PagSeguro Digital Ltd.

Q2 2026 total revenue and net income, excluding interchange fees, were BRL 3.4 billion, up 2% year over year and 1% quarter over quarter. Gross profit was approximately BRL 2 billion, up 3% year over year and 6% quarter over quarter. Non-GAAP net income was BRL 576 million, up 2% year over year, and diluted non-GAAP EPS was BRL 2.06, up 10% year over year. Annualized non-GAAP ROE was 15.6%, up 30 basis points year over year. Total payment volume was BRL 133 billion, up 3% year over year. Total credit portfolio was BRL 5.1 billion, up 31% year over year; the expanded credit portfolio was BRL 52.4 billion, up 9% year over year and 3% quarter over quarter. Total deposits were almost BRL 43 billion, up 15% year over year, and total funding was BRL 47 billion, up 10% year over year. NPL90 was 3.4% versus a Brazilian market average of 6.2%. Adjusted Basel ratio was 22.5% versus 24.1% in Q1 and 29.6% in Q2 last year. Management reaffirmed 2026 guidance, said full-year performance should be in line with the guidance range, and indicated gross profit may land closer to the bottom of the range rather than the top. It also said total cash dividends paid in 2026 are expected to be approximately BRL 1.4 billion, subject to approvals.

Carlos Mauad said Q2 confirmed the company’s strategy of broader monetization across payments, banking, and credit, with stronger engagement and increasing penetration of banking products. He emphasized that PagBank still sees significant room to grow in several markets where share is below 1%, and highlighted new products including private payroll loans, PIX Finance, zero-fee investments, and insurance as key to deepening the ecosystem. His tone was confident but pragmatic: he repeatedly pointed to a tougher macro environment, yet said the company remains committed to its 2026 commitments and long-term 2029 ambition.

Gustavo Sechin highlighted that revenue excluding interchange fees rose 2% year over year to BRL 3.4 billion and gross profit rose 3% to about BRL 2 billion, helped by banking and credit and a sequential improvement in financial costs. Financial costs fell 5% quarter over quarter, total losses rose 9% year over year due to credit portfolio mix, and operating expenses were 25.9% of total revenue and income excluding interchange fees. He also noted diluted non-GAAP EPS of BRL 2.06, annualized non-GAAP ROE of 15.6%, an adjusted Basel ratio of 22.5%, and more than BRL 370 million repurchased in the first half under the completed buyback program. For capital allocation, he said PagBank expects total cash dividends paid in 2026 to be about BRL 1.4 billion and prefers dividends over buybacks because they provide a more regular and predictable return.

Analysts focused on credit growth, take rate pressure, gross profit guidance, POS costs, and capital return policy. Management said the 31% credit portfolio growth remains comfortable because NPL90 is 3.4% versus a 6.2% market average, and explained that July credit production improved after a more conservative Q2 rollout of a new credit model. On revenue mix and take rate, management said World Cup-related mix and tougher comps created some dilution, but they do not see it as a major concern. On capital return, management said dividends are now favored over buybacks because they are more predictable, and confirmed the EPS guidance does not include additional buybacks this year.