Afya Limited concluded the first half of 2026 with a robust financial performance, marked by significant growth in key areas. The company's total revenue reached BRL 1.985 billion, representing a 7% increase compared to the previous year. This impressive growth was primarily fueled by strong pricing trends within its medical courses and the increasing enrollment in health science programs. Adjusted EBITDA also saw a 3% rise, reaching BRL 918 million, although the adjusted EBITDA margin experienced a slight contraction to 46.2% due to ongoing strategic investments in medical practice solutions and heightened marketing efforts. Net income improved by 7% year-over-year, totaling BRL 463 million, while basic earnings per share (EPS) climbed by 9% to BRL 5.10, reflecting the positive impact of the company’s share buyback initiative. Operational highlights include a 6% increase in active medical seats, totaling 3,768, and a 3% growth in undergraduate medical students, exceeding 26,000. The average tuition fee for medical schools rose by 4% to BRL 9,443. Furthermore, the continued education segment reported BRL 144 million in revenue, a 5% increase, driven by a 23% expansion in its student base. In medical practice solutions, revenue grew 2% to BRL 85 million, with active clinical management payers increasing by 20% to over 50,000, primarily due to the deeper penetration of the iClinic platform. Despite these gains, monthly active users declined by 8% to 212,000, partly attributed to competition from artificial intelligence in clinical decision-making tools. Afya also demonstrated a strong commitment to shareholder returns, distributing BRL 448 million through dividends and share repurchases, which amounted to 106% of its free cash flow to equity, emphasizing a disciplined capital allocation strategy.
Looking ahead, Afya is strategically addressing challenges and capitalizing on growth opportunities. The company acknowledges competitive pressures from AI tools in clinical decision support products, such as Whitebook, which are impacting the number of payers. In response, Afya is adjusting pricing for individual tools while integrating more functionalities into its broader practice management platforms like iClinic, aiming to enhance audience engagement and future revenue recovery. Management reaffirmed its full-year 2026 adjusted EBITDA guidance of BRL 1.7 billion to BRL 1.8 billion, showcasing confidence in its operational strategy. Capital expenditure guidance for the year remains between BRL 340 million and BRL 380 million, with an anticipated acceleration in spending during the second half, particularly in intangible assets to boost AI features and physician engagement. A notable positive adjustment of BRL 20 million to the tax provision followed new regulatory clarifications regarding the Pillar Two global minimum tax, contributing to an effective tax rate of approximately 10% for the full year. Regarding regulatory matters, a recent injunction temporarily lifted restrictions on certain medical school seats, although its impact on current year enrollments is expected to be minimal given the advanced stage of the intake process. The company maintains a healthy capital structure with a gross debt of BRL 2.4 billion, down from BRL 2.7 billion in June 2025, and a net debt to EBITDA leverage of 0.8x. This strong financial position allows Afya to pursue strategic acquisitions that meet its strict return criteria while consistently rewarding shareholders.
Afya's consistent performance underscores its resilience and strategic foresight in navigating a dynamic healthcare education and technology landscape. By continuously investing in its core medical education offerings, embracing digital transformation, and intelligently allocating capital, Afya is not only securing its market leadership but also contributing significantly to the advancement of healthcare professionals in Brazil. The company's commitment to innovation and shareholder value creation positions it for sustained long-term success, fostering a positive impact on the medical ecosystem.
