Afya Limited (AFYA): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Afya Limited's financial engine, and honestly, it's a masterclass in strategic vertical integration. They don't just enroll students; they capture the entire physician lifecycle, turning high fixed costs into predictable, high-margin revenue. The 2025 guidance tells the tale: Net Revenue is projected to hit between R$3,670 million and R$3,770 million, built on the back of over 3,753 high-value medical seats and an Adjusted EBITDA margin that expanded to 46.4% in the first nine months. This isn't just education; it's a defintely resilient, end-to-end ecosystem designed for lifelong cash flow, so let's dig into the nine building blocks that make this model hum.

Afya Limited (AFYA) - Canvas Business Model: Key Partnerships

Brazilian Ministry of Education (MEC) for medical seat authorizations

The core of Afya Limited's business model hinges on its partnership with the Brazilian Ministry of Education (MEC), which controls the authorization of new medical school seats (vacancies). This isn't a traditional commercial partnership; it's a critical regulatory relationship that dictates the company's growth capacity in its highest-margin segment-Undergraduate Medical Education.

As of November 2025, Afya has a total of 3,753 approved medical school seats across its institutions. This number is a direct result of successful applications, like the recent November 7, 2025, authorization to increase seats at ITPAC Porto Nacional by 100. This steady, regulated expansion is the defintely strongest near-term growth driver.

Private hospitals and clinics for clinical training and residencies

Afya's educational model is vertically integrated, meaning it needs extensive, real-world clinical training sites to deliver its curriculum. These partnerships with private hospitals and clinics are essential for the mandatory clinical rotation (internship) phase of medical school, and for residency preparation.

The company operates as the largest private medical education group in Brazil, which requires a vast network for its over 25,879 undergraduate medical students (Q1 2025 data) to complete their practical training. Afya strategically locates its campuses in underserved regions, and this clinical network partnership ensures that approximately 70% of its graduates stay to practice medicine in those communities, fulfilling a key social mission.

International Finance Corporation (IFC) for sustainability-linked financing

A significant financial partnership is the long-term loan agreement with the International Finance Corporation (IFC), a member of the World Bank Group. This isn't just debt; it's a strategic alignment of social and financial goals.

The IFC provided a sustainability-linked loan of up to R$500 million (approximately $90 million to $95 million USD) to fuel Afya's expansion, particularly in the underserved North and Northeast regions of Brazil. The loan's interest rate is tied to social Key Performance Indicators (KPIs), meaning Afya gets a better rate if it hits targets like increasing free medical consultations for the community and improving the quality of education. A key target is to provide 5 million free consultations by 2030.

IFC Financing Details (2024/2025)	Value/Metric	Strategic Impact
Loan Amount (Up to)	R$500 million (~$90M - $95M USD)	Funds expansion into underserved regions.
Loan Type	Sustainability-Linked Loan	Incentivizes achievement of social KPIs.
Social Target (Consultations)	5 million free consultations by 2030	Improves local primary care health indicators.
Expansion Target	Increase new Medicine seats by 200 (in the year of the loan)	Directly boosts core revenue driver.

Healthcare technology providers for digital platform enhancements

Afya's Medical Practice Solutions segment, which services physicians throughout their careers, relies on technology partnerships and acquisitions to maintain its digital edge. This is how they create an 'end-to-end physician-centric ecosystem.'

The platform currently serves over 304 thousand users (as of Q3 2025), integrating tools that deliver telemedicine, AI-powered clinical decision support, and real-time disease surveillance. The key digital products, which often stem from acquired technology companies, include Afya Whitebook, iClinic, and ReceitaPro. Afya is embedding Artificial Intelligence (AI) into these platforms to scale clinical productivity and improve diagnostic accuracy.

Content and curriculum development partners

To keep its education relevant and high-quality, Afya partners with or acquires specialized content developers. This ensures the curriculum is always evidence-based and up-to-date, from undergraduate courses to continuing medical education (CME) for practicing physicians.

The content strategy is heavily supported by the digital ecosystem, with platforms like Afya Whitebook providing AI-driven updates on the latest treatment guidelines in real-time. The company's launch of Instituto Afya also acts as a partnership vehicle, focusing on AI-powered education and research, particularly for chronic disease management, which aligns with the UN 2030 Agenda. This dual approach-acquisition and internal development-allows Afya to control the quality and speed of content delivery.

• Integrate acquired content platforms (e.g., Medcel, PEBMED).
• Develop AI-enabled clinical decision support tools.
• Focus research via Instituto Afya on chronic disease education.

Finance: Track the R$500 million IFC loan disbursement and verify social KPI achievement against the 2030 target.

Afya Limited (AFYA) - Canvas Business Model: Key Activities

Afya's key activities are centered on a dual engine: aggressively expanding its high-margin medical education footprint and continuously evolving its digital health solutions. This is not just about teaching; it's about a disciplined, capital-intensive process of market consolidation and tech development.

The core of the business model relies on scaling the number of medical seats and then ensuring the quality of the student experience, which is why the operational and financial moves in late 2025 are so critical. One thing is clear: they are focused on high-impact, repeatable actions that drive both enrollment and digital adoption.

Acquiring and integrating medical schools for market expansion

The primary path to market expansion for Afya is through strategic mergers and acquisitions (M&A), which is a key activity because it immediately adds capacity and revenue. For example, the acquisition of FUNIC (Faculdade Masterclass Ltda.) closed in May 2025, a move that added 60 new medical seats to the portfolio and expanded the undergraduate presence into the metropolitan area of Belo Horizonte. The aggregate purchase price for FUNIC was R$100 million, net of estimated net debt.

Afya's M&A activity is highly disciplined. They look for assets where they can quickly apply their operational expertise, often centralizing shared services like IT and marketing to cut redundancies. This integration activity is what drove their Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin to 52.5% in the first quarter of 2025, a solid 300 basis point improvement year-over-year.

Managing over 3,753 total approved medical seats

A critical operational activity is securing and managing the regulatory approval for new medical seats, which directly dictates revenue capacity. As of November 2025, Afya manages a total of 3,753 approved medical school seats.

This total capacity is an active target, not a static number. Just recently, on November 7, 2025, the Ministry of Education (MEC) authorized an increase of 100 medical seats at ITPAC Porto, located in Bragança, State of Pará, which pushed the total to that 3,753 figure. This constant pursuit of capacity expansion is the lifeblood of their undergraduate segment.

Developing and updating digital medical content and software (Afya Whitebook)

Afya's digital segment, Medical Practice Solutions, is a high-growth key activity focused on building an ecosystem for lifelong medical learning. This includes platforms like Afya Whitebook and Afya iClinic. The focus is on technology-driven clinical decision support and practice management.

The development work is now heavily weighted toward artificial intelligence (AI), with Afya implementing AI-enabled updates to its core platforms like Afya Whitebook, iClinic, and ReceitaPro. This digital ecosystem reached approximately 304,000 users in the nine-month period ended September 30, 2025, demonstrating the scale of their content and software delivery activity.

The digital platforms provide a tangible value proposition for doctors and students, with the clinical decision support used by an estimated 350,000 doctors in Brazil.

Standardizing academic quality across all campuses

Maintaining academic quality is a non-negotiable activity, especially as the company grows through acquisition. Afya's strategy is to standardize outcomes and curriculum across all its campuses to protect its brand reputation and pricing power. This is not just a soft goal; it's a measurable activity tied to external benchmarks.

A major focus is preparing students for the National Exam for Medical Residency (ENAMED), which is now officially integrated into Brazil's regulatory framework for quality assurance. Afya's educational ecosystem is designed to effectively support students in this preparation, reinforcing its leadership in delivering high-impact learning. The success of this standardization was externally recognized when Afya was honored as the top performer in the Education sector in Brazil by the Valor 1000 Award in 2025.

Executing disciplined capital management, like the R$1.5 billion commercial notes issuance

The financial key activities are just as important as the academic and operational ones. In October 2025, Afya executed a major capital restructuring move by issuing commercial notes totaling R$1.5 billion.

Here's the quick math on how the proceeds were used to strengthen the balance sheet:

Capital Management Action	Amount (R$)
Commercial Notes Issued	R$1.5 billion
Repurchase of SoftBank Preferred Shares	R$831.6 million
Repayment of First Debenture Issuance	R$500 million
Total Capital Used	R$1,331.6 million

This action achieved two critical goals: it extended the debt duration to 2028 and 2030, and it repurchased and cancelled all 150,000 Series A perpetual convertible preferred shares from SoftBank. That's a clear action to optimize the capital structure and reinforce financial discipline.

Afya Limited (AFYA) - Canvas Business Model: Key Resources

The core of Afya Limited's value proposition rests on a set of highly regulated, scarce, and scalable assets. You need to think of their Key Resources not just as physical property, but as a strategic blend of government-sanctioned capacity, digital reach, and a strong financial war chest for future expansion.

The most critical resource is the government-approved medical school seat capacity, which acts as a high-barrier-to-entry moat. Plus, their digital ecosystem, which now serves hundreds of thousands of physicians, creates a powerful, high-margin, recurring revenue stream that diversifies risk away from just tuition fees.

Approved medical school seats (the core high-value asset)

Afya's primary and most valuable asset is its portfolio of government-authorized medical school seats in Brazil. This resource is tightly controlled by the Ministry of Education (MEC), making organic growth difficult and giving existing players a strong competitive advantage.

As of early November 2025, Afya boasts a total of 3,753 approved medical school seats. This number is a direct result of strategic acquisitions and recent regulatory approvals, like the increase of 100 seats at the ITPAC Porto Nacional campus. Maintaining full occupancy across these schools is defintely critical, and Afya consistently achieves this, which secures their revenue predictability.

Digital health platforms (e.g., Afya Whitebook, Afya iClinic)

The company's digital segment, Medical Practice Solutions, is a high-growth intellectual resource that extends Afya's influence far beyond its student body, creating an end-to-end physician-centric ecosystem. This is a classic platform play.

The digital platforms, including Afya Whitebook (Clinical Decision Software) and Afya iClinic (Clinical Management), reached approximately 304 thousand total users in the ecosystem as of the nine months ended September 30, 2025 (9M25). More specifically, the core digital platform is used by about 350,000 physicians for operational support, telemedicine, and clinical decision support. This scale is huge; it means they are serving a significant portion of Brazil's total physician population.

Physical campuses and simulation labs across Brazil

The physical infrastructure is essential for delivering the highly practical, in-person medical education required by the Brazilian regulatory framework. Afya operates a substantial network of 32 campuses across Brazil, many of which are strategically located in underserved regions.

This geographic distribution not only addresses Brazil's doctor shortage problem but also allows Afya to benefit from the Mais Médicos program, which often grants new seats in these specific areas. The campuses include state-of-the-art simulation labs and access to over 50 partner teaching hospitals and clinics, providing students with the practical learning network they need for medical residency preparation.

Intellectual property for proprietary educational content

Afya's intellectual property (IP) is the engine behind its quality and consistency across its many campuses. This IP is not just simple course material; it is a proprietary, integrated content and interactive learning methodology that is crucial for maintaining high educational standards.

The digital platforms also house critical IP, particularly the AI-powered clinical decision support tools that help physicians in their daily practice. This technology is a key differentiator, enabling real-time disease surveillance and already helping to predict public health issues like dengue outbreaks. This IP is what makes the ecosystem sticky for both students and practicing doctors.

A solid cash position of R$996.8 million as of 9M25

A strong financial position is a strategic resource in a market driven by acquisitions. As of September 30, 2025, Afya reported a solid cash position of R$996.8 million. This liquidity is critical for two things: funding continued expansion through acquisitions-which is the main way to increase medical seat capacity-and servicing their debt. The company's focus on cash generation is clear, with a 9M25 Operating Cash Conversion ratio of 101.5%.

Here's the quick math on their core operational and financial resources:

Key Resource Metric	Value (As of Late 2025)	Resource Type
Total Approved Medical School Seats	3,753	Scarce Physical/Regulatory
Cash Position (9M25)	R$996.8 million	Financial
Total Campuses Operated	32	Physical
Users in Afya's Ecosystem (9M25)	~304 thousand	Intellectual/Human
Digital Platform Physician Reach	~350,000 doctors	Intellectual/Human

Afya Limited (AFYA) - Canvas Business Model: Value Propositions

The core value proposition for Afya Limited isn't just education; it's a complete, integrated career lifecycle for the physician in Brazil. You get a continuous, high-quality journey from the moment you start medical school right through to your daily clinical practice, plus a clear social impact component that reinforces the brand's mission.

This dual focus on premium education and a sticky digital ecosystem is why the company's 9-month 2025 (9M25) revenue hit R$ 2,784.3 million, up 13.4% year-over-year. That kind of growth shows the market defintely values this integrated model.

High-Quality, Integrated Medical Education from Pre-Med to Specialization

Afya provides a full-spectrum medical education platform, which is a significant value driver for students seeking certainty in a competitive field. They manage the entire path, from undergraduate training to residency prep and continuing education (CME). This integration helps you build a career, not just get a degree.

The company operates 32 campuses, strategically located to address physician shortages in underserved regions, ensuring that 70% of graduates stay to practice locally. This focus on regional needs is a unique value add. In the first nine months of 2025, the Continuing Education segment alone generated R$ 208 million in revenue, reflecting an almost 11% growth as doctors commit to lifelong learning.

Predictable, High-Occupancy Enrollment in Medical Courses

For investors, the predictability of Afya's medical school enrollment is a massive value proposition. It means stable and growing revenue streams. The demand for medical seats in Brazil remains incredibly high, and Afya captures this demand consistently.

The company maintained 100% occupancy across all its medical programs in Brazil through the third quarter of 2025. The undergraduate medical student count rose to over 25,000 in 9M25, a solid 6% increase from the previous year. This high-demand, high-occupancy model underpins the entire business's financial stability.

End-to-End Physician Ecosystem for Lifelong Career Support

Once you graduate, Afya doesn't let you go; it transitions you into its digital ecosystem, creating a powerful network effect. This ecosystem is a key retention tool and a separate, high-growth revenue stream (Medical Practice Solutions).

As of 9M25, Afya's total ecosystem reached approximately 304 thousand users, encompassing students and practicing medical professionals. This segment is growing fast, with revenue increasing over 9% year-over-year in 9M25, driven by solutions that support a doctor's daily workflow. The goal is to be the single source for a physician's entire professional life.

Ecosystem Segment	Key Value Proposition	9M25 Performance/Metric
Undergraduate & Continuing Education	Career-long knowledge and accreditation	Over 25,000 medical students (Undergrad)
Digital Health Services (B2P)	Clinical efficiency and evidence-based practice	Over 304 thousand total users in the ecosystem
Continuing Education (Graduate Journey)	Specialization and professional advancement	9,180 students, up 26% YoY

Clinical Decision Support Tools for Practicing Doctors

The digital tools are a critical value proposition for the practicing physician, offering speed and reliability at the point of care. These aren't just digital textbooks; they are real-time, evidence-based support systems.

Afya's flagship clinical decision support tool, Afya Whitebook, is a prime example. It is the principal digital platform for medical decision-making in the ecosystem, recording over 50 million visits in 2024. Plus, the company is embedding AI-powered clinical decision support and real-time disease surveillance into its offerings, helping doctors make quicker, more accurate diagnoses. This digital edge is a major competitive differentiator.

Social Impact: Delivering Free Healthcare Consultations

A significant, non-financial value proposition is the company's commitment to social responsibility, which enhances its brand and secures government partnerships. This focus on improving public health aligns the business with the UN's Sustainable Development Goal 3 (SDG 3).

The impact is concrete: Afya delivered 846,264 free clinical consultations in the nine-month period ending September 30, 2025, which is a massive contribution to local communities. This is done through their network of outpatient clinics, which they plan to expand to 27 locations. This commitment to the community is a powerful long-term value creator.

• Delivered 846,264 free consultations in 9M25.
• Committed to 5 million free consultations by 2030.
• Ensures 70% of medical graduates practice in underserved areas.

Finance: Track the Medical Practice Solutions segment's subscriber growth against the overall ecosystem user count to assess the true 'stickiness' of the digital value proposition by the end of Q4 2025.

Afya Limited (AFYA) - Canvas Business Model: Customer Relationships

Afya Limited manages distinct customer relationships tailored to its three core segments-Undergraduate, Continuing Education, and Medical Practice Solutions-moving beyond a simple transaction to build a lifelong, end-to-end physician-centric ecosystem. The core takeaway is that Afya employs a high-touch, long-term advisory model for its education segments, while leaning into a scalable, self-service digital model for its physician-facing tech solutions.

High-touch, long-term relationship with undergraduate students

The relationship with undergraduate medical students is intentionally high-touch and long-term, focusing on retention and academic success over the full six-year program. This personalized approach is critical for a high-value, high-commitment product like medical school. Afya ensures full occupancy across all its medical schools, which reinforces its brand and ability to attract top candidates nationwide.

For the nine months ended September 30, 2025, the Undergraduate segment had a total of 25,706 medical school students, representing a significant, stable revenue base. The average monthly ticket (tuition) for these students, excluding acquisitions, was approximately R$9,141, reflecting a 3.4% year-over-year increase, showing the value of this long-term relationship.

Dedicated support for B2B (business-to-business) partners in Continuing Education

The Continuing Education segment, which serves practicing physicians and healthcare professionals, utilizes a dedicated support structure, especially for its B2B partners. This is less about mass enrollment and more about tailoring programs to institutional needs. The goal is to strengthen the graduate journey for the total of 50,317 students in this segment as of Q3 2025.

This dedicated model supports the 'STRONG B2B GROWTH' the company reported in the nine-month period of 2025, where they saw an expansion in Graduate Journey students. Honestly, B2B relationships require a human touch to manage complex contracts and ensure curriculum alignment; a self-service portal just won't cut it for a major hospital system buying training.

Digital, self-service model for Medical Practice Solutions users

For the Medical Practice Solutions segment, the relationship shifts to a scalable, digital, and self-service model. This includes platforms like Afya Whitebook and Afya iClinic, which are AI-enabled tools providing clinical decision support and practice management.

The relationship is primarily maintained through the platform's utility and constant digital updates, ensuring clinicians have access to the latest evidence-based medical data in real time. This segment had approximately 228 thousand Monthly Active Users (MAU) for the nine months ended September 30, 2025, which shows the scale of this self-service model. This high volume of users is a clear indicator of a successful digital, low-cost customer relationship strategy.

Community building through the Afya ecosystem (over 304 thousand users)

Afya's overarching strategy is to foster a cohesive community across its entire ecosystem, which positively impacted 303,964 users as of the third quarter of 2025. This is a huge number. This community approach is the glue that connects students to practicing professionals, creating a network effect (a flywheel effect) that drives data-driven innovation.

The ecosystem relationship is maintained through:

• Cross-selling digital tools (like Afya Whitebook) to alumni.
• Providing a continuous journey from student to practicing physician.
• Integrating content and technology for medical education.

Direct sales teams for B2B clinical management solutions

While the Medical Practice Solutions are largely self-service for individual physicians (Business-to-Physician or B2P), the acquisition of larger clients for clinical management software, which are B2B relationships, requires a direct sales effort. The company reported an increase in Clinical Management active payers in 9M 2025, indicating success in this direct-sales channel. This is where a sales team closes the deal with a clinic or hospital for software like iClinic, ensuring a high-value, recurring revenue stream.

Here's the quick math on the user base, showing the scale of each relationship type:

Customer Segment	Relationship Type	Users (Q3 2025)	Revenue Driver
Undergraduate	High-Touch, Personalized, Long-Term	25,706 Students	Tuition Fees (Avg. R$9,141 monthly ticket)
Continuing Education	Dedicated Support, B2B/B2P	50,317 Students	Course/Program Fees, B2B Contracts
Medical Practice Solutions	Digital, Self-Service/Automated, Direct Sales (B2B)	228 thousand MAU	Subscription Revenue (B2P/B2B)
Total Ecosystem Users	Community	303,964 Users	Network Effects, Retention, Cross-Selling

Afya Limited (AFYA) - Canvas Business Model: Channels

You're looking for a clear map of how Afya Limited reaches and serves its vast ecosystem of medical professionals and students, and the answer is a powerful dual-channel strategy: a physical network of medical schools coupled with a deep, integrated digital platform. This blend is what drives their market leadership in Brazil.

Afya's channels aren't just delivery mechanisms; they are interconnected touchpoints that capture the user across their entire medical career journey, from undergraduate education all the way through clinical practice. This integrated approach is defintely the key to their high-margin, sticky revenue model.

Physical medical school campuses for undergraduate and graduate programs

The core channel remains the physical campus network, which is the primary driver for undergraduate and graduate tuition revenue. As of November 7, 2025, Afya has a total of 3,753 approved medical seats, reinforcing its position as a leading medical education group in Brazil.

The strength of this channel is its capacity utilization. Afya consistently reports a successful intake cycle, which means they maintain full occupancy across their medical schools, a critical metric for a capital-intensive business. For the nine months ended September 30, 2025, the Undergraduate segment had 25,706 total students. That's a huge, stable revenue base.

Here's the quick math on the core educational reach:

• Total Approved Medical Seats (Nov 2025): 3,753
• Undergraduate Students (9M25): 25,706
• Continuing Education Students (9M25): 50,317

Digital platforms and mobile apps (Afya Whitebook, Afya iClinic)

The digital channel is where Afya extends its value proposition beyond the classroom, transforming into a medical practice solutions provider. This segment is comprised mainly of the Afya Whitebook and Afya iClinic platforms, which serve as the distribution point for clinical decision support and practice management software, respectively.

This channel is a major source of recurring revenue from practicing physicians (Business to Physicians or B2P). For the nine months ended September 30, 2025, the B2P revenue was R$114.081 million. The platform's reach is substantial, with a total of 227,941 Monthly Active Users (MaU) in Medical Practice Solutions as of the end of Q3 2025. That's a massive funnel for upselling new digital tools.

Online learning management systems for Continuing Education

The Continuing Education channel uses online learning management systems to deliver specialized courses and residency preparation materials. This is a crucial channel for retaining graduates and capturing an ongoing share of their professional development spend. As of September 30, 2025, this segment served 50,317 students.

This channel is also where Afya sees impressive growth in its B2B revenue, which is a key strategic focus. The digital infrastructure here is designed for scale, allowing for high enrollment numbers without the physical capacity constraints of the undergraduate segment.

Direct sales force to hospitals and clinics for B2B solutions

While B2P revenue flows through the digital apps, a dedicated direct sales force handles the Business to Business (B2B) solutions, targeting hospitals, clinics, and other institutions. This is a high-touch channel for larger, more complex contracts, such as institutional training or enterprise software deployments.

The B2B channel revenue, which is distinct from B2P, reached R$14.111 million for the nine months ended September 30, 2025. This sales channel is critical for strategic partnerships and for embedding Afya's solutions deeper into the Brazilian healthcare system. It's a lower volume, higher value channel, so its revenue contribution is smaller but strategically important.

Here is a summary of the digital channel performance for the nine months ended September 30, 2025:

Metric	Value (9M25)	Channel Type
Medical Practice Solutions Monthly Active Users (MaU)	227,941	Digital Platforms/Mobile Apps
Revenue - Business to Physicians (B2P)	R$114.081 million	Digital Platforms/Mobile Apps
Revenue - Business to Business (B2B)	R$14.111 million	Direct Sales Force
Total Users Positively Impacted by Afya Ecosystem	~304 thousand	All Channels Combined

Institutional marketing for student recruitment

This channel acts as the engine for the physical campuses, managing the intake process for undergraduate and graduate programs. The marketing efforts are highly specialized, focusing on attracting top candidates for medicine and other health-related courses.

The success of this institutional channel is evidenced by the fact that Afya consistently achieves full occupancy in its medical schools, demonstrating effective brand positioning and recruitment strategies. This channel's efficiency directly impacts the top-line Undergraduate tuition revenue, which is the largest segment of the business. You need to watch this metric carefully; if onboarding takes 14+ days, churn risk rises.

Afya Limited (AFYA) - Canvas Business Model: Customer Segments

You're looking for a clear map of who Afya Limited actually serves, and the answer is simple: they target the entire lifecycle of a physician in Brazil, from the moment they start school to their daily practice. This integrated approach creates a highly predictable, multi-layered customer base, which is why their ecosystem reached approximately 304 thousand users as of the third quarter of 2025 (Q3 2025).

Afya's customer segments are intentionally designed to capture value at every stage, minimizing churn risk by offering new services as their users' needs change. Honestly, this end-to-end model is the defintely the core of their business moat.

Undergraduate medical and health sciences students

This is Afya's foundational segment, providing the stable, high-margin revenue stream. As of the first half of 2025 (1H25), the company served 25,733 total medical school students, a substantial 13.6% increase year-over-year. The demand is robust, with Afya maintaining 100% occupancy across all its medical programs.

The company focuses on expanding its approved capacity; for example, in November 2025, they received authorization to add 100 medical school seats at the ITPAC Porto campus, bringing their total approved seats to 3,753. This segment also includes students in other health sciences and ex-health undergraduate programs, but the medical students are the primary revenue driver.

Practicing physicians seeking continuing medical education (CME)

This segment captures the physician after graduation, offering specialized training to advance their careers. The Continuing Education segment, which includes graduate programs and Continuing Medical Education (CME) courses, had 45,505 total students as of June 30, 2025. This number is critical because it represents a recurring revenue stream from professionals who need to stay current.

Afya also targets this group with its digital content. The Continuing Education segment's revenue grew by 11% in the first nine months of 2025 (9M25), reaching R$208 million, which shows strong monetization of this lifelong learning journey.

Medical residency prep students

Residency preparation is a crucial, high-stakes milestone for medical students, and Afya serves this need through its specialized prep courses. These students are often recent graduates or those in their final years of medical school, creating a natural cross-sell opportunity from the Undergraduate segment.

This group falls under the broader Continuing Education umbrella, which is focused on the 'graduate journey' and had a significant increase in students in 9M25. Afya's integrated ecosystem allows them to support students effectively in their preparation for exams like ENAMED, reinforcing their leadership in delivering outcomes-based learning.

Healthcare professionals needing medical practice solutions

This is the core of Afya's digital services segment, where they provide tools for individual doctors (Business-to-Physician or B2P) to improve clinical efficiency. This includes clinical decision support software like Afya Whitebook, a reference tool for doctors at the point of care.

As of June 30, 2025, Afya reported 159,373 active payers for its Clinical Decision solutions. These active payers are typically individual physicians subscribing to the service, showing a vast digital reach among practicing doctors in Brazil. Another report indicates the digital platform is used by 350,000 doctors (as of August 2025), which highlights the massive user base for their digital products.

B2B clients (hospitals, clinics) for clinical management software

The final segment is the institutional client, where Afya provides clinical management software (like iClinic) to optimize the operations of healthcare facilities. This is a B2B (Business-to-Business) model, though some clinical management revenue, specifically from the Shosp platform, has been reclassified to B2P.

The Clinical Management segment had 36,685 active payers as of June 30, 2025, representing a 9.8% growth in this critical area. This growth demonstrates the successful expansion into the operational side of healthcare. Furthermore, the Continuing Education segment saw its B2B revenue increase by a massive 65% in 9M25, indicating strong traction with institutional partners.

Here's the quick math on the key customer segments and their scale as of late 2025:

Customer Segment	Key Metric / Product	2025 Fiscal Data (Latest Available)
Undergraduate medical and health sciences students	Total Medical School Students (1H25 End of Period)	25,733
Practicing physicians seeking CME & Medical residency prep students	Total Continuing Education Students (1H25 End of Period)	45,505
Healthcare professionals needing medical practice solutions	Clinical Decision Active Payers (1H25 End of Period)	159,373
B2B clients (hospitals, clinics) for clinical management software	Clinical Management Active Payers (1H25 End of Period)	36,685 (9.8% YoY growth)
Total Ecosystem Reach	Users Positively Impacted by Afya (Q3 2025)	~304 thousand

What this estimate hides is the overlap; a student preparing for residency is counted in Continuing Education, but might also be using the Clinical Decision software. Still, the total ecosystem number of 304 thousand users gives you a clear sense of the overall scale.

The core of the strategy is to move customers through the following lifecycle:

• Enroll in an Undergraduate medical program.
• Transition to a Residency Prep course.
• Subscribe to Clinical Decision software (e.g., Afya Whitebook) as a practicing doctor.
• Adopt Clinical Management software (e.g., iClinic) for their private practice or clinic.

Finance: draft a revenue-per-user cohort analysis for all 2025 digital segment customers by Friday.

Afya Limited (AFYA) - Canvas Business Model: Cost Structure

High Fixed Costs: Faculty and Infrastructure

Afya Limited's cost structure is fundamentally anchored by significant fixed costs, a reality for any large-scale education provider. You have to pay the best doctors to teach, and they don't come cheap. These costs are primarily tied to faculty salaries-the core asset of a medical education business-and the extensive campus infrastructure required for medical schools. Because the number of medical seats is regulated, this fixed cost base gives Afya enormous operating leverage (the ability to grow revenue faster than costs) as student enrollment increases toward full capacity in each campus.

The cost with faculty, which includes the amount paid to teachers and doctors, is a key assumption in the company's valuation models, reflecting its non-negotiable nature. This fixed base is what allows Afya to achieve high margins once a campus matures.

Acquisition Costs for New Schools: The M&A Engine

A major component of Afya's costs is the strategic acquisition of smaller medical schools, which is their primary growth engine. This is a capital-intensive cost, but it's essential for quickly adding regulatory-approved medical seats. The recent acquisition of Faculdade Única de Contagem (FUNIC) is a perfect, concrete example of this cost in action.

The aggregate purchase price for FUNIC was R$100 million, net of estimated Net Debt. This wasn't a one-time cash outlay, which is important for your cash flow view. Here's the quick math on the payment structure:

• Initial Cash Payment: R$60 million paid in cash at the closing date (May 7, 2025).
• Deferred Payments: R$40 million to be paid in three annual installments, adjusted by the Brazilian interbank interest rate (CDI).
• Contingent Consideration: An additional payment of R$1 million per granted seat for up to 60 additional medical school seats, if approved by the Ministry of Education (MEC) within 36 months of closing.

Capital Expenditures (CAPEX) for Growth

Afya has a very clear investment plan for its physical assets, which is a near-term, actionable cost item. For the full 2025 fiscal year, the company has guided its Capital Expenditures (CAPEX) to be between R$250 million and R$290 million. This spending is focused on expanding and maintaining existing campuses, plus preparing for new ones.

What this estimate hides is the cost of new campus openings tied to government programs like Mais Médicos (More Doctors). To be fair, those costs are not included in the main guidance because they are contingent on winning bids. However, management uses a proxy of approximately R$25 million per new location for the investment required to open a new campus, which gives you a clear sense of the potential cost per new site.

Cost Component	2025 Guidance/Value	Purpose/Action
Full-Year CAPEX	R$250 million to R$290 million	Maintenance, expansion, and preparation of existing campuses.
FUNIC Acquisition Price	R$100 million (Aggregate)	Adding 60 medical school seats and expanding footprint.
FUNIC Cash Payment (May 2025)	R$60 million	Immediate cash outlay for the acquisition.
New Campus Opening Proxy (Mais Médicos)	~R$25 million per location	Estimated investment for a single new medical school site.

Selling, General, and Administrative (SG&A) Efficiency

You're seeing a strong focus on managing Selling, General, and Administrative (SG&A) expenses, which is the key to their margin expansion. The company's strategy here is all about centralizing costs to make the whole operation more efficient. This is defintely where the 'synergies' come from after an acquisition.

This improved cost efficiency in SG&A, driven by restructuring initiatives in the Continuing Education and Medical Practice Solutions segments, helped boost the Adjusted EBITDA Margin by 200 basis points for the nine-month period ended September 30, 2025. That's a powerful result.

Operational Synergies and Shared Services Center

The shared services center is the operational tool Afya uses to minimize redundant costs across its portfolio of acquired schools. It centralizes back-office functions-like finance, HR, and IT-which helps to unlock operational synergies. This centralization directly contributes to the improved cost management seen across SG&A expenses.

The goal is to integrate a newly acquired school, like FUNIC, quickly into this shared service model, thus driving down its standalone operating costs and boosting the overall group's efficiency. This is a clear, repeatable process that converts an acquisition cost into long-term operational savings.

Afya Limited (AFYA) - Canvas Business Model: Revenue Streams

The core of Afya Limited's revenue model is anchored in high-value, predictable tuition fees from its medical education segment, but the real momentum-the growth engine-is coming from its digital, subscription-based services and a massive B2B push in Continuing Education.

You're looking at a company with a clear financial trajectory, with the full-year 2025 Net Revenue guided to be between R$ 3,670 million and R$ 3,770 million. This confidence is grounded in the strong performance seen in the first nine months of the year (9M25), where total revenue hit R$ 2,784.3 million. That's a defintely solid foundation.

Tuition fees from Undergraduate and Continuing Education programs (main driver)

Tuition fees are the undisputed main driver, providing the bulk of the company's revenue and high predictability, thanks to the long duration and high demand for medical courses in Brazil. The Undergraduate segment, which includes medicine and other health-related courses, is the financial backbone.

Here's the quick math: in the first quarter of 2025, the Undergraduate segment accounted for 88.36% of the total net revenue, illustrating its dominance. This revenue growth is fueled by two key factors: higher tickets (tuition prices) for medicine courses and the continued maturation of newly opened medical school seats.

The Continuing Education segment also contributes through tuition for specialization and graduate courses. This is a crucial part of the physician's career journey, and Afya is capturing that value.

Subscription and service fees from Medical Practice Solutions (Afya Whitebook)

This is where the ecosystem play comes in. Afya Limited earns recurring, subscription-based revenue from its Medical Practice Solutions segment, which is primarily composed of Afya Whitebook and Afya iClinic.

These solutions are essentially digital tools-like clinical management software and point-of-care medical content-that physicians use daily, making the revenue sticky. The growth here is directly tied to the expansion of active payers within Clinical Management, meaning more doctors are paying for the services to improve their daily practice.

B2B revenue growth in Continuing Education (up 65% in 9M25)

The most impressive growth signal is the B2B (Business-to-Business) revenue within Continuing Education. This segment is exploding, showing a staggering 65% increase in B2B revenue over the nine-month period ended September 30, 2025 (9M25). This growth indicates successful penetration into corporate and institutional clients for professional development and training.

The Continuing Education segment's total revenue reached R$ 208 million in 9M25, reflecting an overall growth of almost 11% year-over-year, with the B2B component being the clear accelerator. This is a strategic shift to diversify revenue beyond the direct-to-consumer tuition model.

Full-year 2025 Net Revenue guided between R$3,670 million and R$3,770 million

The reaffirmed full-year 2025 guidance for Net Revenue is a strong indicator of management's confidence in the stability of the education base and the growth of the digital platforms. This range, R$ 3,670 million to R$ 3,770 million, suggests predictable, high-quality earnings, primarily from tuition, which is less susceptible to economic volatility.

What this estimate hides is the seasonality of the business; the first half of the year typically sees higher revenue due to tuition intake cycles. Still, the full-year target is a clear benchmark for performance.

Adjusted EBITDA margin expansion, reaching 46.4% in 9M25

The quality of these revenue streams is best reflected in the profitability. For the nine months ended September 30, 2025, the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin expanded by 200 basis points year-over-year, reaching a robust 46.4%.

This expansion is a direct result of operational efficiency, specifically:

• Higher gross margin in the Undergraduate and Continuing Education segments.
• Restructuring initiatives within Continuing Education and Medical Practice Solutions.
• Improved efficiency in Selling, General, and Administrative expenses.

A 46.4% margin tells you this is a business with significant operating leverage.

Financial Metric (9M25)	Amount (R$ million)	YoY Growth / Margin	Revenue Stream Implication
Net Revenue (9M25)	R$ 2,784.3	13.4% Growth	Overall strength of tuition and digital streams.
Adjusted EBITDA (9M25)	R$ 1,291.7	18.5% Growth	High profitability from core education business.
Adjusted EBITDA Margin (9M25)	-	46.4% Margin	Significant operating leverage and cost control.
Continuing Education B2B Revenue Growth (9M25)	-	65% Growth	Success in diversifying into institutional/corporate clients.
Full-Year 2025 Net Revenue Guidance (Range)	R$ 3,670 to R$ 3,770	-	Predictable, reaffirmed revenue outlook.