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XP

XP Inc.

XP

XP Inc. • NASDAQ
$19.72 ▲ 3.30% (+0.63)
Market Cap $10.37 B
52w High $20.64
52w Low $10.82
Dividend Yield 0.65%
P/E 11.27
Volume 6.40M
Outstanding Shares 525.75M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.593B ▲ $1.704B ▲ $1.32B ▲ 28.734% ▼ $2.51 ▲ $1.548B ▼
Q2-2025 $4.383B ▲ $1.57B ▼ $1.319B ▲ 30.095% ▲ $2.5 ▲ $1.57B ▲
Q1-2025 $4.319B ▼ $1.628B ▼ $1.236B ▲ 28.606% ▲ $2.31 ▲ $1.44B ▼
Q4-2024 $4.753B ▲ $1.853B ▲ $1.18B ▼ 24.833% ▼ $2.18 ▲ $1.557B ▲
Q3-2024 $4.354B $1.316B $1.186B 27.236% $2.17 $1.483B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $78.811B ▲ $399.477B ▲ $375.808B ▲ $23.664B ▲
Q2-2025 $76.448B ▲ $373.85B ▲ $351.581B ▲ $22.263B ▲
Q1-2025 $71.171B ▼ $349.966B ▲ $328.92B ▲ $21.042B ▲
Q4-2024 $74.909B ▲ $347.457B ▲ $327.41B ▲ $20.044B ▼
Q3-2024 $65.958B $316.4B $295.042B $21.353B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $1.331B ▲ $12.307B ▲ $-309.889M ▼ $-1.599B ▼ $10.396B ▲ $12.146B ▲
Q2-2025 $1.318B ▲ $4.756B ▲ $-102.672M ▲ $-742.474M ▼ $3.94B ▲ $4.65B ▲
Q1-2025 $1.236B ▼ $-2.634B ▼ $-153.872M ▼ $149.656M ▲ $-2.677B ▼ $-2.654B ▼
Q4-2024 $1.301B ▲ $3.82B ▼ $-101.155M ▲ $-2.153B ▼ $1.472B ▼ $3.793B ▼
Q3-2024 $1.212B $4.689B $-300.56M $-1.091B $3.335B $4.569B

Five-Year Company Overview

Income Statement

Income Statement XP shows a clear pattern of growth: revenue and overall profit have both risen steadily over the past five years, and earnings per share have roughly doubled over that period. That’s a strong sign of a scalable business model. However, the structure of the income statement is unusual. Reported operating income is consistently negative, even as cash profits and net income are solidly positive. For a financial firm, this can reflect complex accounting, large non‑cash items, or income that is classified as “financial” rather than “operating.” Still, it’s a point that warrants extra attention, because it makes it harder to judge the underlying operating margin using standard line items. Overall, XP looks like a high-growth, highly profitable platform on a headline basis, but with an income structure that is more complex than a typical non‑financial company, and that complexity is an analytical risk factor in itself.

Balance Sheet

Balance Sheet XP’s balance sheet has expanded very quickly. Total assets have more than tripled over five years, reflecting strong business growth and a much larger platform. Equity has also increased at a healthy pace, which suggests retained profits are being reinvested into the business. At the same time, debt has grown much faster than equity. As a financial institution, XP is expected to use leverage, but the pace of borrowing growth is notable and means a greater sensitivity to funding conditions and interest rates. Cash balances have risen, yet they remain small compared to total assets, consistent with a capital‑markets platform rather than a cash‑rich industrial firm. In short, XP is now a much larger, more leveraged financial player. That brings scale advantages, but also raises the importance of risk management, funding stability, and regulatory oversight.

Cash Flow

Cash Flow XP’s cash generation has improved sharply. A few years ago, operating cash flow swung into negative territory; more recently it has turned strongly positive and now comfortably exceeds reported profits, which is an encouraging sign of earnings quality. Free cash flow follows a similar pattern, moving from volatility to strong surplus in the most recent years. Capital spending is modest relative to cash generated, which fits a technology‑driven platform that scales more through software, people, and distribution than heavy physical investment. The main takeaway is that recent cash flow performance supports the profitability story, but the historical swings show that cash generation can be sensitive to market conditions and the company’s balance‑sheet structure, as is typical for capital‑markets businesses.

Competitive Edge

Competitive Edge XP has built one of the strongest franchises in Brazilian capital markets. It benefits from a well‑known brand, a very large and engaged client base, and a powerful network of independent financial advisors that gives it both reach and human touch. This hybrid model – strong technology plus personal advice – is a major differentiator versus pure‑digital brokers and traditional banks. Its ecosystem is broad: brokerage, investment products, credit, insurance, pensions, investment banking, and education content all feed into each other. This creates a self‑reinforcing platform where clients have many reasons to stay and do more business over time. Diversified revenue streams also provide some cushioning against slowdowns in any single activity, such as trading. Risks on the competitive side include intense rivalry from incumbent banks and other fintechs, potential fee pressure as markets mature, and the usual regulatory and macroeconomic uncertainties associated with operating primarily in Brazil.

Innovation and R&D

Innovation and R&D XP is highly innovation‑driven. The company continuously upgrades its digital platform and recently launched a revamped mobile app focused on simplicity, personalization, and clearer separation between investing and day‑to‑day transactions. This kind of user‑experience work is crucial in a crowded fintech market. It has moved early into new areas such as crypto trading through its XTAGE platform, built with Nasdaq’s infrastructure, which broadens its appeal to younger and more tech‑oriented investors. XP is also leaning into artificial intelligence to improve customer service, personalize offerings, and enhance risk management, including partnerships that apply machine learning to institutional portfolios. The firm complements internal development with selective acquisitions of fintechs that add new capabilities, like portfolio aggregation tools and digital receivables financing. Looking ahead, further innovation in digital banking, AI‑driven personalization, expanded crypto and digital assets, and perhaps regional expansion in Latin America are all on the roadmap. The opportunity is large, but so are execution and regulatory risks in these fast‑moving areas.

Summary

XP looks like a fast‑growing, profitable Brazilian fintech platform that has successfully scaled from a broker into a broad financial ecosystem. Revenue, profit, and earnings per share have all advanced meaningfully over the last five years, and recent cash flows back up the earnings story. The business model leans on technology, a wide product suite, and a large network of independent advisors to create a sticky, multi‑service relationship with clients. Its focus on education, open‑architecture investment products, and innovation in areas like crypto and AI deepens this moat and makes the platform hard to replicate. On the risk side, the financial statements are more complex than a typical non‑financial company, with negative operating income despite strong net profits, which complicates margin analysis. The balance sheet has grown quickly with rising leverage, making prudent risk and funding management critical. XP is also heavily exposed to Brazil’s economic, competitive, and regulatory environment. Overall, XP combines strong growth, solid recent cash generation, and a distinctive competitive position, but with meaningful complexity and leverage that deserve careful ongoing scrutiny.

NEWS

November 17, 2025 · 5:18 PM UTC

XP Inc. Announces Cash Dividend, Treasury Shares Retirement and New Share Repurchase Program

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November 17, 2025 · 4:10 PM UTC

XP Inc. Reports Third Quarter 2025 Results

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October 30, 2025 · 7:44 PM UTC

XP Investor News: Rosen Law Firm Encourages XP Inc. Investors to Inquire About Securities Class Action Investigation – XP

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