Pagbank (PAGS) investor relations material

Executive summary

• EPS grew 12% year-over-year, driven by banking acceleration, operational efficiency, and credit expansion, with net income (non-GAAP) reaching R$575 million, up 3.8% year-over-year.

• Credit portfolio expanded to R$51 billion, up 11% year-over-year, with total loans up 36% and working capital loans growing 190–191%.

• Deposits reached R$42 billion, a 23% year-over-year increase, with on-platform deposits accounting for 91% of the total.

• Total Payment Volume (TPV) was stable year-over-year at R$128 billion, with gradual reacceleration versus prior quarters.

• Shareholder returns reached R$2.4 billion in the last twelve months via dividends and buybacks.

Financial highlights

• Net revenue excluding interchange fees was R$3.3 billion, up 6.4% year-over-year, mainly from credit and banking growth.

• Recurring non-GAAP net income reached R$575 million, a 4% increase year-over-year, despite higher financial expenses.

• Diluted non-GAAP EPS rose 12% year-over-year to R$2.03, aided by capital optimization and share buybacks.

• Gross profit totaled R$1.89 billion, up almost 1% year-over-year, with gross margin at 56.6% and banking now 31% of total gross profit.

• Return on average equity (ROAE) reached 15.8%, up 80 basis points year-over-year.

Outlook and guidance

• FY2026 guidance: credit portfolio growth of 25–35%, gross profit growth of 6–9%, EPS growth of 9–13%.

• Expectation for TPV growth to turn positive in Q2 2026 and accelerate in the second half.

• Confirms full-year 2026 guidance and reiterates long-term ambition for 2029.

• Loan growth acceleration expected in 2027 as new products mature and macro conditions improve.

• Management expects Q1 2026 to be the most challenging quarter due to high SELIC rates, with gradual improvement anticipated.