Nasdaq-listed medical group Afya slips after narrow earnings miss
Brazilian medical education leader Afya reported a slight earnings miss for Q3 2026, sending its direct US-listed shares down 3.7% despite solid revenue growth.
American retail investors holding shares of foreign companies usually have to deal with the extra fees and low liquidity of American Depositary Receipts (ADRs). However, a select group of international companies bypass this structure entirely by listing their primary common shares directly on US exchanges. One of those rare direct plays, the medical education provider Afya, saw its stock slide on Thursday after reporting third-quarter financial results that fell just short of Wall Street expectations.
On November 12, 2026, the Nasdaq-listed company reported quarterly earnings of $0.36 per share, missing the consensus estimate of $0.37 by a single penny. Revenue for the quarter reached $190.16 million, slightly below the $190.28 million expected by analysts. The narrow miss sent Afya's stock down 3.73% to close at $10.33 during regular trading, though it clawed back some ground in after-hours trading.
Based in Belo Horizonte, Brazil, Afya is the country's largest medical education group, controlling approximately 10% of all approved private medical school seats nationwide. Unlike typical consumer-facing companies, Afya operates a highly defensive business model in Brazil, where the demand for medical degrees consistently outstrips supply, keeping its classrooms at 100% occupancy. The company has also been aggressively expanding its digital health ecosystem and continuing education programs, supporting doctors throughout their entire careers.
The slight earnings miss masks otherwise robust operational health. According to Afya's official earnings release published on November 12, 2026, the company's third-quarter revenue in local currency rose 6.1% year-over-year to R$985.2 million. Adjusted EBITDA grew 8.7% to R$433.8 million, expanding its operating margin by 100 basis points to 44.0%. Over the first nine months of 2026, the company converted 99.5% of its operating income into cash.
However, investors are balancing these strong fundamentals against the costs of expansion. Afya has been investing heavily in its digital medical practice solutions, which has temporarily weighed on short-term monetization. Additionally, the company is navigating a massive proposed all-stock merger with Brazilian education giant Yduqs, a deal announced in September 2026 that is currently awaiting antitrust approval from Brazil's Administrative Council for Economic Defense (CADE).
In your brokerage app
You can buy and sell Afya directly under its ticker on major US brokerages without paying ADR custody fees, as the company is listed in New York on the Nasdaq exchange. The stock is also a component of several emerging market and small-cap exchange-traded funds, including those managed by BlackRock.
