XP Inc. Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Invest better with AI
StocksGuide Unlimited – full access to AI analyses
👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
👉 Clear answers to your questions
Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $10.28b | Revenue (TTM) = $3.68b
Market Cap = $10.28b | Estimated Revenue = $4.02b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $48.20b | Revenue (TTM) = $3.68b
Enterprise Value = $48.20b | Forward Revenue = $4.02b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
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XP Inc. Stock Analysis
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AUG
17
Q2 2026 Earnings Call
about one month ago
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18
Q1 2026 Earnings Call
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Q3 2025 Earnings Call
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StocksGuide Free
XP Inc. — Q2 2026 Earnings Call
1. Management Discussion
Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP Inc. Welcome, and thank you for joining us for our second quarter '26 earnings call. Today's presentation will be delivered by our CEO, Thiago Maffra, and our CFO, Gustavo Alejo. Right after the presentation, they will be both available for the Q&A session. [Operator Instructions] Live translation in Portuguese is available, you can enable it by clicking the button below.
Before we begin, please take a moment to review the legal disclaimer on Page 2 of today's presentation, which addresses forward-looking statements. The full presentation is available for download on our Investor Relations website, and you'll find additional materials in the SEC filings section of our IR website.
Now I hand it over to Thiago Maffra. Good evening, Maffra.
Thank you, Andre. Good evening, everyone, and thank you for joining our second quarter 2026 earnings call. I would like to begin by welcome Gustavo Alejo, our new CFO. He joins us at an exciting time just after the biggest Expert in our history and even that showed how far we have come and how much further we aim to go. Now let's dive into our second quarter 2026 numbers.
Beginning with the key highlights of the quarter. Client assets combining AUM and AUA reached BRL 2.2 trillion representing a 17% year-over-year growth. We ended the period with 18,400 advisers, up 1% year-over-year, while our active client base totaled 4.8 million, a 1% increase year-over-year. Gross revenues amounted to BRL 5.1 billion this quarter, up 8% from the same period last year. EBT advanced 15% to BRL 1.6 billion, while net income came to BRL 1.4 billion, rising 5% year-over-year.
In terms of profitability, our ROE increased 80 bps sequentially to 22.5%. Our capital ratio stood at a comfortable 20.3%, reflecting our ability to grow while maintaining disciplined capital and risk management. Also, our EPS grew 9% year-over-year, stronger than our net income growth, thanks to our capital management and payout strategy.
The second quarter of 2026 was again marked by ongoing global geopolitical tensions and residual market volatility. While these headwinds materialize with less intensity than in the previous quarter, they still impacted our results, particularly through the widening of credit spreads and a reduction in primary DCM offerings.
Without these effects, we would have achieved double-digit revenue growth with a low teens expansion year-over-year. This demonstrates that despite the market volatility we faced in the first half of the year, our core businesses continued to perform well with resilient underlying momentum. Towards the end of the quarter, we began to see signs of normalization across markets, along with a gradual recovery in the fixed income pipeline. We expect this pipeline to materialize into primary offerings over the coming quarters, depending on the market dynamics.
That said, depending on how these dynamics evolve, we continue to target double-digit growth throughout 2026, supported by stronger execution across key verticals and a more diversified revenue base. This quarter, we continued to launch products for both individuals and businesses, and our ecosystem is becoming more complete every day. We have a clear ambition to be the investment leader in Brazil by 2033 but that leadership will come hand-in-hand with increasing completeness in everything we offer to clients, this next growth phase is built on personalized service with a focus on financial, tax, and succession planning. Our goal is simple, to be our clients' CFO covering their full spectrum of financial service needs.
Moving on to the next slide. Let's take a look at client assets. During the second quarter of 2026, our total client assets combined with assets under management from our asset management business and AUA from our fund administration business totaled approximately BRL 2.2 trillion, representing 17% growth year-over-year.
On the right side of the slide, you can see how net new money has evolved. In the second quarter of 2026, we again met our soft target of BRL 20 billion retail net new money, while corporate and institutional inflows came in at BRL 8 billion. Altogether, net new money amounted to BRL 28 billion for the period. While we posted positive results and met our soft guidance, we continue to navigate a challenging environment in 2026. We are constantly improving our investment platform. And as we have mentioned, enhancing the client experience through numerous initiatives.
This combination reinforces our confidence in achieving our ambition of roughly BRL 20 billion in retail net new money per quarter on average. Related to that, it's worth mentioning that our NPS ended the second quarter at 66 points. As mentioned in our previous earnings call, we are on a consistent recovery path from the one-off events that impact us in former quarters. This demonstrates the strength of our brand and the trust clients place in our platform and it gives us an indication that we will return to historical levels over the next quarters.
With that, let's now take a deeper dive into the strategic drivers that are shaping our next growth phase. Our comprehensive financial ecosystem is built around long-term relationships. We provide service and personalized advice with excellence across every aspect of our clients' financial lives from investments to banking solutions.
Many of our clients have needs well beyond investments, and our mission is to provide them with complete solutions. Under this model, the focus shifts from product distribution to building a personalized financial strategy for each investor. Looking ahead, we see the role of the investment adviser at XP undergoing a profound transformation. The professional is no longer just an intermediary of financial products but it's taking on a role closer to that of a wealth consultant broadly accompanying clients throughout their financial journey.
Given this context, it's crucial to understand personal and family goals such as retirement and long-term wealth building. The same client-centricity logic that guides us on offerings from individuals also extends to our corporate clients. We have recently launched new initiatives targeting the business segment, always focused on delivering financial management solutions. We already have a very robust corporate segment, and now we are expanding our offering, particularly for a small- and medium-sized enterprise.
As we have said over the past few quarters, XP is uniquely positioned for this new market environment. We have the largest and most qualified adviser network in Brazil, along with a trusted brand and an innovative DNA, a combination that enables our tech lead scaling and keeps us ahead of the market.
On the next slide, we share further details on our strategy. Across every client segment we serve, our ambition is to deepen relationships, enhance the completeness of our product offering and fully meet all of our clients' financial needs. On the individual side, our focus remains on investments. We continue to deepen our segmentation, offering a specific value proposition for each client layer. We were the first to address a latent market demand and offer a truly model agnostic approach. Today, we have evolved this concept to a comprehensive wealth planning model, one that allow us to cover our clients across all their financial needs from investment allocation to estate planning, succession, and beyond.
Under this model, the charging structure naturally aligns as a fee based which continues to gain traction. We already have slightly more than 26% of our clients' assets under this framework. On top of that, we are expanding our offshore investment capabilities, and making continued progress on new product launch, including ETFs and managed portfolios, all fully aligned with our way of serving clients.
At the same time, we are adding credit to a solution shelf that has already expanded meaningfully over the past few years, during which we introduced numerous innovations in banking and insurance. I would like to emphasize that this expansion is the continuation of a well-planned strategy, one that has been consistently executed over the years with the addition of services and solutions.
For businesses, the same logic holds true, and this is where we see the greatest opportunity since these companies and their founders have long been underserved by traditional players. We plan to change that by delivering a complete, modern, and scalable offering. Just as we transform the investment landscape for individuals, we are now about to do the same for businesses. We introduced a new standard of high-quality advice, supported by technology and a complete range of products and service designed to tackle the real pain points of a market that has never been fully served. By advising these entrepreneurs with the same depth we bring to individuals, we can help them manage and allocate their cash flow more effectively to grow their businesses.
We are now expanding and upgrading our commercial coverage while launching new features for businesses. We recently announced partnership for a POS device and a credit card geared towards small- and medium-sized enterprise. These are natural extensions of our franchise and a continuation of our strategy that has been underway since 2019 when we obtained our banking license.
Finally, I want to emphasize that we'll execute this strategy with the utmost discipline, ensuring that every step we take remains firmly aligned with our capital ratios and conservative risk approach.
With that, I will now hand the call over to Alejo to cover the financial section of the presentation.
Thank you, Maffra. It's a pleasure to be here with all of you today. I would like to begin by expressing my sincere appreciation for the warm welcome since joining XP. I'm thrilled to be part of this journey, and I'm looking forward to contributing to our next chapter of growth.
Now let me walk you through our financial performance for the quarter. Total gross revenue in the second quarter 2026 reached BRL 5.1 billion, up 8% year-over-year and 3% quarter-over-quarter. Retail growth in the quarter was driven by equities, funds platform, new verticals and other retail, which expanded at a rapid pace year-over-year.
The Wholesale Bank division also delivered consistent growth, led by solid performance of our Corporate segment. Now let's move on to Retail revenue. Retail revenue totaled BRL 3.9 billion in the quarter, representing an 8% growth year-over-year and a 3% growth quarter-on-quarter, reflecting the impact of fixed income, corporate credit in Brazil already explained. Excluding this mark-to-market effect, Retail revenues would have grown 15% in the first half of 2026 when compared to the same period last year, showing a resilient underlying momentum.
Even with the lower ADTV of equities and futures in second quarter, equities revenue increased 11% when compared to the same period of last year, reaching almost BRL 1.1 billion. Sequentially, Equities revenue dropped 2%, while ADTV fell approximately 8% in the same period. Funds platform also posted a strong performance this quarter, growing 23% year-over-year and 7% sequentially, due to the booking of management and performance fees this quarter. Also, retail annual performance benefited from stronger contributions from new verticals, and different revenue lines included in other retail, like floats, international platform, and FX.
Now let's move on to the next slide, where we'll cover how our Wholesale Bank is evolving. Our Wholesale segment, including Corporate, Issuer Services, and Institutional revenues grew 32% year-over-year and 3% sequentially. The market deterioration that began in March and prevailed through April, combined with the lower risk appetite from investors, led to a sharp decrease in the number of new fixed income offerings, particularly tax-exempt fixed income instruments. The reduction in fixed income offerings weighed directly on our Issuer Services segment, resulting in lower revenues versus both prior year and the previous quarter.
Despite this reduced number of offerings, the Corporate segment posted another strong result, with revenues growing 117% year-over-year and 22% sequentially. Our ability to cross-sell and deliver a broader set of solutions to our Corporate clients, such as derivatives, FX, and credit continued to support our revenue growth.
Finally, our Institutional business grew year-over-year and was relatively flat sequentially. Like retail equities, the segment reflects lower trading volumes during the quarter.
Now let's shift our focus to SG&A and efficiency ratios. Our SG&A totaled BRL 1.6 billion in the second quarter, increasing 5% year-over-year and 2% quarter-over-quarter. On the right-hand side of the slide, our last 12 months efficiency ratio stood at 34.3%, an increase of 30 basis points year-over-year and a decline of approximately 30 basis points sequentially. This quarter, we delivered a good efficiency ratio against a more challenging revenue backdrop. As we move into the second half of the year, we expect the typical effects that lift both revenues and expenses, such as bonus provisions and the Expert event. Despite these effects, we continue to closely monitor the pace of our investments, and we still target to deliver a flattish efficiency ratio on a year-over-year basis for full year.
Moving to earnings before taxes now, our adjusted earnings before taxes totaled BRL 1.6 billion in the second quarter 2026, up 15% year-over-year and 10% quarter-over-quarter. We delivered 32% adjusted EBT margin expanding on both a quarterly and a yearly basis. Lower mark-to-market impacts, positive performance across several of our segments, and controlled expenses all contributed to operating leverage which resulted in a higher EBT and EBT margin this quarter.
On the next slide, we present our net income. Adjusted net income reached BRL 1.4 billion in the second quarter representing a 5% increase compared with both the prior year and the prior quarter periods. Net margin was 28.3% in the second quarter 2026 up around 50 basis points sequentially and down around 100 basis points year-over-year. And our tax rate for the quarter was sequentially higher due to the mix of results, stronger performance results from the Corporate line, and less negative mark-to-market impacts from the warehousing book.
Now let's move on to the next slide to talk about our earnings per shares and returns. Our adjusted diluted earnings per shares increased by approximately 9% year-over-year at a faster pace than our net income growth, reflecting the execution of our share buyback program. On the right-hand side of the slide, you can see our adjusted annualized return on tangible equity and return on equity. Given our lower Basel ratio, sequentially, both metrics are higher this quarter when compared to the previous one.
With that, I move on to the next slide to talk about our capital management strategy. During the second quarter, we continued executing our share buyback program. As of the end of June, we have executed BRL 1 billion and close the previous buyback program. We still have another open program of BRL 1 billion, which we continue to execute strategically. Combining the 2 buyback programs and approximately BRL 500 million in dividends distributed in June, we reached nearly BRL 2.5 billion in capital distribution already announced in 2026.
Additionally, I would also like to announce that we will be canceling approximately 11.8 million treasuries shares, represent roughly 2.3% of our total outstanding shares, further reinforcing our commitment to disciplined capital allocation and returning value to our shareholders.
Now let's move on to the second part of our capital management strategy on the next slide. I'd like to turn to our capital ratio and risk-weighted assets. We closed the quarter with a Basel ratio of 20.3% and a CET1 ratio of 17.1%. As mentioned in our previous earnings calls, throughout 2026, we will operate the business with a high Basel ratio. However, we are comfortable bringing it down to our target range of 16% to 19%, while still maintaining a comfortable capital buffer.
On the right-hand side of the slide, we show our RWA. The main growth driver was credit RWA, mostly associated with our Corporate business. It's worth noting that while total RWAs grew around 26% year-over-year, our corporate revenues expanded 117% over the same period. This shows that we will continue to evaluate and seize growth opportunities as they arise while maintaining our focus on risk return criteria.
And with that, we can move on to the Q&A section.
Daniel, please go on.
2. Question Answer
Alejo, welcome aboard. I hope you the most success in XP. I'd like to hear a little bit more about volatility and I guess, we're heading into an election period, and I'll be curious to hear what your expectations for the volatility and your revenues, mostly if you could break down into the Retail revenues and also for the Corporate cost. Corporate, we are seeing a very strong first half. You delivered close to BRL 1.1 billion. So trying to understand whether that's a level on the Corporate side that could even go higher compared to the first half of the year as you have more opportunities for maybe sell, hedging, derivatives effects and also protection for rates ahead of the October and November election period? And also, so breaking down in Retail and Corporate would be very good to hear about that. Thank you.
Thank you for your question Vaz. This is Thiago. Yes, about volatility. It's important to mention that usually, when we have a high volatility, it's positive in terms of volumes and revenues for some businesses, especially when we look the Institutional desks or Retail trading clients, if volumes pick up, as we have for most of the markets between 30% and 50% market share. If volumes pick up, we make more money.
So yes, when you look -- especially just 2 business lines, Institutional and Retail traders, we expect higher revenues in the second semester. About Corporate revenues. I believe we have been investing on this business since 2021. So the business has been growing year-over-year on a very conservative way. So for example, we had this year a lot of credit events. We didn't have any exposure for these names. So we have a very high-quality credit portfolio. The derivative business is growing, energy among FX and a lot of other business they are growing. So we believe this level of corporate business, it's a normal level for the future, okay? I know it was very strong, but we expect that Q3 also is strong for Corporate. So it's part of the business that's growing, okay? So it's a normal level looking forward.
Okay. Next question is from Eduardo Rosman from BTG.
I have a couple of questions here about the Wholesale Banking business. If you can share with us your expectations on how relevant this business could become within XP as a whole, over the next few years. If you think you already have the right teams and all the alignment in place to expand the lending business, if not, what's still needed to get there? And finally, if you could share your view about payout ratio medium-term, right? I think in the short-term, I think you mentioned you still expect to pay more than 50% in the form of dividends and buybacks. But given that you expect to use more of your balance sheet in the future? Should we expect any change in that?
Thank you for the question, Rosman. Taking the first question about the wholesale, we don't have any change in strategy, the strategy that we started 4 years, 5 years ago. So we will continue to grow step-by-step on the business. So we received a lot of questions. If Gustavo Ale, who was coming here, like to do -- because we are planning a shift on credit basis, but that's not the case.
Of course, he has a great background on different areas of banking, including the wholesale but also retail, as you can see, all the, I would say, banking business for both individuals and companies, they are growing in the past years, insurance as well. So the strategy is to complete the ecosystem and to serve our clients as a whole, and we will continue to do that. So you guys probably saw that we announced that we are launching a platform for SMBs. It's going live in September 1, okay, with cards acquiring credit with collateral and so on, a lot of different products.
So it's part of the evolution of the business. So there is no big shift in strategy. There is no big shift on credit. We are not going to start to grow the credit portfolio in a very different pace. So it's I would say more of the same. Of course, when we compare ourselves with the other banks, we still have a lot of room like to build new business lines to grow, but it's going to be step-by-step, always being cautious on credit, always being cautious on risk. So -- and about people, I would say that we have most of the people that we need most of the capabilities. Of course, as you know very well the company, we were born as a broker-dealer focus on individuals, focus on investments, so it took us, I would say, 4, 5 years to get to this point where we are comfortable on building new business lines.
We always can bring, and we are always looking to bring people that complement our capabilities and our skills. It's always going to be part of the business. And Gustavo Alejo, who is one of this example, for sure, he will help us not only on the wholesale, but also on the individual part, on investments, and on everything.
So yes, I believe we are ready to grow and to execute the strategy that we have been executing in the past years. Not sure, if you want to share something, Alejo, I'm saying that today, he's here listening but next time he will be up to speed. And it has been 2 weeks with us, and it has been great, a lot of like good discussions already. So I'm happy to have you here.
Well, I'm entering my third week, so -- in this great company. So I'm energized and genuinely pleased to be part of such remarkable growth story. So the strategy is written. We are not changing the strategy and just -- will be part of this growth story, so part of the team. I saw a very strong team focusing, and very strong metrics in terms of credit, so we have all set to keep growing at a good pace and with good profitability. Very good to talk to you again.
And take your second question about payout. As we mentioned, we have guidance to get our BIS ratio between 16% and 19%. Today, we are above 20%, meaning that we will have like to distribute more capital throughout the year. We already executed BRL 1 billion buyback. We have another BRL 1 billion open that we are executing at these levels. We already executed BRL 500 million in dividends. So totaling and assuming that we execute the BRL 1 billion that's open, BRL 2.5 billion, I believe this year, we are going to be higher than 50% for sure. Otherwise, we don't get below 19%. So you can expect more buybacks or more dividends throughout the year, depending on the price that we have during the year. At this price, of course, we lean towards buybacks, more than dividends So that's the idea today.
Okay, next question is from Mario Pierry from Bank of America.
Alejo welcome. Good luck to you. It's nice to be talking to you again. Let me ask you a question on what you talked about. The Retail revenues would have increased 15%, excluding the impact of the mark-to-market, so we are estimating that's about BRL 420 million impact on revenue in the first half of the year. Is that correct? Because I think we had discussed that the impact of close to BRL 400 million in the first quarter. So are we -- is it fair to assume that the impact in the second quarter was very, very marginal?
It's Thiago here. I will take the question. So yes, your math is right. It was around BRL 420 million. I would say it was below BRL 300 million on the first quarter and the other part on the second. So I would say, BRL 100 million, BRL 150 million, BRL 160 million on the second quarter, okay? So those are the numbers.
That's clear. So Maffra, then when we look -- I would imagine, right, this is this was an impact on your fixed income revenues. So when I look at your fixed income fees. I get an average of about 89 basis points first half of '26 down from 99 basis points first half of last year. So is this primarily -- this drop is primarily because of a changing mix?
Yes, there are 2 effects there, okay. The first one, what you mentioned, mix. We have never seen a mix so much concentrated on SELIC post-fixed instruments and with very short term duration, mostly on daily liquid products. So that's one of the biggest problems with fixed income revenues today. But there is also when we say that we lost more than BRL 400 million on mark-to-market. It's mainly on the book from our investment banking, okay?
And if you take into consideration that there was almost no market for DCM, for debt capital market, on second quarter, there was also a huge impact on the primary market fees. So the impact on the second quarter was almost the same of the same quarter if you consider the revenue we lost on primary market and the mark-to-markets on the secondary market. So it was a very low volume. We have done less in a quarter than we do in a month, okay, when you compare Q2 with Q1 okay? So it was a huge drop on primary market.
We're seeing that stabilizing again on Q3 on a lower level than in the past, but better than Q2, okay? So those are the impacts when you look, because remember, there is revenue split between primary market on retail and investment banking, and that's why the mark-to-market is there. So there are 2 impacts here.
Okay. And just clarification on this daily liquidity product, what percentage does it represent of your assets to your fixed income assets, roughly?
Yes. We don't open the mix by type of product, but today, out of everything that we sell on the fixed income platform, I would say that almost 70%, it's on daily liquidity products, 70%, okay, 7-0. So that number was 30%, I would say, 3 quarters, 4 quarters ago, okay? So that's the -- it's a huge change on mix. And remember that when we sell a daily liquid CD or this kind of products, we get a daily accrual on a very low take rate. So you have 2 effects here. When you sell a corporate bond, you make duration times spread upfront, when you sell daily liquidity product, you get a daily accrual on a lower level. So it's a double impact here.
And you're not seeing any changes in the mix in the short-term?
Not yet, if you look at the fund platform, we start to see more stable level. And it's early to say an improvement but we are seeing improvement on funds. But I believe we are close to the turning point here but early to say that we are already there.
Next question is from Tito Labarta from Goldman Sachs.
Alejo, also welcome. A couple of questions also. I guess following up on Mario's question on the mark-to-market. Great, I mean do you expect any more impact going forward? Do you think we're at a point that we can see Retail revenues growing around that 15% level going forward? Or could there still be more impact, right? Just to understand like what is the real like underlying growth of the Retail revenues that we can kind of factor in going forward?
And then second question, just -- there was a bit of a jump on the JV and associates, it was like about BRL 30 million, BRL 32 million higher than last quarter. Just was there anything significant there to highlight just to understand that jump?
Thanks for the question, Tito. About your first question, we have reduced a lot our books because, remember, it's mainly from the primary book from investment banking and also from the -- what we call facilitation, the secondary trading flow book for retail clients, institutional clients.
So we have reduced a lot the book during the first half of the year. But it's part of the business. We still have a big book. Remember, we have 30% to 40% market share here on this kind of instrument. So we always keep a book, if we see another credit spread widening, the same size as happened in the past.
We are going to lose less than we lost in the first half because the book is smaller today, but we are going to lose something. We are not seeing the spreads there at the same level for, I would say, 2 months. It opens and close 5 bps, 10 bps. So that's not much, okay? But we -- you're seeing a stable level right now. Let's see if there is no big change. You should expect no mark-to-market provisions in the future. But again, the book is smaller, but it's part of the business. So I cannot guarantee that we are not going to lose or make money in the future, okay. Your second question was?
And the share of profit from JV and associates had like a BRL 32 million direct jump quarter-over-quarter.
Yes. Remember that -- we have invested a lot of money on IFAs, on asset managers, and some other businesses in the past. Most of these businesses, they are growing. So you should expect this line to grow year-over-year. And there is a seasonality because remember, a part of this business, they are asset managers. Usually, you have performance fees at the end of the semesters. So that's what explains most of the increase there. But again, we put a lot of money on this business. They should grow over the years, okay.
Next question is from Neha Agarwala from HSBC.
Just a quick clarification on the cost side. You've shown very good control over costs, both in COGS and OpEx. Can we just dig a bit deeper to understand what are the key levers that you're using? And -- what can we expect in '27, where do you see additional room for optimization, if any? Or it will be more revenue play in '27?
Thank you for your question, Neha. When we think about the -- our SG&A for the future, remember that at the beginning of the year, we said that you should expect flattish efficiency ratios, compensation ratios for the year. That's the case so far. Remember that there is a seasonality historically on our on our revenues.
And second half of the year is usually stronger than the first half, meaning that if we keep the same efficiency ratios, you should expect SG&A to grow nominally on -- in nominal terms on the second half of the year, okay? So on top of that, on Q3 we have Expert. So it's a big cost for us. So you should expect costs to pick up a little bit on second half. But again, you can expect flattish efficiency ratios and compensation ratios.
And how should we think about '27 in terms of further room for cost optimization, should cost efficiency continue to remain flattish going into '27? Or do you see room for it to come down?
I would say flattish is a good assumption but remember that we are building a lot of new business lines, new channels growing, so it's not a commitment that we will gain efficiency or be flat, but I would say flattish is a good assumption.
Next question is from Marcelo Mizrahi from Bradesco.
Congratulations for the results. So my question is regarding the margin -- the gross margins also to understand. So the dynamic has been changing. So gaining margin on the fees, on the rebates, which is a dynamic of the channels. But we are seeing the gross margins pretty stable. So this quarter was pretty strong. Can we expect going forward, these gross margins going up in the next quarters with the dynamics of the mix that we -- probably the company will have in the next quarters. Thank you.
Yes. We have a lot of operational leverage when we think about the business, and it's the same case when we think about the channels, okay? So when we look on the long run, you could expect gross margins to improve but remember that the mark-to-market also impact this kind of ratios because when we have like more than BRL 400 million on our top line that there is no correlation to our sales channels or to IFAs, it distorts a little bit the ratios, the company -- the commission ratios and so on. So that's the main explanation.
Next question is from Pedro Leduc from Itau.
Thanks, everyone. Congrats on navigating this challenging quarter. I want to go back a little bit to the SG&A side. I know you've been very clear about the seasonality in the second half. We can clearly see you investing here more behind people. But then I go back to a conversation we had earlier in the year that you are looking to revamp your tech-based, client facing, especially for massified or the base of the clients and where you were maybe losing a little bit of traction.
And when I think about this flat efficiency and you're paying out for more people, but you also have to boost the tech/AI-investment deck. So question is, are you being able to accommodate both here in these figures that you're talking about? And where are you in this upgrade that you meant to do in the base channel or service facing technology?
Yes. Great question. When you look -- especially when you look at the first half of the semester, you see non-people SG&A growing a little bit more. And it's mainly technology, okay? So technology is growing a lot. And it's mainly concentrated on AI, on servers, cloud and so on. So we have been able to manage -- investing on these new technologies while maintaining the efficiency ratios.
And about the segment that you mentioned, we always talk about our -- when we simplify in 3 segments, the digital retail segment, the affluent clients, and the private bank clients. And you are right, we have been creating a value proposition for this retail digital clients in the past, I would say, more than a year. We are about to launch an AI adviser I would say, this month, or beginning of next month because today, as we have a more complete shelf of products, including banking, and insurance and so on, we are able to provide a good service and have a good unit economics which is a smaller ticket size clients. So you can expect, especially in 2027, the number of clients coming from this segment to accelerate. So I would say 2027, it's a good year to take a look on this segment.
Next question is from Arnon Shirazi from Citi.
My question is still on expenses. When analyzing people expenses, I can see that salary has been increasing 23% year-over-year, while the headcount 13%, there's any change in compensation recently. Also, we see a lower magnitude of share-based compensation. Just trying to see the moving pieces here.
It's hard to segregate salaries from bonds and total compensation and so on. So I would say the best way of looking is the compensation ratio because the mix of people is very different that we are hiring and so on. So look at the total compensation, I would say it's the best way of analyzing people costs, including also the RSUs and so on.
Next question is from Guilherme Grespan from JPMorgan.
Two quick follow-ups on our side, Maffra. First one, just confirming Issuer Services. I think you mentioned that our primary markets has rebounded a little bit versus the second quarter but still at very soft levels compared to last year. I just want to confirm that's kind of the message for the third Q?
And then my -- my actual question is more a follow-up on the SME strategy going forward. You mentioned a little bit the credit card strategy. You have the POS partnership but specifically on the credit side of the business, what is going to be the strategy here? It's going to be credit plus working capital, the working capital, it's going to be with collateral or not? Do you plan to do government-related programs? Just want to understand the mindset for lending specifically.
Thank you for the question. About the first question, yes, you're right. Q3, when we think about -- again, we are talking about debt capital markets, DCM, okay? If you look funds and other products, they are performing well, okay? So -- but when we look DCM that's a big chunk of our Issuer Service. It's better than Q2 but softer than the recent past or especially when we compare to 2025 that the volumes were all-time high, so it's recovering, but at a softer level, okay?
The second part, SMBs, yes, the strategy when we go to credit here. Remember that we are not aggressive even on corporate clients. So as we are going down, it's -- we are going to be even more conservative, okay? So it's always with collateral, yes, we are joining some government programs, other credits with collateral from cards, from other receivables, so it's always going to have some collateral, okay? Of course, we can have a very small revolving lines, but the main part here is with collateral and very low risk. So that's the strategy when we think about credit for these segments here. So not big risks, not clean. So we're going to go step by step here.
Okay. Thank you, everyone. So here is the time that we're going to finish the call. Thank you for joining us today. We're going to keep in touch. Any further questions, the IR team is more than happy to address and see you next quarter. Thank you.
XP Inc. — Q2 2026 Earnings Call
XP Inc. — Q2 2026 Earnings Call
Solid Q2: revenue and EBT rose, client assets +17% and buybacks/dividends accelerate while fixed‑income mix and mark‑to‑market pressure margins.
📊 Quarter at a Glance
- Revenue: BRL 5.1bn (+8% YoY)
- EBT: BRL 1.6bn (+15% YoY; EBT = earnings before taxes)
- Net income: BRL 1.4bn (+5% YoY)
- Client assets: BRL 2.2tn (+17% YoY; AUM = assets under management, AUA = assets under administration)
- ROE: 22.5% (↑80bps sequentially); Basel ratio 20.3%
🎯 What Management Says
- Wealth pivot: shifting advisers toward comprehensive, fee‑based wealth planning to cover long‑term financial, tax and succession needs; ~26% of client assets already on fee model.
- SMB push: launching small‑and‑medium enterprise platform (live Sept 1) with POS, cards and credit products to expand corporate footprint.
- Capital discipline: continue conservative risk/credit approach while returning capital via buybacks/dividends and canceling ~11.8m treasury shares.
🔭 Outlook & Guidance
- Growth target: management reiterates double‑digit growth for 2026, supported by product launches and a recovering fixed‑income pipeline.
- Net flows: reiterates retail net new money target ~BRL 20bn per quarter on average.
- Capital plan: operate toward BIS/CET1 range 16–19%; executed BRL 1bn buyback, BRL 1bn open, BRL 500m dividends so far.
❓ Analyst Q&A
- Volatility impact: higher market volatility should lift retail trading and institutional desk revenues; corporate line expected to remain strong given cross‑sell and derivatives activity.
- Fixed‑income mix: heavy shift to daily‑liquid SELIC products (~70% of fixed income sales) lowers take‑rates; ~BRL 420m mark‑to‑market effect H1 (Q2 portion ~BRL100–160m).
- SMB lending: credit strategy is conservative and collateralized, with limited unsecured exposure; growth will be step‑by‑step.
⚡ Bottom Line
- Conclusion: XP shows resilient core performance, clear strategic push into wealth planning and SMEs, and shareholder‑friendly capital returns; key risks remain mark‑to‑market volatility and a lower‑take fixed‑income mix that can pressure near‑term revenue margins.
XP Inc. — Q1 2026 Earnings Call
1. Management Discussion
Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP, and thank you for joining us, and welcome to our First Quarter 2026 Earnings Call. Today's presentation will be delivered by our CEO, Thiago Maffra; and our CFO, Victor Mansur.
And right after the presentation, they will be both available for the Q&A session. [Operator Instructions] Before we begin, please see the legal disclaimer on Page 2 of today's presentation for information regarding forward-looking statements.
The presentation is available for download on our Investor Relations website with further details in the SEC Filings section of our IR website. To begin the presentation, I will now turn it over to Thiago Maffra. Good evening, Maffra.
Thank you, Andre. Good evening, everyone, and thank you for joining us for the first quarter 2026 earnings call. Let's begin by reviewing the key highlights of the quarter.
Client assets combining AUM and AUA reached BRL 2.1 trillion, which represents a 21% year-over-year growth. We ended the period with 18,300 advisers, up 1% year-over-year, while our active client base totaled BRL 4.8 million, a 2% year-over-year increase.
This quarter, gross revenues came in at BRL 4.9 billion, up 8% year-over-year. EBT also grew 8% to BRL 1.4 billion and net income reached BRL 1.3 billion, rising 7% year-over-year. On profitability, our ROE achieved 21.7% for the quarter.
Our capital ratio remained at a comfortable 20.7%. More importantly, these results reflect our ability to grow our business while maintaining disciplined capital and risk management. I would also like to highlight that today, we are announcing a new buyback program of BRL 1 billion. Once as of now, we have executed almost half of the currently BRL 1 billion open program.
Additionally, we are also declaring BRL 500 million in dividends to be paid in June. Victor will provide more details in his presentation. Now moving to our diluted EPS. It grew 9% year-over-year, outpacing net income growth. We entered 2026 with solid momentum, largely driven by the global macro environment as weaker U.S. dollar and a rotation toward non-U.S. assets boosted emerging markets inflows, which helped improve Brazil market dynamics and enabled us to sustain the growth momentum built in the second half of last year.
However, as you know, the environment changed in March. Increased global volatility pressured local market sentiment, while domestic credit spreads widened at the same time, driven by technical factors. These developments were external to our underlying performance. Excluding these external factors, we would have delivered even stronger results, achieving double-digit growth.
We saw this credit spread trend continue into April. However, we now see a better balance between buyers and sellers in the market, leading spreads in a more stable phase. Despite this widening in April, we do not expect an impact on the same magnitude as we saw in the first quarter. Said that, we still see our business growing double digits this year.
Additionally, we are now seeing the early stage of an interest rate easing cycle. While the pace of easing is expected to be more gradual than previously anticipated, rates are still at high levels. And despite global uncertainties, there is still room for further cuts. This ongoing easy cycle, even if it's lower, supports our business momentum as this positively impacts investors' risk appetite and turnover velocity.
The short-term volatility we mentioned earlier may have briefly slowed our growth momentum towards the end of this quarter. Even so, we are confident we can return to double-digit growth supported by stronger execution across key verticals and a more diversified revenue base. Our unique scale and differentiated retail investments platform provides a competitive edge unmatched by any other player in the market.
In addition, we now operate within a much broader ecosystem and our corporate segment has definitely reached new standards that extend beyond pure investment banking. Together, these strengths helped partially offset the impact of higher volatility referenced earlier, reinforcing retail investments and corporate as important drivers of growth and diversification.
Finally, the powerful combination of service excellence, strong client relationships and financial performance, together with a sales force that has aligned incentives and robust capabilities corroborates our conviction that disciplined execution backed by governance and technology will drive our performance. Ultimately, our ability to execute this strategy is what will enable us to achieve our long-term objectives in all our divisions regardless of the current macroeconomic environment.
Now moving to the next slide. In the first quarter of 2026, our total client assets combined with assets under management from our asset management business and AUA from our fund administration business totaled over BRL 2.1 trillion, representing a 21% growth year-over-year. We are strategically positioned for our next growth phase and remain focused on our ambition to become Brazil's leader in investments by 2033.
To achieve that goal, despite external uncertainties, we are executing a strategy built to consistently deliver double-digit growth. We are also constantly investing in our ecosystem and advisers in strengthening what is already Brazil's largest and most sophisticated investment platform. We are the only player that can lead the democratization of access to first-class financial service, supporting clients with a holistic approach built on financial and wealth planning, delivered at scale and with strong governance.
The market has recognized these capabilities as we were recently named for the eighth consecutive year, the best financial advisory platform. With that, let's move to the next slide. On the left-hand side of the slide, you can see how net new money related to client assets performed at the start of 2026. In Q1, we posted BRL 19 billion of organic retail net new money, while corporate and institutional came in at negative BRL 4 billion, bringing the total for the quarter to approximately BRL 14 billion.
So we once again reached our guidance of around BRL 20 billion in retail net new money per quarter. During the first quarter of the year, clients received FGC-related inflows. It's important to highlight that these payments were not included in the net new money calculation as the related adjustments were made exclusively to our client asset base.
As you can see on the right-hand side of the slide, the high retention levels of roughly 80% following this FGC-related inflows reflect the consistent execution of our advisers and the strength of our brand.
Related to that, and as we mentioned last quarter, our NPS was impacted by one-off effects related to credit events and Banco Master. They temporarily affected a specific group of clients and consequently, our overall NPS. First quarter's NPS is still impacted by them due to a calculation methodology using moving average.
However, we are already on a consistent recovery path and more recent indicators were positive with NPS coming around 70. We expect to return to historical levels by year-end, demonstrating the strength of our brand and the trust clients place in our platform.
Lastly, I would like to take a closer look at our retail strategy and share a bit more detail about this area of the business. Investments, our core franchise remains solid, supported by healthy underlying trends and continue to serve as a key driver of our results.
We are further strengthening what we view as the market's best and most comprehensive product platform while also improving adviser productivity. This progress is underpinned by excellence in relationship management and a more intelligent, disciplined allocation process. Following our refined client segmentation, we developed tailored servicing models for each segment, ensuring our approach is aligned with distinct needs for each client group. In retail clients, we have developed a new value proposition grounded in goal-based investing and managed portfolios. With that, we are already seeing improvements in this segment, supported by margin accretive dynamics.
Our strategy is to extend this approach to other client layers using technology, process and governance as key enablers to scale in a profitable way. In high income, our core segment, we delivered a distinctive value proposition, having been true pioneers in democratizing access to financial and wealth planning in Brazil.
In addition to our differentiated advisory model, we were the first player to offer a truly agnostic servicing model, enabling us to address this slated client demand. We also continue to expand our sales channels, invest in new products and service and enhance the client journey by providing the best tools available in the market. In private banking, we continue to gain market share by enhancing our offering and leveraging our broader ecosystem to address clients' needs more comprehensively.
We have evolved into a full-service wealth manager, serving clients, both individual and corporate needs, supported by a robust product platform and a highly skilled team. As our private banking franchise matures, we are becoming increasingly well positioned to compete with larger players in this segment. In addition, our private segment has becoming a fundamental part of our ecosystem, serving as an important source of cross-selling opportunities and referrals for our other businesses.
Among the 3 growth drivers that directly impact our business, take rates are the only variable that we do not control 100% as product mix and asset turnover are driven by investor sentiment and market momentum.
On the other hand, our other growth drivers are fully within our control and support our long-term journey. We have also partially offset this take rate effect through revenue diversification, growth in advisory, fee-based models and expansion into new verticals.
Before I hand over to Victor, I want to quickly comment on the 6-K we just released. Today, we are announcing that Gustavo Alejo has been appointed as XP's new CFO. This is part of a thoughtful and well-planned transition, marking a new chapter for XP as the bank continues to grow within our ecosystem.
Alejo is a seasoned executive with a remarkable track record and his expertise will be instrumental to our expansion strategy. We are truly pleased to welcome him to our team. I also want to take this moment to express my gratitude to Victor.
Over more than a decade, he has been a central figure in XP's journey. His dedication and contributions have been fundamental to the growth and development of this company. Victor will remain part of XP ecosystem, supporting us in new ventures ahead.
I sincerely thank him for everything he has built here. and I wish him every success in what comes next. Thank you, Victor.
I would like to thank Maffra, Benchimol, all our partners and shareholders for the trust they deposit in me throughout all those years. I have been at the company for almost 15 years and time passed quickly when we are building something that matters. That's what we have done at XP, changing the way Brazilian invested and related to money.
After almost 15 years, I decided to step down, but we will continue as a partner, member of Board of several investments in our portfolio and contributing to XP ecosystem in new ways.
This transition was careful planet if XP long-term vision always guiding our decisions. I would also like to thank the people who made this journey possible, especially all the incredible team I got to work very closely during my tenure as CFO. To each of you, thank you. It's been a genuine honor. I'm sure that the best is still ahead.
Thanks. And now let's review our financial performance. I would like to begin by noting that in this quarter, we are introducing our new managerial P&L and revenue breakdown that more accurately reflect how we operate the company. Under this framework, we are organizing our business lines into 2 main segments: retail and wholesale.
Along with this change, the institutional business has been incorporated into the wholesale division, aligning the reporting structure with the profile of clients we serve within this segment. Additionally, accompanying the final phase of restructuring, the other revenue line has become less relevant over the years and ceased to exist, being incorporated in the net interest margin across our business lines.
If this, we provide a clearer and more consistent view of our operational structure and revenue generation. As a part of the same process, our proprietary friends were transferred to the bank structuring. Consequently, we will no longer present if you hold tax adjustments. Instead, we now report our managerial results if other tax equivalent reclassifications, consistent with the approach already adopted by other market players.
This change improves the understanding of our results and aligns the market views more closely with the way we manage the company. All figures showed throughout this presentation have been retrospectively adjusted to preserve comparability across periods.
Finally, it's important to note that these new adjustments are IFRS compliant with no changes to our gross revenue, net income or capital metrics. Given that context, let's now move to the quarter results. Total gross revenue in the first quarter reached BRL 4.9 billion, up 8% year-over-year and down 7% quarter-over-quarter. The year growth was driven by [indiscernible] , retail new verticals and other retail with new ventures and floating expanding at a rapid pace.
The Wholesale Banking division also delivered growth year-over-year. Now let's move to retail revenue. Retail revenue totaled BRL 3.8 billion in the quarter, representing a 10% growth year-over-year and a 2% decline quarter-over-quarter, reflecting the impact in corporate credit in Brazil already explained before.
Building on the market momentum that began in the second half of 2025, we saw increase in equity volumes, driven by higher ADTV in equities and futures. Consequently, equity revenues increased 13% quarter-over-quarter and 22% when compared to the same period of last year, reaching almost BRL 1.2 billion.
As a result, equity revenue increased its shares of total gross revenue breakdown, both year-over-year and versus the prior quarter, reaching 31% in the first quarter in 2026.
Also, retail benefited from strong contributions from float and new verticals, which are reported in the other retail line and gaining representativeness during the quarter. Now let's move on to the next slide, where we'll talk through how our wholesale banking is evolving. As we mentioned earlier, we now include our institutional business in the wholesale segment. Taken together, these 3 business lines grew 26% year-over-year.
This same market figures showed a reduced volume of taxed and fixed income offers in the first quarter of '26. If that, Issuer Services revenues were down following the same rationale of retail fixed income.
On Corporate segment, we posted another solid result, reaching almost BRL 500 million in revenues. Due to high volatility, we were able to serve our clients with more trading solutions with derivatives and FX boosting revenues. This reinforced the consolidation of franchise, which developed meaningful through the years, become an important part of ecosystem and an important driver in terms of growth and diversification.
Finally, our institutional business grew both year-over-year and quarter-over-quarter. This segment, the same as retail excess benefited from higher trading volumes during the quarter. Now let's shift our focus to SG&A and efficiency ratios. As mentioned earlier, we are introducing a new disclosure methodology, which is better aligned to market peers and increase our results comparability.
We can find the reconciliation and additional details about the new methodology in the appendix. If that, our SG&A totaled BRL 1.6 billion in this quarter, increased 14% year-over-year and declining 6% quarter-over-quarter. On the right-hand side of this slide, our last 12 months efficiency ratio was 34.6%, representing a year-over-year increase of 100 basis points.
The short-term increase was caused by market events that temporarily impacted our revenues in the first quarter, as previously explained. As commented before, we expect to see a normalization of the ratios throughout the year, ending 2026 is a flattish number when compared to 2025.
Move on to EBT now. Our adjusted EBT totaled BRL 1.4 billion in the first quarter, up 8% year-over-year and down 14% quarter-over-quarter. The adjusted EBT margin was 30%, stable versus the prior year and lower quarter-over-quarter.
As mentioned in the previous slide, market events impacted revenues and therefore, our EBITDA and EBT margin in the first quarter of 2026. On the next slide, we will see our adjusted net income. Adjusted net income in the first quarter totaled BRL 1.3 billion, representing a 7% increase year-over-year and remaining roughly stable sequentially. Net margins were 27.8% in 1Q ' 26, down 30 bps year-over-year and 122 bps higher sequentially. Let's move on the next slide to talk about capital management.
I will start by discussing capital returns. During the first quarter of the year, we continued the execution of our share buyback program. And as of now, we have executed almost half of it. As Maffra mentioned earlier, today, we announced a new buyback program of BRL 1 billion and also the payment of BRL 500 million in dividends to be paid on June 18.
Combining the dividends and the 2 buyback programs, we get to almost BRL 2.5 billion in capital distribution already announced in 2026. Now let's move on the second part of our capital management strategy on the next slide. Our adjusted diluted EPS increased approximately 9% year-over-year, reflecting the execution of our share buyback program.
This allows our EPS to expand at a faster pace than net income. On the right-hand side of the slide, you can see our adjusted annualized ROTE and ROAE. Given our higher BIS ratio than last quarter, both metrics are lower this quarter than the last quarter.
If we were operating the business at 17.5% BIS ratio, which is the midpoint of our guidance, our ROTE and ROAE would have been around 30% and 24%, respectively. Let's move on to the next slide to give some additional details on our capital management.
I would like to turn to our capital ratio and our risk-weighted assets. Before going through the numbers, I want to highlight that even in a quarter marked by elevated volatility across both local and international markets, our disciplined risk management approach translated into a well-controlled risk profile, lower VAR and flattish RWA.
Our VAR declined sequentially, closing the quarter at 14 basis points, 3 basis points lower than prior quarter. Our RWA ended the first quarter at BRL 122 billion, up 3% quarter-over-quarter. Credit RWA remained essentially stable. Market RWA grew just 2% in the quarter, both expand at a lower pace than our revenues.
And the main trigger of expansion of risk was the operational risk-weighted assets. Despite the market dynamics we mentioned, our risk is under control, our balance sheet is sound, and we expect that to remain the case throughout the year, consistent with what we have communicated to the market.
Finally, we closed the quarter with a BIS ratio of 20.7%, which is above our guidance of BIS ratio of 16% to 19% by the end of the year. As communicated last quarter, we entered 2026 with a comfortable capital position that give us flexibility to navigate different scenarios and remain well positioned in any potential volatility coming from internal or external markets throughout the year, even though we know this is a higher capitalization level than the company requires to operate, and we are committed to reach our guidance by the end of the year. And with that, we will now move to the Q&A session.
Okay. Now we're going to start the Q&A. The first question is from Tito Labarta, Goldman Sachs.
2. Question Answer
Victor, good luck on your future endeavors. Thanks for all the help over the last few years. So maybe a couple of questions. Maybe just one, I guess, can you give a little bit more color, Victor, Maffra, on the decision to step down and the new incoming CFO, just to understand a little bit more some of the rationale behind that.
And then second question, you talked a little bit about the widening of the credit spreads. But just to understand, do you expect that to recover maybe completely in 2Q? Would that take a little bit longer? Just to think about how that could impact your revenues for not just 2Q, but also for the rest of the year?
Thank you for the question, Tito. The first question about why -- what's the reason behind the move of Victor is a transition that we have been discussing for, I would say, a few months or like a half year to do this transition to find someone with more background in banking and the banking products that we have been developing for both individuals and capital markets on the wholesale bank.
So it was a well-planned transition, and you guys know the change that happened at Santander, and there was an opportunity to bring Gustavo Alejo, who has more than 30 years of background in corporate, in credit, on [indiscernible] and as a CFO.
So it was an opportunity to bring someone with the background that we were looking for. So Victor is an important partner of the company. He has been with us for 15 years. He will continue to be partner of the company and will help us on new ventures on the company in the future.
About the second question, if we didn't have any credit loss because it's mainly tradable fixed income that we have mark-to-market on the positions. You guys know very well what happened on the credit market since the beginning of the war.
In March, there was a widening on the credit spreads even for AAA names, AA names. So we lost some money on mark-to-market. As you mentioned, we didn't realize most of this loss. We don't expect the market to recover on Q2 because if you take a look on what happened in April. There was also a widening on the spreads, much smaller than March than the first quarter. We do not expect any impact on Q2 because our ecosystem and the other business line will compensate even more than what we lost in April.
In May, we saw the credit spreads stabilizing, but we don't expect them to start closing this quarter. But let's see what happened. But for the year, we don't expect any further impacts on top line growth. That's why we are confident that we can deliver a double-digit growth for the year.
And if you take a look on what happened, just one-off on widening of spreads on Q1, if we take that off, we would probably be at low teens, very close to what we have planned because all the business lines beside the credit spread, the widening on credit spreads and the primary market on GCM, besides these 2 business lines, all the business they are like in line with what we have planned for the year. So we are confident that we can resume higher growth on Q2.
Great. No, that's helpful, Maffra. If I can, just one quick follow-up on the management transition, I guess. And I know you've been talking more about capital ratios and you have excess capital to return you have the banking license. But I think investors still view you a little bit more as an investment platform.
I mean, should we begin to think of you more as a bank? I mean, does this indicate any major change in strategy that we should kind of take into account? Or is it just you kind of need somebody to -- given the capital requirements and things like that? Just to understand a little bit how that plays into the strategy to some extent.
We don't have any change on our strategy. So it's the same thing we have been talking for the past 3 years. So no major change, no big change. It's more of the same looking forward. So no change on the strategy.
Okay. Next question is from Thiago Batista, UBS.
So first of all...
Yes, we can.
I have 2 questions, to be honest. The first one, when I look for the capital distribution, historically, you paid half in dividends and half as buyback. So how do you think on the future distribution? How do you think between these 2 types of distribution, buyback and dividends? And the second one, on the DCM side, I know that there's a lot of moving parts here.
So yield curve increased a lot, spreads are higher than average, but we also are seeing inflows in the fixed income funds. So how do you think about the DCM business? I know that it's very tough view, very tough to estimate the performance of this business. But how do you guys are seeing the DCM business until the end of the year?
I'm going to take the first one here and the second will Maffra. First, in capital distribution. I think we are in the middle of the year. We all can do the math on how much cash we need to devolve to shareholders should be inside our guidance.
I think for now, more than half than what announced, actually, BRL 2 billion will be is buybacks and BRL 500 million are dividends.
I think for our mix of shareholders and the price of the stock now, that's the best mix, and we are going to keep this pace over the year to get the end of the guidance. And exactly what would be the combination between one and the other depend on the stock level and the market environment and then we go. But for now, more than 75% is buybacks.
Yes. On the second part of your question, as you mentioned, there are a lot of moving parts here. But as I already mentioned, we saw the widening credit spreads continuing in April in a smaller size than March.
In May, we start to see a more stable market, okay? So we start to see some buyers in the market. But if you look the net flow of the credit funds, there are still redemptions, so they're still negative. But on the other side, they are all-time high in cash, okay? So we believe if the market -- the global market stabilize, we believe we'll see the beginning -- maybe the beginning of the spread compression on the next months.
So that's the view we have right now looking at the numbers and the flows, okay? We are starting to see retail clients buying corporate bonds. That's something that didn't happen since, I would say, January or February. So we have early signs of a more stable market, but too early to say if we will see compression. I don't expect compression in Q2, okay? So it's more for Q3 or Q4.
Okay. Next question is from Eduardo Rosman, BTG.
Two questions here. The first is on -- it's a follow-up on the top line, right? I think Maffra mentioned that you guys are still confident about growing double digits.
But in case things are a little bit slower, can you do anything else on the cost side to compensate? So that would be the question number one. And question number two, can you give us an update on the movement to the fixed base fee? How is that evolving? How IFAs are reacting and embracing the change?
Rosman, thank you for your question. I think the first one here. The compression in efficiency ratio in the first quarter was due to the softness in revenues that Maffra already commented in the fixed income and issued services.
I felt that would be flattish year-over-year. And I think over the year, if the scenario start deteriorating, we are committed to not lose efficiency because of costs. So there is margin. Of course, the initial plan is to keep our investments. But if needed, we are committing to deliver a flattish efficiency ratio over the year and keep the pace of the revenue.
Yes. On your second question, for sure, you have seen that we are doing advertisement, marketing campaigns about the multiple models that we have today.
So we are basically the only house to offer to our customers all different models to serve our clients and the way they pay for that, okay? So today, I would say, about 25% of our total individual AUC is under flat fees or fee-based model. So it's growing. We believe in 3, 4 years, it's probably be half of the AUC when you look consulting model or fee-based model. So these models, they are growing, and we expect them like to reach 50%, I would say, in the next 3, 4, 5 years.
Okay. Next question is from Jorge Kuri from Morgan Stanley.
Okay. So we'll go to next one. So the next one is Eric Ito from Bradesco BBE.
Thank you for the partnership and wish you all the best for the future. I have 2 on my side as well. First is a follow-up on the impact from the yield curve.
So if you could give us just to quantify in the quarter, how much was the impact here? And if we could also give us some color on any potential one-off impacts from the FGC payments or allocation on this product? And if you could also help us understand which products are the clients putting money into with the reimbursement from FGC? Just to help us understand what we can expect for the fixed income take rate going forward?
And then my second one is on the warehouse strategy here. If you could give us some color and recall what's the average duration that the credit stays in your warehouse? How should we think about distribution versus retention going forward? Any update or change in the strategy here?
Eric, thanks for your question. First of all, about the interest rate level. I think despite the business impacts in terms of macro tailwind and product allocation, when you look at the effects in the company, it's actually better for several business lines are floating return or on capital and then you go, as we comment, floating inside the retail other revenues was one of the drivers of growth inside of retail.
About the allocation of GC premium, you're going to see that in the prepayments inside of our balance sheet. And just important to remember that there is no P&L effect in that. Okay. The last part about the -- where the clients are allocating money. I think at the beginning of the year, we talked a lot about the positive tailwind we had in Brazil and overall markets.
And I think if the war and the easing cycle coming from 300 to 70 basis points, clients move back to fixed income and short-term fixed income. So I think we're basically at the same case we were in the second semester of 2025, almost all of the cash goes to short-term fixed income.
Duration of the warehouse portfolio, I think that was the last question. It's the same. It's hopefully between 3 to 6 months. Of course, this is widening in the credit spread, may change a little bit the dynamics, but that is our base case, and we should keep this way over the year.
Next question is from Arnon Shirazi from Citi.
Last quarter, a question regarding the NPS. We saw that it was low in the fourth Q, now decreasing in the first quarter. We know that it's tracking in the last 6 months, but still low at 61%. I want to get a view on this on the recent trends and if you expect to be better in the next months or quarters.
Yes, that's a good question. As we use moving average here, the lowest number was in December and early January.
So Q1 was the worst moving average. On Q2, you see the number improving. And if we look at the number that we are right now, it's already at 70%, okay? So 70%. So we are almost back on the current view.
But again, as we report a moving average, you see Q2 higher than Q1, but not at 70% yet. So probably on Q3, you see 70% plus and back to normal levels.
Has come to an end. It will be more than a pleasure to answer any further questions. Just look for contact the IR team, and see you in the next quarter. Thank you so much for your participation. Bye.
XP Inc. — Q1 2026 Earnings Call
Solid quarter: 21% asset growth, revenues +8% YoY, disciplined capital returns (BRL 1bn buyback, BRL 500m dividend).
📊 Quarter at a Glance
- Client assets: BRL 2.1 trillion (+21% YoY)
- Revenue: BRL 4.9 billion (+8% YoY, -7% QoQ)
- Net income: BRL 1.3 billion (+7% YoY)
- EPS/ROE: Diluted EPS +9% YoY; Return on Equity 21.7%
- Capital: BIS ratio (regulatory capital ratio) 20.7%
🎯 What Management Says
- Growth target: Management reiterates a double-digit growth ambition for 2026, driven by retail, advisers and diversified revenue streams.
- Retail focus: Emphasis on adviser productivity, goal-based investing and expanding fee-based/managed portfolios to improve margin stability.
- Governance moves: New managerial P&L reporting for retail/wholesale and appointment of Gustavo Alejo as incoming CFO to bolster banking expertise.
🔭 Outlook & Guidance
- Top-line view: Company expects to sustain double-digit growth for the year despite Q1 spread volatility; Q2 unlikely to see spread compression, potential improvement in Q3–Q4.
- Capital plan: Announced new BRL 1.0 billion buyback and BRL 500 million dividend (paid June); ~BRL 2.5 billion total distributions announced for 2026 so far.
- Capital target: BIS guidance 16–19% by year-end; current 20.7% implies room for further buybacks/dividends.
❓ Analyst Q&A
- CFO transition: Described as planned; Alejo brings ~30 years of banking and credit experience to support wholesale/banking expansion.
- Credit spreads: Q1 widening drove mark-to-market losses; management sees stabilization in May, no major additional impact expected for the year.
- Capital mix & fees: Management prefers buybacks today (over 75% of announced distributions); fee-based AUC ~25% now, target ~50% in 3–5 years; efficiency to be defended if revenue softens.
⚡ Bottom Line
- Takeaway: XP delivered healthy asset and profit growth, maintained its growth target and returned capital aggressively; buybacks amplify EPS while a seasoned CFO supports bank-related expansion. Main risk remains market/credit spread volatility affecting near-term revenue.
XP Inc. — Q4 2025 Earnings Call
1. Management Discussion
Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP. Thank you for joining us. It's a pleasure to be here with you today. On behalf of the company, I would like to welcome you to our fourth quarter 25 earnings call.
Today's presentation will be delivered by our CEO, Thiago Maffra; and our CFO, Victor Mansur, both will be available for the Q&A session immediately afterwards. If you would like to ask a question during the Q&A, please use the raise hand feature on Zoom. All questions will be answered in the order they are received. Simultaneous translation into Portuguese available during this conference call. If you would like to activate it, please click the bottom below. Before we begin, please see the legal disclaimer on Page 2 of today's presentation for additional information on forward-looking statements. The presentation is available for download on our Investor Relations website, and more information is also available in the SEC Filings section of our IR website.
To begin the presentation, I'll hand it over to Thiago Maffra. Good evening, Maffra.
Thank you, Andre. Good evening, everyone, and thank you all for joining us today for our fourth quarter earnings call. Before diving into the numbers, I would like to comment on the recent shareholder change we have just announced in the 6-K. As announced, myself and Jose Berenguer, CEO of XP's Wholesale Bank will become holders of XP Control LLC, alongside Guilherme Benchimal, who is still the main controller shareholder; and Fabricio Almeida and Guilherme Santana. This is part of the ongoing process of strengthening corporate governance, long-term alignment and the company's management model.
Now to the results. In 2025, we continue investing in key areas of our business. We enhanced our core processes, scaled financial planning, deepen our segmentation strategy and launched new products. We also celebrate the fifth anniversary of our wholesale bank, an important milestone that demonstrates the strength and integration of the ecosystem we have built. This platform drives the evolution of service for our corporate and institutional clients in addition to create cross-selling opportunities across our ecosystem. Despite its relative short history, we have established a top-tier franchise that keeps growing in a consistent manner and contributing to our results.
Alongside these structure advancements, we continued our agenda of better serving our clients. We launched a new campaign focused on empowering clients through the power of choice. We are the first investment firm in Brazil to offer transactional fee-based and RIA models. We believe there is no single deal model. Rather, different models are best suited to different client profiles. By having these different models, complete product range, focus on excellence and the most qualified team of advisers as our main advantage, we became the largest investment network in Brazil.
Today, we oversee approximately BRL 2.1 trillion across AUC, AUM and AUA, supported by a nationwide network of around 18,000 advisers serving approximately 5 million clients. Our presence spends almost 800 investment centers across Brazilian states and the Federal District, combining scale with local reach. We ranked #1 in traded volume on and process nearly 50,000 fixed income transactions per day. We had some challenges last year, but by strengthening our business fundamentals, we have positioned ourselves to capture future opportunities. With a robust platform, disciplined execution and a fully committed team, we are starting 2026 ready to grow, whatever the market scenario.
On the next slide, we will explore how our ecosystem transformed over time and how that transformation brought us to where we are today. This slide captures where XP stands today. We are entering a more mature phase while we're retaining the disruptive DNA that has always defined our journey. Our evolution has happened in waves. The first wave was focused on democratizing access to financial products that until then were not largely offered by incumbent banks like equities and third-party funds. The education of individual investors was an important pillar in the first wave. And through that, we fostered the development of the investment advisory industry in Brazil.
In the second wave, we scale, broaden our distribution and build a comprehensive ecosystem, consolidating XP as one-stop shop financial platform. Now we are advancing to a third wave, a move that democratize the wealth services model. We are taking a holistic and agnostic approach to give clients true freedom of choice. We have always put clients power of choice at the heart of our strategy. We remain committed to leading the market forward, guided by our long-standing belief that we play a key role in society by continuously improving the way people invest, manage and think about their money. Our ultimate goal is to help clients achieve their dreams.
Now moving on to the next slide. Our transformative track record has brought us to where we are today. We have built a distinctive business that delivers profitability while maintaining a conservative capital structure, giving us the option to operate in a broad range of scenarios. We posted gross revenues of BRL 19.5 billion in 2025, up 8% year-over-year. As I mentioned last quarter, we expected double-digit growth on the second half of 2025, and we managed to achieve that level. In the second half, we grew slightly more than 10% versus second half of 2024, showing that the initiatives we implemented during the year and earlier are responding positively.
Year-over-year, EBT grew 10%, reaching BRL 5.5 billion. Adjusted net income in fourth quarter '25 was BRL 1.3 billion, and BRL 5.2 billion for the full year, representing a 15% expansion year-over-year. Regarding balance sheet and profitability, we achieved 23.9% ROE in 2025, representing a 94 basis point expansion versus 2024. Our year-end BIS ratio was 20.4% in a very comfortable level even after the payment of BRL 500 million in dividends and BRL 1.9 billion in share buybacks executed in 2025. Finally, our adjusted diluted EPS increased by 18% during the year.
Now that we covered our platform, our disruptive profile and the highlights of the financial results, I would like to go in more detail on our business strategy. We have spent the past 2 years developing our service excellence agenda. At first, we focus on building the foundations, systems, incentive models and sales force training. In 2025, we took the next step and began to scale this model. At the same time, we refined our client segmentation, offering tailored servicing models and value propositions for each segment. supported by multiple pricing structures.
It's worth mentioning that today, approximately 23% of our retail AUC is already under a fee-based model. We continue to adopt this approach, recognizing that there is no single best model, but rather the most appropriate model for each client. We have also developed different ways to track adherence to this way of serving.
One of the most important tools we have is the XP Service Model Index. It incorporates metrics such as financial and wealth planning, quality of client relationships and adherence to recommended asset allocation. Initial results are tangible. Clients above the index target show meaningfully better financial outcomes with 21% higher revenues and more than double the net asset inflows. As we roll out this agenda, different KPIs will move accordingly. Currently, clients above the index target make up 39% of our AUC, and we expect this number to continue expanding. We will cover this topic in more detail on the next slide.
Two important pillars of our foundation are financial and wealth planning and our export allocation model. We support our clients with a holistic approach based on financial and wealth planning. We help clients navigate complex and highly personal decisions with large and confidence. Our work goes beyond investments encompassing succession, state and tax planning always tailored to each client's objectives, family structure and long-term vision. We offer financial planning for our clients with at least BRL 300,000 in AUC and comprehensive wealth planning for clients with invested assets above BRL 3 million.
We were truly pioneers on democratizing access to services in Brazil. At a time when they were largely restricted to a small group of very wealthy individuals. Additionally, we developed in-house technology that allow us to go beyond and scale the offering of financial planning while maintaining governance and quality. And this is something no other player in Brazil can do.
Our second pillar is the export allocation model, which is a proprietary tool based on algorithm intelligent design to propose a smart asset allocation. The use of this technology goes hand-in-hand with our advisory capabilities and considers multiple variables such as available products, liquidity client profile, the structure of the current portfolio, among others. Through it, we combine the best of both human and technological capabilities, data intelligence, complemented by the depth of human knowledge and a strong client relationships built by our advisers.
To track the development of our agenda, we measure how usage of these tools evolves over time. Currently, 21% and 12% of targeted clients track their financial and wealth planning with an adviser. Additionally, adherence to the expert allocation tool has been rapidly growing across all segments and December 2025 was a record month for location using this tool. Besides the fact that we are democratizing the service, we can also see on the right-hand side of this slide, we are delivering positive performance to clients.
Looking at the number of advised clients portfolios, 39% achieved returns of more than 110% of the SELIC rate, 23% had returns between 100 million and 110 and 28% obtain returns between of the SELIC rate. This means that 90% of the advised client base is registering returns of 90% and higher than the SELIC rate. Given that technology is a key component of our business, we will explore in greater detail on the next slide.
Technology is a core pillar of XP's growth strategy. Our proprietary platforms and AI-driven capabilities enable scalable expansion while maintaining strong governance and improving adviser productivity. We believe in what we call an augmented adviser, which is an adviser whose capabilities are enhanced by AI. This improvement can be seen in different aspects. First, relationships. We are now able to monitor the frequency and quality of advisers interactions with clients. providing us with data and intelligence that will ultimately be used to make the advisers better equipment to serve their clients.
Second, asset allocation. Technology and AI play a central role in asset allocation supporting portfolio reviews and personalized recommendations aligned with our export allocation framework. Third, automation. By reducing the operational workload of advisers, automation allows them to focus on higher-value client relationships. By augmenting advisers with AI across relationship management, operations and allocation, we can increase account load and adviser productivity while improving client satisfaction. By monitoring and scoring client interactions, we ensure strong governance, consistent service quality and scalable growth.
To close this section of the presentation, I would like to talk about a core part of XP, our adviser network. XP basically created the modern investment advisory role in Brazil, and that role has continued to evolve over time. What began with education and access to equity products has grown into a highly professional, scalable adviser model that supports increasing complex client needs. While we offer a unique value proposition to clients, we also have a differentiated value proposition for our advisers.
We equip them with proprietary tools, data and intelligence that enhance their productivity, improve advice quality and strengthen client relationships. This combination of technology, training and incentive alignment is something no other platform offers at scale in Brazil. By continuously investing in the development of more than 18,000 advisers we reinforce the strength of our distribution network, enhance client relationships and the quality of the service delivered while ensuring the long-term sustainability of our model.
Finally, this powerful combination of service excellence, strong client relationships and financial performance together with a sales force that has aligned incentives and robust capabilities corroborates our conviction that disciplined execution backed by governance and technology will drive the performance of all our segments towards our strategic objectives.
Now let's move on to the next slide to explore our retail investments strategy. This slide summarize the results we are achieving across our core segments and shows how our strategic investments are producing concrete outcomes. Starting with retail. This segment continues to represent a significant opportunity for us. While we have faced market share pressure and margin compression over the last 2 years, we have taken decisive action to redesign the way we serve these clients with the objective of improving efficiency.
The current scenario already reflects early signs of progress with a new value proposition grounded in goal-based investing in managed portfolios. We already see strong initial improvements with a margin accretive dynamics. Our strategy now is to expand this initial path to other client layers using technology, process and governance as key enablers to scale in a profitable way. In high income, our core segment, fundamentals remain very strong. We have folks most of our investments here.
It's where our compact advantage stand out the most. We continue to see solid growth supported by our multi-model service approach. As previously shown, financial planning, wealth planning and export allocation remain at the center of the strategy, reinforcing client engagement and long-term value creation. In private banking, we are seeing the results of our recent investments. The segment is transitioning into a full wealth management model covering both individuals and corporate client needs, supported by a robust product platform and a highly skilled team.
Growth has resumed with market share gains and expansion in credit and cross-selling within the XP ecosystem. We are still investing in this segment and we expect to see further market share gains, accompanied by margin expansion.
On the next slide, we will share our consolidated client assets figure. In the last quarter of 2025, our total client assets combined with AM and AA totaled BRL 2.1 trillion, representing a 22% growth year-over-year. This was an important milestone for XP, crossing the BRL 2 trillion threshold. On the right hand of the slide, we show how net new money related to client assets evolved during the last quarter of the year. In 2025, one of the most frequently asked questions for XP was around net new money. To clarify some of the questions we received, we'd like to exceptionally give a little more color on this metric.
This quarter, we once again achieved BRL 20 billion in retail net new money and BRL 12 billion in corporate and institutional, totaling 32 billion for the period. As we have been saying in the previous quarters, retail net new money has been impacted by the dynamics of SMBs. In the fourth quarter of 2025, small and medians enterprise, withdrew BRL 3 billion in investments from our platform. On the other hand, inflows from individual clients in all our segments totaled BRL 23 billion. While we posted positive figures this quarter and met our soft guidance, we still face a challenging environment for 2026. We are investing in different initiatives to support our future growth. But for now, we remain expecting retail net new money reaching BRL 20 billion per quarter.
Retail cross-sell has been one of our focus to diversify revenue streams over the last few years. In 2025, we achieved important milestones in this business vertical. As a result, we have observed higher engagement from our clients across different products. across insurance, cards, consortium, retirement plans and new loans are driving market share gains and record contributions. For 2026, we will continue to innovate and expand our offering, improving the integration of GI products in financial planning and enhance the customer journey through a better digital experience.
For instance, insurance, we will launch new products, travel, home and credit line insurance. And in life insurance, we will extend our product range with new coverage. Taking cards into consideration, the new loans we had during the year made it possible to increase the share of spending while increasing penetration among target clients. In 2026, we also be launching new products to enhance our cross-sell offering. In the first half of 2026, we are rolling out a proprietary dollar-backed stablecoin, targeting clients who seek to diversify or hedge against FX volatility while providing true 24/7 liquidity. This stablecoin launched clears proprietary digital currency strategy, and we will expand the portfolio over time.
Finally, we will reintroduce crypto service that are fully integrated into our platform with XP operating as a virtual asset brokerage. This ensures a seamless and a trusted experience, fully embedded within our broader investment ecosystem. Overall, this stead evolution in cross-sell products strengthens client relationships, increased share of wallet and diversifies recurring revenue. Let's move ahead to the next slide and review some KPIs from our cross-sell products.
Let's start with credit card, where TPV rose 11% year-over-year to BRL 14.6 billion in fourth quarter '25. In 2025, we launched new products, offering unique value propositions for high income and private banking segments. Life insurance written premium grew 25% year-over-year in fourth quarter after we enhanced our offering, including new coverage. In retirement plans, our client assets posted 17% growth year-over-year in fourth quarter, reaching BRL 95 billion.
Cross-channel campaigns and client initiatives led to positive inflows. In 2025, we had, for example, record inflows in the defined contribution pension plan with 17% growth year-over-year. Other new products, which include FX, global investments, digital account and consortium collectively grew 21% year-over-year, generating BRL 258 million in revenue this quarter. It's worth noting that these products were built from the scratch only a few years ago and already account for more than BRL 1 billion in revenues per year. On the next slide, we will cover the evolution of our wholesale bank. we are operating a complete ecosystem where our wholesale bank has become a key pillar of our strategy.
Just a few years after we started our wholesale banking activities, we have grown into one of the Brazil's largest players. As our retail platform scaled, it generated increased flow and liquidity demand, enabling us to grow our wholesale bank by leveraging our global markets and market-making capabilities. What started as a client facilitation has evolved into a sophisticated wholesale banking franchisee, integrating investment banking, institutional access and other capabilities. Through the combination of strong retail distribution with wholesale and market-making capabilities, we have built a powerful ecosystem that improves execution quality and liquidity for clients. In fact, we are leaders in equities, futures, options and ETFs, representing roughly 50% of these markets.
Additionally, we have created a complete investment banking, offering a full range of capital market solutions to our corporate clients. This robust structure benefits us in several ways as it not only diversifies our revenue streams, but also generates multiple synergies with our investment business. We have been gaining relevance in GCM, for example, and we will continue to invest in strengthening our franchise in the coming years.
Finally, in credit agribusiness receivables, we are a leader in distribution as well as in real estate funds. Our wholesale bank has posted strong results over the past few years, and there is much more to come as we keep investing in our franchise. Now let's move on to the next slide and see more details on our progress agenda. Looking ahead, over the coming years, we will continue working on different business opportunities.
At this stage, we understand that XP is ready to address and capture share in new markets being credit and SMBs, the main prospects in the long-term agenda. In SMBs, we will leverage Brazil's largest adviser network to expand our reach and deepen relationships. Moreover, we will broaden our product portfolio beyond investments and FX to generate more engagement and address SMBs day-to-day financial needs more holistically.
When it comes to credit, we see opportunities for both individuals and corporates. For individuals, credit acts as a catalyst for our investment business, helping us move toward greater primacy. Expanding our tailored solutions, particularly for high-income segments will be central to our agenda.
For corporate clients, we remain focused on structured solutions and expanding our corporate product offering to improve competitiveness, including receivables, government-sponsored funds and real estate solutions. Overall, our strategy is to expand our credit offering while maintaining the conservative prudent approach that has long defined our business. These opportunities are once again medium to long term.
I will now hand the presentation over to Victor, who will discuss the quarter and full year financial results. Thank you.
Thank you, Maffra, and good evening, everyone. Before I start, I would like to do a quick recap of some achievements and commitments for the past 2 years. First, corporate restructuring. We are now entering into the final phase of our corporate restructuring, in which we will further concentrate activities in XP Bank, materially improving our capital and funding costs.
The new structure has increased our competitiveness, optimizing our warehouse strategy during the year. We already captured part of these benefits in 2025 with reduction in funding costs, plus the reduction in cost of flex to the emission of subordinated notes. And we expect to have another positive impact in 2026 and the following years. As a result, we see the expansion of both of our financial margin and EBT margin for 2025, and we expect to keep this pace for 2026.
Second, our balance sheet management. In 2025, both our EPS and net income grew faster than our total assets and total risk-weighted assets. Combined with our disciplined capital allocation and distributions, this drove our ROE expansion of approximately 90 basis points, even though our BIS ratio is higher than 20%. Third, efficiency. Our continued technology investments are delivering operational leverage across many business fronts, allowing us to keep our investment pace while we keep a stable efficiency ratio year-over-year.
So now starting with total gross revenue. In our fourth quarter, total gross revenue reached BRL 5.3 billion, representing a 12% increase year-over-year and 7% sequentially. For the full year of 2025, total gross revenue was BRL 19.5 billion, growing 8% compared to 2024. The performance highlight was Corporate & Issuer Services with a strong second half of 2025. When we compare to gross revenue breakdown on the high-hand side of the slide, in 2025, retail maintained 75% of total revenues and corporate and issu services gained this space. Now let's move on to the next slide with more details on the different business.
In the 4Q '25, retail revenues totaled BRL 3.9 billion, up 8% year-over-year and 4% sequentially. For the full year, retail gross revenue reached BRL 14.6 billion, increased 8% versus last year. Retail revenue growth in 2025 was supported by float for both investments and checking accounts, new verticals if credit card, retirement plans and insurance Leading the way, and as a new initiative, international investments. Fixed income performance in a strong first half of 2025 and decent figures for the second half, supported by warehousing strategy.
So now let's turn to Corporate & Issuer Services. In the fourth quarter, revenues reached BRL 895 million, representing a 49% increase year-over-year and a 23% increase sequentially. This was the strongest performance in our history for this business, both in Corporate & Issuer Services. The strong performance was driven by a robust activity in the DCM space, reaccelerating from a softer first half. In addition, our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives and credit that continue to support revenues, leveraging on our strong distribution capabilities across the platform. For the full year of 2025, corporate and issue services revenue totaled BRL 2.7 billion, up 19% compared to 2024, making a new level of corporate revenues and consolidating this segment as an important business line for XP.
And now let's move to our SG&A and efficiency ratios. SG&A in the fourth quarter amounted BRL 1.7 billion growing 10% year-over-year and 4% quarter-over-quarter. For the full year, SG&A totaled BRL 6.3 billion, reflecting continued investments in technology such as AI and also our expansion of our adviser network. As I mentioned earlier, it is the operational leverage capture from technology and innovation developments that will allow us to keep our elevated investment base in different areas of the business while keeping the same efficiency level. Additionally, the efficiency ratio in 2026 should remain broadly in line with 2025 levels without any material change.
As we can see on the right hand of this slide, our last 12-month efficiency ratio for the fourth quarter stood at 24.7%, stable compared to 2024. Our adjusted EBITDA reached BRL 1.5 billion in the 4Q '25 million, increasing 20% year-over-year and 16% quarter-over-quarter with an adjusted EBITDA margin of 31.3%, an up 152 basis points year-over-year and to 171 basis points quarter-over-quarter. That means that we have reached the ranges of our guidance margin during this quarter. For the full year of 2025, adjusted EBITDA totaled BRL 5.5 billion, growing 10% versus last year with an EBITDA margin of 29.6%, expanding 52 basis points year-over-year.
On the next slide, we will see our adjusted net income. Adjusted net income for the quarter was BRL 1.3 billion, up 10% year-over-year and stable sequentially. Our net margins were 26.9% in the points lower year-over-year and 166 basis points lower sequentially. For the full year, adjusted net income reached BRL 5.2 billion, growing 15% compared to 2024 with 28.3% net margin, 173 basis points expansion in the period.
Let's move to the next slide to talk about capital management. Starting with cat returns. In 2025, we returned BRL 2.4 billion in capital to shareholders through dividends and buybacks. We also continue to have our BRL 1 billion share buyback program currently open. On the right-hand side of this slide, you can see the evolution of our payout ratio over the years, including last year, we had a close to 15% payout, considering both buybacks and dividends.
Now talking about earnings per share and ROE. Once again, we would like to highlight that our earnings per share continues to grow faster than net income, driven by our consistently buyback execution just like we explored in the previous slide. Adjusted EPS in the fourth quarter was BRL 2.56, growing 15% year-over-year and 4% quarter-over-quarter. For the full year, adjusted EPS reached BRL 9.81, increasing 18% versus last year, only in 2025 we have retired more than 24 million shares, approximately 4% of the total share outstanding.
Now looking at our profitability, ROE and ROTE. We see our adjusted return on equity for 2025 reached 23.9% and 94 bps expansion, while return on tangible equity was 29.5% and a 78 basis points expansion versus 2024. This reflects our capital disciplines that allow us to consider return capital to shareholders while simultaneously growing and investing the business to further differentiate yourself from our peers.
Finally, on capital ratio and risk-weighted assets. We closed the quarter with a BIS ratio of 20.4%, if the CET1 ratio at 17.3%. In 2026, we operate the business with a high BIS ratio during the year. We are comfortable in getting our BIS ratio to our target range of 19% to 16% toward the end of the year for capital distributions while still maintaining a comfortable capital buffer. Additionally, we ended the year with a CET1 ratio of 17.3% compared to our average of 12%. If we were running the business at the same C1 of 12%, we would have been above 13%.
Now looking at the right-hand side of the slide, you can see our RWA breakdown by category. Risk-weighted assets totaled BRL 119 billion, growing 13% year-over-year and 11% quarter-over-quarter. As we expected and communicated in certain occasions, total RWA growth was lower than our net income and EPS for the year, even in a strong performance from the wholesale business. In parallel, our total assets, adjusted for assets under management from retirement plans grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the rare housing of fixed income securities, mainly corporate credit, aligned with strong DCM activity, our growing capacity to originate corporate use and market timing opportunities.
Lastly, because of this increase in warehousing, our value at risk from which important company's credit risk spread went to BRL 39 million or 17 basis points of reaction, stable on a year-over-year perspective and 4 basis points higher sequentially, but still in a very conservative level. We expect to distribute partner these assets at the beginning of 2026. This level of housing capability was only possible to the development of XP Bank and funding structure, as previously highlighted.
With that I end my presentation and hand it over to Maffra, so he can make his final remarks, and then we'll go to the Q&A.
Thanks, Victor. Before we go to Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar. Over the past years, we have invested heavily in scalable process, governance and technology. And in 2026, we begin to see these investments maturing and is starting to translate into results. This is reinforced by a skilled and well-trained sales force with aligned incentives ensuring consistent execution across the organization.
We continue to invest in a highly disciplined manner, particularly focused on wholesale banking and the B2C channel. While refining our segmentation to ensure a clear and accurate value proposition for each client profile. This will enable us to grow with quality in a profitable and sustainable manner.
On the capital front, our priority is to sustain strong and consistent returns backed by a conservative capital structure. Discipline provides the flexibility to operate across different market scenarios, maintaining resilience and readiness to capture opportunities. Together, these foundations ensure that we enter 2026 with a solid business structure and disciplined capital allocation.
Lastly, before starting the Q&A, I would like to address an ongoing topic within the financial system. First of all, we would like to express our deep concern regarding everything that has been reviewed in recent months involving Banco Master and the extent of irregularities identified. We also want to acknowledge the important and diligent work carried out by the Central Bank as well as the responsible leisure coverage that has helped Brazilian society better understand with greater transparency, what has occurred through ABBC and [ Febraban ], we are actively supporting structural improvements aimed at preventing situations like this from happening again in our financial system.
The Central Bank has been advancing in the right direction over the past years. although we understand some relevant adjustments are still necessary. That said, this change must be implemented responsibly so that Brazil does not risk reversing the significant progress achieved in recent decades in terms of competition and a broader and more efficient access to financial products and service. we should be careful not to adopt measures whose unintended consequence would be to reestablish excessive banking concentration or to enable business models built on consumers' lack of information or as Director [ Galipolo ] rightly pointed out some months ago, products that function as a reversing Robinhood.
For more than a decade, the Central Bank has consistently pursued an agenda to increase competition and improve both quality and the cost of financial service through initiatives such as BCPs, digital banks and investment platforms have played a central role in this transformation, expanding access to banking service without fees and reducing long-standing asymmetries in traditional investment products, such as [ Poupanca ], saving accounts, Peak and [indiscernible]. 25 years ago, we helped transform the system by building the first open platform in Brazil, giving clients across all income levels, access to financial education and high-quality investment products.
Over time, we have contributed to reshaping the market by fostering competition, improving product quality, reducing costs and ultimately delivering better outcomes for our clients. We do offer proprietary products, but we have always distributed third-party solutions, including from competitors, choice, transparency and alignment with the client always come first. we do not charge abusive or opaque fees and clients being nothing to open or maintain an account with us.
Our mission is simple: to improve people's life by helping them invest better. This principal guides every decision we make and remains the foundation of our work as we continue to support Brazilians in managing their money, investing responsibly and planning for their future.
Andre Parize, we will now start our Q&A session.
Thank you, Maffra. Now we're going to start the Q&A. The first question is from Eduardo Rosman from BTG.
2. Question Answer
I have 2 questions for Maffra. The first one is regarding the ambition to become Brazil's leading investment platform by 2033. Can you provide a little bit more detail why -- what's the metric that you use to define that being a leading firm? Is that market share? Do you see revenue client base or something else? And do you believe that doing more of the same but better will be enough to reach this goal to require more powerful banking and credit capabilities? That would be the first one. And the second one, regarding your entry into the controlling group. Practically speaking, what does that change mean to you?
And thank you for your questions, Rosman. The first question is when we say that we want to be leaders in investments in 2023, it's about market share, okay? So that means that we have our internal plans here our long-term view is to become leaders in market share. And that's the -- it's '33 because our plants every plan that we have gives us that we can get there in 7 years, okay? So that's the number of the reasons when we look how much money, net new money we have to bring in the next years by different channels, by different segments, the plants, they point out that we can get there in '33.
How we get there first with the third wave, okay? So as we mentioned in the past earnings call in all the conference. We have been investing a lot on the third wave on the democratizing wealth planning for retail clients in Brazil. So democratizing the service that only private banking clients or even multifamily of clients have in Brazil. So that's the main point here. It's -- a lot of people don't get how big is the change here because most of the financial companies in Brazil and banks they still have like the model of pushing products, okay? It can be a basket of products and investment portfolio, but it's a product-driven approach.
We have been changing that for the past 2 years, we have change in cents. We have changed the way of serving clients. We have done a new segmentation in the company, new value propositions, and we are seeing big improvements in all the numbers, churn EPS and a lot of other metrics here. So we are very excited with the next years when we look at everything we have been doing on foundations and changing almost changing the business model in the past years for the future.
Of course, we have different strategies for different segments. We have been investing a lot on the private banking platform in the past 3 years. We have been gaining market share in the past 2 years and last year 2 it accelerated, and we believe that we can grow faster here on private banking.
On the middle, the affluent clients, it's more of the same with more intensity with more technology, with more process with the new value proposition of more services, more wealth planning. And when we go to the retail clients, we have found a new way of serving more gold-based low human touch, so a completely different value proposition that is becoming a reality, I would say, in the last year and that we are very confident that we can accelerate in the next years. So different strategies for different segments, but all based on the third wave here.
So of course, as you mentioned, the full ecosystem, the banking part, insurance of that reinforce the value proposition for investor clients. And as you have seen in the past quarters and past years, we are like every quarter, every year, like better on the cross-sell products, and we have a big road map for the next quarters here. But we are ready to accelerate in the future, okay?
About the second question, the control being 100% honest with you for myself, nothing changed. I've been with the company for 11 years. I was a partner in a different way, but I was a partner I have always acted as owner of the company. So nothing changed on the way I behave or the way I see the company, but I believe it's even a stronger alignment between the executives that are running the company, Jose Berenguer and I, alongside Fabricio Almeida and Guilherme SantAnna, so four executives that run the company on a daily base. And of course, Guilherme.
So I believe it's a stronger alignment for the long term, but nothing changed the way we manage the company here. And besides that, Gabriel, Bruno and Bernardo, they continue to be a shareholder in the company. They continue on the Board. So it's a natural evolution here a natural process. So there is no big change here on the company.
Great. Next question is from Thiago Batista, UBS. Thiago, you may proceed.
I have one question regarding the recommendation that CVM released yesterday about the internalization of orders. In my understanding, this should be a little bit positive for your RRP business? But do you have any view if this really positive or not for XP? And the second question on the taxes. We normally complain when the taxes were low. Now we're compete tax increase. But on the taxes. Just trying to understand if this hike in the taxes in this quarter is related to the change in the colic structure? And also, if this is linked with the consumption of the tax on tax losses carryforward, you reduced or experienced by BRL 600 million, BRL 800 million of those tax credits only in one quarter, if all those things are correlated?
It's Thiago here. So I will take the first question. It's a very positive news for us. Once you don't have the cap and you can include other assets. So it's very positive. Okay. You remember that we were the first company back in 2015, I remember it was the one responsible for building our LP back in '15 here for XP. And 2019 was, I would say, a big, big journey to make the product regulator. So -- and today, seeing the product like evolving, not having cap going to other assets, other type of instrument. So that's very positive because we are the largest market making in Brazil for retail clients. So it's positive for a business. It's positive for the market, for the clients and of course, we'll generate more revenues and more results for our market making. So it's positive.
Thiago, this is Victor. First, about taxes. I think we talked a lot about that in the past. Our base tax rate is something if the business is more toward the banking activity, investment banking in DCM and broker dealer, we're going to pay a bit more. And if the business is more towards market making, we're going to be a bit less. If you look at the revenue mix for the quarter, the main highlights was issued Services and Corporate Banking, both of course, made inside the bank and the broker dealer, and that's why we are paying more taxes.
Also those revenues are less heavy in terms of commission. Those assets were not distributed to retail clients. So the EBIT margin associated with those revenues are also higher. Talking about the quality structure, this change will only happen in 2026. It did not happen yet in 2025. So it has nothing to do if the taxes are an effect of the revenue mix. I'm sorry, what was the other question?
If this was the higher tax was the cause of the reduction in the tax losses carry forward.
It's not because of that. It's the revenue mix that explain both revenue, tax and EBT.
Okay. Next question is from. Gustavo Schroden from Citi.
I'm going to do 2 questions as well. So the first one is regarding the reimbursements by the FTC to the depositors of Banco master. So estimating BRL 40 billion. So how has XP been performing? So I believe that the company has designed a strategy to capture these volumes part of this volume. So -- any color on that would be great, if you should expect any positive impact in the first quarter, 26% regarding it? And my second question is regarding the NPS. We saw a decline in NPS to 65 points from plus 7 on points baseline. So could you elaborate on this? What's behind this decline and how the company is addressing this decline in NPS?
Okay. Thank you for the question. I will start with the NPS question. The drop is related to 2 events that we had on the fourth quarter. We had the Ambipar structured notes, and we had a lot of news and noise about Banco Master back, especially in December. So there is a selection bias for clients who were impacted by these 2 events. They are more propense like to respond the NPS than clients that were not impact by the events that happened. So when we look at margin, we see the improving again. So we believe it's going to be temporary affected by the 2 events that I just mentioned.
And to give a color that the impact is not that material. Usually, when we have big maturing of fixed income, for example, inflation governing bonds or like big corporate maturing bonds in Brazil usually, we retain 70%, 75% of the amount because usually PayPal take the liquidity to pay bills or to do something outside of XP. So give or take is 70% the rotation rate, okay? And when we look Banco Master, today is above 85%, okay? So it's a higher than a regular maturing event. So I'm not sure how we are going to disclose the net new money for Q1, but somehow, we will have like to show these numbers. So there's a huge inflow of money from Banco Master as we are keeping more than 85%, but not sure yet how we're going to disclosure, but we'll disclosure between net new money and the retention .
Okay. Next question is from Guilherme Grespan from JPMorgan.
Tarzans. My question is just on the outlook for 2026. And this is the environment that we are seeing Fourth quarter still showed similar trends, right? Issuer Services, very strong. Corporate Solutions, very strong. Fixed income a little bit weaker, Equity is recovering a little bit, but still timid. But my question is more going forward, like Question maybe one, do you think this performance of Corporate Solutions & Issuer Services is sustainable in the beginning of this year? And question number two, if this environment that we are seeing year-to-date, it's a good performance of risk assets, but it's mostly led by foreigners, right? We don't see a huge change on the local dynamics. If you believe you're benefiting much from this environment or no you don't benefit as much because it's mostly foreigner-driven, this good performance?
Guilherme, thank you for your question. Victor here. First, talking about corporate, I think our corporate business is in another platter. We evolved a lot in terms of product cross-sell clients, and do so. I think we can -- we are able to keep this pace over 2026. And talking about the performance of the other risk assets, as you said, -- it's still too soon to say that this will reflect in take rate. If you see volumes both in fixed income and acquisitions from retail clients, they are not going up.
The movement is mainly driven by foreign clients. I think if it performs keep this way over the year, we may see a bit of trading activity coming from individuals. And of course, they will be reflecting in actual revenues, but it's still too soon to talk about that. Also, in terms of fixed income, I think we need to see the Central Bank delivering the cuts that we have in the interest rate curve. If that happened, we may see the compression of the duration fixed income or something that we talk a lot about over the last 2 quarters. But again, we need to see the marketing going in this direction, both in equities and efficacy and rates to be able to see something reflecting your revenues.
Great. Next question is from Marcelo Mizrahi from Bradesco. .
Congratulations from the results. Two questions. First is regarding the guidance. So if you guys plan to update the guidance to 2026 with the environment that we are talking now. First, second, the guidance of revenues and the guidance of margins. Second question is regarding the perspective to have a I think it's better just to talk about the guidance, please.
Yes, the guidance holds. We have no reason today like to change the guidance. We believe 2026 is going to be a stronger year than 2025 as we have been talking in the past quarters, we are projecting to get very close to the guidance. Margin is there already, okay? And when we look revenues, if you project, we are very close. So there is no reason to change the guidance right now.
I remember my question. So my question is regarding the RWA. So we saw an increase of this -- the leverage, so definitely because of the offers. So looking forward, how much this leverage, the RWA could increase. So you guys have some cap on that or some targets that you can share with us?
Thanks for your questions. First, as usual, we bought assets for our warehouse book in the fourth quarter to have assets to sell to our clients in the first. That's exactly what is happening. I think what we can say about RWA is the same we said last year. We are very confident that net income will grow faster than the risk, and that will be the case for 2026.
Any perspective of adjustments on the payout policy to increase payouts or to reduce the payout with that?
We have our BIS ratio guidance for the end of the year. As we said during the presentation, we're going to pass the area of more strong capital base, but we are confidence that we're going to be inside the guidance by the end of 2026.
Next question is from Tito Labarta from Goldman Sachs.
I guess following up on Mizrahi's questions on the guidance. Just so I'm clear, make sure didn't miss anything. The guidance you had given was back at the Investor Day where you guided for gross revenues of 22.8% to 26.8%. I mean even at the low end, that would imply almost 20% revenue growth year-over-year, just to make sure that's the guidance we're talking about. And that would be a big acceleration from the 8% growth that we're seeing here this year. And you also mentioned net inflows you expect to remain around BRL 20 billion. So we don't see an acceleration there just to make sure that I'm understanding the guidance on the revenues that we should be thinking about?
Thank you, Tito. Yes, we are talking about the same guidance. So the number to get at the bottom of the guidance this year is 17%. The growth for revenues for 2026. So as we have been talking, it's not going to be easy, but if we miss, it's going to be by a small percentage, so there is no reason like to change guidance for 3 years if we miss by a very small amount. And again, we believe we -- it is possible to get there, okay?
And about net new money, we don't see any reason today to change the -- it's not a guidance, but we have been talking about the BRL 20 billion level. It's what happened in the past 3 quarters. So there's no reason to change for the next quarters. But again, for the our ambition to get to 2033 as a leader in investments, it will have to accelerate at some point in the future, but we don't see that happening on Q1 or Q2 for all the reasons we are -- and numbers we are seeing here.
Okay. No, thanks for clarifying, Maffra. That's good. Good to hear as well. And I guess the driver of the acceleration. I mean, you're saying first Q2, you don't see it so second half of 2026 as interest rates come down, I think -- I mean equity and fixed income are still like the biggest portion of your revenues, you think that should accelerate, I guess, as rates come down? Is that the right way to think about that?
No, we're not considering like a better take rate here or like a market improvement to get there. They are like all levers that we control. So we are confident that we can grow this year at higher pace than 2025.
Okay. But it is back-end loaded, right, more second half of the year, if I understood the comment earlier?
We always have seasonality. This year was lower than the past years, but usually, we do 45 and 55 of our results on the first -- it was a little bit more flattish in 2025. But yes, usually, we accelerate more on second half of the year.
Next question is from Pedro Leduc from Itau.
First question on SG&A. Here, you grew for the full year, about 8%. I understand you're going through an investment cycle. So here, I'd like to hear your thoughts on what the priorities will be in 2026. What are the pains that you're trying to solve with investments? And you mentioned in the call, I believe, stable efficiency for 2026. Now we're talking about high teens revenue growth. So help us reconcile that SG&A really understand what priorities you are doing and where we should look for signs of success of these investments.
Thank you for your question. I think our main investments will be, as always, in our car business. So we're going to be investing in adviser expansion over the year, the same as the last years. We're going to be investing in technology. So we have a lot of technology investments in AI. Those technologies will be used to customer relationship management an adviser productive, both focus on having more account load with more quality and more EPS. And I think that's the way that we're going to measure that. And also, we have some investments in our international platform. on our PME platform, cash account, bank account, every product around the companies, the companies that we're going to provide over 2026 and '27. And I think that mostly those are the big chunks of investments that we're going to do in 2026, the same as we did in 2025.
Okay. And with the efficiency level, you mentioned flattish that talks with the mid-teens revenues?
Yes. As Maffra said, we are confident that we are going to pursue our guidance level, and that implies the efficiency ratio and the expenses we're going to grow. And of course, we have some kind of maneuverability here in the number. If the revenue doesn't come, if they are faster than what we expect. But the number is around that.
Okay. And sorry, just to be picky on this part on the revenues. We understand you're going to go through some structured changes that would change also income tax and revenues from we talk about mid-teens, high teens revenues, that's excluding any accounting changes that will happen as you transfer these operations, correct? So be comparable?
If you look at 2025, we did a lot of restructuring over the group when we send some companies through the bank and we start changing the way we look at the indebtedness in the company, we lost something around BRL 500 million in revenues over 2025 that went through the net interest margin. And we say about that. So I think the growth of the revenues in the area, we're going to have a lot of mix is the same as we have in 2025, if other companies going to the bank, we're paying some corporate debt and changing for banking debt. then, therefore, going to reduce their revenues, and we're going to have some positive factors also. And I think in the net, we're going to be delivering the numbers that Maffra said.
Okay. No, that's very clear. The overall message is very clear. .
Okay. Next question is from Antonio Ruette from Bank of America.
I have 2 questions on my side. The first one is a follow-up on taxes. I understood that you should have an average tax rate of close to 15% and higher than that if revenues are more skewed to banking. And now if I'm looking here in your tax withholding in funds line, I see a very sharp decline Q-on-Q, and this line very below your historical average and it does not look related to the revenue mix. So if you could please explain what's it related for?
And thus also a second one, AI. I think it's an important topic, particularly when you are shifting between business models. So you are looking towards migrating towards B2C model. I understand that this is an opportunity to grow in the B2C with lower expenses, lower investments. But also it's a trap, right, because it's a model without in-person interaction and that could be mimicked by AI by another player. So how do you see your strategic shift right now considering AI?
Antonio, I'm going to take the first question here. First, it's very hard to talk about the results of individual entries in the group. And as we said before, you cannot explain the performance of one business or another looking at the grades or the quality of performance. Also, after 2026, if the restructuring of the group, we're not going to have to tax anymore, and we're not going to disclose this number. So I think the important thing here, if you look at the mix, if you look at the accounting levels, you're going to see the same things we are looking at many euro lives. You're going to see the banking revenues, banking fees, credit fees, fees from DCM offerings, and that was the strong part of the quarter, and that's why we are paying hiring taxes than before.
The second one, so I'm not sure if it was clear on the presentation, but we do not believe in taking the financial adviser, the human out of the equation here, okay? So it's always using technology, using AI to improve to make the adviser better, okay? So we have different AI agents here to help the adviser to have more relationship with the clients to take the operational workload out of from -- out from the adviser. We have a lot of tools that we have been creating in the past 2 years to help the advisers to perform better, to increase the count load, to increase productivity, to increase the level of service that we deliver to customers. But it's always how to improve the human.
Of course, when we talk about the -- remember that I said we have 3 big segments here. Of course, we have some other in between segments, but 3 big ones. Of course, for the 0 to BRL 100,000 segment, here, we can do 100% digital, okay? But we don't believe or we don't -- we don't like the idea of having like a BRL 1 million client or 10 million are clients going only through like an AI. It doesn't help. It doesn't happen because it's a trust business, okay? So people like to tell to people when they are talking about their lives, their dreams. So they want to talk to someone.
So the whole idea here is how we use AI to improve the performance to improve the service that we deliver to our customers. So we have been developing a lot of initiatives here. Some of them are very promising. For example, today, we listen, we read. So we have governance over all the interactions that our B2C internal advisers have with customers, we classify 100% of them. So we know everything that's happening. We give advice for the internal advisers about what they are doing right or wrong. We give broad advice, we give advice of interactions with customers. So we are very excited with the results that we are getting from AI on the company. But again, it's not about replacing the human or the human adviser. It's about enhancing the adviser, okay? So that's the idea.
Okay. Next question is from Daniel Vaz from Safra.
I want to try to understand the aftermath of Banco master, right, episode, both for XP internally and for your client base. So trying to break this down in 2 parts. First, for you, any way -- any changes in the way you filter your products to distribute? I mean how did that episode was discussed in your Board of Directors? So are -- is it got to the point that you discussed, like are we going to distribute these types of products again. So how is the filter that you want to do after it? Or if there is any that you want to put additionally?
And your client behavior such as the ones that were involved probably. You mentioned, I think it was in the past presentation about clients going to more risk-averse kind of 50% of your marginal allocation in fixed income was little more to high liquidity products and less yields. So I want to try to understand like what has changed into the third quarter so far to the fourth quarter so far in terms of investment decisions by your clients and mainly on the aftermath of the episode to Banco Master?
It's important to remember that our clients, the 99.9% of them there like under the GC, the FGIC Brazil FGC coverage. So our clients didn't lose any money. On the opposite, they made an investment that had a good return, okay? So our clients, the gene lose any money. We don't recommend Banco Master over FGC. As we don't recommend for any bank below a certain threshold of our internal rating, okay? So of course, every time that something like that happened, we look for our internal controls our credit analysis to see what we can improve, and we are improving, okay? It's part of the journey.
But remember that we have more than 50% of market share of all middle size and small sized banks in Brazil. So because remember that the traditional incumbent banks, they don't rebuild third-party CGs. So it's basically only the independent investment platform. And we are the largest one in the market. So for -- and remember that in some other cases, [ Gicaza ], [ Bejica ] , we distribute -- [ Portocredi ], we didn't have the products on our platform, okay? Our credit analysis was good in some events in the past. When you have frauds or the kind of events that everyone is reaching on the news right now. It's almost impossible. Otherwise, no one would lose money on credit. No one would have lost money on [ Lojas Americanas ] or [ Batista ] companies or other frauds, okay? So when you have this type of problems, it's hard to get.
But of course, we have to look inside, what we have to improve in our controls. But again, we have only distributed products that we believe they are suitable for our clients on the right risk for the right customer profile. We have internal controls today that we cannot allocate more of any type of fixed income products we've had risk above the threshold for that rating for that type of client, okay? So we are very strict on controlling that. And again, our clients didn't lose any money here on master, okay? So that's important.
About the changing mix after the event, we don't see any big change, okay, to be honest, we don't see -- of course, you have ONE other name that we're involved in on the same problem for those names, they are not even on our platform for a few months or even years, okay? But besides that, we don't see a big change for other type of small or midsized banks.
Okay. Our earnings call is coming to an end. Thank you for your time. We see that there are more people who want to make questions. So IR team will be more than happy to attend you. Just contact us, and see you soon. Thank you very much.
XP Inc. — Q3 2025 Earnings Call
1. Management Discussion
Good evening, everyone. I'm Andre Parize. Investor Relations Officer at XP. And it's a pleasure to be here with you today. On behalf of the company, I would like to thank you all for your interest and welcome you to our third quarter 2025 earnings call.
Today's presentation will be lead by our CEO, Thiago Maffra, and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. [Operator Instructions].
Before we begin, please refer to our legal disclaimers on Page 2. where we provide additional information regarding forward-looking statements. You can also find more information in the SEC filings section on our IR website.
Now I'll turn it over to Thiago Maffra. Good evening, Maffra.
Thank you, Andre. Good evening, everyone. I appreciate you all joining us today for the third quarter 2025 earnings call. 2025 has been a very important year for XP as we have achieved significant progress on our agenda of excellence. From the launch of the new way to attend and serve clients, implementing a culture to better understand clients' financial cycles as part of the main KPIs, new and more intelligent segmentation through a brand-new app with much more features and easier data access and new credit card offering. These few examples demonstrate our folks to become the leader in investments in the country, while brings a completely new approach on how Brazilians invest.
Despite this advance we have made in different areas, the year has still proven to be challenging. But even with this challenge, our team is fully committed to keep evolving our business to deliver growth and profitability under different circumstances.
Now going to the main KPIs. The first one is client assets, AUM and AUA for which we posted BRL 1.9 trillion, a 16% growth year-over-year. Total advisers accounted for 18,200, representing a small decrease year-over-year on the back of many of them becoming employees and our more restrict chip policy, which were requests higher standards of commercial behavior and productivity. And on activity clients, we posted 4.8 million clients, with a 2% growth year-over-year. It's important to mention that we have been growing on core client segments, high income and private banking.
For some quarters, we were not investing to capture and maintain low retail clients since it was to expense to serve them in our old model. But now after some tests we are almost ready to resume growth in this segment. We already see early stages of development on how to better serve the segment with profitability. Let's wait some quarters to be sure about the way we design to attend retail clients. And maybe we will see the overall number of clients growing again as this dynamic evolves.
In the quarter, gross revenues marked BRL 4.9 billion, representing 9% growth year-over-year. EBITDA is 10% higher year-over-year, making BRL 1.3 billion. These results were positively impacted by the more constructive dynamics in Corporate and Issuer Services segments. Following this positive trend, our bottom line also posted an impressive growth year-over-year, reaching BRL 1.330 billion, and representing a 12% growth when compared to the same period last year, which represents a new record.
On profitability, we achieved 23% ROE during the quarter, a flat performance year-over-year. This represents our commitment to deliver profitability even in more challenging market scenarios. On capital ratio, we maintain a very comfortable level of 21.2%, which represented an increase of 180 bps quarter-over-quarter. Regarding diluted EPS, we posted 13% growth year-over-year, another quarter in which it grew faster than net income, driven by our share buyback program execution.
Now let's see more details on the next slides. Our total client assets, combined with the assets under management from our asset management business and with the AUA from our fund administration business, totaled over BRL 1.9 trillion, which represented a 16% growth year-over-year.
On the right hand of the slide, we show how net new money related to client assets developed in the period. This quarter, we achieved BRL 20 billion in retail net new money and BRL 9 billion in corporate and institutional, which combined represented BRL 5 billion lower than last year, but 3x higher than last quarter.
On the retail side, we started to see the early signs of progress on our agenda of excellence we mentioned before, lower noise of some events we had during the first half of the year, and better GCM achieved towards the end of the quarter. All this combined positively impacted the inflows coming from individuals. Additionally, despite the maintenance of the same market dynamics during the third quarter of the year, we saw better net new money figures both from SMEs, which are incorporated in retail figures and large corporates.
Recent developments in our product range offering and more positive capital markets translated into higher net new money for both segments. We are constantly improving our investment platform. And as we mentioned before, enhancing clients' experience through adviser initiatives. This combination reinforces our confidence to achieve our target of around BRL 20 billion in retail net new money per quarter.
On the next slide, we will explore our retail strategy. As I mentioned earlier, 2025 has been a year of significant progress in our agenda of excellence. We are constantly enhancing our way of serving clients with the aim of, once again, disrupt the market with our value proposition focused on service level. Going back to our foundation, XP disrupted the investment industry in Brazil by democratizing access to investments through an open and comprehensive platform of products and service.
In a second stage, we scale Genova business model by building the largest and most qualified base of financial advisers in the market. we have come this far by offering best-in-class investment products built by top market specialists.
Now we are once again disrupting how Brazilians invest by democratizing access to high-quality wealth planning. A service that it now has been reserved for high net worth clients of multifamily offices. We delivered personalizing and premium planning for clients with more than BRL 3 million scaling financial planning for this with over BRL [ 1 ] million a and offering goal-based investment planning for clients with less than BRL 1 million. Our approach is holistic, encompassing the complete financial lives of our clients, assets, liabilities, expense and savings. Tax and state planning solutions are also considering.
In the end, we are serving our clients with top-tier solutions for both their personal and business finance. We are doing this at scale, powered by proprietary technology we have developed over the past years. This technology enables process standardization, scalability and consistent quality in our servicing model. Examples include our CRM system proprietary allocation platform and sales active management, among others, all of them powered by AI.
Some of these process KPIs are shown here proving that this journey towards excellence is gaining traction day by day. Additionally, combined with all these progress I have just mentioned, we are leading another change in the industry by having an agnostic business model. We are able to serve clients in a way that best fits their needs and preferences. The fee-based model already accounts for 21% of total retail AUC.
It started in the wealth service segment, which still has more -- represent achievements in the model, but we are accelerating in the other segments from this year on. we will still capture considerable growth coming from these new age serve. It will happen in the medium term as we are transforming our business model and our value proposition. Nevertheless, we strongly believe that will give us a sustained competitive advantage in the long run.
Finally, XP once again is a pioneer. We are not only leading us redefinition on how clients are served but we are also uniquely positioned to capture future growth coming from this change in client behavior and new market trends. Retail cross-sell has been one of our focuses to diversify revenue streams during the last years.
During Q3, we achieved important milestones in this business segment. Starting with credit card, TPV grew 9% year-over-year marking BRL 13.1 billion during Q3. As we anticipated last quarter, at the end of Q2, we launched new products targeting affluent and private banking clients. We estimate that with this new segmentation, each one of them with a unique value proposition, which should grow faster in the coming quarters. Life insurance written premium posted 25% growth year-over-year in Q3. As we have mentioned in the past, our insurance business is still in its early stage, given its significant expansion potential, we expect it to continue growing.
On retirement plans, our client assets posted 15% growth year-over-year in Q3 and reached BRL 90 billion. We keep expanding our sales force and our product offering to increase our relevance in GCM industry. As mentioned before, we see a lot of potential in life insurance business segment with a significant addressable market to penetrate in the coming years. Credit posted 11% growth year-over-year in Q3, achieving BRL 83 million in NII.
In new products, we consider FX, global investments, digital accounts and consortium. Altogether, represented 24% growth year-over-year with revenues reaching BRL 250 million this quarter. Beyond consortium, we also saw FX and digital account posting relevant growth this quarter.
Moving to the next slide, we will address our wholesale bank evolution. Taking GCM into consideration, this quarter, we saw a sequential increase in industry volumes when compared to the previous quarter. This growth was pretty much concentrated in the last half of the period, backed by the progress in the tax discussion regarding tax exempt and incentivizing senior instruments. In the third quarter of 2025, we had 10% market share in that capital markets distribution. We still have a robust pipeline of fixed income offerings and depending on market conditions we might see this mandate materializing into real deals in 2025.
Regarding XP broker dealer, it was another positive quarter and we kept leadership in the local industry with 17% market share. On corporate securities, this quarter, we kept about the same size of our corporate securities book with BRL 33 billion. The quarter started with possible change in taxation of tax fixed income instruments and finish it with many companies taking advantage of low credit spreads to issue new debt.
Next year, we can possibly see an increasing volatility, and therefore, a reduction in corporate clients' appetite for new offerings. So our strategy that being the case is to increase this warehouse book in the last quarter of 2025 to sell it to our retail clients during the next year.
As a final message, I would like to once again emphasize our ability to disrupt the market. We are the pioneers of this transformation trend, bringing clients unique value proposition or innovative offering combined with an agnostic business model and strong capital discipline position us as a distinctive player that successfully combines growth potential, profitability and risk management.
I would also like to reinforce that our ecosystem today is far more complete than it was just a few years ago. across all our businesses. We are confident that by executing this strategy, we will achieve our goals of market leadership in investments and deliver sustainable long-term growth. Now I will hand it over to Victor who will provide a deeper look into our financial performance this quarter, and I will be back for the Q&A session.
Thanks, Maffra. Thank you all for being here today. Now we'll discuss our financial performance for the third quarter. Starting with gross revenues, we posted gross revenue of BRL 4.9 billion, a 9% growth year-over-year and 6% growth quarter-over-quarter. In retail, revenues reached BRL 3.7 billion, representing 6% growth year-over-year and 4% growth quarter-over-quarter.
Institutional revenues were stable at BRL 304 million, flat year-over-year and slightly decreased quarter-over-quarter. Corporate and Issue Servers delivering outstanding performance, reaching a historic record of BRL 729 million, a 22% growth year-over-year and 33% growth quarter-over-quarter. This was driven by strong capital markets activity, followed by our leading position in corporate client solutions, which we will discuss in more detail in the next slides. Now starting in retail revenue. The performance was mainly driven by floating from both check and investment accounts, which benefited from higher average volumes and higher interest rates during the period. And second, new verticals included in other retail, such as international investments in global accounts, which delivered strong results.
Lastly, it's important to mention that this quarter also includes the revenue of the expert event. If that, the other retail category totaling BRL 757 million, marking 24% growth year-over-year, 19% growth quarter-over-quarter, offsetting a weaker performance from other product lines due to lower DTV and shorter duration.
Now let's move to the next slide in Corporate and Issue Services. This was the best quarter in our history. The outstanding performance was driven by a pickup in DCM activity compared to the previous quarter, and the continued development of our corporate client franchise. Issue Services posted BRL 323 million, stable year-over-year and 21% growth quarter-over-quarter. Corporate revenues reached BRL 406 million, representing [ 77% ] growth year-over-year and 46% growth quarter-over-quarter. The strong growth reflects our increasing capability to deliver solutions to large corporate clients, particularly in hedging solutions.
Moving on to the next slide, we explore SG&A and efficiency ratios. SG&A expenses totaling BRL 1.7 billion in the quarter, representing 10% growth year-over-year and 7% growth quarter-over-quarter. We remain committed to invest in the areas we consider critical for long-term growth including sales force expansion, marketing and technology, as highlighted by Maffra earlier. These initiatives are designed to enhance the client journey and elevate our overall service level. While this strategy may lead to stable or slight softer efficiency ratio in the short term, we see these investments as fundamental to sustain our competitive edge over time.
Our last 12 months efficiency ratio was 34.7%. Compared to the last year, the ratio improved by 79 basis points. As usual, in the third quarter, results also reflect the impact of the expert event which owns again proved to be outstanding opportunity to connect to our stakeholders. From another angle, the impact of it in the current efficiency ratio was approximately 70 basis points.
Moving on to the next slide, let's see your EBITDA. As a result, our EBITDA was BRL 1.3 billion, representing 10% growth year-over-year and remaining sequentially stable. The EBITDA margin expanded 47 basis points on the annual comparison, while compressing 103 basis points quarter-over-quarter.
Now looking at the net income, we reached BRL 1.3 billion, a 12% growth year-over-year and 1% increase quarter-over-quarter. The net margin expanded 106 basis points on annual comparison and compressed 12 basis points sequentially, closing the third quarter of 2025 at 28.5%.
Now let's focus on capital management. This year, we have been highly active in returning capital to our shareholders. In 2025, we repurchased BRL 2 billion of which BRL 850 million occurred after the end of the third quarter, and therefore, are not reflected in the accounting metrics we are presenting today. such as ROE and EPS. Today, we are announcing the retirement of our outstanding treasury shares bought back during the year and the new BRL 1 billion share buyback program to be executed over the next 12 months. On top of that, we are also announcing a dividend of BRL 500 million to be paid in 2025. This represents BRL 2.4 billion in capital return to shareholders in 2025 approximately 50% payout if finalized our net income. If considered the new buyback program, the payout ratio would be around 7% for the year.
So let's focus on earnings per share and why we detail over the next slides. In the third quarter, our diluted EPS once again outpaced net income growth, reaching BRL 2.47 per share, supported by our activity capital distribution strategy through share buybacks. In this quarter, EPS grew 13% year-over-year and remained stable quarter-over-quarter.
On the right-hand side of the slide, ROTE stands at 28% and ROE at 23% slightly lower than last quarter, since we had the capital generation without the corresponding distribution, assuming the execution of the new $1 billion buyback program and BRL 500 million dividend payment and ROE would have been 30% and 24%, respectively.
Now moving to the next slide. To conclude my presentation, our capital ratio ended the third quarter at 21.2%, and the CET1 at 18.5% well above peers average and the regulatory requirements. This comfortable capital position gives us a strong edge to navigate different scenarios and be ready for the becoming volatility. Also, during 2026, we expect to have the opportunity to deploy capital in a more efficient manner. It's important to remember that we maintain our guidance for a BIS ratio between 16% and 19% and for the end of 2026.
Now talking about risk on the right-hand side of the slide, you can see that our RWA totaled BRL 108 billion, representing a 13% growth year-over-year and a 6% increase quarter-over-quarter. Finally, our virus stood at BRL 29 million or 12 basis points of equity. Even in a quarter of outstanding performance from our wholesale business, we maintain a very conservative risk profile. In this quarter, it's worth to mention that our balance sheet grew 6%, but adjusting for retirement plans and secured funding, it growth would have been lower than the CDI for the period.
This increase in retirement plans is associated if a one-off bulk migration we did from other insurance companies to our own, and we don't expect to see it in other quarters. Besides that, as you can see, we kept our market RWA stable and decrease our VAR sequentially, reinforcing our position as a robust ecosystem with a strong risk recycling capabilities.
And now we can go on to the Q&A.
[Operator Instructions]. [indiscernible].
2. Question Answer
I have a couple of questions here on the wholesale business results were really strong -- should we expect a similar performance in the fourth quarter? Or do think a slowdown should be expected, right? And my second question is on what Marta mentioned, right, during the call, right? The strategy to increase the warehousing book in the fourth quarter. If you can give us a little bit more detail -- because you also mentioned that corporate spreads are very low. So wouldn't that be a risky strategy in an election year Thanks.
Hello, Rosman. Thanks for your question, and good evening, everyone. So we are seeing the wholesale banking with a good performance for Q4 so as we mentioned earlier in the last call, we have seen the second half of the year is stronger than the first half of the year, especially for the wholesale bank.
Ho, Rosman, this is Victor. Talking about credit spread first. We think that the credit spreads are really tightened. And if they -- the probability is that they can go a bit more wider over the end of the year and next year. But also, there is a lot of net inflow in fixed income funds that keep putting pressure in the spreads. And it's important to remember that our strategy is to hold high-quality assets and the velocity of turnover of our portfolio is higher than the average of the industry. And we are not as susceptible as scrap spread volatility as the rest of the competition. And also in terms of RWA, we expect to sell a bit of what we bought over the third quarter. And depending on the performance of the same warehouse a bit more to go through the first quarter of 2026. As we all know, the first quarter usually is a quarter -- lack of activity in DCM. So it's important to us to have assets to sell in the beginning of the year.
Okay. Next question is from UA Finance, JPMorgan.
Just to follow up Rosman on corporate. Can you remind what was the 46? I think you mentioned hedging strategy, but I'm not sure what was it? So just trying to understand a little bit again the corporate, inside corporate insurers, the 46% quarter-over-quarter increase.
And on bonus, this line was a little bit heavier this quarter, but coming from, I would say, a softer base, right, when we go to the 9 months. I think total bonus is up 8%, 90% year-over-year, so not a big increase. But if you can comment a little bit on what to expect on people, expenses, like salaries, like just to get some idea on SG&A. I would appreciate. And if you want to comment on bonuses also, I think it's also a good point, given it was a little bit higher this quarter.
Thank you for your question. This is Victor. First, Talking about the corporate performance. It's important to remember the corporate business is tied to the DCM activity. So one of the main drivers of P&L in corporate is had solutions to company issuing debt. So for example, the company is you adapt taxes and corporate bond, inflation linked bonds, and it doesn't want the exposure inflation, it hedged against us in CDI. That's one of the business, and it's highly correlated with the same activity.
Also, another business that is really important is the originator of credit operations that will be securitized and sold to clients in the next quarters. If you go to our credit portfolio, you see that it's flattish Basically, we sold Qualsovereign bank notes, and we originated corporate operations, but those operations will be securitized and sold to clients the same as we did in other quarters. And now moving to bonus.
It's normal to see the bonus going higher after the performance of investment banking going higher the way it did over the quarter. So part of that is explained by performance in Wholesale Banking. Another part is explained by the new hires over the year. We hired almost 500 new employees, mostly on sales force expansion over the year. And this is one part of the drivers of salary growth and bond provisions.
Super clear, Victor and congrats on the net new money improvement for the quarter.
Next question is from Mario Pierry, Bank of America.
Let me ask 2 questions as well. First one, when we look at your retail revenues growing 6% year-over-year. But if we double-click on that, we see that our fixed income revenues actually contracted year-over-year. I have been contracting 2% even as the AUC grew 22%. So it means there was like significant pressure on take rate. Can you explain why that happens, right? Because when we look at fixed income, revenues were growing like 40%, I think, on average for the past like 6 quarters. So just trying to understand if there was a one-off event that impacted fixed income revenue?
And then my second question is related a little bit to what you asked but when we look at your EBIT margin, you have been expanding for just like 3 quarters, I think, in this quarter, it contracted because of the pickup in expenses and you're running below your guidance, right, your medium-term guidance of about, I think, it's 30% to -- 29% to 32%. So just trying to get a sense here also, like should we expect the trend to start to improve in the next quarters? Or do you think that the EBIT guidance it's something for more like for the end of 2026. Thank you.
This is Thiago. I will take the first question. I can answer the second one and Victor complement myself here. About the fixed income revenue, the main problem here is if you look the take rate for investments, if you compare Q4 last year to Q3 this year, it's down 10 bps overall, okay? So it's a huge draw here drawdown. And when you look only fixed income, 20 bps, okay? So it's a big decrease in take rate. And it's mainly explained because first one, mix, okay? So if you look CGs with daily liquidity, they used to represent 25% of the new locations, okay? So 25%, today is 45% because of the high ceiling rate, we are selling almost half of everything that we sell for fixed income, it's CGs with daily liquidity. When you compare the revenue we make here, it's basically a daily spread on CGS with liquidity against duration times is spread, okay? So it's a completely different revenue stream, okay?
And the second one is shorter duration, okay? So right now, everyone is only buying like a very short-term durations, okay? So when you combine the mix of more CGs with daily liquids and shorter duration, we are selling a lot more volume in fixed income but with a lower take rate.
About your second question, we are investing in sales force expansion. We are investing in SMB. We are investing in technology. So we are doing a lot of investments this year, and we are planning to do more investments next year. So I would say that still possible to get to the -- at the end of the next year to the guidance we gave but you see because in the past, I would say, 2 years or even more, we have been gaining a lot of efficient quarter after quarter. I would say that right now, we should be more flattish when you look at the next quarters because we are investing more, okay? But still -- both to get to the guidance by the end of the next year.
Okay. Next question is from Gustavo Schroden from Citi.
Hello, guys. Thanks for the opportunity. I have 2 questions as well. The first one is -- sorry to insist in this sales force that you guys mentioned. But because if I'm not wrong, you mentioned something around 500 new employees, and most of them related to sales force. But when we analyze the total number of advisers that you have, it is decreasing, right? So year-on-year and stable quarter-on-quarter at 18,200 advisers, including IFAs and XPs employees. So I'd like to understand what kind of sales force are you hiring? And if it is possible to reconcile with this total number of advisers?
And my second question is related to financial expenses. We saw decent decrease quarter-on-quarter and year-on-year, so 28% below quarter-on-quarter. 45% decrease year-on-year despite higher CD rate we could see that there was a reduction of BRL 1.5 billion in borrowings. So my question is this reduction is related to these lower borrowings or are there different reasons behind this decrease in financial expenses.
Okay. I'll take the first one. About the total number of IFAs as Victor mentioned, that we are hiring more internal advisers, okay, here, it's because -- when you look at the IFA, the B2B network, they have been converting some of their face into employees because of the change in regulation that has been happening, I would say, for over a year now.
And the second part is because we have been part of the third wave that we mentioned a lot here on quality, the way we serve clients we have been focused a lot more on quality. So more skewed IFAs, okay? So we have been I would say, even forcing some of the low-quality IFAs like should leave the network. So we have been increasing on what we call AAA advisers and we have been decreasing on what we call C and D curve of IFAs, okay? So those are the main reasons why you don't see the number of FAs growing. But as we don't open the number of what we call AAA here, but this number has been increasing. So we have been focusing more on more qualified advisers.
This is Victor taking the second part about the financial expenses. Just remembering here, we went through a reorganization of our conglomerate over the last year, changing the bank to the top of the business. And that has an important effect in financial expenses and also other revenues. So when debt that was a corporate debt inside the holding mature and it is rollover for a debt inside of the bank, it gets out of the financial expense lines and go inside of net interest margin. So it's just a geographic fact. It goes from the debt to the -- to be a reductor of revenues. And that's also why other revenues is lower quarter-over-quarter. You're going to see that the change between lines, they are closer to each other. That's the -- may affect just a geographic movement between lines. And also, it's important to note that the bank debt is much cheaper than corporate debt. So you do have this geographic movement, but also the overall cost of debt of the company is considerably lower when you compare 2024, 2025.
Next question is from Daniel Vaz from Safra.
I wanted to follow up on Mario's question on fixed income. Instead of looking on the 2% drop, I wanted to talk about the 7% drop quarter-over-quarter. I mean DCM activity improved, right? So we saw that on your Insurance Services, net new money improved warehouse of security did increase, and we had higher business days, right? So it's probably it's probable that you distribute a higher volume to the clients. So I heard you on the mix change, but this -- I mean, was this a quarter-over-quarter change? I mean this -- liquidity, went up from 25% to 45% in 1 quarter. Just wanted to touch base on that again, if you could explore a little more what the change quarter-over-quarter means?
And if I may follow up on the guidance, I wanted to check on your comment, Safra. If you're able to get on the fourth quarter of next year on your EBITDA margin instead of the full year. Is that correct? Did I understand well?
Daniel, this is Victor. Taking the first part here in fixed income. If you remember a few questions ago, I told that we sold quad sovereign banking notes from our warehouse book, and we were housed corporate bonds. So basically, that is what happened in real life when Maffra say that client is buying short-term floating rates, that is what's happening. So the products originated by the DCM markets over the quarter are still in our books, and we are going to sell them over the fourth quarter and first quarter of next year and what we saw there short-duration banking notes. That's why we see this behavior in the revenue quarter-over-quarter.
And -- sorry, in the guidance, if you can comment on the fourth quarter or full year of EBIT margin?
Yes. Sorry for that. Yes, we see that it's possible to target that next year. We don't give guidance quarter were quarter. So it's hard to say what's going to be Q1 or Q2 or Q4 next year, but we see that the 30% is still doable.
Next question is from Thiago Batista, UBS. Thiago, you may proceed.
So I have 2 questions. The first one on the buyback. The intention of the BRL 1 billion buyback is to be concluded this year. I know that depends on the price of the shares, et cetera, but the initial intention is to conclude this year? And the second one, about the IOC in the equity business. We saw that this quarter or the third Q, the IOC was basically flattish Q-over-Q. And we have the Bovespa in the outing now. I've already seen not exactly in the 3Q, but more recently, clients trying to move the money towards more risk investments like equities or not yet? Or maybe we need to see select let's say, single digits or something like this. So my question is, are you already seeing this migration from the income to high-risk investment?
Chaco, this is Victor first on the share buyback. The buyback program is open, and we are going to be buying over the next 12 months. And the same as before. We are going to wait for the best opportunity to deploy the capital and maximize the return to our shareholders. So we cannot give you an idea when it to be complete or if you'll be at the beginning of the next year or the end of this year. What I can guarantee you that we are going to be buying everything the same as we did in all the other programs reopening.
Yes. And just to complement, Victor, on the payout strategy here. If you guys see -- we still have very high bus ratio, and we mentioned that we would like to bring it down to something between 16 and 19 by the end of next year. And that's the case, but why we are not like giving more money like back to the market right now because we believe we will have good opportunities next year. It's going to be a volatile year. And for sure, we will have opportunity to do more buyback next year. So that's why we are not deploying or paying out more capital right now, okay?
About the second part of your question is we don't see a big change in mix yet, okay? Because remember that the retail clients is they are a little -- of course, it's our job here to help them not to have this behavior, but they are a little bit lagging, okay? So once we start to see rate cuts and other things, price moving up and so on, people start to move money from 1 asset class to other, okay? But we are seeing a stronger funds platform right now, especially primary offering for closed or open end funds, REITs and so on.
So the demand has been increasing for that type of products, but not yet for equities or for some other products, okay? So I would say that we are not in a point that we could say that we are seeing a lot of like a change in the portfolio. As we mentioned for fixed income, should the opposite are moving even more money to daily liquidity pods because they are seeing 15%, okay? So I would say that we are not there yet.
Okay. Next question is from Tito Labarta, Goldman Sachs.
A couple of questions also. First, a follow-up on the corporate revenues, right? You mentioned it's related to hedging solutions for companies issuing the tax exempt bonds. Is this a function of, I guess, companies just anticipating tax reform so that remains strong in the second half of the year, but potentially subsides next year? Or do you think that there's more sustainability to that? And then the second question, you sort of jump in retail inflows, right? I mean $20 billion, which is more or less what you've been saying but it was up significantly from last quarter. So was there anything significant, should we read in this is just normal volatility? Or should that begin to accelerate from here? Just any color you can give on how that continues to evolve.
Tito, the first one about corporate revenues. Hedging is related to issuance but I think the issuance they are a function of the risk of the new tax regulation but also the level of credit spreads. It's really shipped to raise debt here right now. Next year, we'll be extremely volatile. So I think components are moving around and doing whatever they need to do in terms of on this year. Also, there is not only hedging solutions. We have power trading, cash management, FX operations, the credit originate-to-sell as we commented before, I think what the hedging solution was one that gave a bit of highlights for the quarter, but there is still a lot of revenue lines inside of the car franchise.
I will take the second one about net new money. Of course, we have been doing a lot of things here, especially on what we call the third wave on increasing the level of service, the very proposition that we delivered to our clients. We mentioned a lot today on the presentation about that. So we have been democratizing the wealth service business to all our retail clients here for the past, I would say, a year or 1.5 years. So we have been developing a lot of technology CRM AI capabilities.
So I would say that the level of service that we are delivering to our clients right now, it's much better than it was a year or 2 years ago and much better than most of our competitors. Talking about, of course, here, retail clients, okay? So we are delivering a level of service that nobody provides in the industry in Brazil. That's why we are calling the third wave.
But it's early to say that, that is moving a lot the needle here, okay? So I would say that's more like a medium-term impact so we are around 20 billion. We have been saying that the level for the past quarters. I don't see any reason right now to change that for up or down here. So we are seeing BRL 20 billion as the level for the next quarters. But again, 16, 18, 22 or 23 for us is the same 20 billion, okay? So you could see 1 quarter higher than that, 1 quarter lower than that.
Okay. That's helpful, Maffra. If I can, just 1 follow-up on that, because just on the revenue guidance, right, you had said 10% for this year. I mean, expectations are that you'll probably be below that, but then also thinking on your 2026 guidance. The bottom end BRL 22.8 billion would be like a 20% jump. I mean is that still like what would need to happen for that to be realized? Or is that likely some downside risk just given the tougher macro that we've seen since you initially gave the guidance?
Yes. Yes. As we mentioned in the last earnings call, the second half of this year is going to be stronger than the first half in terms of growth, top line growth but as the first half was soft, it's going to be hard for us to get to the 10%, but we can get close to that.
For 2026, I would say it's almost the same rationale here because as 2025 was a little bit soft. Next year, we are going through -- we have to grow, not to give like a number here, but 17% to 20%, okay, still doable, but we might be a little bit short, like to the guidance next year, but if you are short, it's for a bit, not so much.
Okay. Next question is from Marcelo Mizrahi, Bradesco BBI. Marcelo, you may proceed.
So my question is -- the first one is regarding the workplace. I wanted to understand how the work days impacted the revenues in terms of the other retail revenues in terms of -- as revenues. So what's the mean back here? And if looking forward, if we will see a reduction of these lines. And the other question is regarding the investments. So you guys are talking about investment in technologies. We were seeing a lot of platforms investing in AI tools digital rules and also the channel totally -- digital channel. So it's -- are you guys already working on that using AI to adviser to give advisers to the clients, especially to the kinds that the lower income are the lower tickets to bring them a better service and to increase engagement and the revenues.
This is Victor. Thank you for your question. First year on business base. As expected, business days gave us a positive impact in terms of floating and trading days. But this was compensating the negative way in terms of lower DTV for axis and the shortening duration that Maffra explained in the fixed income platform. So those effects goes in positive directions. And the mix overcomes the in terms of business days, that's basically what happens. But that's why we see action fixed income, EBITDA and other retail, which have the floating company a bit up over the quarter.
On the second question, Mr. Mizrahi, we have been working a lot with AI on different verticals here. I would I will mention some of them. The first one is internal productivity. It can be for engineers. It can be for management people. So we have been working on operations, on customer experience. So we have a lot of use case live right now. more on the productivity side.
The second one, we have been trying -- I would say, the idea here is not like to replace advisers but how we enhance our advisers using different agents. It can be a relationship agent, AI agents. Of course, it can be transactional agents. So we have been creating a lot of this type of agents to give more productivity and to increase the level of service that we deliver to our customers.
And I would say a third one, we haven't been investing a lot on portfolio allocation of our customers. So we have been creating more rules we have been creating a centralized portfolio allocation, and we are using a lot of technology to make it happen. So there are many use case here, some already at scale, some at very early stage.
Another one that -- it's already at scale. Today, we listen, read, hear everything that our advisers, especially internal advisers today, 100% of them. And we can classify all the conversations, all the interactions with our customers. It's a product offering, if it's only a relationship activity. So the level of information and sales management that we have today, it's very, very high. and we will continue to invest on that. But again, not to replace advisers, okay, but to enhance them.
Of course, when you go to very small clients, more like -- style or what we call here self-direct clients, then you can have like a fully deployed AI solution, but that's a very small part of our business today. It could grow in the future. But again, the focus here is how we enhance the advisers and how we free them like to focus 100% of their time on relationship, not like on operations or allocation or other actives that don't generate value for our customers.
Okay. We're up the hour. So I would like to thank you once again for participating on our earnings call. And the our team will be more than happy to attend any further questions you may have. Have a good night, and we're going to keep in touch. Thank you.
Financial data from XP Inc.
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 3,683 3,683 |
9%
9%
100%
|
|
| - Direct Costs | - - |
-
-
|
|
| Gross Profit | - - |
-
-
|
|
| - Selling and Administrative Expenses | 1,497 1,497 |
28%
28%
41%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 1,232 1,232 |
5%
5%
33%
|
|
| - Depreciation and Amortization | 65 65 |
20%
20%
2%
|
|
| EBIT (Operating Income) EBIT | 1,167 1,167 |
4%
4%
32%
|
|
| Net Profit | 1,024 1,024 |
8%
8%
28%
|
|
In millions USD.
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XP Inc. Stock News
Company Profile
XP Inc. operates technology-driven financial services platform that provides financial products and services in Brazil. It provides broker-dealer services for high-net worth customers and institutional clients; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals a range of topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.
StocksGuide Premium
| Head office | Cayman Islands |
| CEO | Mr. Maffra |
| Employees | 2,091 |
| Founded | 2001 |
| Website | www.xpinc.com |


