StoneCo (STNE) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: BRL 3.6 billion, with growth driven by credit.

Adjusted Gross Profit: Stable year-over-year at BRL 1.6 billion; impacted by provisions related to credit portfolio growth.

Adjusted Net Income: Slight decline year-over-year, but adjusted EPS increased by 9% due to share buybacks.

Total Payment Volume (TPV): Grew 4% year-over-year, showing signs of recovery.

Active Clients: Reached 4.8 million merchants.

Credit Portfolio: Expanded to BRL 3.8 billion, doubling from the previous year.

2Strategic Updates and Business Highlights

Launched a new brand positioning as "Stone, the bank for entrepreneurs" to enhance market perception and cross-selling opportunities.

Integrated Pagar.me into Stone, unifying online and physical operations for merchants.

Retail deposits increased by 22% year-over-year, reaching BRL 10.8 billion.

Focused on improving client retention through simplified offerings and enhanced customer experience.

3Forward Guidance and Outlook

Maintained full-year 2026 guidance for adjusted gross profit between BRL 6.6 billion and BRL 7 billion and adjusted EPS between BRL 10.8 billion and BRL 11.4 billion.

Anticipated challenges due to higher-than-expected interest rates, which could impact profitability.

Expected continued growth in credit revenues and TPV in the second half of the year, with a focus on reducing churn.

4Bad News, Challenges, or Points of Concern

Interest Rates: Higher rates than anticipated pose a significant headwind, with an estimated BRL 300 million impact on 2026 earnings.

Credit Quality: Increased provisions (BRL 188 million) due to defaults, particularly in the dedicated desk for larger loans, raising concerns about credit risk.

Churn Issues: Ongoing challenges in retaining SMB clients, with a slower recovery compared to micro merchants.

Take Rate Pressure: Declining transaction revenues due to a shift towards lower-margin PIX volumes and competitive pricing pressures.

5Notable Q&A Insights

Management acknowledged the need for prudent provisioning due to a distressed issuer, with expectations for recovery dependent on the card networks.

The credit portfolio's growth strategy includes a shift towards government-backed loans to mitigate risk.

Communication with larger SMB clients remains a challenge, with gradual improvements expected.

The integration of Pagar.me is seen as a critical step in enhancing service offerings and improving client relationships.

Management remains cautiously optimistic about credit growth despite current macroeconomic challenges, emphasizing a focus on lower-risk lending. This summary encapsulates the key points from StoneCo's Q2 2026 earnings call, highlighting both the company's progress and the challenges it faces in a competitive and changing financial landscape.