XP — XP Inc.

XP Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Gross Revenues: BRL 19.5 billion for 2025, up 8% year-over-year; Q4 revenues reached BRL 5.3 billion, a 12% increase year-over-year.
• Earnings Before Tax (EBT): BRL 5.5 billion for the full year, a 10% increase; 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 net income reached BRL 5.2 billion, a 15% increase.
• Return on Equity (ROE): 23.9% for 2025, a 94 basis point increase from 2024.
• Assets Under Custody (AUC): Total client assets reached BRL 2.1 trillion, a 22% year-over-year growth.

2. Strategic Updates and Business Highlights:

• XP celebrated the fifth anniversary of its Wholesale Bank, which has become a key pillar of its ecosystem, enhancing service offerings and cross-selling opportunities.
• The company launched a new campaign focused on empowering clients with various investment models, becoming the largest investment network in Brazil with approximately 18,000 advisers.
• Significant investments were made in technology and adviser training to enhance service quality and efficiency.
• The firm is transitioning to a more holistic wealth management model, aiming to democratize access to financial planning services.

3. Forward Guidance and Outlook:

• XP maintains its revenue guidance for 2026, projecting gross revenues between BRL 22.8 billion and BRL 26.8 billion, indicating a growth target of nearly 20%.
• The company expects retail net new money to stabilize around BRL 20 billion per quarter.
• Management is optimistic about the potential for growth in 2026, particularly in Corporate & Issuer Services, while acknowledging a challenging environment for retail net inflows.

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

• There was a decline in Net Promoter Score (NPS) to 65 points, attributed to client reactions to recent events involving Banco Master and structured notes.
• Small and medium enterprises withdrew BRL 3 billion from XP's platform, impacting retail net new money.
• The company faces competitive pressures and market share challenges, particularly in the retail segment, which has seen margin compression.

5. Notable Q&A Insights:

• CEO Thiago Maffra emphasized the importance of market share as a metric for becoming Brazil's leading investment platform by 2033, with a focus on democratizing wealth services.
• The company is committed to enhancing adviser capabilities through AI rather than replacing human advisers, aiming to improve client relationships and service quality.
• Concerns were raised about the impact of recent tax changes and the potential for increased scrutiny on product offerings following the Banco Master incident, but management reassured that client investments remained secure and under regulatory protection.
• Maffra noted that the company is continuously refining its internal controls and credit analysis processes to mitigate risks associated with product distribution.

Overall, XP demonstrated solid financial performance in 2025 with strategic investments aimed at future growth, while also navigating challenges in client sentiment and market dynamics.