Q2 2026 StoneCo Ltd Earnings Call Transcript
Key Points
- TPV growth accelerated to 4% annually, signaling early success from retention initiatives.
- Retail deposits grew 22% year-over-year, strengthening the banking franchise.
- Credit portfolio more than doubled year-over-year, driven by working capital solutions and government-backed loans.
- Adjusted EPS grew 9% year-over-year, supported by continued share buybacks.
- Expense growth remained below revenue growth, with cost of services flat year-over-year and admin expenses lower.
- Higher interest rates than expected create a challenging backdrop, pressuring guidance toward the lower end.
- Provision expenses increased due to credit portfolio growth and delinquency cases on the dedicated desk, including large tickets over R$10 million.
- NPLs rose across all indicators, with cost of risk at 21.5% and coverage ratio down to 204%.
- A non-recurring provision of R$200 million was taken for a distressed credit card issuer, with potential for further provisions.
- Churn challenges persist, especially among SMB clients, with slower progress in reducing churn for larger merchants.
Good evening everyone.
Thank you for standing by.
Welcome to StoneCo's second quarter 2026 earnings conference call.
By now, everyone should have access to our earnings release. The company also posted the presentation to go along with this 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 filled with the Securities and Exchange Commission, which is also available at www.scc.gov.
Before we begin, I would like to highlight that the company is restricting the number of questions to one per analyst. Joining the call today is StoneCo's CEO Mateus Scherer, the CFO and IRO Diego Salgado, and the Head of IR Roberta Noronha.
I would now like to turn the
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