Core Insights - XP Inc. has established itself as a leading player in Brazil's financial industry, demonstrating significant growth potential despite already solid Q2 results [1] Company Performance - XP Inc. reported strong results in Q2, indicating ongoing growth and resilience in the financial sector [1] Market Position - The company is recognized as revolutionary within Brazil's financial landscape, suggesting a strong competitive advantage and innovative approach [1]

XP Inc.A (XP) came out with quarterly earnings of $0.43 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of +2.63%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.XP Inc.A, which belongs to the Zacks F ...

XP (XP) Q2 2025 Earnings Call August 18, 2025 05:00 PM ET Company ParticipantsThiago Maffra - Chief Executive OfficerVictor Mansur - Chief Financial OfficerNone - ExecutiveYuri Fernandes - Executive DirectorThiago Batista - Executive DirectorMario Pierry - Managing DirectorMarcelo Mizrahi - Equity Research - Head of Latam Banks & FinancialsTito Labarta - Vice PresidentArnon Shirazi - VP - Equity ResearchNeha Agarwala - SVPPedro Leduc - Brazil Financials - Equity ResearchConference Call ParticipantsEduardo R ...

Financial Data and Key Metrics Changes - Client assets, AUM, and AUA reached BRL 1,900 billion, reflecting a 17% year-over-year growth [2] - Gross revenues for the quarter were BRL 4.7 billion, marking a 4% year-over-year increase [3] - EBT decreased by 5% year-over-year to BRL 1.3 billion, primarily due to last year's positive overhead impacts [3] - Net income reached a record high of BRL 1.321 billion, representing an 18% year-over-year growth [3] - ROE was 24.4%, with a 223 basis points expansion compared to the same quarter last year [4] - Diluted EPS grew by 22% year-over-year, driven by the share buyback program [5] Business Line Data and Key Metrics Changes - Retail revenue grew by 9% year-over-year, driven by fixed income and new retail verticals [23] - Fixed income revenue increased by 20% year-over-year, reaching BRL 1 billion [24] - Life insurance written premiums grew by 45% year-over-year, indicating strong growth potential in this segment [15] - Credit card transactions marked BRL 12.4 billion in TPV, an 8% year-over-year increase [15] Market Data and Key Metrics Changes - The corporate and institutional segment saw a net outflow of BRL 6 billion in new money, attributed to higher interest expenses and liquidity constraints [6][7] - The company maintained a 17% market share in the local industry for its broker-dealer operations [18] Company Strategy and Development Direction - The company aims to become the leader in investments in Brazil, focusing on a diversified ecosystem that integrates retail, institutional, and corporate divisions [11][12] - New product offerings and channel diversification are key strategies to enhance client engagement and drive profitability [10][11] - The company is investing in technology and marketing to improve client experience and expand its service offerings [88] Management's Comments on Operating Environment and Future Outlook - The current operating environment is more challenging than anticipated, particularly for investment banking origination activities [7] - Management remains optimistic about a solid GCM pipeline for the second half of the year and expects to achieve retail net new money averaging BRL 1 billion per quarter [8] - The company anticipates that the dynamics of the corporate lending market may continue to impact net new money in the upcoming quarters [72] Other Important Information - The company has a share buyback program of BRL 1 billion to be executed until next year, aligning with its capital distribution plan [5][31] - The BIS ratio stands at a comfortable level of 20.1%, indicating strong capital management [32] Q&A Session Summary Question: Capital generation and dividends - Management indicated that net income is expected to grow faster than RWA, allowing for potential acceleration in dividends and buybacks [36][39] Question: Corporate lending strategy - Management acknowledged the importance of corporate lending but emphasized that growth in this area is aligned with their risk appetite [44][47] Question: Initiatives to increase net new money - Management highlighted channel diversification, new product offerings, and increased productivity of IFAs as key initiatives to drive net new money [55][57] Question: Inflows in the third quarter - Management expressed confidence in achieving BRL 20 billion in inflows, although specific inflow patterns for the quarter were not disclosed [62][67] Question: Corporate portfolio dynamics - Management explained that the corporate credit portfolio is primarily originated for securitization and sale, with current market dynamics affecting net new money [70][72] Question: Non-people related expenses - Management attributed the increase in non-people related expenses to marketing and technology investments, which are expected to continue [88][90] Question: Fee-based model impact - Management noted that while the fee-based model currently represents only 5% of AUC, it is expected to grow, potentially impacting the take rate but increasing the share of wallet [97][99]

2Q25 Earnings Presentation Important Disclosure IN REVIEWING THE INFORMATION CONTAINED IN THIS PRESENTATION, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER. THIS INFORMATION IS BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT. This presentation is prepared by XP Inc. (the "Company," "we" or "our"), is solely for informational purposes. This presentation does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an ...

Core Viewpoint - The comparison between XP Inc. and SoFi Technologies indicates that XP presents a better value opportunity for investors at this time due to its stronger earnings outlook and more attractive valuation metrics [3][7]. Valuation Metrics - XP has a forward P/E ratio of 10.16, significantly lower than SoFi's forward P/E of 76.08, indicating that XP is undervalued relative to its earnings potential [5]. - The PEG ratio for XP is 0.76, while SoFi's PEG ratio is 3.00, suggesting that XP is expected to grow its earnings at a more favorable rate compared to its valuation [5]. - XP's P/B ratio stands at 2.61, compared to SoFi's P/B of 3.81, further supporting the notion that XP is a more attractive investment based on book value [6]. Investment Ratings - XP holds a Zacks Rank of 1 (Strong Buy), while SoFi has a Zacks Rank of 2 (Buy), indicating a stronger positive earnings estimate revision trend for XP [3][6]. - Based on the overall valuation metrics, XP has a Value grade of B, whereas SoFi has a Value grade of F, highlighting XP's superior valuation profile [6].

Wall Street expects a year-over-year increase in earnings on higher revenues when XP Inc.A (XP) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move low ...

Group 1 - XP Inc. has experienced significant selling pressure, resulting in a 12.1% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The Relative Strength Index (RSI) for XP is currently at 25.59, indicating that the stock is in oversold territory, which may suggest a potential reversal in trend [5][7] - Over the last 30 days, the consensus EPS estimate for XP has increased by 11.3%, indicating a positive trend in earnings estimates that typically correlates with price appreciation [7][8] Group 2 - XP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Core Insights - Investors in the Financial - Miscellaneous Services sector may consider XP Inc.A (XP) and SoFi Technologies, Inc. (SOFI) as potential undervalued stocks [1] - A strong Zacks Rank combined with a favorable Value grade is an effective method for identifying value opportunities [2] Company Comparison - XP Inc.A has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to SoFi Technologies, Inc., which has a Zacks Rank of 3 (Hold) [3] - Value investors typically analyze traditional metrics to identify undervalued stocks [3] Valuation Metrics - XP has a forward P/E ratio of 10.85, significantly lower than SOFI's forward P/E of 75.90 [5] - XP's PEG ratio is 0.81, while SOFI's PEG ratio is 3.53, indicating XP's better valuation relative to its expected earnings growth [5] - XP's P/B ratio is 2.78, compared to SOFI's P/B of 3.47, further supporting XP's superior valuation [6] - Based on these metrics, XP holds a Value grade of B, while SOFI has a Value grade of F, suggesting XP is the better value option [6]

Core Viewpoint - The rating for XP Inc. (NASDAQ: XP) shares has been upgraded from hold to buy following the release of its Q1 2025 results [1] Company Summary - XP Inc. has been under coverage for over five years, focusing on equity analysis in Latin America [1] Investment Insights - The article aims to provide clients with in-depth research and insights to facilitate informed investment decisions [1]