XP Earnings Call Summary (Q2 2026)

1Key Financial Results and Metrics

Client Assets: Total client assets (AUM + AUA) reached $2.2 trillion, up 17% year-over-year.

Advisors: 18,400 advisors, a 1% increase year-over-year.

Active Clients: 4.8 million, also a 1% increase year-over-year.

Gross Revenues: $5.1 billion, an 8% increase from Q2 2025.

Earnings Before Tax (EBT): $1.6 billion, up 15% year-over-year.

Net Income: $1.4 billion, a 5% increase year-over-year.

Return on Equity (ROE): Increased to 22.5%, up 80 basis points sequentially.

Earnings Per Share (EPS): Grew 9% year-over-year.

Capital Ratio: Maintained at 20.3%, reflecting strong capital management.

2Strategic Updates and Business Highlights

XP aims to be the investment leader in Brazil by 2033, focusing on a comprehensive financial ecosystem that includes personalized services for both individuals and businesses.

New product launches targeted at both retail and corporate clients, including enhanced financial management solutions for SMEs.

Continued emphasis on a fee-based model, with over 26% of client assets under this framework.

The company is expanding its offshore investment capabilities and enhancing its credit solutions.

3Forward Guidance and Outlook

XP targets double-digit revenue growth for the remainder of 2026, supported by a recovery in the fixed income pipeline and diversified revenue streams.

The company expects to maintain a flattish efficiency ratio and continue its share buyback program, with a payout ratio exceeding 50% in dividends and buybacks.

Anticipates a gradual recovery in market conditions, particularly in the fixed income sector, with expectations for stable retail revenue growth.

4Bad News, Challenges, or Points of Concern

Ongoing global geopolitical tensions and market volatility have impacted results, particularly through widening credit spreads and reduced primary market offerings.

The company noted that while the corporate segment performed well, the fixed income market remains soft, with a significant drop in new offerings compared to previous years.

The mix of fixed income products has shifted towards lower-yielding daily liquidity products, which may affect future revenue growth.

5Notable Q&A Insights

Management indicated that higher volatility typically benefits revenues from retail and institutional trading, suggesting an optimistic outlook for the second half of the year.

The corporate segment is expected to maintain strong performance, with ongoing investments supporting growth.

Concerns were raised about the impact of mark-to-market adjustments on revenue, with management confirming that the effects were less severe in Q2 compared to earlier in the year.

The company plans to cautiously expand its credit offerings to SMEs, focusing on secured lending to mitigate risks. Overall, XP demonstrated solid financial performance amid challenging market conditions, with a clear strategy for growth and a focus on enhancing client offerings. However, external market pressures and shifts in product mix present ongoing challenges.