AFYA · Afya Limited

Afya’s Q1 2026 financial results reflect continued operational scale and disciplined execution: revenue grew 8.2% year-over-year to R$1,012.7 million, supported by organic enrollment growth and the contribution from newly acquired institutions. Gross profit expanded to R$698.1 million (68.9% margin), while SG&A expenses rose proportionally to R$287.7 million, maintaining cost discipline. Net income grew 1.8% to R$261.8 million, with diluted EPS increasing to R$2.85 — consistent with modest margin pressure from higher finance expenses (R$147.6 million vs. R$138.5 million) partially offset by improved operating income. The acquisition of FUNIC — a strategic addition of 60 medical school seats in Minas Gerais — aligns with Afya’s consolidation strategy in Brazil’s regulated medical education market and was accounted for as an asset acquisition under IFRS 3, given concentration of fair value in licenses. Strong operating cash flow of R$466.8 million funded both growth investments (R$109.8 million in capex and intangibles) and shareholder returns (R$69.5 million in treasury stock repurchases and R$309.9 million in dividends declared). The balance sheet remains robust, with cash rising to R$1.33 billion and leverage stable — total liabilities were R$4.84 billion against R$4.79 billion equity. No forward guidance is disclosed in the filing, and management commentary focuses on integration progress rather than outlook revisions.