Afya revenue rallies as Brazilian medical education leader scales ecosystem

Afya (NASDAQ:AFYA) reported record-breaking top-line results for the first quarter of 2026, solidifying its position as the premier medical education and healthcare technology provider in Brazil.

For the three-month period ended March 31, 2026, the company posted net revenue of R$1,012.7 million, an 8.2% increase compared to the first quarter of 2025.

This marks the first time the company has surpassed the R$1 billion revenue threshold in a single quarter.

Organic growth remained the primary engine for the company, with revenue excluding recent acquisitions rising 7.7% to R$1,008.4 million.

The expansion was supported by a growing student base in its undergraduate and graduate medical programs, alongside increasing adoption of its digital "medical practice solutions" which aim to support physicians throughout their entire career lifecycle.

Elsewhere, Afya maintained high levels of profitability despite macroeconomic headwinds in the Brazilian education sector.

Adjusted EBITDA reached R$511.4 million, a 4% increase year-over-year.

The adjusted EBITDA margin stood at a robust 50.5%, although this represented a 200-basis-point contraction compared to the prior-year period, reflecting increased investments in digital platform integration and personnel to support its expanding user base.

Net income for the quarter grew 1.8% to R$261.8 million, while basic earnings per share (EPS) saw a 3% improvement, benefiting from the company's consistent operational execution and disciplined financial management.

A standout feature of the first quarter was Afya’s cash flow performance.

The company reported an operating cash conversion ratio of 92.5%, highlighting the efficiency of its tuition collection and service delivery models.

This resulted in free cash flow of R$376 million for the quarter.

Afya ended the period with a formidable cash position of R$1,332.9 million.

This liquidity provides the company with significant "dry powder" to continue its strategy of selective M&A and internal product development.