Brazil's Afya Q2 adjusted EBITDA margin declined on less favorable revenue mix and higher payroll

Afya

13/08/2026 23:21

Overview
Medical education group's Q2 revenue excluding acquisitions grew 5.4% yr/yr
Adjusted EBITDA for Q2 rose 1.4% yr/yr, margin declined due to higher expenses and revenue mix
Company returned R$448 mln to shareholders in 1H26 via dividends and share repurchases

Outlook
Afya reaffirms 2026 revenue guidance of R$3.95 bln to R$4.1 bln
Company maintains 2026 adjusted EBITDA guidance of R$1.7 bln to R$1.8 bln
Afya expects 2026 capex between R$340 mln and R$380 mln

Result Drivers
MEDICAL SCHOOLS GROWTH - Revenue growth was mainly driven by Medical Schools, supported by higher net average ticket and expansion of the student base
HEALTH SCIENCES EXPANSION - Health Sciences undergraduate programs contributed to revenue growth through an 18% increase in student base
MARGIN PRESSURE - Adjusted EBITDA margin declined due to less favorable revenue mix and higher payroll, sales, and marketing expenses

Company press release: ID:nBwccz9bPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted Revenue
 
$969.27 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the schools, colleges & universities peer group is "buy."
Wall Street's median 12-month price target for Afya Limited is $16.00, about 16.4% above its August 12 closing price of $13.74
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)