Afya (NASDAQ:AFYA) Posts Earnings Results, Beats Estimates By $0.03 EPS

Afya (NASDAQ:AFYA) released its quarterly earnings data on Thursday. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.40 by $0.03, FiscalAI reports. Afya had a net margin of 20.55% and a return on equity of 18.02%. The business had revenue of $187.80 million for the quarter, compared to analyst estimates of $189.62 million.

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

• First-half revenue grew 7% to BRL 1.985 billion, while net income increased 7% to BRL 463 million and EPS rose 9% to BRL 5.10. Medical undergraduate revenue benefited from 3% student growth and a nearly 4% increase in average tuition.
• Adjusted EBITDA margin contracted 190 basis points to 46.2%, mainly because of higher sales and marketing investments in continuing education and medical practice solutions. Management maintained its full-year EBITDA guidance of BRL 1.7–1.8 billion, implying a potentially slower second half versus the first.
• Cash generation remained strong, with BRL 806 million in operating cash flow, BRL 423 million in first-half FCFE, and 87.8% cash conversion. Afya returned BRL 448 million to shareholders through dividends and buybacks, exceeding first-half FCFE, while net leverage remained low at 0.8x EBITDA.
• Medical Practice Solutions revenue grew only 2% to BRL 85 million, and monthly active users declined 8% year over year. Management cited competitive pressure from AI tools affecting Whitebook payers, although clinical-management payers grew 20% and further product investment is intended to support future recovery.
• Continuing education revenue rose 5% to BRL 144 million, but growth was constrained by a shift toward shorter-duration, lower-ticket programs and seasonal weakness. Management expects high-single-digit growth in the second half and said it remains on track to meet its 2026 guidance.

Afya Stock Up 3.2%

Shares of Afya stock traded up $0.43 during midday trading on Friday, reaching $13.84. 174,965 shares of the company’s stock traded hands, compared to its average volume of 96,339. The company’s 50 day simple moving average is $14.26 and its 200 day simple moving average is $14.41. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.78 and a current ratio of 1.78. Afya has a 52 week low of $13.00 and a 52 week high of $16.50. The company has a market cap of $1.30 billion, a price-to-earnings ratio of 8.44, a price-to-earnings-growth ratio of 1.42 and a beta of 0.34.

Wall Street Analyst Weigh In

AFYA has been the topic of several research analyst reports. Bank of America reaffirmed a “neutral” rating on shares of Afya in a research note on Thursday, June 11th. Zacks Research cut Afya from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lowered their target price on Afya from $21.50 to $21.00 and set a “neutral” rating for the company in a research note on Monday, June 22nd. Wall Street Zen lowered Afya from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Weiss Ratings lowered shares of Afya from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, July 31st. Six investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Afya has an average rating of “Hold” and an average target price of $18.00.

Key Headlines Impacting Afya

Here are the key news stories impacting Afya this week:

• Positive Sentiment: Profitability improved: Afya reported second-quarter revenue of $187.8 million, up 10.95% year over year, while net income rose 22.57% to $38.9 million. Diluted EPS increased to $0.43 from $0.40, and operating cash flow reached $64.3 million. Afya Second-Quarter and First-Half 2026 Financial Results
• Positive Sentiment: EPS exceeded the broader consensus: The company’s $0.43 quarterly EPS surpassed the reported consensus estimate of $0.40, while Afya maintained a healthy 20.2% net margin and 17.94% return on equity. Afya Earnings Results
• Positive Sentiment: Cost and balance-sheet trends were supportive: Capital spending declined year over year, cash and equivalents totaled $194.4 million, and total liabilities were broadly unchanged. These factors may reinforce the investment case at a valuation of roughly 9 times earnings.
• Neutral Sentiment: Results were mixed depending on the benchmark: Zacks reported adjusted quarterly EPS of $0.45, slightly below its $0.46 consensus estimate, while revenue also lagged some expectations. Afya Q2 Earnings and Revenues
• Negative Sentiment: Fiscal 2026 revenue guidance was below expectations: Afya projected revenue of $750.2 million to $778.7 million, below the $781.6 million consensus estimate. EPS guidance was not provided in the supplied update, increasing uncertainty around the full-year outlook.
• Negative Sentiment: Insider and institutional selling may weigh on sentiment: Recent data showed 19 insider sales and no insider purchases over six months, while more institutional investors reduced positions than added them. Afya Q2 Earnings and Institutional Activity

Insider Buying and Selling at Afya

In related news, VP Gomiero Mirella Basolli sold 10,000 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $14.80, for a total transaction of $148,000.00. Following the transaction, the vice president directly owned 34,530 shares in the company, valued at $511,044. The trade was a 22.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Lelio De Souza Junior sold 41,541 shares of the company’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $15.00, for a total transaction of $623,115.00. Following the completion of the sale, the vice president directly owned 36,204 shares in the company, valued at approximately $543,060. The trade was a 53.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 87,745 shares of company stock worth $1,314,175 in the last quarter. Insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Afya

Several institutional investors and hedge funds have recently made changes to their positions in the company. Cerity Partners LLC boosted its position in Afya by 34.3% in the second quarter. Cerity Partners LLC now owns 35,688 shares of the company’s stock valued at $637,000 after buying an additional 9,120 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in Afya by 175.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 25,511 shares of the company’s stock valued at $456,000 after purchasing an additional 16,241 shares in the last quarter. Susquehanna International Group LLP bought a new position in Afya in the 3rd quarter valued at $419,000. Engineers Gate Manager LP bought a new stake in shares of Afya during the second quarter worth $363,000. Finally, Lazard Asset Management LLC raised its holdings in shares of Afya by 166.6% in the second quarter. Lazard Asset Management LLC now owns 18,463 shares of the company’s stock valued at $329,000 after buying an additional 11,537 shares during the last quarter. Institutional investors and hedge funds own 88.02% of the company’s stock.

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.