AFYA · Afya Limited

Afya’s Q1 2026 results reflect disciplined execution against a backdrop of strategic investment, delivering solid top-line growth while absorbing margin pressure from deliberate expansion in high-potential segments. Revenue growth of 8.2% YoY was underpinned by the Undergraduate segment’s structural advantages — 100% medical school occupancy, a 4.6% YoY increase in net average ticket (ex-acquisitions), and incremental contributions from newly authorized seats and the FUNIC acquisition. However, Adjusted EBITDA margin declined 200 bps to 50.5%, explicitly attributed to higher payroll, sales, marketing, and product development expenses in Continuing Education and Medical Practice Solutions — investments management describes as part of a 'broader strategic cycle' to strengthen the physician-centric ecosystem and unlock scalable B2P/B2B monetization. Net income growth lagged revenue and EBITDA at just 1.8% YoY, constrained by a 71.3% YoY increase in income tax expense and elevated non-recurring items, including restructuring and M&A integration costs. The reaffirmation of full-year guidance — particularly the R$1.7–1.8 billion Adjusted EBITDA range — signals confidence that current investments will yield operating leverage later in the year. Capital allocation remains highly shareholder-friendly: the R$307.4 million dividend represents 40% of 2025 net income and was paid in USD, while over half of the 4-million-share buyback authorization has already been executed. With R$1.33 billion in cash and Moody’s AAA.br rating reaffirmed with stable outlook, Afya maintains exceptional financial flexibility to fund both organic growth and targeted M&A without compromising balance sheet strength.