pursuing sustainable growth in the years to come. We are proud of how far we have come and excited about the opportunities ahead as we continue to shape the future of the medical journey in Brazil.

1. Key Events in the Quarter

2. Subsequent Events

3. Full Year 2025 Guidance Achievement

The Company’s financial results reaffirmed the resiliency and profitability of Afya’s business model:

Actual 2025 2

R$ 3,697 mn

R$ 1,680 mn

R$ 304 mn

4. 2026 Guidance

The guidance for FY2026 is defined in the following table:

5. 4Q25 and 2025 Overview

Segment Information

The Company has three reportable segments as follows:

Undergraduate, 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

Twelve months period ended December 31,

2025

2024

% Chg

3,755

3,593

4.5%

3,705

3,543

4.6%

25,556

24,255

5.4%

25,719

23,440

9.7%

24,881

23,440

6.1%

2,789,170

2,477,906

12.6%

2,705,045

2,477,906

9.2%

9,060

8,809

2.8%

26,545

25,570

3.8%

26,344

25,154

4.7%

25,954

25,154

3.2%

261,724

236,791

10.5%

257,075

236,791

8.6%

33,924

27,163

24.9%

34,271

27,542

24.4%

33,538

27,542

21.8%

204,533

180,994

13.0%

203,600

180,994

12.5%

3,255,426

2,895,692

12.4%

3,165,720

2,895,692

9.3%

Key Revenue Drivers – Continuing Education

Twelve months period ended December 31,

2025

2024

% Chg

12,990

16,381

-20.7%

10,234

8,527

20.0%

31,815

25,613

24.2%

55,039

50,521

8.9%

257,706

237,379

8.6%

26,765

18,060

48.2%

284,471

255,438

11.4%

Key Revenue – Medical Practice Solutions

Twelve months period ended December 31,

2025 2

2024

% Chg

156,598

161,283

-2.9%

38,906

33,735

15.3%

195,504

195,018

0.2%

220,051

238,343

-7.7%

152,643

139,534

9.4%

18,680

22,252

-16.1%

171,323

161,787

5.9%

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 fourth quarter of 2025, Afya’s ecosystem reached 300,646 users.

Twelve months period ended December 31,

2025

2024

% Chg

25,556

24,255

5.4%

55,039

50,521

8.9%

220,051

238,343

-7.7%

300,646

313,119

-4.0%

Seasonality of Operations

Undergraduate tuition revenues are related to the intake process, and monthly tuition fees charged to students, and do not significantly fluctuate during each semester.

Continuing education revenues are mostly related to: (i) monthly intakes and tuition fees on medical education, which do not have a considerable concentration in any period; (ii) Residency journey product revenues, derived from e-books transferred at a point of time, which are concentrated in the first and last quarter of the year due to the enrollments.

Medical Practice Solutions are comprised mainly of Afya Whitebook and Afya iClinic revenues, which do not have significant fluctuations regarding seasonality.

Revenue

Revenue for the fourth quarter of 2025 was R$913.0 million, an increase of 7.5% over the same period in the prior year. For the twelve-month period ended December 31, 2025, Revenue was R$3,697.3 million, reflecting an 11.9% increase over the same period of last year. Excluding acquisitions, Revenue in the fourth quarter increased by 7.3% YoY to R$910.8 million. For the twelve-month period ended December 31, 2025, excluding acquisitions, Revenue was R$3,607.5 million, reflecting a 9.2% increase over the same period of last year.

The yearly revenue increase was mainly driven by (a) Undergraduate, higher tickets in medicine courses, the maturation of medical school seats, the increase in non-medical students, the acquisition of FUNIC and the full year results consolidation of UNIDOM (Acquired July of 2024); (b) Continuing Education, expansion in Graduate Journey campuses and students, increasing the average ticket per student across the segment, and (c) Medical Practice Solutions, which delivered growth primarily due to an expansion in Clinical Management active payers and a more favorable product mix compensating the decrease in the B2B.

2025 1

2025 1 Ex Acquisitions*

2024

% Chg

% Chg Ex Acquisitions

2025 1

2025 1 Ex Acquisitions*

2024

% Chg

% Chg Ex Acquisitions

796,213

794,051

739,797

7.6%

7.3%

3,255,426

3,165,720

2,895,692

12.4%

9.3%

76,853

67,707

13.5%

284,471

255,438

11.4%

43,130

44,497

-3.1%

171,323

161,787

5.9%

(3,206)

(2,986)

7.4%

(13,965)

(8,588)

62.6%

912,990

910,828

849,015

7.5%

7.3%

3,697,255

3,607,549

3,304,329

11.9%

9.2%

Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of 2025 increased by 6.1% to R$388.5 million, up from R$366.0 million in the same period of the prior year, with the Adjusted EBITDA Margin reducing by 50 basis points to 42.6%, due mainly to lower performance of Medical Practice Solutions and an increase in corporate expenses.

For the twelve-month period ended December 31, 2025, Adjusted EBITDA was R$1,680.3 million, an increase of 15.4% over the same period of the prior year, accompanied by an Adjusted EBITDA Margin increase of 130 basis points in the same period. The increase in Adjusted EBITDA Margin was mainly driven by: (a) higher gross margin in the Undergraduate and Continuing Education segments; (b) restructuring initiatives within Continuing Education and Medical Practice Solutions; and (c) improved efficiency in Selling, General, and Administrative expenses.

2025 6

2024

% Chg

2025 6

2024

% Chg

175,444

154,279

13.7%

768,443

648,920

18.4%

76,695

104,698

-26.7%

366,081

347,459

5.4%

29,032

1,083

2580.7%

92,502

27,471

236.7%

92,234

84,206

9.5%

373,344

333,341

12.0%

9,606

8,438

13.8%

49,527

43,417

14.1%

(3,249)

(2,011)

61.6%

(13,916)

(11,737)

18.6%

(1,365)

6,125

15,318

32,424

-52.8%

10,122

9,196

10.1%

28,952

34,347

-15.7%

7,661

7,970

-3.9%

25,430

25,692

-1.0%

772

-97.7%

578

3,575

-83.8%

232

454

-48.9%

721

3,022

-76.1%

2,211

2,223

2,058

8.0%

388,519

366,014

6.1%

1,680,251

1,455,642

15.4%

42.6%

43.1%

-50 bps

45.4%

44.1%

130 bps

Net Income

Net Income for the fourth quarter of 2025 totaled R$175.4 million, representing a 13.7% YoY increase. Adjusted Net Income reached R$205.7 million, an increase of 6.3% over the same period in the prior year. For the three-month period ended December 31, 2025, Net Income benefited from proactive liability management actions, primarily driven by the repurchase and cancellation of the perpetual convertible preferred shares held by SoftBank, which resulted in a gain of R$18 million.

For the twelve-month period, Afya achieved a Net Income of R$768.4 million, 18.4% higher than the same period of 2024, and an Adjusted Net Income of R$901.7 million, which was 9.9% higher than the previous period. For the year, growth reflects stronger operational performance, combined with the recognition of deferred tax assets, partially offset by the additional CSLL provision related to the OECD’s Pillar Two global minimum tax effects.

Basic EPS for the twelve-month period ended December 31, 2025, reached R$8.32. An increase of 18.7% YoY, reflecting the higher Net Income and our capital allocation with the execution of the Repurchase Program approved in August of 2025.

2025 8

2024

% Chg

2025 8

2024

% Chg

175,444

154,279

13.7%

768,443

648,920

18.4%

21,537

24,007

-10.3%

89,027

104,599

-14.9%

(1,365)

6,125

15,318

32,424

-52.8%

10,122

9,196

10.1%

28,952

34,347

-15.7%

7,661

7,970

-3.9%

25,430

25,692

-1.0%

772

-97.7%

578

3,575

-83.8%

232

454

-48.9%

721

3,022

-76.1%

2,211

2,223

2,058

8.0%

205,738

193,607

6.3%

901,740

820,290

9.9%

1.91

1.66

14.9%

8.32

7.01

18.7%

2.25

2.10

7.0%

9.79

8.91

9.9%

Cash and Debt Position

As of December 31, 2025, Cash and Cash Equivalents totaled R$1,125.4 million, representing a 23.5% increase from December 31, 2024. Afya reduced its Net Debt, excluding the effect of IFRS 16, to R$1,369.5 million, a decrease of R$445.4 million compared to December 31, 2024. This reduction was achieved through solid Cash Flow from Operating Activities, despite the business combination with FUNIC, dividend payments, and Afya’s share repurchase program.

For the twelve-month period ended December 31, 2025, Afya generated R$1,547.6 million in Cash Flow from Operating Activities, up from R$1,453.2 million in the same period of the previous year, an increase of 6.5% YoY, boosted by operational results. The Operating Cash Conversion Ratio reached 93.7%.

2025 5

2024

% Chg

1,531,587

1,432,659

6.9%

16,046

20,520

-21.8%

1,547,633

1,453,179

6.5%

1,680,251

1,455,642

15.4%

28,952

34,347

-15.7%

25,430

25,692

-1.0%

578

3,575

-83.8%

721

3,022

-76.1%

2,223

2,058

8.0%

1,651,299

1,421,295

16.2%

93.7%

102.2%

The following table shows more information regarding the cost of debt for 2025, considering loans and financing and accounts payable to selling shareholders. Afya’s capital structure remains solid, with a conservative leveraging position and a low cost of debt. Afya’s Net Debt (excluding the effect of IFRS16) divided by Adjusted EBITDA is 0.8x, marking an impressive reduction from 1.2x in the same period of the prior year, reinforcing Afya’s accelerated deleveraging trend.

The issuance of R$1,500 million in debentures on October 15, 2025, together with the repurchase and cancellation of the perpetual convertible held by SoftBank, the first issuance of debentures by Afya Participações S.A., and other Loans and Financing, demonstrates Afya’s disciplined approach to capital allocation and liability management, resulting in an extended average debt duration to 3.6 years.

For the closing of the twelve months period ended in December 31,

Cost of Debt

Gross Debt

Duration (Years)

Per year

%CDI²

2025 3

2024

2025

2024

2025

2024

2025

2024

845

1.4

5.6%

7.5%

40%

71%

1,538

527

3.9

2.6

15.6%

12.0%

109%

110%

318

0.9

0.8

8.7%

12.7%

63%

117%

511

505

2.8

3.8

15.5%

11.3%

108%

105%

441

531

3.4

3.3

14.4%

10.8%

100%

2,495

2,726

3.6

2.4

13.5%

10.2%

95%

(1) Total amount refers only to the "Gross Debt" columns.

(2) Based on the annualized Interbank Certificates of Deposit ("CDI") rate for the period as a reference: FY25: ~14.90% p.y. and for FY24: ~12.15% p.y.

(3) Financial information for 2025 is unaudited.

% Chg

1,125,381

911,015

23.5%

15,470

6,078

154.5%

1,109,911

904,937

22.7%

2,054,267

2,195,161

-6.4%

60,668

363,554

-83.3%

1,993,599

1,831,607

8.8%

440,597

530,772

-17.0%

110,640

185,318

-40.3%

329,957

345,454

-4.5%

n.a.

1,369,483

1,814,918

-24.5%

1,065,746

978,336

8.9%

55,772

45,580

22.4%

1,009,974

932,756

8.3%

2,435,229

2,793,254

-12.8%

CAPEX

Capital expenditure consists of the purchase of property and equipment and intangible assets, including expenditure mainly related to the expansion and maintenance of Afya’s campuses and headquarters, leasehold improvements, and the development of new solutions in Medical Practice Solutions and content in Continuing Education.

For the twelve-month period ended December 31, 2025, CAPEX totaled R$404.0 million, including an acceleration in intangible investments in the fourth quarter. Excluding the license payment related to the FUNIC acquisition, CAPEX was R$ 304.4 million, representing 8.2% of Afya’s revenue.

2025 2

2024

% Chg

404,011

392,615

2.9%

166,014

136,924

21.2%

237,997

255,691

-6.9%

99,629

157,227

-36.6%

138,368

98,464

40.5%

ESG Metrics

ESG commitment is a crucial part of Afya’s strategy and is deeply ingrained in the Company’s core values. Afya has been advancing year after year on its core pillars and, since 2021, ESG metrics have been disclosed in the Company’s quarterly financial results in three key metrics, Governance and Employee Management, Environmental and Social.

The 2024 Sustainability Report can be found at: https://ir.afya.com.br/annual-report/

2025

2024

2023

GRI

405-1

9,395

9,717

9,680

405-1

102-24

5,588.210

6,329.796

4,510.637

302-1

26,764.601

24,260.662

24,036.608

302-1

18.1

23.2

16.0

302-1

30.8

34.8

60.3

302-1

51.1

42.0

23.7

413-1

897,793

846,264

586,611

26,313

22,867

20,197

201-4

16,148

12,342

10,584

18.8

16.0

413-1

596

614

649

1. Conference Call and Webcast Information

When:

March 12, 2026 at 5:00 p.m. EDT.

Who:

Mr. Virgilio Gibbon, Chief Executive Officer

Mr. Luis André Blanco, Chief Financial Officer

Ms. Renata Costa Couto, IR Director

Webcast:

https://afya.zoom.us/j/98271618661

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: +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799.

Webinar ID: 982 7161 8661

Other Numbers: https://afya.zoom.us/u/aRK0ROGaH

2. 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.

3. 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/.

4. 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, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS, 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. The calculation of Adjusted Net Income is the Net Income plus amortization of customer relationships and trademark, plus share-based compensation, plus/minus non-recurring expenses/income. The calculation of Adjusted EPS is the Adjusted Net Income minus the non-controlling interests divided by the Weighted average number of outstanding shares.

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, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS 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.

5. Investor Relations Contact

E-mail: ir@afya.com.br

6. Financial Tables

Consolidated statements of financial position

As of December 31, 2025 and 2024

(In thousands of Brazilian reais)

2025

2024

Assets

(unaudited)

Current assets

Cash and cash equivalents

1,125,381

911,015

Trade receivables

717,373

595,898

Recoverable taxes

13,429

7,139

Income taxes recoverable

23,046

18,587

Other assets

62,947

57,145

Total current assets

1,942,176

1,589,784

Non-current assets

Trade receivables

34,985

35,948

Deferred tax assets

12,552

Other assets

125,480

115,875

Investment in associate

46,518

54,442

Property and equipment

711,485

658,482

Right-of-use assets

896,758

842,219

Intangible assets

5,587,980

5,532,789

Total non-current assets

7,415,758

7,239,755

Total assets

9,357,934

8,829,539

Liabilities

Current liabilities

Trade payables

123,581

128,080

Loans and financing

60,668

363,554

Lease liabilities

55,772

45,580

Accounts payable to selling shareholders

110,640

185,318

Advances from customers

158,035

161,048

Dividends payable

192

Labor and social obligations

217,526

208,076

Taxes payable

36,043

33,456

Income taxes payable

112,638

4,247

Other liabilities

8,946

10,836

Total current liabilities

884,041

1,140,195

Non-current liabilities

Loans and financing

1,993,599

1,831,607

Lease liabilities

1,009,974

932,756

Accounts payable to selling shareholders

329,957

345,454

Taxes payable

77,487

84,407

Deferred tax liabilities

28,274

Provision for legal proceedings

128,220

113,521

Other liabilities

43,471

42,742

Total non-current liabilities

3,582,708

3,378,761

Total liabilities

4,466,749

4,518,956

Equity

Share capital

Additional paid-in capital

2,320,422

2,344,521

Treasury shares

(306,010)

(273,955)

Share-based compensation reserve

202,815

187,497

Retained earnings

2,634,552

2,011,875

Equity attributable to the owners of the Company

4,851,796

4,269,955

Non-controlling interests

39,389

40,628

Total equity

4,891,185

4,310,583

Total liabilities and equity

9,357,934

8,829,539

Consolidated statements of income and comprehensive income

For the years ended December 31, 2025, 2024 and 2023

(In thousands of Brazilian reais, except for earnings per share information)

2025

2024

2023

(unaudited)

Revenue

3,697,255

3,304,329

2,875,913

Cost of services

(1,313,895)

(1,215,603)

(1,109,813)

Gross profit

2,383,360

2,088,726

1,766,100

Selling, general and administrative expenses

(1,113,065)

(1,008,427)

(940,132)

Allowance for expected credit losses

(57,090)

(60,894)

(74,552)

Other income

18,762

13,299

53,206

Other expenses

(18,857)

(20,591)

(37,561)

Operating income

1,213,110

1,012,113

767,061

Finance income

194,943

111,283

110,642

Finance expenses

(561,024)

(458,742)

(457,616)

Net finance result

(366,081)

(347,459)

(346,974)

Share of profit of equity-accounted investee, net of tax

13,916

11,737

9,495

Income before income taxes

860,945

676,391

429,582

Income taxes expenses

Current

(133,328)

(24,238)

(27,399)

Deferred

40,826

(3,233)

3,233

Net income

768,443

648,920

405,416

Other comprehensive income

Total comprehensive income

768,443

648,920

405,416

Net income / total comprehensive income attributable to:

Owners of the Company

752,461

631,510

386,324

Non-controlling interests

15,982

17,410

19,092

768,443

648,920

405,416

Basic earnings per common share

8.32

7.01

4.30

Diluted earnings per common share

8.24

6.93

4.27

Consolidated statements of cash flows

For the years ended December 31, 2025, 2024 and 2023

(In thousands of Brazilian reais)

2025

2024

2023

(unaudited)

Operating activities

Income before income taxes

860,945

676,391

429,582

Adjustments to reconcile income before income taxes

Depreciation and amortization expenses

373,344

333,341

289,511

Write-off of property and equipment

3,062

2,539

1,910

Write-off of intangible assets

275

244

413

Allowance for expected credit losses

57,090

60,894

74,552

Share-based compensation expense

15,318

32,424

31,535

Net foreign exchange differences

1,816

7,027

681

Accrued interest

316,379

254,386

285,447

Accrued interest on lease liabilities

123,067

111,966

100,849

Share of profit of equity-accounted investee, net of tax

(13,916)

(11,737)

(9,495)

Provision (reversal) for legal proceedings

23,250

9,705

(40,044)

Changes in assets and liabilities

Trade receivables

(177,602)

(97,449)

(131,336)

Recoverable taxes

(10,749)

18,107

(15,353)

Other assets

(10,798)

11,220

88,427

Trade payables

(4,499)

18,126

24,500

Taxes payable

(18,109)

(14,798)

3,278

Advances from customers

(3,013)

6,329

(17,892)

Labor and social obligations

9,450

8,414

31,525

Payments of legal proceedings

(6,873)

(4,637)

(16,781)

Other liabilities

9,196

30,687

(42,542)

1,547,633

1,453,179

1,088,767

Income taxes paid

(16,046)

(20,520)

(45,144)

Net cash flows from operating activities

1,531,587

1,432,659

1,043,623

Investing activities

Acquisition of property and equipment

(166,014)

(136,924)

(118,435)

Acquisition of intangibles assets

(197,997)

(255,691)

(126,993)

Dividends received

15,553

7,501

9,900

Acquisition of non-controlling interest

(21,000)

Acquisition of assets and subsidiaries, net of cash acquired

(144,076)

(627,568)

(815,005)

Payments of interest

(14,536)

(78,931)

(71,518)

Net cash flows used in investing activities

(507,070)

(1,091,613)

(1,143,051)

Financing activities

Payments of principal of loans and financing

(1,624,911)

(128,696)

(112,630)

Payments of interest

(309,337)

(177,192)

(175,889)

Proceeds from loans and financing

1,494,881

491,593

5,288

Payments of principal of lease liabilities

(49,411)

(41,221)

(31,473)

Payments of interest of lease liabilities

(121,475)

(111,605)

(103,911)

Treasury shares repurchase

(77,002)

(12,369)

Proceeds from exercise of stock options

25,733

9,376

9,791

Dividends paid

(146,813)

(18,289)

(18,750)

Net cash flows from (used in) financing activities

(808,335)

23,966

(439,943)

Net foreign exchange differences

(1,816)

(7,027)

(681)

Net increase (decrease) in cash and cash equivalents

214,366

357,985

(540,052)

Cash and cash equivalents at the beginning of the year

911,015

553,030

1,093,082

Cash and cash equivalents at the end of the year

1,125,381

911,015

553,030