Release Date: May 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- StoneCo Ltd STNE reported a 6% year-over-year increase in total revenue and income, reaching BRL3.6 billion, driven by the expansion of credit revenues and healthy profitability in payments.
- The company distributed BRL3.6 billion to shareholders year-to-date, representing a 27% distribution yield, showcasing a strong commitment to returning capital to shareholders.
- StoneCo Ltd (STNE) is actively working on re-accelerating profitable TPV growth by improving retention, managing churn, and simplifying its product offerings.
- The company is implementing new credit models and policies, showing promising early results with first payment default rates converging back to historical levels.
- StoneCo Ltd (STNE) is expanding its product offerings, including secured credit products, which are expected to deepen relationships with merchants and reduce portfolio risk intensity.
Negative Points
- The macroeconomic environment continues to weigh on smaller merchants, impacting StoneCo Ltd (STNE)'s performance.
- The company experienced higher than expected non-performing loans (NPLs), leading to increased provisions for credit losses.
- Gross profit margin contracted from 44.4% to 41.6% year-over-year, primarily due to higher credit provisions.
- StoneCo Ltd (STNE) faced elevated churn levels, particularly among clients onboarded during 2025, affecting TPV growth.
- Interest rates are expected to remain higher for longer, posing a challenge to StoneCo Ltd (STNE)'s financial performance and guidance.
Q & A Highlights
Q: How is StoneCo planning to improve ARPACs given the current decline and client base contraction?
A: Mateus Schwening, Vice President - Finance, explained that the decline in ARPAC is mainly due to client mix rather than a deterioration in monetization. As StoneCo expands its ecosystem with new products, clients using lower RPAC solutions increase. However, clients using multiple products have significantly higher RPAC. The company is focusing on expanding its client base and improving monetization over time.
Q: Can you elaborate on the recent increase in cost of risk and how it affects your credit business strategy?
A: Mateus Schwening noted that the increase in NPLs was due to a tougher macro environment, underperforming models, and isolated delinquency cases. StoneCo has responded by adjusting pricing, implementing new models, and reducing ticket sizes in the dedicated desk. The company is also moving towards secured working capital products to improve the risk profile.
Q: What are the key drivers for expected volume acceleration in the second half of the year?
A: Diego Salgado, Chief Treasury Officer, stated that the expected acceleration is due to reduced churn and better capital deployment for new sales. The company is focusing on simplifying product offerings, aligning sales incentives with client retention, and improving client experience to drive TPV growth.
Q: How does StoneCo plan to manage the impact of high interest rates on its financial performance?
A: Diego Salgado mentioned that increasing client deposits is a key strategy to hedge against interest rate fluctuations. Deposits provide a lower cost of funding compared to wholesale market rates, helping to reduce overall funding costs and exposure to interest rate changes.
Q: What is the outlook for StoneCo's credit business given the current macroeconomic challenges?
A: Mateus Schwening emphasized that despite macro challenges, StoneCo has a small penetration in credit and sees opportunities to grow by selecting the right client mix. The introduction of secured lending and new credit products like overdrafts and credit cards provide additional growth avenues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
