Operational efficiency remains high as evidenced by an OCF/NI ratio frequently exceeding 1.5x, though free cash flow margins remain volatile, peaking at 46.1% in 2025Q3 before shifting to 42.1% in 2026Q1.
| Cash from Operations | 1.43B | 1.2B | 1.43B | 1.04B | 843.9M | 630.87M | 371.51M | 299.22M | 80.32M | 39.92M |
| Operating CF Margin % | - | 33.09% | 43.36% | 36.29% | 36.23% | 36.69% | 30.93% | 39.86% | 24.05% | 18.48% |
| Operating CF Growth % | -13.6% | -16.29% | 37.28% | 23.67% | 33.77% | 69.81% | 24.16% | 272.54% | 101.21% | - |
| Net Income | 755.3M | 737.68M | 676.39M | 429.58M | 428.43M | 273.46M | 335.05M | 186.94M | 98.72M | 50.98M |
| Depreciation & Amortization | 280.69M | 0 | 333.34M | 289.51M | 206.22M | 154.22M | 108.74M | 73.15M | 9.08M | 4.02M |
| Stock-Based Compensation | 9.72M | 0 | 32.42M | 31.54M | 31.27M | 43.38M | 32.61M | 18.11M | 2.16M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.86M | 5.29M | 0 |
| Other Non-Cash Items | 597.69M | 670.37M | 409.87M | 352.39M | 287.89M | 208.6M | 64.24M | 55.47M | 1.5M | -427K |
| Working Capital Changes | -261.45M | -208.81M | -19.36M | -59.39M | -109.92M | -48.8M | -169.14M | -24.6M | -36.44M | -14.66M |
| Change in Receivables | -222.61M | -184.65M | -79.34M | -131.34M | -129.16M | -81.99M | -178M | -35.56M | -28.2M | -9.79M |
| Change in Inventory | 0 | 0 | 0 | 10.95M | -363K | -3.72M | -3.11M | -236K | -593K | -140K |
| Change in Payables | 3.83M | -4.41M | 18.13M | 24.5M | 9.97M | 14.48M | 4.47M | 3.03M | -1.53M | -2.38M |
| Cash from Investing | -531.93M | -498.11M | -1.09B | -1.14B | -591.47M | -1.27B | -1.04B | -354.15M | -262.39M | -22.07M |
| Capital Expenditures | -234.13M | -356.86M | -136.92M | -118.44M | -297.02M | -125.87M | -89.83M | -121.71M | -21.69M | -21.07M |
| CapEx % of Revenue | 6.21% | 9.85% | 4.14% | 4.12% | 12.75% | 7.32% | 7.48% | 16.21% | 6.49% | 9.75% |
| Acquisitions | -144.15M | -141.25M | -627.57M | -907.52M | -301.2M | -1.01B | -919.97M | -241.57M | -221.3M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -153.65M | -6 | -327.12M | -117.09M | 6.75M | -143.17M | -32.97M | 9.13M | -19.4M | -1M |
| Cash from Financing | -718.04M | -489.2M | 23.97M | -439.94M | 92.94M | 364.68M | 756.42M | 921.43M | 218.84M | -4.13M |
| Debt Issued (Net) | -114.82M | -127.48M | 321.68M | -138.81M | 466.58M | 681.7M | 394.5M | -107.49M | 68.38M | -1.62M |
| Equity Issued (Net) | -133.05M | -50.26M | 0 | -12.37M | -152.32M | -213.72M | 389.17M | 992.78M | 0 | 0 |
| Dividends Paid | 14.3M | 0 | 0 | 0 | 0 | 0 | 0 | -38.75M | 0 | 0 |
| Share Repurchases | -135.2M | -75.49M | 0 | -12.37M | -152.32M | -213.72M | 0 | 0 | 0 | 0 |
| Other Financing | -484.48M | -311.46M | -297.71M | -288.76M | -221.32M | -103.3M | -27.24M | 36.15M | 150.46M | -2.51M |
| Net Change in Cash | 198.82M | 317.15M | 357.99M | -540.05M | 344.52M | -296.48M | 101.83M | 880.95M | 36.77M | 13.72M |
| Free Cash Flow | 1.17B | 1.04B | 1.04B | 798.2M | 546.88M | 354.07M | 233.92M | 177.51M | 58.63M | 18.85M |
| FCF Margin % | 30.92% | 28.6% | 31.48% | 27.75% | 23.48% | 20.59% | 19.47% | 23.65% | 17.56% | 8.73% |
| FCF Growth % | 0.9% | -0.34% | 30.3% | 45.96% | 54.46% | 51.36% | 31.78% | 202.75% | 211.02% | - |
| FCF per Share | 12.93 | 11.36 | 11.41 | 8.82 | 6.08 | 3.76 | 2.50 | 2.33 | 0.67 | 0.21 |
| FCF Conversion (FCF/Net Income) | 1.54x | 1.63x | 2.27x | 2.70x | 2.26x | 2.82x | 1.27x | 1.94x | 0.93x | 0.88x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory seat expansion risk
According to recent financial statements, Afya consistently reports operating cash flow significantly exceeding net income, with an OCF/NI ratio frequently surpassing 1.5x, which suggests that non-cash charges like amortization of acquired intangibles are masking the underlying cash-generative capacity of the core medical education business model.
The persistent gap between net income and operating cash flow indicates that the company's reported earnings are conservative relative to actual cash inflows. Investors should monitor whether this conversion quality remains high as the company shifts from an acquisition-heavy growth phase to a more mature operational cycle.
As reported in quarterly filings, Afya's free cash flow margins have demonstrated significant volatility, ranging from negative figures in 2023Q4 to peaks above 46% in 2025Q3, reflecting the lumpy nature of capital deployment and the impact of seasonal working capital requirements on the company's cash trajectory.
The wide variance in FCF margins suggests that while the core business is highly cash-generative, the timing of acquisitions and working capital swings can temporarily obscure the underlying profitability. The stabilization of these margins will be a key indicator of whether the company can sustain its cash generation without constant inorganic expansion.
Based on the provided data, Afya experiences substantial quarterly fluctuations in working capital, with outflows reaching $153.6 million in 2025Q4, which suggests that the timing of tuition collections and government-related receivables creates periodic pressure on the company's short-term cash position despite strong overall profitability.
These swings in working capital appear to be a structural feature of the education sector, likely tied to the academic calendar and FIES payment cycles. Analysts should investigate whether these fluctuations are becoming more pronounced, which could indicate potential challenges in the efficiency of receivables management.
As indicated by recent cash flow statements, Afya continues to prioritize aggressive capital deployment, with net acquisition spending totaling $63.8 million in 2026Q1, alongside periodic share repurchases, suggesting a management focus on inorganic growth and shareholder returns despite the potential for regulatory headwinds in the medical sector.
The reliance on acquisitions to drive growth warrants close scrutiny, as the return on invested capital must remain high to justify the ongoing cash outflow. Investors should monitor if the company's capital allocation shifts toward debt reduction or higher dividend payouts as the medical seat market reaches saturation.
Quick answers to the most common questions about buying AFYA stock.
Afya Limited (AFYA) generated $1.20B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Afya Limited (AFYA) generated $1.04B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Afya Limited (AFYA) spent $356.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Afya Limited (AFYA) spent $75.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.