Afya (NASDAQ:AFYA) Announces Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Afya reported Q1 EPS of $0.55, beating consensus by $0.01 with revenue of $194.96M topping estimates; the company posted BRL1.013bn in revenue (+8%), adjusted EBITDA BRL511m (50.5% margin), free cash flow BRL376m and net cash BRL1.3bn, and Moody’s reaffirmed an Aaa rating.
• Adjusted EBITDA margin contracted ~200 bps YoY as higher costs, payroll and sales & marketing reflect investments into Continuing Education and Medical Practice Solutions, which produced mixed results (iClinic usage up but Whitebook engagement and payers down) with management expecting monetization gains to materialize more by 2027.
• Shares traded down to $13.91 after the release; the company paid a $0.656 annual dividend (article cites a 433.0% yield), insiders sold 123,547 shares (~$1.85M) recently, and analysts’ consensus is a "Hold" with an average target of $17.20.

Afya (NASDAQ:AFYA - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.01, FiscalAI reports. The company had revenue of $194.96 million during the quarter, compared to the consensus estimate of $192.95 million. Afya had a return on equity of 18.77% and a net margin of 20.31%.

Here are the key takeaways from Afya's conference call:

• Strong Q1 results — revenue up 8% to BRL 1.013bn, adjusted EBITDA up 4% to BRL 511m (50.5% margin), free cash flow BRL 376m and net cash of BRL 1.3bn; Moody’s reaffirmed Afya’s Aaa rating.
• Adjusted EBITDA margin contracted by ~200 bps YoY, driven by higher costs and elevated payroll, sales and marketing as the company invests in Continuing Education and Medical Practice Solutions.
• Undergraduate momentum — operating medical school seats +6% to 3,768, med students +2% to ~26k, and net average ticket for medicine +5% to BRL 9,634; non‑medical health undergrad programs grew ~20% organically.
• Continuing Education posted an 11% revenue increase to BRL 79m with record B2B revenue (BRL 74m) and a 57k student base, highlighting strong product engagement and commercial traction.
• Medical Practice Solutions is mixed — revenue +4% to BRL 43m and iClinic usage rising, but Whitebook saw active payers down 1% and monthly active users down 10%; management expects audience and monetization gains to materialize more in 2027 as platform and AI investments mature.

Afya Stock Performance

Shares of Afya stock traded down $0.31 on Thursday, hitting $13.91. The stock had a trading volume of 68,770 shares, compared to its average volume of 79,294. The stock has a market cap of $1.30 billion, a price-to-earnings ratio of 9.53, a P/E/G ratio of 0.95 and a beta of 0.36. Afya has a 52-week low of $13.00 and a 52-week high of $19.90. The company's 50 day moving average price is $14.56 and its 200 day moving average price is $14.64. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 0.41.

Afya Dividend Announcement

The company also recently announced an annual dividend, which was paid on Monday, April 6th. Stockholders of record on Wednesday, March 25th were issued a $0.656 dividend. This represents a dividend yield of 433.0%. The ex-dividend date of this dividend was Wednesday, March 25th. Afya's payout ratio is presently 45.21%.

Insider Transactions at Afya

In related news, VP Lelio De Souza Junior sold 26,753 shares of the business's stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $14.95, for a total value of $399,957.35. Following the transaction, the vice president owned 16,279 shares in the company, valued at $243,371.05. The trade was a 62.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Luis Andre Carpintero Blanco sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $15.20, for a total value of $152,000.00. Following the transaction, the chief financial officer owned 51,103 shares in the company, valued at $776,765.60. The trade was a 16.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 123,547 shares of company stock worth $1,854,920 over the last three months. 0.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Afya

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Daiwa Securities Group Inc. acquired a new position in Afya during the 4th quarter worth approximately $43,000. Militia Capital Partners LP acquired a new position in Afya during the 2nd quarter worth approximately $71,000. Quantbot Technologies LP acquired a new position in Afya during the 2nd quarter worth approximately $117,000. State of Wyoming acquired a new position in Afya during the 2nd quarter worth approximately $164,000. Finally, Van ECK Associates Corp increased its position in Afya by 15.7% during the 3rd quarter. Van ECK Associates Corp now owns 10,170 shares of the company's stock worth $159,000 after purchasing an additional 1,377 shares during the period. Institutional investors and hedge funds own 88.02% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on AFYA shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Afya in a report on Monday, April 20th. Sanford C. Bernstein raised Afya to a "market perform" rating in a report on Friday, January 16th. JPMorgan Chase & Co. decreased their price target on Afya from $22.00 to $21.50 and set a "neutral" rating for the company in a report on Thursday, April 30th. UBS Group reaffirmed a "neutral" rating and set a $16.00 price target (down from $18.00) on shares of Afya in a report on Friday, January 16th. Finally, Bank of America downgraded Afya from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $22.00 to $17.00 in a report on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $17.20.

Afya Company Profile

Afya Ltd. operates as a leading provider of medical education and training services in Brazil. The company offers a comprehensive suite of educational programs that span undergraduate medical degrees, residency exam preparation, continuing medical education (CME) and digital learning platforms. Through a network of partner institutions and its own campus operations, Afya supports students at every stage of the medical training continuum, from enrollment in medical schools to ongoing professional development for practicing physicians.

At the core of Afya's offerings is its undergraduate medical program, delivered through a combination of in-person courses at affiliated campuses and fully digital curricula.

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