AFYA

Image source: The Motley Fool. Thursday, Aug. 13, 2026, at 5 p.m. ET Chief Executive Officer-Virgilio Deloy Gibbon Chief Financial Officer-Luis Andre Blanco Renata Couto: Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgílio Gibbon; and our CFO, Luis Andre Blanco. During today's presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties and other factors that may cause Afya's actual results to differ materially from those contemplated by these forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, its related benefits. These risks include those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as the date hereof. You should not rely on them as predictions of future events, and we disclaim any obligation to update any forward-looking statements, except as required by law. In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or as a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures. Now let me turn the call over to Virgílio Gibbon, Afya's CEO. Virgilio Deloy Gibbon: Thank you, Renata, and welcome to our second quarter and first half conference call for 2026 results. Starting with Slide #3. Once again, we delivered a solid performance in closing the first half of 2026 with revenue growth of 7% year-over-year, reached BRL 1.985 billion. Adjusted EBITDA reached BRL 918 million, growing 3% year-over-year with an adjusted EBITDA margin of 46.2%, a contraction of 190 basis points compared to the same period last year. This margin decrease primarily reflects the lower gross profit contribution from continued education, driven by a higher sales and marketing expenses associated with the investment cycle outlined at the beginning of the year across continued education and medical practice solutions. Net income reached BRL 463 million, a 7% increase year-over-year. Basic EPS climbed to BRL 5.10, represents a 9% increase over the previous year, reflecting our capital allocation strategy. Operating cash conversion remained strong at 87.8%, broadly in line with the prior year. Turning now to free cash flow to equity. We delivered BRL 423 million in the first half of 2026. These results reflect the strength of our cash generation, disciplined execution and our continued commitment to create long-term shareholder value. Moving now to our operational updates. We have 3,768 operating medical seats with an increase of over 6% year-over-year. Furthermore, our number of undergrad medical students grew to more than 26,000 students, represented 3% growth compared to the first half of last year. Additionally, we increased the net average ticket of medical school by almost 4% year-over-year, reached BRL 9,443. In continued education, revenue increased almost 5% over last year, reaching BRL 144 million. And in medical practice solutions, we saw 2% growth in revenue compared to the first half of 2025, reached BRL 85 million. Our ecosystem now accounts for 295,000 users, reflecting continued meaningful penetration among physicians and medical students across the country. Moving to Slide #4. We will discuss the highlights across our 3 business segments. The first half of 2026 was marked by favorable pricing trends in medicine course, where tickets rose by nearly 4% year-over-year. In addition, we continue to deliver strong student base growth momentum in health science course. Compared to the previous years, health science course delivered 13% growth, reflecting the diversification of our health-related undergrad portfolio. The continued education segment was once again marked by strong growth in our total student base, which expanded 23% in the first half of 2026, driven by higher intake in short-term programs, which carry a lower average ticket per student. B2B revenue for the segment grew 8% compared to the same period of prior year. The medical practice solutions segment delivered a 20% increase in clinical management active payers in the first half of this year. In addition, B2B revenue for the first half grew 5% year-over-year. Lastly, shareholder returns remain a key priority. Our disciplined capital allocation framework continues to create sustainable value for shareholders. At the corporate level, supported by strong cash generation, we returned BRL 448 million to our shareholders through dividends and share repurchase in the first half of 2026, representing 106% of our free cash flow to equity. This reflects our disciplined approach to capital allocation. When acquisition opportunities do not meet our return criteria, we return capital to shareholders. The strength of our cash generation gives us the flexibility to pursue acquisitions when attractive and to consistently return capital to shareholders. Now I will return the call over to Luis Blanco, Afya's CFO, to provide further insight into the financial and operational metrics. Thank you all. Luis Andre Blanco: Thank you, Virgílio, and good evening, everyone. Starting with Slide #6 for discussions of key operational metrics by business unit. Starting with the undergraduated programs. Our medical student base grew by 3% compared with the first half of 2025, reaching over 26,000 students, while operating medical school seats increased by over 6% year-over-year to 3,768. Our medical school net average ticket increased by 4%, reaching BRL 9,443 in the first half of 2026. As a result, revenue for the undergraduated segment grew over 7%, totaling BRL 1,762 million. It's worth mentioning that 85% of this revenue comes from medical programs and 93% from health-related courses, reinforcing our strategic focus and leadership in the sector. On the next page, I will present our continued educational metrics. We approach continuing educational through three main journeys, starting with the residency journey, which encompass products focused on the residency preparations, the student base remained stable year-over-year, reaching 9,244 students at the end of the period. In the graduate journey, which focused on the specialization test preparations and graduated medical education, the total number of students increased by 13%, reaching 10,213 students supported by the continued demand for advanced medical training programs. Lastly, other B2P and B2B offerings continue to grow strongly with total students increasing 35% year-over-year to 36,780 students, demonstrating the continued expansion of our broader continuing education portfolio. Continuing educational revenue increased to BRL 144 million in the 6-month period of the 2026 compared to BRL 138 million in the same period of 2025, representing growth of 5%. This performance was primarily driven by B2P revenue, which increased 8% year-over-year to BRL 135 million, representing 94% of the continuing education revenue. Meanwhile, the B2B revenue totaled BRL 9 million, declining 25% year-over-year. Moving to the next slide, I will discuss the medical practice solutions operational metrics. The total active payers remaining broadly stable year-over-year at approximately 201,000 with clinical management active payers growing 20% to more than 50,000, reflecting the continued penetration on Afya iClinic. Monthly active users reached 212,000 during the period, an 8% year-over-year decrease. Despite the stability in total active payers, medical practice solutions revenue increased 2% year-over-year to BRL 85 million in the first half of 2026. On the next slide, we present Afya ecosystem. We are proud of the meaningful impact of Afya continues to make across Brazil healthcare ecosystem. By the end of the second quarter of 2026, 295,000 users were actively engaging with our service and products, reflecting our solid relevance and reach in medical educational and medical solutions. Moving forward to Page 10, I want to discuss our financial overview for the second quarter and the first half of 2026. I'm pleased to present another solid set of results for Afya, reflecting the resilience of our business model and our continued focus on sustainability growth and operational efficiency. Revenue for the second quarter of 2026 reached BRL 972 million, representing a 6% increase compared to the same period of the prior year. For the first half of 2026, revenue totaled BRL 1,985 million, 7% year-over-year increase. Adjusted EBITDA reached BRL 470 million in the second quarter of 2026, an increase of 1% compared to the prior year. For the first half of the year, adjusted EBITDA totaled BRL 918 million, growing 3% year-over-year. Adjusted EBITDA margin reached 41.8% in the quarter and 46.2% in the 6-month period. While margins were below those reported in the comparable periods last year, reflecting a combination of continuing investments to support growth initiatives and the investment cycle across continued educational and medical practice solutions, profitability remained healthy. On the next page, cash flow from operating activities reached BRL 806 million in the first half of 2026 compared to BRL 783 million in the same period of the prior year, representing a growth of 3%. Cash conversions remained strong at 87.8%, broadly stable compared to the prior year. Net income for the second quarter of 2026 totaled BRL 201 million, an increase of 14% compared to the same period of the prior year. For the first half of the 2026, net income reached BRL 463 million, growing 7% year-over-year. Earnings per share increased to BRL 2.22 in the second quarter of 2026, up 17% from BRL 1.90 in the prior year, higher than the net income increase, reflecting the execution of our buyback program. For the 6-month period, earnings per share reached BRL 5.10, up 9% from the BRL 4.69 in the first half of 2025. Overall, these results reflect Afya's ability to continue to generate solid cash flow while delivering consistent growth in profitability and shareholder returns. And now moving to my last 3 slides, I will cover our gross debt compositions and cost of debt, our net debt reconciliation and close with our shareholder return. This slide details the compositions of our gross debt positions as of June 2026, covering its maturity profile and average cost of debt. Afya continued to maintain a solid capital structure and a conservative leverage profile. As of 30th of June, gross debt totaled BRL 2.4 billion compared to the BRL 2.7 billion as of 30th of June of 2025. At the same time, the average debt duration increased from 1.9 years to 3.7 years, extending our maturity profile in the period. The average cost of debt stood at 15.1% per year, representing approximately 106% of the CDI for the period. On the next page, we can look closely at the net debt variation. As of June 2026, our net debt totaled BRL 1,394 million remaining virtually unchanged from the end of 2025 despite returning BRL 448 million to shareholders through dividends and treasury share repurchase during the first half of the year, reflecting our strong cash generation and disciplined capital allocation. Our net debt positions continue to benefit from the solid cash flow from operating activities, which totaled BRL 806 million during the period, largely offsetting investments, leases, interest expenses and shareholders' distributions. Our Afya net debt, excluding IFRS 16 divided by the midpoint of 2026 adjusted EBITDA guidance was 0.8x. In my last slide, we paid BRL 307 million in dividend during the second quarter of 2026, representing 40% of our 2025 net income, while continuing to execute the share purchase program. Our consistent growth in net income and cash generation has enabled us to enhance shareholder returns while remaining disciplined in our capital allocation decisions and focus on the long-term value creation. In first half of 2026, we returned BRL 448 million to shareholders, surpassing our free cash flow to equity of BRL 423 million for the period, resulting in a 106% ratio. Our last 12 months free cash flow to equity yield stood at 11% calculated on market capitalizations as of 30th of June 2026, and basic EPS growth reached 13% for a total equity return of 24% at constant valuation multiple. This concludes our prepared remarks. The first half of 2026 reinforces what we have consistently demonstrated over time, a resilient business, a focused team and the strategic that is working. We remain deeply committed to advancing the physician journey through our integrated ecosystem and confident in our ability to deliver sustainable long-term value for our shareholders, students and healthcare professionals across Brazil. I will now open the conference for the Q&A session. Thankyou. Renata Couto: [Operator Instructions] The first question comes from Marcelo Santos from JPMorgan. Marcelo Santos: I have 2. The first, if you could talk a bit about the competitive intake in the second half and how you're seeing the pressure for tickets, the capacity to increase prices? That's the first question. And the second question is regarding medical practice solutions. It was a bit down this quarter. So just wanted to get a bit more detail and when we should see the increased investments start showing results in the revenue side. Virgilio Deloy Gibbon: Related to our intake on the second half, we are once again aiming to have 100% of all of our occupancy fulfilled. While still not all the [ ProUni ] cycle is a little bit late. So we are waiting for these enrollments to be completed by September. So once again, we have a solid and healthy intake. So the price, I think we are not changing price for the second half because we are doing the beginning of the year. So we are not also giving any discount for medicine programs. On the health sector, on the health programs, we are seeing a very strong intake. At this moment, we're still ending the process in the beginning. We will also end on the beginning of September. We are more than 20% above from last year at the same period. So we are growing organically more than 18% in volume in health we're expecting to be above that for the second half. So that's on NPS, Blanco will help me here. Luis Andre Blanco: Thank you for your question. Regarding the NPS, the general environment, what's happening that we are having been -- have some pushbacks in terms of clinical decisions on major on Whitebook. These pushbacks in terms of active payers are due to the competitions by the AI tools that are pressuring the number of payers. What we decided that we would to reduce a little bit the ticket on that and increase functionalities under embedded on the Whitebook. But the other side, on the clinical management system that our major encompass iClinic, we have a very positive cycle. We are growing faster, but this growth is not sufficient to surpass a lot by this decline on Whitebook. The both together on the business to physician side, we are growing semester by semester, just 1.1%. Having said that, just remember that our investment cycle that we've announced in the beginning of the year encompass investment cycle. This investment cycle is both regarding CapEx that we are increasing the intangibles in the year if we compare to last year to increase functionalities both in iClinic and Whitebook and investments in teams under the teams increasing the number of the team members on this -- under this segment. So we are under our plan to put more functionalities on the segment, increase audience first and then in the future, have this recover in terms of revenues. Renata Couto: Second question comes from Flavio Yoshida from Bank of America. Flavio Yoshida: I have 2 questions here from our side. The first one is on EBITDA, OK? So if we get the first half EBITDA and annualize it, it gets us to roughly BRL 1.8 billion for the year, which is pretty much the top of your guidance range, right? So since you guys didn't make any changes on the guidance, should we expect the second half EBITDA to come a bit below the first half? Or you guys just prefer to be a little bit more conservative here on the guidance? So this is my first question. And my second question is on capital allocation strategy going forward, right? So if you guys could share with us some details on how do you guys plan to balance an eventual higher dividend distribution or a more active approach on M&A, right? And also, if you could share with us how is the recent M&A environment for medical courses? Luis Andre Blanco: Thank you, Flavio. It's Blanco speaking. I will start with that. Regarding the first one under the EBITDA, we are focused on delivering the EBITDA that we provided to the market that's between BRL 1.7 billion and BRL 1.8 billion. So we guided the market and we delivered as we always do regarding the guidance. Regarding the capital allocation itself, what I can assure you that Afya will always be very, very conscious in terms of capital allocations. Since the IPO, we've made 22 business combinations, and we take capital allocations very, very, very, very serious. If we don't have opportunities that attends the thresholds in terms of concentrations in medicine and mostly the IRR that these business combinations do not have a return on the capital employed in these business combinations that is above our thresholds, that's 20% minimal -- nominal unleverage, we simply do not do the business combination. So we are very careful on that. As we did not have this business combinations with this return of the capital in the hands, we prefer to return this capital to our shareholders, both in terms of share buybacks and dividends. We are very comfortable with this 0.8 net debt to EBITDA that we presented right now, and we decided to give it back the shareholders all the free cash flow to equity for the first semester. And it's very important to going forward to have in mind that we have opening buyback in place that we've announced in August of last year, if I'm not wrong, and right now, from this 4 million shares in buyback that we've announced, we've performed 2.6 million shares. So we had a firepower of 1.4 million to perform until the end of this year. Virgilio Deloy Gibbon: Yes, Flavio, just if I may add here and summarizing what Blanco wants to mention. So we keep aware about M&A opportunities considering this threshold. So we have a good pipeline in our hand here. As you saw in the first semester, we distribute almost 100% of actually more than 100% of the cash that we generated to our shareholders through buyback and dividends and also keeping a very low leveraging on our net debt. In parallel, we are also investing a lot in terms of product. So you can see the intangible. So we are doing a lot of enhancement on our features, plugging more AI features, improving the engagement of our physician into our solution. So we are levering prescription into our clinical decision solution. We are reaching more than 50,000 users on our clinical solution on our iClinic here, it's our main solution and also embedding clinical decision support features that for one side is reducing the solo users on that, but they are also using this type of feature embedded on our clinical management solution. So that's -- we are funding not only our current internal investment, reducing our leverage, buying back shares, distributing through dividends and keep aware with a lot of firepower to do some M&As, but we have to reach the -- at least the threshold that we are aiming, OK? Renata Couto: Next question comes from Lucca Marquezini from Itaú. Lucca Marquezini: A question is regarding the continuing education segment. It's actually a follow-up from previous question. So we saw a decline in net revenue. So if you could just comment on the competitive environment and the factors that led to this decline? And also, what are your expectations for the second half of this year, if we should continue to see a decline across the year or when you expect resumption in growth, please? Virgilio Deloy Gibbon: Luca, it's Virgílio here. So for one side, we have -- you can see a growth on our number of students under the continued medical education segment. But for one side, we are seeing a revenue -- a lower rhythm on revenue growth from the first quarter. But the reason of that is that we have a different mix of product, although we have much more students coming. We have a different mix of product with more lower duration with a lower ticket and that impact mainly on the second quarter that also face seasonality on continued medical education, mainly on prep courses. Having said that, we are seeing -- keeping at least close to a high 1-digit growth for the second half here. We are not foreseeing any jump or a decrease from what we were in terms of continuing education for the entire year. Once again, we are aiming to reach our guidance for 2026 based on the results that we are embedded in this first half for all the 3 segments. Renata Couto: Next question comes from Lucas Nagano from Morgan Stanley. Lucas Nagano: We have 2. The first is related to the new injunction from last week that suspended the EnMed restrictions. With that, are you now allowed to fill all your authorized seats? And would that be still valid after this year's addition of EnMed and so on for the next years as well? And the second question is related to income tax. The income tax expense this quarter was very low compared to the previous quarters and the minimum Pillar Two tax rate. So could you just give some color on that and the level going forward? Virgilio Deloy Gibbon: I'll take the first one here regarding injunctions. Yes, the answer is yes. So after the decision last week, all the seats that were prohibited return to the institutions. On the other hand, we are very advanced on the intake process. So we didn't ask also ProUni and also FIES for that seats because they were not allowed at that moment. So for some campuses, for some institutions, yes, we will be able to fulfill these additional seats. But once again, remember that considering the issue in the beginning of the year, we had a very strong intake in terms of percentage of the entire year in the first half to minimize that effect. Even with considering these additional seats, we will leave some of them unfulfilled. This will not impact not even positive, not even negative to our results on the second half. But yes, we will be able to fulfill if we had time to fulfill the seeds. Luis Andre Blanco: Lucas, Blanco speaking, I will take the second question regarding taxations. In the second -- during the first semester of 2026, we have some new clarifications under new [ reglementations ] that were clarifying the Pillar Two. And then we see an opportunity regarding the payments that we should do regarding the 2025 taxations that we paid on July this year, reducing the provision amount that we had on our balance sheet. So in big numbers, we had disbursed regarding these taxations from 2025, an amount of BRL 8 million, BRL 9 million approximately. And we had at the end of 2025, BRL 109 million as a provision, our best provisions at that time. So we had this positive effect more or less of BRL 20 million. Having said that, for the year, as this [ recommendation ] has evolved, we think that in terms of tax, the effective tax rates that we're going to achieve this year will be very similar that we had at last year that will be around 10%, OK, for 2026. Lucas Nagano: Just a follow-up. Assuming after the new results of EnMed, this year's dividend of EnMed, which should be out, I think, in December, would the injunction still be valid? So it was still suspend any restrictions that EnMed tries to impose? Virgilio Deloy Gibbon: What we understood from the new normative rule that they released is that -- and also the conversation that we are having very close to Ministry of Education right now is that as soon as we have the results from EnMed 2026 release that is expected to be in the beginning of December, we will have all the updates from what was considered as a penalization from the current situation and also the new results will be released and considered for the new intake cycle of 2027. So that's what is -- so this injunction that was -- that changed the results last week is just related to the result that was released last year. So the new one doesn't have anything related to the new EnMed that is coming now in the beginning of September. Renata Couto: [Operator Instructions] Next question comes from Renan Prata from Citi. Renan Prata: So I have just one question regarding the CapEx. We saw the CapEx that is running, I mean, at 30% of your guidance of your full year guidance. So I just want to understand like how do you see this CapEx accelerating during the second half of the year? And also, if you could also provide some breakdown of this CapEx since it will be more intensified on PPE or intangible or license, I don't know. And that's it. Luis Andre Blanco: I'll take this one. We are running CapEx for this year as expected. We want to fulfill the guidance that we provided that is between BRL 340 million and BRL 380 million for the year. We expect an accelerations of the CapEx in the second half. If we see the breakdown regarding the first semester, we're going to see that the CapEx regarding properties and equipments were down year-over-year, but we have a very high acceleration on the intangibles, mostly concentrated on the investment plan that we have around continued education and medical practice solutions. Regarding the breakdown of these expectations for ahead, we don't open the guidance of the CapEx between property and license, but we're going to see definitely an acceleration in the second half. Renata Couto: Okay. Since we do not have any other questions, we end this call. We appreciate the presence of you all. Have a good night. Before you buy stock in Afya, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Afya wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Afya (AFYA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: R$1,985 million in the first half of 2026, a 7% increase year-over-year; Q2 2026 revenue reached R$972 million, up 6%. Adjusted EBITDA: R$918 million in the first half of 2026, up 3% year-over-year; Q2 2026 adjusted EBITDA was R$479 million, up 1%. Adjusted EBITDA Margin: 46.2% for the first half of 2026, a contraction of 190 basis points year-over-year; 41.8% in Q2 2026. Net Income: R$463 million in the first half of 2026, a 7% increase year-over-year; Q2 2026 net income totaled R$201 million, up 14%. Earnings Per Share (EPS): Basic EPS reached R$5.10 in the first half of 2026, up 9% year-over-year; Q2 2026 EPS was R$2.22, up 17%. Cash Flow from Operations: R$806 million in the first half of 2026, up 3% year-over-year; operating cash conversion remained strong at 87.8%. Free Cash Flow to Equity: R$423 million in the first half of 2026. Undergraduate Segment Revenue: R$1,762 million in the first half of 2026, up over 7% year-over-year; 85% from medical programs and 93% from health-related courses. Continuing Education Revenue: R$144 million in the first half of 2026, up 5% year-over-year; B2P revenue grew 8% to R$135 million, while B2B revenue declined 25% to R$9 million. Medical Practice Solutions Revenue: R$85 million in the first half of 2026, up 2% year-over-year. Medical School Net Average Ticket: Increased by nearly 4% year-over-year to R$9,443 in the first half of 2026. Operating Medical School Seats: 3,768 seats, an increase of over 6% year-over-year. Undergrad Medical Students: Over 26,000 students, representing 3% growth compared to the first half of last year. Continuing Education Student Base: Expanded 23% in the first half of 2026, driven by higher intake in short-term programs. Clinical Management Active Payers: Increased 20% to more than 50,000 in the first half of 2026. Total Active Payers (Medical Practice Solutions): Approximately 201,000, broadly stable year-over-year. Monthly Active Users: 212,000 during the period, an 8% year-over-year decrease. Ecosystem Users: 295,000 users actively engaging with services and products. Shareholder Returns: R$448 million returned through dividends and share repurchases in the first half of 2026, representing 106% of free cash flow to equity. Gross Debt: R$2.4 billion as of June 2026, compared to R$2.7 billion as of June 2025; average cost of debt stood at 15.1% per year. Net Debt: R$1,394 million as of June 2026, virtually unchanged from the end of 2025. Warning! GuruFocus has detected 9 Warning Signs with LIVE. Is AFYA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Afya Ltd (NASDAQ:AFYA) delivered solid first-half 2026 results with revenue growth of 7% year-over-year to R$1,985 million and net income up 7% to R$463 million. The company maintained strong cash generation with an operating cash conversion of 87.8% and free cash flow to equity of R$423 million in the first half of 2026. Afya Ltd (NASDAQ:AFYA) returned R$448 million to shareholders through dividends and share repurchases, representing 106% of free cash flow to equity, reflecting a disciplined capital allocation strategy. The undergraduate segment showed robust growth, with medical school net average ticket up 4% and health science courses growing 13% year-over-year, driven by strong student base momentum. The company successfully extended its debt maturity profile from 1.9 years to 3.7 years and reduced gross debt to R$2.4 billion, maintaining a conservative leverage of 0.8 times net debt to EBITDA. Afya Ltd (NASDAQ:AFYA) benefited from a favorable legal injunction that lifted restrictions on medical seats, allowing the company to potentially fill additional authorized seats in the second half. The company saw strong growth in continuing education student base (up 23%) and clinical management active payers (up 20%), indicating expanding ecosystem penetration. Adjusted EBITDA margin contracted by 190 basis points year-over-year to 46.2% in the first half of 2026, reflecting higher sales and market expenses from investment cycles. The continuing education segment experienced a revenue growth slowdown to 5% year-over-year, impacted by a product mix shift toward lower-ticket, short-term programs and a 25% decline in B2B revenue. Medical Practice Solutions revenue growth was modest at 2% year-over-year, with total active payers remaining stable and monthly active users declining 8%, due to competitive pressures from AI tools. The company faced regulatory uncertainty with the NMED restrictions, which initially limited seat occupancy, and despite the recent injunction, some additional seats may remain unfulfilled due to timing. Capex execution was slower than expected in the first half, running at 30% of the full-year guidance, with an anticipated acceleration in the second half, which could pressure cash flow. The effective tax rate for 2026 is expected to be around 10%, but the company recognized a one-time positive tax effect of R$20 million from Pillar 2 clarifications, which may not recur. The company's investment cycle in continuing education and medical practice solutions has not yet translated into significant revenue growth, with B2B revenue in continuing education declining 25% year-over-year. Q: Regarding the recent injunction that suspended NMED restrictions, are you now allowed to fill all authorized seats, and will this remain valid for future years? Also, why was the income tax expense this quarter so low compared to previous quarters?A: Virgilio Gibbon (CEO) confirmed that after the decision last week, all previously prohibited seats were returned to the institutions. However, since the intake process is already advanced, some of these additional seats may remain unfulfilled, though this will not impact results either positively or negatively. He clarified that the injunction is only related to last year's results, and new Enamad results expected in early December will be considered for the 2027 intake cycle. Luis Blanco (CFO) explained that new clarifications under Pillar 2 recommendations allowed the company to reduce provisional tax amounts, resulting in a positive effect of approximately R$20 million. He expects the effective tax rate for 2026 to be around 10%, similar to last year. Q: Can you discuss the competitive intake in the second half and the capacity to increase prices? Also, regarding Medical Practice Solutions, when should we see the increased investments start showing results on the revenue side?A: Virgilio Gibbon (CEO) stated that the company is aiming for 100% occupancy fulfillment in the second half, with no price changes or discounts for medicine programs. Health programs are seeing very strong intake, currently more than 20% above last year at the same period, with expectations of over 18% organic volume growth. Luis Blanco (CFO) explained that MPS is experiencing pushbacks in active payers on WhiteBook due to competition from AI tools, leading to reduced tickets and increased functionalities. While the clinical management system (iClinic) is growing faster, it's not sufficient to offset the WhiteBook decline. The investment cycle includes increased Capex in intangibles and team expansion, with the strategy to first increase audience and functionalities before recovering revenues. Q: If we annualize the first half EBITDA, it gets to roughly R$1.8 billion, which is the top of your guidance range. Should we expect second-half EBITDA to come in below the first half, or are you just being conservative? Also, how do you plan to balance dividend distribution versus a more active M&A approach?A: Luis Blanco (CFO) confirmed the company is focused on delivering the guidance of R$1.7 billion to R$1.8 billion. Regarding capital allocation, he emphasized that Afya has made 22 business combinations since the IPO and maintains strict thresholds, requiring at least 20% minimal nominal IRR and concentration in medicine. When opportunities don't meet these criteria, the company returns capital to shareholders through buybacks and dividends. He noted the company has 1.4 million shares remaining in the current buyback program to execute by year-end. Virgilio Gibbon (CEO) added that the company maintains a good M&A pipeline but will only pursue deals meeting their thresholds, while continuing to invest in product enhancements and AI features. Q: Regarding the continuing education segment, we saw a decline in net revenue. Can you comment on the competitive environment and expectations for the second half?A: Virgilio Gibbon (CEO) explained that while student numbers are growing, revenue growth has slowed due to a different product mix with more lower-duration, lower-ticket programs. This impacted mainly the second quarter, which also faces seasonality in prep courses. He expects to maintain at least high single-digit growth for the second half and does not foresee any decline from current levels. The company remains confident in reaching its 2026 guidance based on first-half results across all three segments. Q: We saw Capex running at 30% of your full-year guidance. How do you see Capex accelerating in the second half, and can you provide a breakdown between PPE and intangibles?A: Luis Blanco (CFO) confirmed the company expects to fulfill the guidance of R$340 million to R$380 million for the year, with expected acceleration in the second half. In the first semester, Capex for properties and equipment was down year-over-year, but there was high acceleration in intangibles, mostly concentrated on the investment plan for continuing education and medical practice solutions. While the company doesn't provide a breakdown between property and license Capex, a definite acceleration is expected in the second half. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Afya Limited? Here are five stocks we like better. Afya delivered solid first-half growth: Revenue rose 7% to BRL 1.985 billion, net income increased 7% to BRL 463 million, and adjusted EBITDA grew 3% to BRL 918 million. However, the adjusted EBITDA margin fell 190 basis points to 46.2% as the company increased sales, marketing and investment spending. Undergraduate medical education remained the main growth driver: Medical students increased 3% to more than 26,000, operating medical seats rose over 6%, and average monthly fees grew nearly 4%. Management is targeting full occupancy in the second-half intake cycle without changing medical-program prices or offering discounts. Afya is investing while maintaining its outlook and shareholder returns: Spending is accelerating in continuing education and medical practice solutions, where product mix and competition from artificial-intelligence tools pressured growth and margins. The company maintained 2026 adjusted EBITDA guidance of BRL 1.7 billion–BRL 1.8 billion, returned BRL 448 million to shareholders in the first half, and will pursue acquisitions only meeting its 20% minimum unleveraged IRR target. Afya (NASDAQ:AFYA) reported first-half 2026 revenue of BRL 1.985 billion, up 7% from a year earlier, while adjusted EBITDA rose 3% to BRL 918 million. Net income increased 7% to BRL 463 million, and basic earnings per share rose 9% to BRL 5.10. Chief Executive Officer Virgilio Gibbon said the company’s adjusted EBITDA margin was 46.2% for the first six months of 2026, down 190 basis points year over year. He attributed the margin decline primarily to a lower gross-profit contribution from continuing education, including higher sales and marketing expenses associated with Afya’s investment cycle in continuing education and medical practice solutions. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Second-quarter revenue totaled BRL 972 million, a 6% year-over-year increase, while adjusted EBITDA increased 1% to BRL 470 million. The quarterly adjusted EBITDA margin was 41.8%. Afya’s undergraduate segment generated BRL 1.762 billion of revenue in the first half, an increase of more than 7% from the prior-year period. The company said 85% of undergraduate revenue came from medical programs and 93% came from health-related courses. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand The medical student base grew 3% year over year to more than 26,000 students, while operating medical seats increased more than 6% to 3,768. The net average monthly fee for medical school rose nearly 4% to BRL 9,443. Gibbon said pricing trends in medical courses remained favorable, while health science courses recorded 13% growth compared with the prior year. During the question-and-answer session, he said Afya was targeting full occupancy for the second-half intake cycle, although enrollment through Brazil’s PROUNI program was still being completed and was expected to conclude by September. → On Holding's Price Stumble May Be an Opening for a Company Built to Run He added that Afya was not changing medical-program prices for the second half and was not offering discounts for those programs. In health-related programs, Gibbon said the company was more than 20% ahead of the prior year at the same point in the enrollment process and was growing organically by more than 18% in volume. Continuing education revenue rose 5% to BRL 144 million in the first half. Business-to-physician, or B2P, revenue increased 8% to BRL 135 million and represented 94% of segment revenue. Business-to-business revenue declined 25% year over year to BRL 9 million. The continuing education student base expanded 23%. Residency-preparation enrollment was stable at 9,244 students, while the graduate journey student base rose 13% to 10,213. Students in other B2P and B2B offerings increased 35% to 36,780. Gibbon said the higher student count reflected a changing product mix, including more short-duration, lower-ticket programs. He also cited seasonality in continuing medical education, particularly in preparation courses, as an influence on second-quarter performance. He said Afya expected high-single-digit growth in the segment during the second half and did not foresee a significant acceleration or decline for the full year. Medical practice solutions revenue increased 2% to BRL 85 million in the first half. Total active payers were broadly stable at about 201,000, while clinical-management active payers increased 20% to more than 50,000. Monthly active users declined 8% to 212,000. Chief Financial Officer Luis Blanco said Afya’s Whitebook clinical decision product faced pressure from artificial-intelligence tools, affecting active payer counts. The company has reduced ticket prices for the product and is investing in additional functionality, he said. At the same time, Blanco said the iClinic clinical-management platform was in a positive growth cycle, although its expansion was not yet sufficient to offset the decline in Whitebook. Afya’s investment plan includes increased spending on intangible assets and team expansion for continuing education and medical practice solutions, with the goal of building functionality and audience before revenue recovery. Gibbon said the company was adding artificial-intelligence features to products, expanding engagement with physicians and integrating clinical decision-support tools into its clinical-management offering. Afya said its ecosystem had 295,000 users at the end of the second quarter. Cash flow from operating activities rose 3% to BRL 806 million in the first half, while operating cash conversion was 87.8%. Free cash flow to equity totaled BRL 423 million. Afya returned BRL 448 million to shareholders through dividends and share repurchases during the first half, equal to 106% of free cash flow to equity. The company paid BRL 307 million in dividends during the second quarter, representing 40% of 2025 net income. Blanco said Afya’s gross debt was BRL 2.4 billion as of June 30, down from BRL 2.7 billion a year earlier. Average debt duration increased to 3.7 years from 1.9 years, while the average cost of debt was 15.1% annually. Net debt stood at BRL 1.394 billion, essentially unchanged from the end of 2025, despite shareholder distributions. Net debt excluding IFRS 16 leases was 0.8 times the midpoint of the company’s 2026 adjusted EBITDA guidance. The company maintained its full-year adjusted EBITDA guidance of BRL 1.7 billion to BRL 1.8 billion. Blanco said Afya remained focused on delivering within that range. Management also said it expects capital expenditures to accelerate in the second half, maintaining full-year CapEx guidance of BRL 340 million to BRL 380 million, with investments concentrated particularly in intangible assets tied to continuing education and medical practice solutions. On acquisitions, Blanco said the company would pursue business combinations only when they meet its return criteria, including a minimum nominal unleveraged internal rate of return of 20%. When opportunities do not meet those thresholds, Afya intends to return capital to shareholders through dividends and buybacks, management said. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Afya Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Afya (AFYA) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.17%. A quarter ago, it was expected that this medical education company would post earnings of $0.62 per share when it actually produced earnings of $0.56, delivering a surprise of -9.68%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Afya, which belongs to the Zacks Schools industry, posted revenues of $192.36 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.25%. This compares to year-ago revenues of $162.27 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Afya shares have lost about 10.8% since the beginning of the year versus the S&P 500's gain of 13.2%. While Afya has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Afya was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $196.33 million in revenues for the coming quarter and $1.90 on $781.56 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Consumer Discretionary sector, Duluth Holdings (DLTH), has yet to report results for the quarter ended July 2026. This clothing and tools supplier is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -266.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Duluth Holdings' revenues are expected to be $119.1 million, down 9.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Afya Limited (AFYA) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

R$448 Million Returned to Shareholders106% of 1H26 FCFE Distributed Through Dividends and Share Repurchases BELO HORIZONTE, Brazil, August 13, 2026--(BUSINESS WIRE)--Afya Limited (Nasdaq: AFYA; B3: A2FY34) ("Afya" or the "Company"), the leading medical education group and medical practice solutions provider in Brazil, reported today its financial and operating results for the three and six-month period, which ended June 30, 2026 (second quarter 2026). Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards ("IFRS"). Second Quarter 2026 Highlights 2Q26 Revenue increased 5.7% YoY to R$972.1 million. Revenue excluding acquisitions increased 5.4%, reaching R$969.3 million. 2Q26 Adjusted EBITDA increased 1.4% YoY, reaching R$406.5 million, with an Adjusted EBITDA Margin of 41.8%. Adjusted EBITDA Margin decreased -180 bps YoY. Adjusted EBITDA excluding acquisitions grew 1.2%, reaching R$405.6 million, with an Adjusted EBITDA Margin of 41.8%. 2Q26 Net Income increased 14.0% YoY, reaching R$201.3 million. Basic EPS growth was 16.7% in the same period. First-Half 2026 Highlights 1H26 Revenue increased 7.0% YoY to R$1,984.8 million. Revenue excluding acquisitions increased 6.6%, reaching R$1,977.6 million. 1H26 Adjusted EBITDA increased 2.8% YoY, reaching R$918.0 million, with an Adjusted EBITDA Margin of 46.2%. Adjusted EBITDA Margin decreased -190 bps YoY. Adjusted EBITDA excluding acquisitions grew 2.6%, reaching R$915.7 million, with an Adjusted EBITDA Margin of 46.3%. 1H26 Net Income increased 6.8% YoY, reaching R$463.1 million. Basic EPS growth was 8.6% in the same period. Operating Cash Conversion ratio of 87.8% and a Cash Flow from Operating Activities of R$ 805.5 million, with a solid cash position of R$1,006.5 million. R$447.9 million returned to shareholders in 1H26 through dividends and share repurchases, surpassing Free Cash Flow to Equity of R$423.4 million in the period and reflecting a payout ratio of 105.8%. ~295 thousand users in Afya’s ecosystem. Message from Management During the first half of 2026, Afya continued to execute its strategy with discipline, delivering revenue growth while advancing the investment cycle outlined for the year. The resilience of our Medical Education business supported another quarter of profitable growth and strong cash generation. In Undergraduate, Revenue reached R$1,762.2 million in the first half of 2026, a 7.4% year-on-year increase, driven by our Medical School and Health Sciences undergraduate programs. Revenue from Medical Schools totaled R$1,499.4 million in the first half, a 6.5% increase year-on-year, supported by a 3.9% increase in Medical School net average ticket and the continued expansion of our medical student base, which expanded 2.7% year-over-year from 25,733 to 26,421 students. Revenue was further supported by the continued expansion of our Health Sciences student base, which grew 18.0% year-over-year from 25,718 to 30,350 students, reflecting the diversification of our health-related undergraduate portfolio and the strength of Afya’s brand within the health segment. In Continuing Education, Revenue reached R$143.9 million in the first half, a 4.6% increase year-on-year, driven by a higher intake in short-term programs that carry a lower average ticket per student. The total base reached 56,237, a 23.6% year-on-year increase. In Medical Practice Solutions, Revenue reached R$85.3 million in the first half, a 1.5% increase year-on-year. Clinical Management active payers grew 20.4% year-on-year to 50,499, reflecting the continued execution of the product investment cycle in our 2026 strategy. Our capital allocation discipline remains grounded in value creation. We continuously evaluate acquisition opportunities and deploy capital only when transactions meet our strategic and financial return thresholds. When opportunities do not satisfy these criteria, we return excess capital to shareholders through dividends and our share repurchase program. Supported by our strong cash generation, this approach resulted in R$447.9 million returned to shareholders in the first half of 2026, of which R$314.9 million was distributed as dividends, equivalent to 40% of Afya's 2025 consolidated net income, and R$133.0 million was deployed in share repurchases, representing 2.7 million shares or approximately 3% of total shares outstanding under our current buyback program. This amount represents 106% of 1H26 Free Cash Flow to Equity, while Net Debt excluding IFRS16 remained broadly stable compared to December 2025. This discipline, combined with our earnings trajectory, translates into a compelling return profile: our last twelve months free cash flow to equity yield of 11% and EPS growth of 13% combine to imply a 24% potential annual equity return at a constant valuation multiple. Looking ahead, we remain confident in the strength of our strategy and the quality of our platform. We will keep investing in our ecosystem, supporting physicians at every stage of their careers, and creating sustainable value for students, physicians and shareholders. 1. Key Events in the Quarter On May 5, 2026, Moody’s reaffirmed Afya’s credit rating at AAA.br and maintained a stable outlook. The reaffirmation of Afya’s AAA.br rating and stable outlook reflects revenue growth, a track record of above-industry-average margins, very strong credit metrics, exceptional cash generation, and robust liquidity. In addition, Afya’s credit profile reflects a strong competitive position and a predictable financial policy, including proactive liability management and prudent capital allocation, despite its appetite for M&As. 2. Subsequent Events On July 29, 2026, the Company announced that Marcelo Ken Suhara was appointed, on July 27, 2026, as Chair Member of its Audit, Risks and Ethics Committee. Mr. Suhara, who currently serves as an independent member of Afya’s Board of Directors and a member of the Audit, Risks and Ethics Committee and the Audit Committee financial expert, succeeds João Paulo Seibel de Faria as the Chair Member of the Audit, Risks and Ethics Committee and will continue to serve as the Audit Committee financial expert and an independent member of the Board of Directors.The appointment follows the passing of João Paulo Seibel de Faria, who served as the Chair Member of the Audit, Risks and Ethics Committee and as an independent member of the Company’s Board of Directors. The Company expresses its deepest gratitude to Mr. Faria for his dedication, leadership and meaningful contributions to Afya’s governance and long-term success throughout his tenure. The Board of Directors and management team extend their sincere condolences to Mr. Faria’s family and loved ones. 3. 2026 Guidance The Company is reaffirming its 2026 guidance, which assumes the successful acceptance of new students for the second semester of 2026. The guidance for 2026 is defined in the following table: 4. 2Q26 Overview Segment Information The Company has three reportable segments as follows: Undergraduate, previously denominated Undergrad, which provides educational services through undergraduate courses related to medical school, undergraduate health science and other ex-health undergraduate programs; Continuing Education, which provides medical education (including residency preparation programs, specialization test preparation and other medical capabilities), specialization and graduate courses in medicine, delivered through digital and in-person content; and Medical Practice Solutions, which provides clinical decision, clinical management and doctor-patient relationships for physicians and provides access, demand and efficiency for the healthcare players. Key Revenue Drivers – Undergraduate Programs Key Revenue Drivers – Continuing Education Key Revenue – Medical Practice Solutions Key Operational Drivers – Users Positively Impacted by Afya The Users Positively Impacted by Afya represents the total number of medical students from the Undergraduate segment, students from Continuing Education and users from Medical Practice Solutions. For the second quarter of 2026, Afya’s ecosystem reached 294,816 users. Revenue Revenue totaled R$972.1 million in the second quarter of 2026, increasing 5.7% year over year. Excluding acquisitions, Revenue reached R$969.3 million, representing 5.4% organic growth. For the first half of 2026, Revenue totaled R$1,984.8 million, up 7.0% year over year. Excluding acquisitions, Revenue reached R$1,977.6 million, representing 6.6% organic growth. Revenue growth in the quarter was primarily driven by the continued strength of our Medical Schools, supported by higher net average tickets and the ongoing maturation of operating medical school seats, and the continued expansion of the Health Sciences student base by 18.0%, which together increased organically by 6.6% year over year. Adjusted EBITDA Adjusted EBITDA reached R$406.5 million in the second quarter of 2026, an increase of 1.4% year over year, while Adjusted EBITDA Margin was 41.8%, down 180 basis points from the prior-year period. For the first half of 2026, Adjusted EBITDA totaled R$918.0 million, up 2.8% year over year, with an Adjusted EBITDA Margin of 46.2%, down 190 basis points. The decrease in Adjusted EBITDA Margin primarily reflects a lower gross profit contribution from Continuing Education, driven by a less favorable revenue mix, as well as higher payroll, sales, and marketing expenses associated with the investment cycle across Continuing Education and Medical Practice Solutions. Net Income Net Income for the second quarter of 2026 totaled R$201.3 million, an increase of 14.0% year over year. For the first half of 2026, Net Income reached R$463.1 million, up 6.8% from the same period of 2025. The increase reflects continued operating performance and a tax impact resulting from the implementation of the OECD Pillar Two rules in Brazil. Basic EPS reached R$ 2.22 for the second quarter of 2026, an increase of 16.7% year over year, and R$5.10 for the six-month period ended June 30, 2026, an increase of 8.6% YoY. The EPS growth is higher than net income, reflecting our capital allocation strategy. Cash and Debt Position As of June 30, 2026, Cash and Cash Equivalents totaled R$1,006.5 million, a decrease of 10.6% over December 31, 2025. Net Debt, excluding the effect of IFRS 16, reached R$1,394.0 million, increasing by R$24.5 million from year-end 2025, despite returning R$447.9 million to shareholders through dividends and share repurchases during the first half of 2026. For the six-month period ended June 30, 2026, Afya generated R$805.6 million in Cash Flow from Operating Activities, up from R$783.0 million in the same period of the previous year, an increase of 2.9% YoY. The Operating Cash Conversion Ratio reached 87.8%. The following table provides more information on the cost of debt for the first half of 2026, including loans and financing, as well as accounts payable to selling shareholders. Afya’s capital structure remains solid, with a conservative leveraging position and a low cost of debt. Afya’s Net Debt (excluding the effect of IFRS16) divided by Adjusted EBITDA mid guidance for 2026 would be 0.8x. CAPEX Capital expenditure consists primarily of investments in property and equipment and intangible assets, including the expansion and maintenance of Afya’s campuses and headquarters, leasehold improvements, and the development of new solutions in the Medical Practice Solutions and educational content in Continuing Education. For the first half of 2026, Capex totaled R$120.0 million, representing 6.0% of Revenue for the period and remaining aligned with the Company’s 2026 investment plan. 5. Conference Call and Webcast Information OR Dial-in: Brazil: +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668. United States: +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799. Webinar ID: 982 7161 8661 Other Numbers: https://afya.zoom.us/u/aRK0ROGaH 6. About Afya Limited (Nasdaq: AFYA; B3: A2FY34) Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering medical practice solutions to help doctors enhance their healthcare services through their whole career. For more information, please visit www.afya.com.br. 7. Forward – Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including risks and uncertainties related to statements about our competition; our ability to attract, upsell and retain students; our capacity to increase tuition prices; our ability to anticipate and meet the evolving needs of students and teachers; our capacity to source and successfully integrate acquisitions; as well as general market, political, economic, and business conditions. Additionally, these statements include financial targets such as revenue, share count and IFRS and non-IFRS financial measures including gross margin, operating margin, net income (loss) per diluted share, and free cash flow. These statements are not guarantees of future performance and undue reliance should not be placed on them. The Company assumes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances occurring after its publication, nor to incorporate new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from those expressed or implied by the forward-looking statements we make. Readers should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent management’s beliefs and assumptions only as of the date they are made. Further information on these and other factors that could affect the Company’s financial results is included in filings made with the United States Securities and Exchange Commission (SEC) from time to time, including the section titled "Risk Factors" in the most recent annual report on Form 20-F. These documents are available in the SEC Filings section of the investor relations section of our website at: https://ir.afya.com.br/. 8. Non-GAAP Financial Measures To supplement the Company's consolidated financial statements, which are prepared and presented in accordance with IFRS accounting standards as issued by the International Accounting Standards Board—IASB, Afya presents Adjusted EBITDA and Operating Cash Conversion Ratio which are non-GAAP financial measures, for the convenience of investors. A non-GAAP financial measure is generally defined as one that intends to measure financial performance but excludes or includes amounts that would not be equally adjusted in the most comparable GAAP measure. Afya calculates Adjusted EBITDA as net income plus/minus net financial result, plus income taxes expense, plus depreciation and amortization, plus interest received on late payments of monthly tuition fees, plus share-based compensation, plus/minus income share associate, plus/minus non-recurring expenses/income. Operating Cash Conversion Ratio is calculated as the Cash flow from Operating Activities plus income taxes paid, minus/plus non-recurring expenses/income divided by Adjusted EBITDA. Free Cash Flow to Equity is calculated as the change in Net Debt ex-IFRS 16 between the beginning of the current period and the end of the current period, plus cash paid for acquisitions of subsidiaries or business combinations, plus dividends paid to the Company's shareholders, plus cash used in treasury share repurchases. The non-GAAP supplemental financial measures are provided with the intend to help investors in assessing the overall performance of Afya’s business regarding its core operations, cash generation and profitability. The non-GAAP financial measures described in this release are not substitutes for the IFRS measures. In addition, the calculations of Adjusted EBITDA and Operating Cash Conversion Ratio are not standardized financial measures and may differ from the calculations used by other companies, including competitors in the education services industry, and therefore, Afya’s measures may not be comparable to those of other companies. 9. Investor Relations Contact E-mail: [email protected] 10. Financial Tables Unaudited interim condensed consolidated statements of financial positionAs of June 30, 2026 and December 31, 2025(In thousands of Brazilian reais) Unaudited interim condensed consolidated statements of income and comprehensive incomeFor the three and six-month periods ended June 30, 2026 and 2025(In thousands of Brazilian reais, except for earnings per share information) Unaudited interim condensed consolidated statements of cash flowsFor the six-month periods ended June 30, 2026 and 2025(In thousands of Brazilian reais) Reconciliation between Change in Net Debt Position and Free Cash Flow to Equity View source version on businesswire.com: https://www.businesswire.com/news/home/20260813136104/en/ Contacts Investor Relations Contact E-mail: [email protected]

American Public Education (APEI) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +44.44%. A quarter ago, it was expected that this for-profit education company would post earnings of $0.61 per share when it actually produced earnings of $0.94, delivering a surprise of +54.1%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. American Public Education, which belongs to the Zacks Schools industry, posted revenues of $171.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.55%. This compares to year-ago revenues of $162.77 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Public Education shares have added about 35.6% since the beginning of the year versus the S&P 500's gain of 13.3%. While American Public Education has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Public Education was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $169.84 million in revenues for the coming quarter and $2.59 on $691.28 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Afya (AFYA), another stock in the same industry, has yet to report results for the quarter ended June 2026. This medical education company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +17.5%. The consensus EPS estimate for the quarter has been revised 2.4% lower over the last 30 days to the current level. Afya's revenues are expected to be $197.32 million, up 21.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Afya Limited (AFYA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Afya Ltd (NASDAQ:AFYA) reported an 8% increase in revenues, reaching R1,013 million, demonstrating strong financial performance. The company achieved a 4% growth in adjusted EBITDA, reaching R511 million, with a margin of 50.5%. Free cash flow increased by 3% to R376 million, with a high cash conversion rate of 92.5%. The number of operating medical school seats increased by over 6% year-over-year, enhancing capacity. Continuing education revenue grew by 11% year-over-year, indicating strong demand for educational offerings. Adjusted EBITDA margin decreased by 200 basis points compared to the previous year, primarily due to higher costs and expenses. The number of active payers in the Medical Practice Solutions segment declined by 1% year-over-year. There was a 10% reduction in active users in the Medical Practice Solutions segment compared to the previous year. Sales and marketing expenses increased year-over-year, impacting overall profitability. The company faces challenges from AI competition in the Medical Practice Solutions segment, particularly affecting the White Book product. Is AFYA fairly valued? Test your thesis with our free DCF calculator. Q: Can you comment on the competitive environment for the recent intake cycle and the strategy for non-medical undergraduate students? A: (CEO, Vigil Gibon) The first-half intake was strong, maintaining the same level of candidates per seat as last year. Our centralized national intake process has helped achieve 100% occupancy. For non-medical undergraduates, we are expanding health programs across campuses, which has led to a 20% organic growth in this segment. This strategy complements our medicine programs and leverages our brand's strong recognition in the health sector. Q: Could you provide an update on the ANAMED exam impacts and the M&A environment for medical schools? A: (CEO, Vigil Gibon) We are increasing student engagement for the ANAMED exam with mock tests and curriculum adjustments. We expect better results in September. (CFO, Viz Andre Blanc) For M&A, we focus on deals with over 60% revenue from medicine programs and an IRR above 20%. We maintain discipline in capital allocation, pursuing only deals that meet these criteria. Q: What is the expected timing for recovery in the Medical Practice Solutions segment, especially regarding the White Book? A: (CEO, Vigil Gibon) We are investing in integrating our products to create a network effect and enhance physician engagement. While White Book payers have declined, iClinic is growing. We are focusing on AI-based features and integrating White Book with other solutions. We expect significant impacts from 2027 onwards. Q: Why was there an increase in sales and marketing expenses this quarter? A: (CEO, Vigil Gibon) The increase is due to anticipated intake volumes for the first half and enhanced sales efforts for our integrated solutions. This is a one-time increase and is included in our annual guidance. (CFO, Viz Andre Blanc) These expenses are part of our strategic initiatives and are accounted for in our financial projections. Q: Can you provide more details on the initiatives to enhance the White Book platform? A: (CEO, Vigil Gibon) We are focusing on increasing the audience for White Book by integrating it with AI features and other educational solutions. This year, the focus is on audience growth, with revenue impacts expected from 2027. (CFO, Viz Andre Blanc) Investments are concentrated on intangible assets to support these initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.