StoneCo (STNE) investor relations material

Executive summary

• Revenue grew 6.5% year-over-year to R$3.58 billion, driven by credit expansion and stable payments profitability.

• Adjusted net income rose 3.5% year-over-year to R$549.1 million, with adjusted EPS up 15.4% to R$2.19 per share, aided by share buybacks.

• Extraordinary dividends and significant share buybacks resulted in a 27% distribution yield year-to-date.

• The quarter marked a transition from extraordinary capital distributions to renewed operational focus, with management emphasizing capital allocation and shareholder value.

• Maintained strong capital and liquidity positions, with ROE expected to normalize after non-recurring effects.

Financial highlights

• Total revenue and income: R$3.58 billion, up 6.5% year-over-year.

• Adjusted gross profit: R$1.49 billion, broadly stable year-over-year, with margin contracting to 41.6% due to higher credit provisions.

• Adjusted net income: R$549.1 million, up 3.5% year-over-year.

• Adjusted basic EPS: R$2.19, up 15.4% year-over-year.

• Retail deposits ended at R$10.1 billion, up 21.9% year-over-year, but down 9% sequentially due to seasonality.

Outlook and guidance

• 2026 adjusted gross profit guidance: R$6.6–7.0 billion; 2027: R$7.2–8.3 billion.

• 2026 adjusted basic EPS guidance: R$10.8–11.4; 2027: R$11.8–13.4.

• Full-year 2026 performance expected to be weighted toward the second half, with growth anticipated as churn normalizes and commercial initiatives take effect.

• Interest rates expected to remain higher for longer, with guidance now closer to the bottom of the range.

• Mid-teens effective tax rate expected for both years.