Afya maintains significant pricing power with a 68.9% gross margin as of 2026Q1, though year-over-year revenue growth has decelerated to 6.1% from the 25% peak observed in 2023Q4.
| Sales/Revenue | 3.77B | 3.62B | 3.3B | 2.88B | 2.33B | 1.72B | 1.2B | 750.63M | 333.94M | 216.01M |
| Revenue Growth % | 9.66% | 9.69% | 14.9% | 23.48% | 35.46% | 43.14% | 60.02% | 124.78% | 54.59% | - |
| Cost of Goods Sold | 1.35B | 1.29B | 1.22B | 1.11B | 859.55M | 652.3M | 434.65M | 308.85M | 168.05M | 124.06M |
| COGS % of Revenue | - | 35.54% | 36.79% | 38.59% | 36.91% | 37.94% | 36.19% | 41.15% | 50.32% | 57.44% |
| Gross Profit | 2.42B | 2.34B | 2.09B | 1.77B | 1.47B | 1.07B | 766.54M | 441.78M | 165.88M | 91.94M |
| Gross Margin % | 64.3% | 64.46% | 63.21% | 61.41% | 63.09% | 62.06% | 63.81% | 58.85% | 49.68% | 42.56% |
| Gross Profit Growth % | - | 11.86% | 18.27% | 20.18% | 37.71% | 39.21% | 73.51% | 166.32% | 80.42% | - |
| Operating Expenses | 1.2B | 1.15B | 1.08B | 999.04M | 805.58M | 626.18M | 403.2M | 236.53M | 69.44M | 42.6M |
| OpEx % of Revenue | - | 31.65% | 32.58% | 34.74% | 34.59% | 36.42% | 33.57% | 31.51% | 20.79% | 19.72% |
| Selling, General & Admin | 1.17B | 1.15B | 1.07B | 1.01B | 798.15M | 622.62M | 402.86M | 239.12M | 70.03M | 45.35M |
| SG&A % of Revenue | - | 31.65% | 32.31% | 35.28% | 34.27% | 36.21% | 33.54% | 31.86% | 20.97% | 21% |
| Research & Development | 0 | 0 | 20.09M | 21.5M | 9.44M | 0 | 32K | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.61% | 0.75% | 0.41% | - | 0% | - | - | - |
| Other Operating Expenses | 0 | 0 | -11M | -37.15M | 0 | 3.56M | 347K | -2.59M | -599K | -2.75M |
| Operating Income | 1.22B | 1.19B | 1.01B | 767.06M | 664.1M | 440.89M | 363.33M | 205.25M | 96.45M | 49.34M |
| Operating Margin % | 32.5% | 32.81% | 30.63% | 26.67% | 28.51% | 25.64% | 30.25% | 27.34% | 28.88% | 22.84% |
| Operating Income Growth % | - | 17.51% | 31.95% | 15.5% | 50.63% | 21.35% | 77.02% | 112.81% | 95.46% | - |
| EBITDA | 1.51B | 1.19B | 1.22B | 1.06B | 876.04M | 595.12M | 472.84M | 278.4M | 106.07M | 53.52M |
| EBITDA Margin % | 39.95% | 32.81% | 36.81% | 36.74% | 37.61% | 34.61% | 39.36% | 37.09% | 31.76% | 24.78% |
| EBITDA Growth % | 7.05% | -2.21% | 15.11% | 20.61% | 47.21% | 25.86% | 69.84% | 162.47% | 98.18% | - |
| D&A (Non-Cash Add-back) | 280.69M | 0 | 204.12M | 289.51M | 211.94M | 154.22M | 109.5M | 73.15M | 9.62M | 4.18M |
| EBIT | 1.29B | 1.19B | 1.01B | 815.88M | 717.09M | 449.11M | 363.33M | 242.41M | 96.45M | 49.34M |
| Net Interest Income | -358.43M | -493.78M | -322.94M | -279.17M | -261.45M | -152.61M | -9.22M | -51.38M | -573K | -381K |
| Interest Income | 148.47M | 0 | 43.42M | 107.12M | 27.2M | 23.04M | 7.05M | 9.04M | 4.36M | 3.17M |
| Interest Expense | 506.89M | 493.78M | 366.35M | 386.3M | 288.65M | 175.65M | 16.27M | 15.94M | 2.4M | 1.04M |
| Other Income/Expense | -344.08M | -345.34M | -335.72M | -337.48M | -235.67M | -167.43M | -28.28M | -18.31M | 2.27M | 1.64M |
| Pretax Income | 880.76M | 844.03M | 676.39M | 429.58M | 428.43M | 273.46M | 335.05M | 186.94M | 98.72M | 50.98M |
| Pretax Margin % | 23.37% | 23.29% | 20.47% | 14.94% | 18.4% | 15.9% | 27.89% | 24.9% | 29.56% | 23.6% |
| Income Tax | 109.82M | 90.68M | 27.47M | 24.17M | 35.68M | 31.18M | 27.07M | 14.18M | 3.99M | 2.5M |
| Effective Tax Rate % | 12.47% | 10.74% | 4.06% | 5.63% | 8.33% | 11.4% | 8.08% | 7.58% | 4.04% | 4.9% |
| Net Income | 755.3M | 737.68M | 631.51M | 386.32M | 373.57M | 223.33M | 292.07M | 153.92M | 86.35M | 45.39M |
| Net Margin % | 20.04% | 20.35% | 19.11% | 13.43% | 16.04% | 12.99% | 24.32% | 20.5% | 25.86% | 21.01% |
| Net Income Growth % | 11.05% | 16.81% | 63.47% | 3.41% | 67.28% | -23.54% | 89.76% | 78.24% | 90.23% | - |
| Net Income (Continuing) | 770.94M | 753.35M | 648.92M | 405.42M | 392.76M | 242.28M | 307.99M | 172.76M | 94.73M | 48.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 41.14M | 39.37M | 40.63M | 41.51M | 51.32M | 51.87M | 51.56M | 48.63M | 88.37M | 651K |
| EPS (Diluted) | 8.38 | 8.11 | 6.93 | 4.27 | 4.15 | 2.37 | 3.12 | 2.02 | 0.98 | 0.52 |
| EPS Growth % | 11.13% | 17.03% | 62.3% | 2.89% | 75.11% | -24.04% | 54.46% | 106.12% | 88.46% | - |
| EPS (Basic) | - | 8.16 | 7.01 | 4.27 | 4.15 | 2.39 | 3.15 | 2.03 | 0.98 | 0.52 |
| Diluted Shares Outstanding | 90.13M | 91.27M | 91.15M | 90.54M | 89.94M | 94.1M | 93.64M | 76.19M | 87.68M | 87.68M |
| Basic Shares Outstanding | 89.37M | 90.48M | 90.12M | 90.47M | 89.94M | 93.29M | 92.68M | 75.97M | 87.68M | 87.68M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 24.69% | - | - |
Regulatory seat expansion risk
According to the latest financial disclosures, Afya's year-over-year revenue growth has decelerated to 6.1% in 2026Q1, down significantly from the 25% peak observed in 2023Q4, suggesting that the company's aggressive expansion phase is transitioning toward a more mature, lower-growth cycle within the Brazilian medical education market.
The deceleration in top-line expansion indicates that the company may be reaching a saturation point in its core undergraduate medical seat capacity. Investors should monitor whether the current growth rate can be sustained through digital services or if the lack of new, high-margin seat authorizations will continue to compress the overall revenue trajectory.
As reported in recent income statements, Afya maintains a robust gross margin of 68.9% as of 2026Q1, demonstrating significant pricing power that remains resilient despite the broader competitive pressures within the Brazilian education sector and the potential for increased supply of medical seats in the domestic market.
The ability to sustain gross margins near 70% suggests that the company's medical education offerings remain highly inelastic, effectively insulating the firm from inflationary pressures. This structural profitability appears to be a direct result of the high regulatory barriers to entry that protect the company's existing medical seat licenses.
Based on the provided quarterly data, Afya has demonstrated effective operating leverage, with operating margins reaching 38.8% in 2026Q1, a notable improvement from the 23.4% reported in 2023Q4, which suggests that the company is successfully scaling its administrative and overhead costs relative to its gross profit generation.
The reduction in SG&A as a percentage of revenue indicates that management is successfully leveraging its existing infrastructure to support a larger student base. This trend warrants further investigation to determine if these efficiencies are sustainable or if they are merely a result of temporary cost-cutting measures that could impact long-term service quality.
Data from recent filings highlights that the re-introduction of the Mais Médicos framework poses a material risk to Afya's long-term pricing power, as any significant increase in the total supply of medical seats could erode the scarcity premium that currently supports the company's high-margin undergraduate segment.
Short-term profitability may mask the underlying risk of a regulatory-induced supply shock that could force tuition price adjustments. Investors should remain cautious regarding the sustainability of current margins if the government continues to prioritize the expansion of medical seat availability over the protection of incumbent educational providers.
Quick answers to the most common questions about buying AFYA stock.
For fiscal year 2025, Afya Limited (AFYA) reported total revenue of $3.62B. This represents a 1578.0% increase compared to $216.0M in 2017.
Afya Limited (AFYA) is profitable, generating $737.7M in net income for the fiscal year ending 2025 with a net profit margin of 20.4%.
Afya Limited (AFYA) reported an operating income of $1.19B, resulting in an operating profit margin of 32.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Afya Limited (AFYA) generated $2.34B in gross profit for the year, representing a gross profit margin of 64.5%. This demonstrates the company's core pricing power and production efficiency.