Quarterly ResultMay 7, 2026, 04:19 PM
Afya Q1 2026 Revenue +8.2% to R$1.01B; Net Income +1.8%
AI Summary
Afya Ltd reported a solid start to 2026 with 1Q26 revenue increasing 8.2% YoY to R$1,012.7 million and net income growing 1.8% YoY to R$261.8 million. Adjusted EBITDA increased 4.0% to R$511.4 million, though the margin decreased by 200 basis points to 50.5% due to strategic investments. The company demonstrated strong cash generation with a 92.5% operating cash conversion ratio and reduced its net debt significantly. Afya also announced a R$307.4 million cash dividend and reaffirmed its 2026 financial guidance, while Moody's reaffirmed its AAA.br credit rating.
Key Highlights
- 1Q26 Revenue increased 8.2% YoY to R$1,012.7 million (R$1,008.4 million ex-acquisitions, +7.7%).
- 1Q26 Adjusted EBITDA grew 4.0% YoY to R$511.4 million; Adjusted EBITDA Margin was 50.5% (-200 bps).
- 1Q26 Net Income rose 1.8% YoY to R$261.8 million; Basic EPS increased 3.0% to R$2.88.
- Operating Cash Conversion ratio was 92.5%, generating R$376.0 million in Free Cash Flow.
- Net Debt (excluding IFRS 16) reduced by R$372.8 million YoY to R$1,151.3 million.
- Board approved R$307.4 million cash dividend (US$0.656489/share) for 2025 net income.
- Moody’s reaffirmed Afya’s credit rating at AAA.br with a stable outlook on May 5, 2026.
- Company reaffirmed 2026 guidance: Revenue R$3.95B-R$4.1B; Adjusted EBITDA R$1.7B-R$1.8B.