Core Insights - 14B Capital Management sold 322,000 shares of StoneCo for an estimated value of $5.39 million, reflecting a decrease in the quarter-end position value by $8.60 million due to share reductions and price fluctuations [1][2] Company Overview - StoneCo's current share price is $13.84, with a market capitalization of $3.6 billion and a trailing twelve months (TTM) revenue of $2.59 billion. The company reported a net income loss of $219.08 million TTM [4] - StoneCo operates in the Brazilian fintech sector, focusing on empowering merchants through technology-driven financial services, facilitating efficient electronic transactions across various channels [5] Financial Performance - For 2025, StoneCo generated an adjusted gross profit of approximately R$6.3 billion, representing a year-over-year increase of about 13.5%. Adjusted basic earnings per share rose over 33% to R$9.71, with total payment volume reaching R$560.9 billion, up 9% from 2024 [9] Investment Context - Following the sale, StoneCo constitutes 7.2% of 14B Capital Management's reportable assets under management, with the fund still holding approximately $9 million worth of shares, indicating continued confidence in the stock [6][10] - StoneCo's performance has outpaced the S&P 500, with a 52% increase in share price over the past year compared to the index's roughly 20% gain [6]

Core Insights - Super Group (SGHC) reported a strong performance in 2025, with record customer activity and profitability gains, following its strategic exit from U.S. iGaming [2][5] - The company anticipates continued organic growth in 2026, projecting revenue of at least $2.55 billion and Adjusted EBITDA exceeding $680 million, supported by operating leverage and the FIFA World Cup [3][16] Financial Performance - For 2025, Super Group achieved revenue of $2.2 billion, a 22% increase year-over-year, and Adjusted EBITDA of $560 million, up 57% with a margin of approximately 25% [5][8] - In Q4 2025, total revenue rose 8% year-over-year to $578 million, while Adjusted EBITDA increased 11% to $139 million, driven by strong casino momentum and an active sports calendar [9][10] Strategic Initiatives - The company completed the Apricot transaction, bringing sportsbook technology in-house, which is expected to yield annualized savings of around $35 million [4][13] - The launch of the ZAR Supercoin in South Africa marks an early step in developing a broader digital payments infrastructure [1][14] Regional Performance - In Europe, Q4 revenue increased by 23% year-over-year, with the U.K. leading at a 37% growth rate [6] - Africa saw a 27% revenue growth for the full year, with Botswana outperforming and South Africa achieving strong wagering growth [6] - North America, excluding the U.S., grew by 10%, with Canada ex-Ontario increasing by 15% [7] Capital Returns and Shareholder Value - The company returned $156 million to shareholders in 2025, including a special dividend exceeding $125 million [11][12] - The minimum quarterly dividend target was raised from $0.04 to $0.05 per share, with the first payment expected at the end of March [12] Future Outlook - Management expects 2026 to start strongly, with active customer numbers higher than the previous quarter, and anticipates continued engagement and benefits from the FIFA World Cup [15][16] - The company is exploring expansion opportunities in Africa, with Namibia included in the 2026 guidance [18]

Financial Data and Key Metrics Changes - Total revenue for 2025 reached $2.2 billion, reflecting a 22% increase compared to the previous year [10] - Adjusted EBITDA increased by 57% year-over-year to $560 million, representing a margin of around 25% [10] - Q4 total revenue grew 8% to $578 million, with Adjusted EBITDA up 11% to $139 million [10] - Average monthly active customers reached an all-time high of 6.1 million for the quarter, a 16% increase from the same period in 2024 [11] - Cash at year-end was $513 million, up 32% year-over-year [11] Business Line Data and Key Metrics Changes - Africa's revenue grew 27% for the full year against 2024, with Botswana outperforming since launch and South Africa showing strong wagering growth [6] - Monthly active customers exceeded 6 million, with significant growth in sports wagers (31%) and casino wagers (32%) year-over-year in Africa [7] - North America, excluding the U.S., grew 10%, with Canada ex-Ontario increasing 15% [7] - APAC revenue rose 6% year-over-year, despite a 5% dip in New Zealand [8] Market Data and Key Metrics Changes - Europe saw strong revenue growth of 23% year-over-year, led by a 37% increase in the U.K. [6] - In Spain, revenue grew 5% due to strong retention and product improvements [6] - North America, excluding the U.S., showed a 10% growth, with Ontario experiencing record engagement and deposits [7] Company Strategy and Development Direction - The company refined its portfolio by exiting U.S. iGaming to focus on markets with clear advantages [5] - Plans to expand into new African territories and leverage the upcoming FIFA World Cup for global engagement [15] - The launch of ZAR Supercoin in South Africa is part of a broader digital payments infrastructure strategy [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing customer momentum and operational efficiencies [11] - Guidance for 2026 includes total revenue of at least $2.55 billion and Adjusted EBITDA of more than $680 million, reflecting organic growth and customer engagement [12] - Management acknowledged potential risks from regulatory changes and emphasized a conservative approach to guidance [81] Other Important Information - The company returned $156 million to shareholders in 2025, including a special dividend of over $125 million [12] - The board approved an increase in the minimum quarterly dividend target from $0.04 to $0.05 per share [13] Q&A Session Summary Question: Impact of customer-friendly outcomes in December - Management estimated a $20 million EBITDA impact from favorable sports outcomes in December, which flowed into January [17] Question: Charitable initiatives with Betway Cares - Betway Cares focuses on community initiatives in South Africa, including clean drinking water and sports development [21] Question: Tax changes in South Africa - No new updates; operators are expected to submit responses to the government paper by the end of February [27] Question: M&A considerations - The company is selective with M&A, focusing on opportunities that improve technology or market position without overpaying [40] Question: Strategy in Alberta - Alberta is expected to regulate in Q2 2026, with lessons learned from Ontario being applied to improve performance [44] Question: Risks associated with guidance - Risks include regulatory shifts and sports results normalizing, which have been factored into the guidance [81]

Financial Data and Key Metrics Changes - Total revenue for 2025 reached $2.2 billion, reflecting a 22% increase year-over-year [10] - Adjusted EBITDA increased by 57% year-over-year to $560 million, representing a margin of approximately 25% compared to 9%-19% in the prior year [10] - Q4 total revenue grew 8% to $578 million, with Adjusted EBITDA up 11% to $139 million [10] - Average monthly active customers reached an all-time high of 6.1 million for the quarter, a 16% increase from the same period in 2024 [11] - Cash at year-end was $513 million, up 32% year-over-year [11] Business Line Data and Key Metrics Changes - Africa's revenue grew 27% for the full year against 2024, with Botswana outperforming since launch and South Africa showing strong wagering growth [5] - Sports wagers in Africa grew by 31% and casino wagers by 32% year-over-year [6] - North America, excluding the U.S., grew 10%, with Canada ex Ontario increasing by 15% [6] - APAC revenue rose 6% year-over-year, despite a 5% dip in New Zealand [7] Market Data and Key Metrics Changes - Europe saw strong revenue growth of 23% year-over-year, led by a 37% increase in the U.K. [5] - In Spain, revenue grew 5% due to strong retention and product improvements [5] - North America, excluding the U.S., grew 10% [6] - Africa's growth was supported by high brand loyalty and customer momentum [6] Company Strategy and Development Direction - The company refined its portfolio by exiting USi Gaming to focus on markets with clear advantages [4] - Plans to explore expansion into new African territories and capitalize on the upcoming FIFA World Cup [14] - The launch of ZAR Supercoin in South Africa is part of a broader digital payments infrastructure strategy [4][9] - The company aims to maintain operational efficiencies and marketing discipline while preparing for regulatory changes in various markets [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate regulatory changes and maintain growth momentum [27][79] - The guidance for 2026 includes total revenue of at least $2.55 billion and Adjusted EBITDA of more than $680 million, reflecting organic growth and customer engagement [12] - Management highlighted the importance of customer engagement and the potential impact of the World Cup on business performance [56][68] Other Important Information - The company returned $156 million to shareholders in 2025, including a special dividend of over $125 million [11] - The board approved an increase in the minimum quarterly dividend target from $0.04 to $0.05 per share [13] - The company is focused on improving customer engagement through AI-driven enhancements and promotional mechanics [8] Q&A Session Summary Question: Impact of customer-friendly outcomes in December - Management estimated a $20 million EBITDA impact from favorable sports outcomes in December, which flowed into January [16] Question: Charitable initiatives with Betway Cares - Betway Cares focuses on community initiatives in South Africa, including clean drinking water and sports development [20] Question: Tax changes in South Africa - No new updates; operators are expected to submit responses to the government paper by the end of February [27] Question: Expansion plans in Nigeria - The company is assessing its strategy in Nigeria and expects low single-digit World Cup tailwinds [34] Question: M&A considerations - The company is selective with M&A, focusing on opportunities that improve technology or market position without overpaying [40] Question: Strategy in Alberta - Alberta is expected to regulate in Q2 2026, with lessons learned from Ontario being applied to improve performance [42] Question: Risks associated with guidance - Risks include regulatory shifts and sports margin normalization, but management remains confident in achieving guidance [78]