Q4 2025 StoneCo Ltd Earnings Call Transcript
Key Points
- StoneCo Ltd (STNE) reported a 34% year-over-year growth in adjusted EPS, demonstrating strong financial performance.
- The company successfully sold its software assets, Linx, to TOTVS for over BRL3 billion, aligning with its strategic focus on payments, banking, and credit.
- StoneCo Ltd (STNE) expanded its credit book prudently, with credit revenues reaching BRL238 million, up 33% sequentially.
- The company's banking active client base increased by 21% year-over-year, with client deposits growing 27% year-over-year.
- StoneCo Ltd (STNE) maintained a robust net cash position and executed BRL1.8 billion in share repurchases, reflecting disciplined capital allocation.
- The company experienced higher-than-expected churn and softer new client acquisition in the fourth quarter, impacting TPV growth.
- MSMB TPV growth decelerated to 5.3% year-over-year, influenced by a challenging macro environment and exposure to brick-and-mortar businesses.
- StoneCo Ltd (STNE) faced higher credit provisions as it continued to scale its loan portfolio, impacting profitability.
- The company's cost of services increased by 23%, driven by higher loan loss provisions.
- NPLs (Non-Performing Loans) increased, with NPL 15 to 90 days rising to 4.43%, reflecting payment delays from higher ticket clients.
Good evening, everyone. Thank you for standing by. Welcome to StoneCo's fourth quarter and fiscal year 2025 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with its call.
All material can be found online at investors.stone.co. Before we begin the call, I advise you to review the disclaimer included in the press release and presentation, which outlines important information about forward-looking statements and non-IFRS financial measures.
In addition, many of the risks regarding the business are disclosed in the company's Form 20-F filed with the Securities and Exchange Commission which is available at www.sec.gov. (Operator Instructions) Joining the call today is StoneCo's former CEO, Pedro Zinner; the incoming CEO, Mateus Scherer; the CFO and IRO, Diego Salgado; and the Head of IR, Roberta Noronha.
I would now like to turn the conference over to Pedro Zinner.
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