XPXP

Key highlights

• Wealth management growth: Revenue from services, which includes fee-based advice, grew 13% to BRL 1.97 billion as the company expands its technology-driven financial platform. This part of the business now accounts for 40% of the company's total revenue and income of BRL 4.85 billion.
• Expansion into banking: The loan operations division reached BRL 35.44 billion in assets, growing from BRL 34.14 billion at the end of last year. This growth is part of the company's strategy to move beyond brokerage and become a full provider of commercial and investment banking products.
• Share buybacks complete: The company finished its most recent repurchase program on June 12, 2026, after spending BRL 1.0 billion to buy back its own shares. These repurchases can help boost the value of remaining shares by reducing the total number of shares available to the public.
• One-time tax gain: A tax benefit of BRL 134 million added to the company's bottom line this quarter, whereas the same period last year saw a tax expense. Without this one-time benefit, the company's income before taxes would have been BRL 1.52 billion, which is still an 15% increase over the prior year.
• Upcoming accounting changes: Management is preparing for the mandatory adoption of a new international accounting standard, IFRS 18, starting January 1, 2027. This change will shift how the company presents its income statement to investors but will not change the actual cash the business earns.

Our take: A solid quarter where the core services business showed steady growth. The expansion into banking and loan operations is gaining traction, providing more stable income alongside the traditional brokerage fees. While a one-time tax benefit helped the reported profit, the underlying business is growing healthily and returning cash through buybacks.