StoneCo Ltd.

Revenue grew to BRL 3.6 billion. Adjusted gross profit was BRL 1.6 billion, broadly stable year over year, while adjusted EPS grew 9% and adjusted net income was down slightly on an annual basis. TPV growth accelerated to 4% year over year; retail deposits reached BRL 10.8 billion, up more than 20% year over year; and the credit portfolio reached BRL 3.8 billion, 2x larger than a year ago. Provision expenses were BRL 188 million, cost of risk was 21.5%, coverage fell to 204%, and the capital ratio stood at 26%. For 2026, StoneCo kept guidance for adjusted gross profit at BRL 6.6 billion to BRL 7 billion and adjusted basic EPS at BRL 10.8 billion to BRL 11.4, with management saying it is now focused on the lower end because Selic assumptions and credit conditions are worse than expected.

Mateus Schwening framed the quarter as steady execution against three priorities: reaccelerating TPV, deepening banking and credit, and keeping costs disciplined. He emphasized the new positioning of Stone as “the bank for entrepreneurs,” saying the company already has the full product set and is trying to close a perception gap so Stone is considered earlier for banking and credit needs. He was constructive on the long-term ecosystem strategy, especially the integration of Pagar.me into Stone and the opportunity to deepen cross-sell, but he also acknowledged the macro backdrop is much tougher than expected.

Diego Salgado said revenue was led by credit growth, while adjusted gross profit was held back by provision expenses tied to portfolio expansion. He highlighted that retail deposits reached BRL 10.8 billion, funding costs improved to roughly 85% of CDI, and the capital ratio was 26% after returning BRL 4.3 billion to shareholders in the first half. On credit, he pointed to BRL 188 million of provisions, a cost of risk of 21.5%, and a coverage ratio of 204%, explaining that government-backed lending should reduce upfront provisioning and lower coverage in Stage 1 and 2. He also said the company’s 2026 outlook is pressured by higher rates, noting every 100 basis points of Selic is roughly a BRL 200 million to BRL 250 million pretax headwind, and that the firm expects to end the year near the lower end of its guidance ranges.

Analysts focused on the BRL 200 million allowance for expected losses tied to a distressed issuer, the government-backed credit programs, and whether credit guidance changes. Management said the issuer was part of a financial group liquidated by the Central Bank, that the provision was taken because it had been over 90 days since cash was received, and that Stone believes the card networks are ultimately responsible for settlement. On credit, management said the government-backed programs do not change guidance and that cost of risk should trend to the mid- to high-teens over time, likely ending the year in the high-teens. Questions also probed churn among SMBs and pressure on take rates from PIX; management said SMB improvement is slower because the base is more complex, and that lower take rates are largely a mix effect as the company prices the customer relationship holistically rather than product by product.