What Management Said
Read the full Q1 2026 transcript ↗These quarterly results show the high predictability of our business and success execution of our strategy that once again combines growth with cash generation. Initially, our revenues increased by 8%, reaching BRL 1.013 billion, accompanied by a growth in adjusted EBITDA of 4% year-over-year, reaching BRL 511 million with a margin of 50.5%. With this consistent momentum, our net income reached BRL 262 million, marking a 2% growth year-over-year with an EPS of BRL 2.88, a 3% increase compared to the previous year. This growth reflects stronger operational performance, partially offset by an provision related to the OECD Pillar Two global minimum tax.
We have now 3,768 operating medical school seats with an increase of over 6% year-over-year. Our number of undergrad medical students has reached over 26,000 students, representing over 2% growth compared to the first quarter of 2025. In Continuing Education, revenue increased 11% year-over-year, purely organically, reaching BRL 79 million. In Medical Practice Solutions, we saw a 4% growth in revenue compared to the first quarter of 2025, reaching over BRL 43 million.
We observed important movements throughout the quarter, such as higher tickets in the medicine course with almost 5% increase year-over-year above 2025 inflation. This growth was accompanied by a stable gross margin across the segment of 69%. The Medical Practice Solutions segment delivered solid performance in the first quarter of 2026, supported by an increase of 6,000 clinical management active payers compared with the first quarter of 2025. B2B revenue grew by 17%, reflecting the continued progress of our product offering and commercial initiatives across the segment.
- Revenue grew 8% YoY to BRL 1,013 million (BRL 1.013 billion)
- Adjusted EBITDA rose 4% YoY to BRL 511 million, a 50.5% margin
- Free cash flow of BRL 376 million (up 3% YoY) with 92.5% cash conversion and BRL 1.3 billion cash position
- Net income up 2% YoY to BRL 262 million; EPS BRL 2.88 (up 3% YoY)
- Continuing Education revenue up 11% YoY to BRL 79 million (record B2C revenue BRL 74 million, record 57,000 student base); Moody's reaffirmed Aaa rating with stable outlook
- Adjusted EBITDA margin fell 200 bps YoY to 50.5% on higher costs in Continuing Education and Medical Practice Solutions
- Net income growth partially offset by a provision for the OECD Pillar Two global minimum tax
- Medical Practice Solutions active payers declined 1% YoY to 201,000; monthly active users fell 10% YoY to 221,000
- Whitebook continued to lose payers amid free public LLM competition
- Continuing Education residency-journey students dropped 20% YoY to 9,744
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| New medical school seats | per year | ~200 seats per year growth target |
| Net debt (ex-IFRS 16) / midpoint of 2026 adjusted EBITDA guidance | FY2026 | 0.7x |
| Whitebook revenue/active-payer impact from 2026 investments | 2026 vs 2027+ | No big impact in 2026; effect expected from 2027 onward (2026 focused on audience) |
| Enamed second-semester testing impact | FY2026 | Already embedded in full-year guidance; minimal / not material |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Total revenue | 8% | Higher medicine-course tickets, more non-medical undergrad students, FUNIC acquisition, and Continuing Education advances |
| Adjusted EBITDA | 4% | Solid operations, but margin down 200 bps on higher CE and MPS costs, payroll, sales and marketing during investment cycle |
| Net income | 2% | Stronger operating performance partially offset by OECD Pillar Two tax provision |
| EPS | 3% | Stronger operational performance to BRL 2.88 per share |
| Undergraduate segment revenue | 8% | Reached BRL 892 million; 86% from medicine, 94% from health-related courses |
| Medical school net average ticket | 5% | Reached BRL 9,634, above 2025 inflation; gross margin stable at 69% |
| Undergrad medical students | 2% | Reached over 26,000 students; operating seats up over 6% to 3,768 |
| Continuing Education revenue | 11% | Organic growth to BRL 79 million (from BRL 71 million); record B2C revenue and 57,000-student base |
| Medical Practice Solutions revenue | 4% | Reached BRL 43 million; B2B up 17% to BRL 5 million, B2C up 3% to BRL 38 million, +6,000 clinical-management payers |
| Operating cash flow | 0.6% | Reached BRL 473 million with 92.5% conversion |
| Net debt | reduced BRL 280 million vs end-2025 | Strong operations and capital discipline, even after BRL 70 million treasury repurchase; net debt BRL 1,151 million |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Three-pillar business model (Undergrad, Continuing Education, Medical Practice Solutions) | — | Growth combined with cash generation across all three segments | — |
| Health-science portfolio expansion beyond medicine | — | Added 5,000 health-science students YoY; ~20% organic growth in other health undergrad programs, low incremental CapEx leveraging medicine campus brand | — |
| National centralized intake / enrollment process | — | Fully centralized National Intake Process sustaining ~100% occupancy; strong first-half intake, second-half leads ahead of last year | — |
| Enamed exam readiness | — | ~30 mock tests, biweekly action plans, curriculum redrafted for new exam model; expects better student results in September | — |
| Afya One integrated platform / network effect in MPS | prior quarter signaled heavier MPS investment | Integrating Whitebook, iClinic, prescriptions and CME into one membership platform; over 2 million prescriptions/month, mostly via iClinic | — |
| AI in Whitebook | — | Launching AI-first features; 2026 investments focused on growing audience, with payer/revenue impact expected from 2027 | — |
| M&A capital-allocation discipline | — | Targets institutions with >60% medicine revenue and >20% leveraged nominal IRR; ~200 seats/year; won't chase deals for growth alone | — |
Q&A Summary
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