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

928,505

6.1%

2,969,970

2,962,802

2,784,265

6.7%

6.4%

433,818

398,917

8.7%

1,351,776

1,349,558

1,291,732

4.6%

4.5%

44.0%

43.0%

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

817,712

7.6%

2,641,995

2,634,827

2,459,213

7.4%

7.1%

64,937

70,098

-7.4%

208,791

207,618

0.6%

42,984

44,189

-2.7%

128,278

128,193

0.1%

(2,574)

(3,494)

-26.3%

(9,094)

(10,759)

-15.5%

985,161

928,505

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.

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%

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%

1.0

8.6%

63%

530

529

2.8

3.1

15.5%

15.3%

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.

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%

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

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

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)

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)

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

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

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%