Afya (NASDAQ:AFYA) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Afya (NASDAQ:AFYA) issued its quarterly earnings results on Thursday. The company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.54 by $0.01, FiscalAI reports. Afya had a net margin of 20.31% and a return on equity of 18.77%. The company had revenue of $194.96 million during the quarter, compared to analysts’ expectations of $192.95 million.

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

• Strong Q1 results — revenue up 8% to BRL 1.013bn, adjusted EBITDA up 4% to BRL 511m (50.5% margin), free cash flow BRL 376m and net cash of BRL 1.3bn; Moody’s reaffirmed Afya’s Aaa rating.
• Adjusted EBITDA margin contracted by ~200 bps YoY, driven by higher costs and elevated payroll, sales and marketing as the company invests in Continuing Education and Medical Practice Solutions.
• Undergraduate momentum — operating medical school seats +6% to 3,768, med students +2% to ~26k, and net average ticket for medicine +5% to BRL 9,634; non‑medical health undergrad programs grew ~20% organically.
• Continuing Education posted an 11% revenue increase to BRL 79m with record B2B revenue (BRL 74m) and a 57k student base, highlighting strong product engagement and commercial traction.
• Medical Practice Solutions is mixed — revenue +4% to BRL 43m and iClinic usage rising, but Whitebook saw active payers down 1% and monthly active users down 10%; management expects audience and monetization gains to materialize more in 2027 as platform and AI investments mature.

Afya Stock Down 2.2%

Shares of Afya stock opened at $13.91 on Friday. The company has a market capitalization of $1.30 billion, a P/E ratio of 9.53, a price-to-earnings-growth ratio of 0.95 and a beta of 0.36. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.20 and a quick ratio of 2.20. The business has a 50-day moving average of $14.56 and a two-hundred day moving average of $14.64. Afya has a 1 year low of $13.00 and a 1 year high of $19.90.

Afya Dividend Announcement

The firm also recently announced an annual dividend, which was paid on Monday, April 6th. Shareholders of record on Wednesday, March 25th were paid a $0.656 dividend. This represents a yield of 433.0%. The ex-dividend date of this dividend was Wednesday, March 25th. Afya’s payout ratio is presently 45.21%.

Insiders Place Their Bets

In other Afya news, insider Santos Welder Ferreira sold 3,325 shares of Afya stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $15.90, for a total value of $52,867.50. Following the transaction, the insider owned 35,000 shares of the company’s stock, valued at approximately $556,500. The trade was a 8.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Virgilio Deloy Capobian Gibbon sold 20,900 shares of the company’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $14.94, for a total transaction of $312,246.00. Following the completion of the transaction, the chief executive officer owned 109,218 shares of the company’s stock, valued at $1,631,716.92. This trade represents a 16.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 123,547 shares of company stock worth $1,854,920 in the last three months. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Afya

Several institutional investors have recently added to or reduced their stakes in the stock. Jump Financial LLC acquired a new position in Afya in the 2nd quarter worth $731,000. Qube Research & Technologies Ltd acquired a new stake in shares of Afya in the 3rd quarter valued at about $610,000. Lazard Asset Management LLC raised its stake in shares of Afya by 167.6% in the 3rd quarter. Lazard Asset Management LLC now owns 49,399 shares of the company’s stock valued at $771,000 after purchasing an additional 30,936 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Afya by 167.3% in the first quarter. Goldman Sachs Group Inc. now owns 45,093 shares of the company’s stock valued at $809,000 after purchasing an additional 28,226 shares in the last quarter. Finally, Susquehanna International Group LLP acquired a new position in shares of Afya during the third quarter worth about $419,000. 88.02% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have commented on AFYA shares. Sanford C. Bernstein raised shares of Afya to a “market perform” rating in a report on Friday, January 16th. Zacks Research downgraded Afya from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. Bank of America lowered Afya from a “buy” rating to a “neutral” rating and reduced their price target for the stock from $22.00 to $17.00 in a research report on Tuesday, February 24th. JPMorgan Chase & Co. decreased their price objective on Afya from $22.00 to $21.50 and set a “neutral” rating for the company in a research note on Thursday, April 30th. Finally, Wall Street Zen lowered Afya from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $17.20.

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.