Afya Ltd
NASDAQ:AFYA
Afya Ltd
Afya Ltd. is an intriguing player in the education and healthcare sectors of Brazil, carving its niche in the market by providing educational services to medical students and professionals. Founded in 2017, the company's journey began with a mission to tackle the chronic shortage of qualified healthcare professionals in the country. Through a series of strategic acquisitions, Afya rapidly expanded its portfolio of medical schools and associated educational programs, becoming the preeminent provider of medical courses in Brazil. The company's growth is anchored in its distinctive hybrid business model that blends traditional brick-and-mortar educational institutions with a dynamic digital learning platform, thereby ensuring comprehensive learning experiences for aspiring medical professionals.
Revenue generation for Afya rests on its ability to enroll students into its extensive array of undergraduate and graduate medical programs, as well as continuing education courses that are mandated for medical professionals in Brazil. By leveraging economies of scale, Afya manages to run these programs efficiently, resulting in robust financial performance. The company makes money primarily through tuition fees, which are supplemented by its digital offerings, catering to a broader array of healthcare education needs. Through its digital platform, Afya not only enhances accessibility to its educational content but also taps into the growing demand for online learning solutions. This dual-channel approach enables Afya to remain agile in a rapidly evolving educational landscape while reinforcing its commitment to improving Brazil's healthcare by shaping the next generation of medical professionals.
Afya Ltd. is an intriguing player in the education and healthcare sectors of Brazil, carving its niche in the market by providing educational services to medical students and professionals. Founded in 2017, the company's journey began with a mission to tackle the chronic shortage of qualified healthcare professionals in the country. Through a series of strategic acquisitions, Afya rapidly expanded its portfolio of medical schools and associated educational programs, becoming the preeminent provider of medical courses in Brazil. The company's growth is anchored in its distinctive hybrid business model that blends traditional brick-and-mortar educational institutions with a dynamic digital learning platform, thereby ensuring comprehensive learning experiences for aspiring medical professionals.
Revenue generation for Afya rests on its ability to enroll students into its extensive array of undergraduate and graduate medical programs, as well as continuing education courses that are mandated for medical professionals in Brazil. By leveraging economies of scale, Afya manages to run these programs efficiently, resulting in robust financial performance. The company makes money primarily through tuition fees, which are supplemented by its digital offerings, catering to a broader array of healthcare education needs. Through its digital platform, Afya not only enhances accessibility to its educational content but also taps into the growing demand for online learning solutions. This dual-channel approach enables Afya to remain agile in a rapidly evolving educational landscape while reinforcing its commitment to improving Brazil's healthcare by shaping the next generation of medical professionals.
Strong Growth: Afya delivered double-digit growth in revenue, EBITDA, net income, and operating cash flow for both the third quarter and first nine months of 2025.
Margin Expansion: Adjusted EBITDA margin expanded by 200 basis points year-over-year to 46.4% for the nine months, with cost efficiencies and restructuring efforts contributing.
100% Occupancy: All medical programs maintained full occupancy, and undergraduate medical student numbers grew by 6%.
Capital Allocation: Management completed significant liability management, freeing options for M&A, buybacks, or increased dividends.
Tax Rate Impact: Effective tax rate increased due to Brazil's new Pillar Two minimum taxation, expected to rise further to 15% from 2026 onward.
Digital Solutions Mixed Trends: Revenue in Medical Practice Solutions grew, but active payers and users saw a decline, partly due to pricing and product strategy shifts.
Recent Acquisitions: FUNIC acquisition is in early ramp-up, with management expecting margin improvements as student numbers mature.
ESG Recognition: Afya exceeded 2025 targets for free healthcare consultations and was awarded for ESG leadership in Brazil's education sector.
