Afya Ltd, a leading medical education group in Brazil, has reported its financial results for the third quarter of 2026, showcasing substantial growth in revenue and net income. The company also confirmed its merger agreement with Yduqs, which aims to enhance its educational services and expand its market presence.

For the three-month period ending September 30, 2026, Afya's revenue increased by 6.1% year-over-year, reaching R$985.2 million. Adjusted EBITDA rose by 8.7% to R$433.8 million, resulting in an Adjusted EBITDA margin of 44.0%, a notable improvement from the previous year. The company's net income climbed by 7.2% to R$171.0 million, with basic earnings per share increasing by 10.0% to R$1.88.

Afya's financial performance reflects its strong position in the educational services sector, particularly in medical education. The company has been able to maintain full occupancy across its medical school programs, driven by a successful intake cycle and an increase in the average student base in health sciences.

In addition to its financial achievements, Afya announced a binding merger agreement with Yduqs on September 23, 2026. This strategic move will allow Afya's shareholders to hold 69.0% of the combined company, while Yduqs shareholders will hold 31.0%. The merger is subject to approval from both companies' shareholders, as well as antitrust and customary closing conditions.

Afya's commitment to academic excellence is underscored by its nine accredited medical schools and its recognition as an ESG leader within the diversified consumer services industry. The company has improved its MSCI ESG rating from BBB to AA, reflecting its dedication to sustainable practices and quality education.

Looking ahead, Afya continues to focus on its strategic priorities, which include enhancing its medical education offerings and expanding its reach in the medical practice solutions segment. The company reported a strong operating cash conversion ratio of 99.5%, with cash flow from operating activities amounting to R$1,332.7 million for the nine months of 2026.

Afya's management expressed optimism about the future, emphasizing the importance of its educational initiatives and the expected benefits of the merger with Yduqs. The company aims to leverage its combined strengths to enhance its service offerings and drive further growth in the educational services sector.

As Afya moves forward, the educational services industry will be watching closely to see how this merger shapes the competitive landscape and influences future growth trajectories for both companies.