Afya Ltd (AFYA): Financial results for Q3 2026
Afya Ltd (AFYA) furnished an SEC Form 6-K — earnings release. Afya Limited Announces Third Quarter and Nine Months 2026 Financial Results Strong Cash Conversion and Continued Earnings Growth Full-Year 2026 Guidance Reaffirmed Belo Horizonte, Brazil, November 12, 2026 – Afya Limited (Nasdaq: AFYA; B3: A2FY34) (“Afya” or the “Company”), the l
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial metrics and confirms guidance, offering a basis for short‑term trading decisions.
Market read
Afya's earnings and merger announcement are the primary drivers of relevance for this article.
What to watch
Currency fluctuations and Brazil's macro environment could impact future performance.
Afya Q3 2026: revenue up 6.1% to R$985,161 thousand and Adjusted EBITDA up 8.7%; 2026 guidance reaffirmed alongside the Yduqs merger agreement
Third-quarter revenue, Adjusted EBITDA, Adjusted EBITDA margin and net income all grew year over year, and Basic EPS rose 10.0%. Nine-month Adjusted EBITDA margin fell 90 bps, Continuing Education and Medical Practice Solutions revenue were broadly flat for nine months, and nine-month Free Cash Flow to Equity fell 13.4%. Full-year guidance was reaffirmed, not raised.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue (3Q26)GAAP | R$985.2M | – | 6.1% |
| Revenue (9M26)GAAP | R$2.97B | – | 6.7% |
| Revenue excluding acquisitions (9M26)GAAP | R$2.96B | – | 6.4% excluding acquisitions |
| Adjusted EBITDA (3Q26)non-GAAP | R$433.8M | – | 8.7% |
| Adjusted EBITDA Margin (3Q26)non-GAAP | 44.0% | – | 100 bps |
| Adjusted EBITDA (9M26)non-GAAP | R$1.35B | – | 4.6% |
| Adjusted EBITDA Margin (9M26)non-GAAP | 45.5% | – | -90 bps |
| Adjusted EBITDA excluding acquisitions (9M26)non-GAAP | R$1.35B | – | 4.5% excluding acquisitions |
| Adjusted EBITDA Margin excluding acquisitions (9M26)non-GAAP | 45.6% | – | -80 bps excluding acquisitions |
| Cost of services (3Q26)GAAP | −R$366.7M | – | – |
| Cost of services (9M26)GAAP | −R$1.05B | – | – |
| Gross profit (3Q26)GAAP | R$618.4M | – | – |
| Gross profit (9M26)GAAP | R$1.92B | – | – |
| Selling, general and administrative expenses (3Q26)GAAP | −R$306.2M | – | – |
| Selling, general and administrative expenses (9M26)GAAP | −R$880.2M | – | – |
| Allowance for expected credit losses (3Q26)GAAP | −R$11.25M | – | – |
| Allowance for expected credit losses (9M26)GAAP | −R$49.34M | – | – |
| Operating income (3Q26)GAAP | R$304.8M | – | – |
| Operating income (9M26)GAAP | R$996.3M | – | – |
| Net finance result (3Q26)GAAP | −R$106.9M | – | 7.4% |
| Net finance result (9M26)GAAP | −R$300.2M | – | 3.7% |
| Income before income taxes (3Q26)GAAP | R$200.8M | – | – |
| Income before income taxes (9M26)GAAP | R$708.3M | – | – |
| Income taxes expense (3Q26)GAAP | R$29.79M | – | 40.4% |
| Income taxes expense (9M26)GAAP | R$74.22M | – | 16.9% |
| Net income (3Q26)GAAP | R$171.0M | – | 7.2% |
| Net income (9M26)GAAP | R$634.0M | – | 6.9% |
| Basic EPS (3Q26)GAAP | R$1.88 | – | 10.0% |
| Basic EPS (9M26)GAAP | R$6.98 | – | 9.1% |
| Diluted EPS (3Q26)GAAP | R$1.88 | – | – |
| Diluted EPS (9M26)GAAP | R$6.95 | – | – |
| Operating Cash Conversion Ratio (9M26)non-GAAP | 99.5% | – | -200 bps |
| Net cash flows from operating activities (9M26)GAAP | R$1.23B | – | -3.5% |
| Cash Flow from Operating Activities (9M26)non-GAAP | R$1.33B | – | 3.2% |
| Free Cash Flow to Equity (3Q26)non-GAAP | R$205.6M | – | -30.1% |
| Free Cash Flow to Equity (9M26)non-GAAP | R$629.0M | – | -13.4% |
| CAPEX (9M26)other | R$215.7M | – | -28.8% |
| Dividends paid (9M26)GAAP | R$318.9M | – | 123.7% |
| Treasury shares repurchase (9M26)GAAP | R$140.3M | – | 1161.1% |
| Cash and cash equivalents (at September 30, 2026)GAAP | R$1.29B | – | 29.3% |
| Net Debt excluding IFRS 16 (at September 30, 2026)non-GAAP | R$1.20B | – | -10.6% |
| Medical school operating seats (nine months table)other | 3,785 | – | 5.1% |
| Medical school total students, end of period (3Q26)other | 26,398 | – | 2.7% |
| Medical school net average ticket excluding acquisitions (9M26, R$/month)other | 9,466 | – | 3.9% |
| Continuing Education total students, end of period (3Q26)other | 55,326 | – | 10.0% |
| Medical Practice Solutions monthly active users (3Q26)other | 218,717 | 3.1% | -4.0% |
| Users Positively Impacted by Afya (3Q26)other | 300,441 | 1.9% | -1.2% |
| Medical Practice Solutions total active payers (nine months table)other | 205,751 | – | 2.2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Undergraduate (3Q26)Filing does not give a segment-specific driver for the quarter; the Undergraduate growth is discussed for nine months. | R$879.8M | – | 7.6% |
| Undergraduate (9M26)Company states Undergraduate remained the main driver, supported by seat maturation, a 3.9% rise in Medical School net average ticket, and student base growth in Health Sciences (18.0%) and other undergraduate programs (10.6%). | R$2.64B | – | 7.4% |
| Undergraduate excluding acquisitions (9M26)Excludes FUNIC (January to May 2026) per the filing footnote. | R$2.63B | – | 7.1% excluding acquisitions |
| Medical School revenue (9M26)Company attributes continued strength of Medical Schools to a 3.9% increase in net average ticket and maturation of seats; ex-acquisitions revenue was R$2,245,678 thousand (6.3%). | R$2.25B | – | 6.6% |
| Undergraduate Health Science revenue (9M26)Average total students grew 18.0% per the Key Revenue Drivers table. | R$216.8M | – | 12.0% |
| Other ex-health undergraduate revenue (9M26)Average total students grew 10.6% per the Key Revenue Drivers table. | R$172.3M | – | 12.7% |
| Continuing Education (3Q26)Company states Continuing Education ended the quarter with 10.0% more students, supported by Graduate Journey and Other Courses, even with lower B2B revenue. | R$64.94M | – | -7.4% |
| Continuing Education (9M26)Company states revenue in both Continuing Education and Medical Practice Solutions remained broadly stable in the first nine months. | R$208.8M | – | 0.6% |
| Continuing Education B2P (9M26)Business to Physicians sub-line per Continuing Education table. | R$195.0M | – | 4.5% |
| Continuing Education B2B (9M26)Business to Business sub-line per Continuing Education table; filing notes lower B2B revenue. | R$13.84M | – | -34.1% |
| Medical Practice Solutions (3Q26)Filing does not give a segment-specific driver for the quarter. | R$42.98M | – | -2.7% |
| Medical Practice Solutions (9M26)Company states revenue remained broadly stable as it invested in scalable platforms and deeper physician engagement; Clinical Management active payers rose 19.6% while Clinical Decision fell 2.6%. | R$128.3M | – | 0.1% |
| Medical Practice Solutions B2P (9M26)Business to Physicians sub-line per Medical Practice Solutions table. | R$113.6M | – | -0.4% |
| Medical Practice Solutions B2B (9M26)Business to Business sub-line per Medical Practice Solutions table. | R$14.63M | – | 3.7% |
| Inter-segment transactions (3Q26)Elimination line; no driver stated. | −R$2.57M | – | -26.3% |
| Inter-segment transactions (9M26)Elimination line; no driver stated. | −R$9.09M | – | -15.5% |
FY2026 outlook
- RevenueR$ 3,950 mn ≤ ∆ ≤ R$ 4,100 mn
- NoteAdjusted EBITDA: R$ 1,700 mn ≤ ∆ ≤ R$ 1,800 mn
- NoteCAPEX: R$ 340 mn ≤ ∆ ≤ R$ 380 mn
- NoteReaffirmed in this release; assumes successful acceptance of new students for the second semester of 2026
- NoteExcludes any acquisition that may be concluded after the issuance of the guidance
Capital returns
- Company states it returned R$459.3 million to shareholders through dividends and share repurchases in the nine months of 2026.
- Nine-month dividends paid: R$318,945 thousand (prior year R$142,568 thousand).
- Nine-month treasury share repurchases: R$140,330 thousand (prior year R$11,128 thousand).
- Third-quarter dividends and share repurchases are shown in the reconciliation: dividends paid R$4,063 thousand and share repurchases R$7,319 thousand.
What drove it
- Company states Undergraduate remained the main driver, with full occupancy across Medical School programs in the intake cycle.
- Company attributes the nine-month growth to seat maturation, the rise in Medical School net average ticket, and expansion of the average student base in Health Sciences and other undergraduate programs.
- Company states the Adjusted EBITDA margin expansion in the quarter was primarily driven by higher gross margins in Undergraduate, partially offset by gross margin compression in Continuing Education and Medical Practice Solutions.
- Company states the nine-month Adjusted EBITDA margin decrease was primarily driven by lower gross margins in Continuing Education and Medical Practice Solutions associated with the ongoing investment cycle, and higher sales and marketing expenses.
- Company states the third-quarter Net Income increase mainly reflects operating performance, partially offset by higher net finance expenses and income tax expenses.
- Company states the nine-month Net Income increase reflects continued operating performance and a tax impact from the implementation of OECD Pillar Two rules in Brazil.
- Company states the higher growth in Basic EPS compared to Net Income reflects the impact of the share repurchase program.
- Approved medical school seats reached 3,785 after the authorization of 17 additional seats at AFYA Cruzeiro do Sul on September 18, 2026.
Concerns
- Nine-month Adjusted EBITDA margin fell 90 bps to 45.5%; the filing attributes this to lower gross margins in Continuing Education and Medical Practice Solutions and higher sales and marketing expenses.
- Nine-month Free Cash Flow to Equity fell 13.4% to R$628,974 thousand, and third-quarter Free Cash Flow to Equity fell 30.1% to R$205,551 thousand.
- Continuing Education B2B revenue fell 34.1% for nine months to R$13,838 thousand.
- Net finance result expense rose 7.4% in the quarter and 3.7% in nine months, and income tax expense rose 40.4% in the quarter and 16.9% in nine months.
- Medical Practice Solutions monthly active users fell 4.0% year over year to 218,717, and Clinical Decision active payers fell 2.6% for nine months.
- Ecosystem outreach fell 1.2% year over year to 300,441 users.
- Operating Cash Conversion Ratio declined 200 bps to 99.5%, and net cash flows from operating activities declined 3.5%.
- Pending Yduqs merger carries shareholder, antitrust and third-party consent conditions, with a contractual deadline of March 31, 2028.
- Filing notes that reported medical school seats do not reflect any potential reductions resulting from ENAMED.
What to watch
- Whether the nine-month Adjusted EBITDA margin decline narrows in the fourth quarter, as the company describes ongoing investment in Continuing Education and Medical Practice Solutions.
- Achievement against FY2026 guidance ranges: revenue R$ 3,950 mn to R$ 4,100 mn and Adjusted EBITDA R$ 1,700 mn to R$ 1,800 mn; nine-month figures are R$2,969,970 thousand and R$1,351,776 thousand respectively.
- Progress toward CAPEX guidance of R$ 340 mn to R$ 380 mn, given nine-month CAPEX of R$215,704 thousand.
- Acceptance of new students for the second semester of 2026, which the guidance assumes.
- Progress of the Yduqs merger: shareholder approvals, antitrust clearance and third-party consents.
- Trend in Medical Practice Solutions active payers and monthly active users, and in Continuing Education B2B revenue.
- Free Cash Flow to Equity trajectory after the Pillar Two tax payment made at the end of July 2026.
Balance sheet and cash flow
- Cash and cash equivalents: R$1,288,877 thousand at September 30, 2026, versus R$1,125,381 thousand at December 31, 2025 (14.5% change per Table 11).
- Net Debt excluding IFRS 16: R$1,199,784 thousand at September 30, 2026, versus R$1,369,483 thousand at December 31, 2025 (-12.4%); the text states a R$169.7 million reduction.
- Net Debt with IFRS 16: R$2,292,691 thousand at September 30, 2026, versus R$2,435,229 thousand at December 31, 2025.
- Total assets: R$9,656,594 thousand at September 30, 2026, versus R$9,357,934 thousand at December 31, 2025.
- Total equity: R$5,097,328 thousand at September 30, 2026, versus R$4,891,185 thousand at December 31, 2025.
- Loans and financing: R$2,124,021 thousand at September 30, 2026, versus R$2,054,267 thousand at December 31, 2025 (3.4% change per Table 11).
- Gross debt table: total gross debt of R$2,489 million at 9M26 with average cost of 15.2% per year (106% of CDI), versus R$2,339 million and 13.0% a year (93% of CDI) in 9M25.
- Company states Net Debt excluding IFRS 16 represented approximately 0.7 times Adjusted EBITDA at the midpoint of 2026 guidance.
- Net cash flows from operating activities declined 3.5% in 9M26, while Income taxes paid rose to R$99,326 thousand from R$13,712 thousand.
- Net cash flows used in investing activities: R$(296,502) thousand in 9M26 versus R$(448,036) thousand in 9M25.
- Net cash flows used in financing activities: R$(770,764) thousand in 9M26 versus R$(741,486) thousand in 9M25.
Analysis
Afya reported third-quarter 2026 revenue of R$985,161 thousand, up 6.1% from R$928,505 thousand, and Adjusted EBITDA of R$433,818 thousand, up 8.7%, with the Adjusted EBITDA margin at 44.0%, up 100 bps from 43.0%. Net income rose 7.2% to R$170,974 thousand and Basic EPS rose 10.0% to R$1.88. The Undergraduate segment carried growth, with third-quarter revenue of R$879,814 thousand up 7.6%, while Continuing Education (down 7.4%) and Medical Practice Solutions (down 2.7%) declined in the quarter. The company states the quarterly margin gain came from higher Undergraduate gross margins, partly offset by compression in the other two segments.
Nine-month results show a different balance. Revenue rose 6.7% to R$2,969,970 thousand, and 6.4% excluding acquisitions, but Adjusted EBITDA margin fell 90 bps to 45.5%, and Adjusted EBITDA grew only 4.6%. Continuing Education revenue rose 0.6% and Medical Practice Solutions revenue rose 0.1% for nine months, and the company describes both as broadly stable while it invests in platforms and physician engagement. Within Continuing Education, B2B revenue fell 34.1%. Within Medical Practice Solutions, Clinical Management active payers rose 19.6% while Clinical Decision active payers fell 2.6%.
On cash and capital allocation, nine-month Cash Flow from Operating Activities reached R$1,332,679 thousand, up 3.2%, and the Operating Cash Conversion Ratio was 99.5%, down from 101.5%. Net cash flows from operating activities declined 3.5% to R$1,233,353 thousand, because income taxes paid rose to R$99,326 thousand. Free Cash Flow to Equity was R$628,974 thousand for nine months (down 13.4%) and R$205,551 thousand for the quarter (down 30.1%). The company returned R$459.3 million through dividends and share repurchases in nine months, and Net Debt excluding IFRS 16 fell to R$1,199,784 thousand from R$1,369,483 thousand at year-end 2025.
Full-year 2026 guidance was reaffirmed, not raised: revenue of R$ 3,950 mn to R$ 4,100 mn, Adjusted EBITDA of R$ 1,700 mn to R$ 1,800 mn and CAPEX of R$ 340 mn to R$ 380 mn. The guidance assumes acceptance of new students for the second semester of 2026. The filing does not print prior-period guidance, so no change in guidance can be measured from it. The company also disclosed a binding merger agreement with Yduqs signed September 23, 2026, under which Afya shareholders would hold 69.0% of the combined company on a fully diluted basis, subject to shareholder, antitrust and other approvals. The filing does not include any share price reaction or analyst expectations.
Not in the filing
stated, not guessed- Gross margin percentages for any period (cost of services and gross profit are printed, but no margin percentage is printed).
- Prior-quarter (2Q26) figures for revenue, Adjusted EBITDA, net income and EPS; the filing prints only year-over-year comparisons for these lines.
- Year-over-year percentage changes for cost of services, gross profit, SG&A, operating income, cash flow lines printed only as amounts, and diluted EPS.
- Prior-year comparatives for the ex-acquisitions rows (revenue and Adjusted EBITDA excluding acquisitions for 9M26).
- Prior-year and yoy figures for Net Debt with IFRS 16 and total assets or equity (only December 31, 2025 comparatives are printed).
- Prior-period guidance; the release reaffirms 2026 guidance but does not print a previous range, so vs_prior_guidance is empty.
- Segment-level gross margins and segment Adjusted EBITDA; the filing discusses margin direction qualitatively but does not print the figures.
- Quarter-over-quarter changes for revenue and segment revenue lines.
- Operating cash flow and free cash flow for the third quarter on a standalone basis for operating cash flow (only the nine-month operating cash flow is printed).
- Share price reaction and analyst consensus, which are not in the filing.
- Named executive quotes: the Message from Management is not attributed to a named speaker in the filing text.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Afya Ltd is a leading medical education and practice solutions provider in Brazil, listed on Nasdaq (AFYA).
Ticker impact
Afya Ltd disclosed Q3 2026 earnings with revenue up 6.1% YoY and reaffirmed full-year guidance.
likely modest upside as investors price in continued cash conversion and earnings growth
The earnings beat and reaffirmed guidance provide fresh data; the company shows strong cash conversion and margin expansion, which may attract buyers.
Market effects
Positive earnings may lift the broader Brazilian education services sector.
Supports bullish sentiment for Brazil's consumer services market.
Limited, primarily affects investors with exposure to emerging-market education stocks.
Counterpoint
If the reaffirmed guidance fails to meet higher growth expectations, the stock could face pressure.
Key entities
- CompanyAfya Ltd
Brazilian medical education and practice solutions provider.
- CompanyYduqs
Partner in a pending merger with Afya.
