XP Inc. Reports Third Quarter 2025 Results

Core Insights - XP Inc. reported a strong financial performance for Q3 2025, with total gross revenue reaching R$4.9 billion, reflecting a 9% year-over-year increase and a 6% quarter-over-quarter increase [18][29][46]. Group 1: Operating KPIs - Total client assets amounted to R$1.425 trillion, up 12% year-over-year and 4% quarter-over-quarter, driven by R$91 billion in net inflow and R$63 billion in market appreciation [2][4]. - Active clients grew to 4.752 million, representing a 2% increase year-over-year and a 1% increase quarter-over-quarter [7]. - Total net inflow was R$29 billion, with retail net inflow at R$20 billion, which is 30% higher quarter-over-quarter but 18% lower year-over-year [4][6]. Group 2: Financial Metrics - Net income reached R$1.33 billion, a 12% increase year-over-year and a 1% increase quarter-over-quarter, with diluted EPS at R$2.47, also reflecting a 13% year-over-year growth [29][31]. - Gross profit was R$3.18 billion, marking an 8% increase year-over-year and a 4% increase quarter-over-quarter, with a gross margin of 68.2% [25][47]. - EBT was R$1.331 billion, showing a 10% increase year-over-year and a 1% increase quarter-over-quarter, with an EBT margin of 28.5% [28][29]. Group 3: Revenue Breakdown - Retail revenue reached R$3.704 billion, a 6% increase year-over-year and a 4% increase quarter-over-quarter, driven by higher average volumes and interest rates [19][20]. - Corporate & Issuer Services revenue totaled R$729 million, reflecting a 32% year-over-year increase and a 33% quarter-over-quarter increase, supported by strong DCM activity [22][23]. - Institutional revenue remained stable at R$340 million, showing no change year-over-year and a slight decrease of 1% quarter-over-quarter [21]. Group 4: Client Services and Products - Retirement plans client assets grew to R$90 billion, a 15% increase year-over-year, with XPV&P's proprietary insurer assets increasing by 32% [11]. - Total TPV for cards reached R$13.1 billion, a 9% year-over-year increase and a 5% quarter-over-quarter increase [12]. - The expanded loan portfolio reached R$67 billion, reflecting a significant 33% year-over-year growth [15]. Group 5: Capital Management - The BIS Ratio was reported at 21.2%, indicating a 108 basis points increase quarter-over-quarter and a 26 basis points decrease year-over-year [32]. - The CET1 ratio remains strong at 18.5%, with share repurchases totaling R$842 million executed until October 2025 [32].