Aug 13, 2026 earnings call — Q2 results and capital returns
Afya returned BRL 448 million to shareholders in the first half of 2026, equal to 106% of free cash flow to equity.
Revenue $0.2B (est $0.2B) · EPS $0.45 (est $0.39)
Key quotes
"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."
"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."
"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."
Analyst Q&A 5
student enrollment and medical practice sales
Q (Marcelo Santos · JPMorgan): He asked about competitive intake in the second half, ticket pressure and the ability to raise prices. He also asked why medical practice solutions fell this quarter and when investments will raise revenue.
A: They are aiming to have 100% of occupancy fulfilled and expect delayed ProUni enrollments to be completed by September. They will not change prices or give discounts for medicine programs. Health program intake is strong, more than 20% above last year, and they are investing in Whitebook and iClinic features and teams so revenue should recover later.
"Related to our intake on the second half, we are once again aiming to have 100% of all of our occupancy fulfilled." — Virgilio Deloy Gibbon (CEO)
EBITDA outlook and capital use
Q (Flavio Yoshida · BofA): He asked if second-half EBITDA will be below first-half since annualizing H1 hits the top of guidance. He also asked how they will balance dividends/buybacks and M&A and how M&A in medical courses looks.
A: They remain focused on delivering EBITDA between BRL 1.7 billion and BRL 1.8 billion. They are very careful on capital allocation: since the IPO they made 22 business combinations but only pursue deals that meet a minimum 20% return threshold, otherwise they return cash to shareholders via buybacks and dividends; they are comfortable with 0.8 net debt to EBITDA and have 1.4 million shares of buyback capacity remaining.
"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." — Luis Andre Blanco (CFO)
continuing medical education revenue drop
Q (Lucca Marquezini · Itaú): He asked why continuing education net revenue declined and what to expect in the second half. He asked when growth will resume.
A: They have more students but a different product mix with shorter courses and lower tickets, and seasonality hit prep courses in Q2. They expect to keep close to a high 1-digit growth for the second half and do not foresee a big jump or a further decrease for the year.
"Having said that, we are seeing -- keeping at least close to a high 1-digit growth for the second half here." — Virgilio Deloy Gibbon (CEO)
EnMed seats and tax expense
Q (Lucas Nagano · Morgan Stanley): He asked whether the new injunction lets them fill all authorized seats now and if that will hold after the new EnMed results. He also asked why income tax expense was low and what the level will be going forward.
A: After last week's decision, the seats that were prohibited returned to the institutions, and some campuses can still fill additional seats though timing means some seats will remain unfilled and this will not affect second-half results. Regarding tax, new Pillar Two clarifications allowed reducing provisions: they disbursed BRL 8 million, BRL 9 million approximately for 2025 and had BRL 109 million provision at end of 2025, creating a positive effect of more or less BRL 20 million; they expect the effective tax rate for 2026 to be around 10%.
"So after the decision last week, all the seats that were prohibited return to the institutions." — Virgilio Deloy Gibbon (CEO)
CapEx pace and breakdown
Q (Renan Prata · Citi): He asked how CapEx will accelerate in the second half and for a breakdown between property, intangible, or license spending.
A: CapEx is running as expected and they aim to fulfill guidance between BRL 340 million and BRL 380 million for the year. They expect acceleration in the second half; first semester showed PPE down year-over-year but strong acceleration in intangibles focused on continued education and medical practice solutions, and they will not disclose a detailed split between property and licenses.
"We want to fulfill the guidance that we provided that is between BRL 340 million and BRL 380 million for the year." — Luis Andre Blanco (CFO)