Afya (NASDAQ:AFYA) Posts Earnings Results, Beats Expectations By $0.05 EPS

Afya (NASDAQ:AFYA) posted its earnings results on Thursday. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.05, FiscalAI reports. Afya had a net margin of 20.12% and a return on equity of 18.45%. The firm had revenue of $147.08 million during the quarter, compared to analyst estimates of $174.74 million.

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

• FY2025 results were strong — revenue rose 12% to BRL 3,697 million, adjusted EBITDA grew over 50% to BRL 1,680 million and adjusted EBITDA margin reached 45.4%, reflecting sustained operational leverage.
• Cash generation and balance-sheet metrics are robust — operating cash flow was BRL 1,548 million with 93.7% cash conversion, net debt fell to 0.8x adjusted EBITDA (ex-IFRS16), and the company announced a BRL 307.4 million cash dividend plus ongoing buybacks.
• Management plans meaningful investment in continuing education and medical practice solutions (higher intangibles/CapEx), and guided 2026 revenue/EBITDA implying roughly a 190 bp margin contraction versus 2025 as those investments pressure near-term profitability.
• Core undergraduate franchise remains strong — Afya controls 3,755 approved medical seats, medical student base grew ~5% to >25,000, and undergraduate gross margin hit a record 63.9%, supporting predictable organic cash flows.
• Continuing education and medical practice solutions show mixed trends — continuing education revenue grew 11% (B2B +48%), MPS revenue grew 6% and payer base is 196,000, but monthly active users and some residency-course cohorts remain below prior-year levels while recovery initiatives are underway.

Afya Price Performance

Shares of NASDAQ AFYA opened at $13.76 on Friday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.98 and a current ratio of 0.98. The firm has a fifty day moving average of $14.39 and a 200 day moving average of $14.77. The firm has a market cap of $1.29 billion, a PE ratio of 9.90, a PEG ratio of 0.60 and a beta of 0.52. Afya has a one year low of $13.00 and a one year high of $19.90.

Afya News Summary

Here are the key news stories impacting Afya this week:

• Positive Sentiment: EPS beat — Afya reported $0.41 EPS for 4Q25, topping consensus estimates and last year’s EPS, signaling stronger profitability per share which supports valuation metrics. Afya (AFYA) Tops Q4 Earnings Estimates
• Positive Sentiment: Large cash return — the Board approved a R$307.4 million dividend (~40% of consolidated net income), which is supportive for income-focused shareholders and may attract yield-seeking demand. Afya Limited Announces Dividend Distribution of R$307.4 Million
• Neutral Sentiment: Management commentary/transcript available — the full Q4 2025 earnings call transcript provides additional color on growth drivers, margins and capital allocation; investors should review management’s remarks on enrollment trends and clinic operations. Afya Limited (AFYA) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue miss — Afya reported 4Q revenue of BRL147.08 million (reported in USD-equivalent headlines), materially below analyst expectations, raising questions about enrollment or service revenue pacing that could pressure near-term growth. Afya Limited Announces Fourth Quarter and Twelve Months 2025 Financial Results
• Negative Sentiment: FY‑2026 revenue guidance slightly below consensus — the company updated FY‑2026 revenue guidance to a range (~R$731.7M–R$759.5M in the entry) that sits under the street’s ~$764M consensus, introducing downside risk to growth expectations; EPS guidance detail was unclear in the release. Afya Limited Announces Fourth Quarter and Twelve Months 2025 Financial Results

Institutional Investors Weigh In On Afya

Large investors have recently bought and sold shares of the company. Van ECK Associates Corp raised its holdings in shares of Afya by 15.7% during the third quarter. Van ECK Associates Corp now owns 10,170 shares of the company’s stock valued at $159,000 after acquiring an additional 1,377 shares during the last quarter. Daiwa Securities Group Inc. acquired a new stake in shares of Afya in the fourth quarter worth approximately $43,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Afya by 5.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 68,169 shares of the company’s stock worth $1,217,000 after acquiring an additional 3,626 shares during the last quarter. Militia Capital Partners LP purchased a new stake in shares of Afya during the second quarter worth approximately $71,000. Finally, Quantbot Technologies LP purchased a new stake in shares of Afya during the second quarter worth approximately $117,000. 88.02% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently commented on AFYA shares. JPMorgan Chase & Co. restated a “neutral” rating and set a $22.00 price target (down from $24.50) on shares of Afya in a research report on Wednesday, January 7th. UBS Group reissued a “neutral” rating and set a $16.00 target price (down from $18.00) on shares of Afya in a research note on Friday, January 16th. Wall Street Zen upgraded Afya from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Sanford C. Bernstein upgraded Afya to a “market perform” rating in a research note on Friday, January 16th. Finally, Zacks Research raised Afya from a “strong sell” rating to a “hold” rating in a report on Monday, March 9th. One equities research analyst has rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $17.30.

About Afya

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.