Solid Start to 2026 with Disciplined Execution
Shareholder Value Creation
BELO HORIZONTE, Brazil--(BUSINESS WIRE)--May 07, 2026--
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 first quarter and three-month period ended March 31, 2026. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
First Quarter 2026 Highlights
-- 1Q26 Revenue increased 8.2% YoY to R$1,012.7 million. Revenue excluding
acquisitions increased 7.7%, reaching R$1,008.4 million.
-- 1Q26 Adjusted EBITDA increased 4.0% YoY, reaching R$511.4 million, with
an Adjusted EBITDA Margin of 50.5%. Adjusted EBITDA Margin decreased -200
bps YoY. Adjusted EBITDA excluding acquisitions grew 3.7%, reaching
R$510.4 million, with an Adjusted EBITDA Margin of 50.6%.
-- 1Q26 Net Income increased 1.8% YoY, reaching R$261.8 million. Basic EPS
growth was 3.0% in the same period.
-- Operating Cash Conversion ratio of 92.5% and a Free Cash Flow of
R$376.0 million, with a solid cash position of R$1,332.9 million.
-- Over 304 thousand users in Afya's ecosystem.
Table 1:
Financial
Highlights
--------- ------------- ------- ----- ------------
For the three months period ended March 31,
------------------------------------------------------
(in thousand of 2026 Ex % Chg Ex
R$) 2026 Acquisitions* 2025 % Chg Acquisitions
---------------- --------- ------------- ------- ----- ------------
(a) Revenue 1,012,712 1,008,373 936,360 8.2% 7.7%
---------------- --------- ------------- ------- ----- ------------
(b) Adjusted
EBITDA (1) 511,419 510,352 491,971 4.0% 3.7%
---------------- --------- ------------- ------- ----- ------------
(c) = (b)/(a)
Adjusted EBITDA -200
Margin 50.5% 50.6% 52.5% bps -190 bps
---------------- --------- ------------- ------- ----- ------------
Net income 261,763 - 257,036 1.8% -
---------------- --------- ------------- ------- ----- ------------
Basic Earnings
per Share - in
R$ 2.88 - 2.79 3.0% -
---------------- --------- ------------- ------- ----- ------------
*For the three months period ended March 31, 2026, "2026 Ex
Acquisitions" excludes: FUNIC (January to March, 2026; Closing of FUNIC
was in May 2025).
(1) See more information on "Non-GAAP Financial Measures" (Item 08).
Message from Management
We begin 2026 with another quarter of solid execution, reflecting the consistency of our operating model and our ability to combine growth and cash generation while continuing to invest in Afya's long-term strategic priorities. In the first quarter, our performance was once again supported by the strength of our Undergraduate segment, disciplined capital allocation and continued progress in expanding our physician-centric ecosystem.
During the quarter, we completed another successful intake cycle across our medical schools, maintaining 100% occupancy and achieving a 4.6% YoY increase in Medical School net average ticket, excluding acquisitions. This performance was supported by the strength of our academic offering, the effectiveness of our unified intake process, and the continued recognition of the Afya brand across Brazil. Revenue growth in the period also benefited from the continued maturation of medical seats and the contribution from recent seat authorization, and the acquisition of FUNIC. Our integrated model remains a key differentiator, helping us attract students and sustain efficient growth across our campuses
In Continuing Education and Medical Practice Solutions, we continued to advance the next phase of our strategy during the quarter. Both segments reflected higher investment levels, mainly in SG&A, product development and engagement initiatives. These investments are part of a broader strategic cycle aimed at strengthening Afya's ecosystem and unlocking scalable long-term monetization. As our audience and engagement expand, we also reinforce our data advantage, improve users' experience, and build stronger foundations for future B2P and B2B opportunities. At the same time, this more integrated ecosystem continues to support a structurally low customer acquisition cost in Undergraduate, reinforcing an important competitive advantage of our business model. In Continuing Education, this progress was reflected in the growth of Graduate Journey students and B2P revenue growth. In Medical Practice Solutions, we highlight the increase in Clinical Management active payers, together with B2B revenue growth
Our capital allocation remained disciplined throughout the quarter. We further reduced leverage, reinforcing the quality of our capital structure while advancing our strategic priorities and returning value to shareholders. Consistent with this approach, we continued to execute our share repurchase program authorized in 2025, which provides for the repurchase of up to 4,000,000 Class A common shares through December 31, 2026. Since the launch of the program, we have already repurchased over 50% of the total amount authorized. In addition, in March 2026, our Board of Directors approved a cash dividend of R$307.4 million, equivalent to 40% of Afya's 2025 consolidated net income, corresponding to a dividend amount of US$0.656489 per share. Taken together, these actions underscore our commitment to prudent capital allocation, shareholder remuneration, and long-term value creation.
Looking ahead, we remain focused on executing with consistency, strengthening our ecosystem, and reinforcing Afya's role as the partner of choice for physicians in Brazil. We believe that our disciplined investment cycle, combined with the strength of our balance sheet, positions us well to deepen engagement across the physician journey, support sustainable growth, and create long-term value for our shareholders.
1. Key Events in the Quarter
-- On February 6, 2026, MEC authorized an increase of 63 medical seats for
ITPAC -- Instituto Tocantinense Presidente Antonio Carlos Porto S.A.
("Afya Abaetetuba"), located in the city of Abaetetuba, in the state of
Pará. With this authorization, Afya's Abaetetuba campus will offer a
total of 113 medical seats.
As Afya Cametá--an approved but, non-operating medical school--and Afya Abaetetuba are located within the same health region, Afya Cametá will not become operational, thereby creating the capacity that enabled the approval of 63 additional medical seats at Afya Abaetetuba. With this addition, Afya now has a total of 3,768 approved medical seats across its portfolio.
-- On March 12, 2026, the Company's Board of Directors approved dividend
distribution in the amount of R$307.4 million, representing 40% of the
Company's consolidated net income for the year ended December 31, 2025
and a dividend per share of R$3.446838, paid in U.S. dollars on April 6,
2026, to the shareholders on record as of the close of business on March
25, 2026. The payment was made at the exchange rate (PTAX) published by
the Brazilian Central Bank on March 13, 2026.
2. Subsequent Events
-- On May 5, 2026, Moody's reaffirmed Afya's credit rating at AAA.br and
maintained a stable outlook. The reaffirmation of Afya's AAA.br rating
and stable outlook reflects revenue growth, a track record of
above-industry-average margins, very strong credit metrics, exceptional
cash generation, and robust liquidity. In addition, Afya's credit profile
reflects a strong competitive position and a predictable financial policy,
including proactive liability management and prudent capital allocation,
despite its appetite for M&As.
3. 2026 Guidance
The Company is reaffirming its 2026 guidance, which assumes the successful acceptance of new students for the first semester of 2026. The guidance for 2026 is defined in the following table:
Guidance for 2026(1)
---------------------------- ----------------------------------------------
Revenue R$ 3,950 mn <= <= R$ 4,100 mn
---------------------------- ----------------------------------------------
Adjusted EBITDA R$ 1,700 mn <= <= R$ 1,800 mn
---------------------------- ----------------------------------------------
CAPEX R$ 340 mn <= <= R$ 380 mn
---------------------------- ----------------------------------------------
(1) Excludes any acquisition that may be concluded after the issuance of the
guidance.
4. 1Q26 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 provide access, demand and efficiency for the healthcare players.
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