Core Insights - XP Inc. reported Q3 '25 results, exceeding expectations and indicating signs of stabilization in commercial activities [1] Financial Performance - The company delivered a beat across all financial metrics in Q3 '25 [1] Market Position - XP Inc. is recognized as one of Brazil's leading independent investment platforms, highlighting its significant role in the local financial market [1]

Core Insights - XP Inc. reported Q3 '25 results, exceeding expectations and indicating signs of stabilization in commercial activities [1] Financial Performance - The company delivered a beat across all financial metrics in Q3 '25 [1] Market Position - XP Inc. is recognized as one of Brazil's leading independent investment platforms, highlighting its significant role in the local financial landscape [1]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Group 1 - Credit Agricole has set a new net profit target of more than 8.5 billion euros ($9.0 billion) by 2028, exceeding analyst expectations [1] - The announcement reflects the bank's strategic interest in expanding its operations in Italy [1]

Group 1 - Amundi is acquiring a 9.9% stake in Intermediate Capital Group, which is listed in London [1] - This acquisition is part of Amundi's new three-year strategic plan to expand in private markets [1] - Amundi is recognized as Europe's largest asset manager [1]

Core Viewpoint - XP Inc.A reported quarterly earnings of $0.45 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.39 per share a year ago [1] - The company posted revenues of $855.57 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.2%, but up from $778.88 million year-over-year [2] Financial Performance - Earnings per share (EPS) for the latest quarter were $0.45, consistent with expectations, and the company has surpassed consensus EPS estimates only once in the last four quarters [1] - Revenue for the quarter was $855.57 million, which is a 9.9% increase from the previous year's $778.88 million, but the company has topped revenue estimates just once in the last four quarters [2] Stock Performance - XP Inc.A shares have increased approximately 57.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44, with projected revenues of $888.52 million, and for the current fiscal year, the EPS estimate is $1.74 on revenues of $3.37 billion [7] - The outlook for the Financial - Miscellaneous Services industry is favorable, ranking in the top 30% of over 250 Zacks industries, suggesting potential positive performance for stocks within this sector [8]

Financial Data and Key Metrics Changes - The company reported gross revenues of BRL 4.9 billion, representing a 9% growth year over year and a 6% growth quarter over quarter [19] - Net income reached BRL 1.3 billion, a 12% growth year over year and a 1% increase quarter over quarter [23] - The return on equity (ROE) was 23%, flat year over year, while the capital ratio stood at 21.2%, an increase of 180 basis points quarter over quarter [7][24] Business Line Data and Key Metrics Changes - Retail revenues reached BRL 3.7 billion, representing 6% growth year over year and 4% growth quarter over quarter [19] - Corporate and industry services achieved a record performance of BRL 729 million, with 32% growth year over year and 33% growth quarter over quarter [21] - Life insurance retail premium posted a 25% growth year over year, while retirement plans client assets grew 15% year over year, reaching BRL 90 billion [14] Market Data and Key Metrics Changes - The company reported BRL 20 billion in retail net new money and BRL 9 billion in corporate and institutional, totaling BRL 5 billion lower than last year but three times higher than last quarter [8] - The company maintained a 10% market share in capital markets distribution, with a robust pipeline of fixed income offerings [15] Company Strategy and Development Direction - The company aims to become the leader in investments in Brazil by enhancing client service and introducing new products, including a new app and credit card offerings [3][10] - The strategy includes democratizing access to high-quality wealth planning services, previously reserved for high-net-worth clients [10][12] - The company is focused on improving its investment platform and enhancing client experience through advisor initiatives [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but emphasized commitment to evolving the business for growth and profitability [4] - The outlook for the wholesale banking segment remains positive, with expectations for continued strong performance in Q4 [31] - Management indicated that while achieving the 10% revenue growth target for 2025 may be challenging, they remain optimistic about future growth [82] Other Important Information - The company repurchased BRL 2 billion in shares in 2025, with a new BRL 1 billion buyback program announced [24] - The company plans to pay a dividend of BRL 500 million in 2025, representing a 50% payout ratio based on net income [24] Q&A Session Summary Question: Expectations for wholesale business performance in Q4 - Management expects good performance in the wholesale banking segment for Q4, with a strong second half of the year compared to the first half [31][33] Question: Details on the strategy to increase the warehousing book - The strategy involves holding high-quality assets and increasing the warehouse book to sell to retail clients in the following year [33] Question: Clarification on corporate revenues and hedging strategy - Corporate revenues are tied to DCM activity, with hedging solutions being a significant driver [39] Question: Insights on fixed income revenue contraction despite AUC growth - The contraction in fixed income revenues is attributed to a shift in the mix towards lower take rates and shorter durations [46] Question: Impact of new hires on advisor numbers - The decrease in the number of advisors is due to the conversion of IFAs into employees and a focus on hiring higher-quality advisors [52] Question: Explanation for the reduction in financial expenses - The reduction in financial expenses is linked to a geographic shift in debt management, with cheaper bank debt replacing corporate debt [54] Question: Future guidance on EBIT margin - Management believes achieving the EBIT margin guidance is still possible, but it may take until the end of next year to realize [62]

Financial Data and Key Metrics Changes - The company reported total client assets of BRL 1.9 trillion, reflecting a 16% year-over-year growth [4] - Gross revenues reached BRL 4.9 billion, representing a 9% growth year over year [19] - Earnings Before Tax (EBT) increased by 10% year over year to BRL 1.3 billion [23] - The company achieved a Return on Equity (ROE) of 23%, remaining flat year over year [7] - Diluted Earnings Per Share (EPS) grew by 13% year over year, reaching BRL 2.47 [25] Business Line Data and Key Metrics Changes - Retail revenues amounted to BRL 3.7 billion, showing a 6% growth year over year [19] - Corporate and industry services achieved a record revenue of BRL 729 million, with a 32% year-over-year growth [21] - Life insurance retail premiums grew by 25% year over year [14] - Credit revenues posted an 11% growth year over year, reaching BRL 83 million in Net Interest Income (NII) [14] Market Data and Key Metrics Changes - The company reported BRL 20 billion in retail net new money, which was three times higher than the previous quarter but BRL 5 billion lower than last year [8] - The company maintained a 10% market share in capital markets distribution [15] - The wholesale banking segment showed strong performance, with expectations for continued growth in the fourth quarter [31] Company Strategy and Development Direction - The company aims to become the leader in investments in Brazil by enhancing client service and introducing new products [3] - A focus on high-quality wealth planning services for clients with varying asset levels is part of the strategy [10] - The company is transitioning to a fee-based model, which currently accounts for 21% of total retail Assets Under Custody (AUC) [11] - The company is committed to investing in technology and expanding its sales force to enhance client experience [22] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges faced in 2025 but emphasized the commitment to evolving the business for growth and profitability [4] - The management expressed confidence in achieving a target of around BRL 20 billion in retail net new money per quarter [8] - The company anticipates a volatile market in 2026, which may present opportunities for growth [70] Other Important Information - The company repurchased BRL 2 billion in shares in 2025, with a new buyback program of BRL 1 billion announced [24] - A dividend of BRL 500 million is planned for 2025, representing a 50% payout ratio based on net income [24] Q&A Session Summary Question: Expectations for wholesale business performance in Q4 - Management expects continued strong performance in the wholesale banking segment for Q4, with a focus on high-quality assets [31][33] Question: Clarification on corporate revenues and hedging strategy - Corporate revenues are tied to debt issuance and hedging solutions, with expectations for continued strength due to low credit spreads [76] Question: Insights on retail revenue growth and fixed income performance - Fixed income revenues contracted due to a shift in product mix towards lower take rates, while retail revenues grew overall [43][46] Question: Impact of new hires on advisor numbers - The company is hiring more internal advisors while converting some independent financial advisors (IFAs) to employees, focusing on quality over quantity [52] Question: Financial expenses and borrowing reductions - The reduction in financial expenses is attributed to a geographic shift in debt management, resulting in lower overall costs [53] Question: Guidance on EBT margin and revenue expectations - Management remains optimistic about achieving medium-term guidance for EBT margins, despite potential shortfalls in revenue growth [84]

Financial Data and Key Metrics Changes - The company reported total client assets of BRL 1.9 trillion, reflecting a 16% year-over-year growth [4] - Gross revenues reached BRL 4.9 billion, representing a 9% growth year over year [5][18] - EBIT increased by 10% year over year to BRL 1.3 billion [5] - The return on equity (ROE) was 23%, remaining flat year over year [6] - Diluted EPS grew by 13% year over year, reaching BRL 2.47 per share [24] Business Line Data and Key Metrics Changes - Retail revenues amounted to BRL 3.7 billion, showing a 6% growth year over year [18] - Corporate and industry services achieved a record BRL 729 million in revenues, marking a 32% growth year over year [18] - Life insurance retail premiums grew by 25% year over year [13] - Credit revenues increased by 11% year over year, reaching BRL 83 million in net interest income [13] Market Data and Key Metrics Changes - Retail net new money was BRL 20 billion, a decrease of BRL 5 billion compared to the previous year but three times higher than the last quarter [7] - The company maintained a 10% market share in capital markets distribution [15] - The wholesale bank maintained a leadership position with a 17% market share [16] Company Strategy and Development Direction - The company aims to become the leader in investments in Brazil by enhancing client service and introducing new products [3][10] - A focus on high-quality wealth planning services for clients with varying asset levels is being emphasized [10] - The company is transitioning to a fee-based model, which currently accounts for 21% of total retail assets under custody [11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges faced in 2025 but expressed commitment to evolving the business for growth and profitability [4] - The company anticipates continued growth in retail net new money, targeting around BRL 20 billion per quarter [9] - Management highlighted the importance of maintaining a conservative risk profile despite strong performance in wholesale banking [25] Other Important Information - The company repurchased BRL 2 billion in shares in 2025, with a new buyback program of BRL 1 billion announced [23] - A dividend of BRL 500 million is planned for 2025, representing a 50% payout ratio based on net income [23] Q&A Session Summary Question: Expectations for wholesale business performance in Q4 - Management expects good performance in Q4, with stronger results anticipated compared to the first half of the year [26][27] Question: Details on the strategy to increase the warehousing book - The strategy involves holding high-quality assets and managing credit spread volatility effectively [27] Question: Clarification on corporate revenue increase - Corporate revenues are closely tied to debt issuance and hedging solutions, with strong performance expected to continue [30][44] Question: Insights on retail revenue growth despite fixed income contraction - The contraction in fixed income revenues is attributed to a shift in product mix and shorter durations affecting take rates [31][33] Question: Impact of workdays on revenues - Business days positively impacted floating and trading volumes, offsetting declines in equities and fixed income [49] Question: Use of AI in client advisory services - The company is leveraging AI to enhance advisor productivity and improve client service, particularly for lower-income clients [51]

Core Points - XP Inc. announced three capital allocation actions: a cash dividend, retirement of treasury shares, and a new share repurchase program [1] Cash Dividend - The Board declared a cash dividend of US$0.18 per Class A common share, payable on December 18, 2025, to shareholders of record as of December 10, 2025, totaling approximately R$500 million at current exchange rates [2] Treasury Shares Retirement - The Company approved the retirement of 10,970,754 Class A common shares, which is about 2.1% of the total shares, reducing the total share count from 530,859,761 to 519,889,007 [3] New Buyback Program - A new share repurchase program was authorized, allowing the Company to repurchase up to R$1.0 billion of its outstanding Class A common shares from November 18, 2025, until November 18, 2026, depending on market conditions [4] - The Board will periodically review the repurchase program and may adjust its terms or suspend it [4][6] - The actual timing and number of shares repurchased will depend on various factors, including market conditions and price [6]