XP — XP Inc.

Summary of XP's Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Gross Revenue: BRL 19.5 billion for 2025, up 8% year-over-year; Q4 revenue reached BRL 5.3 billion, a 12% increase year-over-year.
• EBT: Increased 10% year-over-year to BRL 5.5 billion; Q4 adjusted EBT was BRL 1.5 billion, up 20% year-over-year.
• Net Income: Adjusted net income for Q4 was BRL 1.3 billion, stable sequentially and up 10% year-over-year; full-year adjusted net income was BRL 5.2 billion, a 15% increase.
• Return on Equity (ROE): 23.9% for 2025, a 94 basis point increase from 2024.
• Client Assets: Total client assets reached BRL 2.1 trillion, a 22% growth year-over-year.
• Earnings Per Share (EPS): Adjusted EPS for Q4 was BRL 2.56, up 15% year-over-year; full-year adjusted EPS was BRL 9.81, an 18% increase.

2. Strategic Updates and Business Highlights:

• Corporate Governance: New shareholder structure announced, enhancing governance and management alignment.
• Product Offerings: Launched various new products, including fee-based models and a proprietary dollar-backed stablecoin.
• Adviser Network: Expanded to approximately 18,000 advisers, enhancing client service and engagement.
• Wholesale Bank Growth: Significant growth in the wholesale banking sector, now a key revenue driver.
• Client Segmentation: Enhanced segmentation strategy to provide tailored services and improve client outcomes.

3. Forward Guidance and Outlook:

• 2026 Expectations: Guidance remains unchanged, projecting revenue growth of BRL 22.8 billion to BRL 26.8 billion, implying nearly 20% growth year-over-year.
• Net New Money: Expected to stabilize around BRL 20 billion per quarter.
• Market Positioning: Aiming to become Brazil's leading investment platform by 2033, focusing on market share growth through improved service models.

4. Bad News, Challenges, or Points of Concern:

• Market Pressures: Retail net new money was impacted by withdrawals from small and medium enterprises, with a BRL 3 billion outflow noted.
• NPS Decline: Net Promoter Score (NPS) dropped to 65 points, attributed to recent events involving Banco Master and structured notes, indicating potential client dissatisfaction.
• Tax Implications: Increased tax burden due to a shift in revenue mix towards banking activities, which could affect profitability.

5. Notable Q&A Insights:

• Market Leadership Ambitions: CEO Maffra emphasized the goal of achieving market leadership by 2033, driven by a shift towards democratizing wealth planning.
• Impact of Banco Master: Assurance that clients did not lose money due to the Banco Master incident; XP is enhancing internal controls to mitigate future risks.
• AI Integration: Emphasis on using AI to augment human advisers rather than replace them, aiming to improve service quality and client relationships.
• Tax Strategy: Clarification that tax increases were linked to revenue mix rather than structural changes, with expectations of maintaining a stable efficiency ratio moving forward.

Overall, XP demonstrated solid financial performance in 2025, with strategic initiatives aimed at enhancing client service and expanding market share, despite facing some challenges and market pressures.