[Music] Welcome back to fast money and earnings alert on block spiking after hours. The payments company missing top and bottom line estimates but boosting fullear guidance. It's conference calls underway.CNBC's Mackenzie Sagala is following the action. Hey Mac. Hey Mel.So Block shares popping as much as 11% in the after hours though it is pairing those gains now but it shows that investors are clearly willing to forgive that Q2 miss on earnings thanks to the company's outlook for the back half of the year. ...

Strategic Divestments - StoneCo divested Linx and related assets to TOTVS for an enterprise value of R$305 billion and a total value of R$341 billion[12] - SimplesVet was divested to PetLove for an enterprise value of R$140 million and a total value of R$155 million[12] - The value captured from divestments represents approximately 25% of StoneCo's market capitalization, while the divested assets accounted for less than 5% of the company's adjusted net income[11, 14] Financial Performance (2Q25) - StoneCo's adjusted basic EPS for continuing operations increased by 409% year-over-year[20, 45] - Adjusted net income from continuing operations increased by 237% year-over-year to R$5981 million[20, 39] - Total revenue and income from continuing operations grew by 202% year-over-year to R$35009 million[34, 39] - Adjusted gross profit from continuing operations increased by 139% year-over-year to R$15615 million[39] Business Segments - MSMB (Micro, Small, and Medium Businesses) payments client base increased by 64% year-over-year[26] - MSMB TPV (Total Payment Volume) increased by 12% year-over-year[26] - Retail deposits increased by 36% year-over-year[28] - Credit portfolio increased by 25% quarter-over-quarter[30] Guidance Update - StoneCo updated its 2025 adjusted gross profit guidance to > R$6375 billion, reflecting a 145% year-over-year increase[17] - The company updated its 2025 adjusted basic EPS guidance to > R$96 per share, representing a 32% year-over-year increase[17] Future Outlook (2027 Guidance) - StoneCo projects MSMB TPV to exceed R$670 billion by 2027, with a CAGR of +14%[46] - The company anticipates retail deposits to surpass R$140 billion by 2027, with a CAGR of +17%[46] - StoneCo expects its credit portfolio to exceed R$55 billion by 2027, with a CAGR of +66%[46] - The company forecasts adjusted gross profit to exceed R$102 billion by 2027, with a CAGR of +18%[46] - StoneCo projects adjusted basic EPS to exceed R$150 per share by 2027, with a CAGR of +27%[46]

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The UK’s financial watchdog imposed new rules on the payments sector aimed at protecting customer funds, the latest effort by the regulator to rein in an industry criticized for poor anti-fraud controls and reckless risk taking. https://t.co/DM6KbraL44 ...

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1,102,000,000, an increase of 13% year-over-year, and cash EPS of $5.13, also up 13% [7][28] - Organic revenue growth for Q2 was 11%, a 2% sequential increase from Q1 [8][34] - Adjusted EPS grew 17% on a constant macro basis [28] Business Line Data and Key Metrics Changes - The vehicle payment segment grew 9% in Q2, while the corporate payment segment saw an 18% increase [8][29] - Lodging segment revenue declined by 2% year-over-year, with room nights decreasing by 1% [33] - The other segment, primarily driven by gift card sales, increased by 18% due to new orders [33] Market Data and Key Metrics Changes - Spend volumes increased by 36% on a reported basis, reaching over $58,000,000,000 in Q2 [29] - The U.S. vehicle payments segment turned positive in organic revenue growth, marking a significant improvement [31] Company Strategy and Development Direction - The company aims to simplify its structure and focus on corporate payments, expecting this segment to reach $2,000,000,000 in revenue next year [14][24] - The company is expanding its cross-border business and has launched new products, including a multi-currency account [16][18] - M&A activities are focused on acquiring larger, more strategic businesses while divesting non-core assets [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the corporate payments segment, projecting high teens organic revenue growth for the full year [11][25] - The lodging segment is expected to remain soft, with no significant improvement anticipated in the second half [11][33] - The company is optimistic about the vehicle payments segment, expecting it to track to 10% organic growth in the second half [12][32] Other Important Information - The company ended the quarter with a leverage ratio of 2.53 times and over $3,500,000,000 in cash and revolver availability [37][38] - The company is preparing for non-core divestitures, expecting net proceeds to exceed $1,500,000,000 [23][24] Q&A Session Summary Question: Insights on corporate payments and future growth - Management is pleased with the setup and believes that continued investment could lead to accelerated organic revenue growth in the coming years [42][44] Question: Details on the Circle partnership - The partnership is reciprocal, with plans to use Circle's services while also assisting them in certain geographies [46] Question: Factors driving U.S. vehicle payments acceleration - Improved retention and new significant accounts are expected to drive growth in the second half [52][53] Question: Visibility on lodging segment performance - Management noted that the softness is partly due to emergency services and that sales need improvement to drive growth [66][70] Question: Impact of divestitures on earnings - The divestitures are expected to be non-dilutive and will provide capital for future growth initiatives [74] Question: Cross-border sales and tariff impacts - The tariff situation has had mixed effects, with some regions performing better than others [79][81] Question: Growth in Brazil and vehicle payments - The Brazilian market is experiencing strong growth due to a large addressable market and early-stage digital services [84][86] Question: Concerns about same-store sales trends - Management indicated that same-store sales have remained relatively flat, with no significant economic concerns noted [97][100] Question: Retention rates and their impact on revenue - Higher retention rates in corporate payments are expected to contribute positively to revenue growth over time [102][105] Question: Gift card performance and future expectations - The company anticipates strong growth in the gift card segment due to new regulations and improved sales [108][110] Question: Future M&A and buyback strategies - The company is focused on maintaining a healthy balance sheet while considering future acquisitions and buybacks [120][121]

Financial Data and Key Metrics Changes - Total processing volume (TPV) reached $91 billion in Q2 2025, a 29% increase compared to Q2 2024 [5][19] - Net revenue for Q2 was $150 million, growing 20% year over year [6][22] - Gross profit was $104 million, reflecting a 31% increase year over year, resulting in a gross margin of 69% [6][23] - Adjusted EBITDA was $29 million, achieving a margin of 19%, marking an all-time high for the company [7][27] - GAAP net loss was $600,000, including $8 million of interest income [28] Business Line Data and Key Metrics Changes - Non-block TPV grew nearly three times faster than block TPV, driven by diverse use cases [19][20] - Lending, including buy now pay later (BNPL), saw significant acceleration in growth compared to Q1, with all top 10 customers experiencing growth [21][29] - Value-added services gross profit more than doubled year over year, indicating strong traction [11] Market Data and Key Metrics Changes - European TPV continues to grow over 100% year over year, driven by various use cases including neo banking and expense management [13][18] - The acquisition of TransactPay is expected to enhance program management capabilities in Europe, further driving growth [15][16] Company Strategy and Development Direction - The company is focused on expanding customer relationships and innovating in lending and BNPL solutions [8][17] - Plans to launch new capabilities that allow consumers to receive multiple BNPL options at purchase are underway, with a broader launch expected in 2026 [10][97] - The acquisition of TransactPay aims to standardize offerings across geographies and enhance customer engagement [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trajectory despite some macroeconomic uncertainties [38][39] - Full-year 2025 revenue growth expectations have been raised, with anticipated growth in gross profit and adjusted EBITDA margins [29][34] - The revised accounting policy for network incentives will shift from a tailwind in Q2 to a headwind in Q3 and Q4 [31][33] Other Important Information - The company repurchased 35.2 million shares at an average price of $4.62 in Q2, reducing outstanding shares by over 12% [28] - Adjusted operating expenses were $76 million, shrinking 7% year over year, driven by better execution and investment timing delays [26][27] Q&A Session Summary Question: Visibility on sales cycles and trends in TPV - Management feels good about visibility, noting strong performance in lending and BNPL, with growth accelerating unexpectedly [37][38] Question: Growth factor of value-added services - Value-added services are a high priority and are expected to become a larger growth driver as the business matures [39][42] Question: Drivers of increased adjusted EBITDA margin guidance - Strong gross profit growth driven by TPV and favorable mix, combined with lower expenses, are core sources of upside [46][48] Question: Regulatory environment impact - The regulatory environment is more business as usual, with some improvements in communication and coordination with bank partners [54][55] Question: International success and investment needs - The European market is growing over 100%, and the acquisition of TransactPay will enhance program management capabilities [71][75] Question: Crypto market performance and traditional bank engagement - The crypto use case has been volatile but is performing better, while engagement with traditional banks is ongoing but still several years away from broader support [83][87]

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $91 billion in Q2 2025, a 29% increase compared to Q2 2024 [5][18] - Net revenue for Q2 was $150 million, growing 20% year over year, driven by diverse use cases [6][20] - Gross profit was $104 million, a 31% increase year over year, resulting in a gross margin of 69% [6][22] - Adjusted EBITDA was $29 million, translating into a 19% margin, marking an all-time high for the company [6][26] - The company reported a GAAP net loss of $600,000 for the quarter [26] Business Line Data and Key Metrics Changes - Non-block TPV grew nearly three times faster than block TPV, with financial services, lending (including BNPL), and expense management driving the majority of TPV growth [19] - Lending, including BNPL, saw significant acceleration in growth compared to Q1, with all top 10 customers experiencing growth [20] - Value-added services gross profit more than doubled year over year, indicating strong traction [11] Market Data and Key Metrics Changes - European TPV continues to grow over 100% year over year, driven by diverse use cases [13][17] - The acquisition of TransactPay is expected to enhance program management services and support larger customers in Europe [15][17] Company Strategy and Development Direction - The company is focused on expanding customer relationships and enabling growth through innovative programs and geographic expansions [7][16] - The strategy includes enhancing value-added services and leveraging partnerships to deliver comprehensive solutions [10][41] - The acquisition of TransactPay is aimed at standardizing offerings across geographies and enhancing customer engagement [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trajectory despite some macroeconomic uncertainties [35][36] - The company raised expectations for Q3, Q4, and full-year 2025 revenue growth, gross profit growth, and adjusted EBITDA margin [28][32] - Management noted that the revised accounting policy for network incentives will shift from a tailwind in Q2 to a headwind in Q3 and Q4 [29][30] Other Important Information - The company repurchased 35.2 million shares at an average price of $4.62 in Q2, reducing outstanding shares by over 12% [27] - The company ended the quarter with over $820 million in cash and short-term investments [27] Q&A Session Summary Question: Visibility on sales cycles and trends - Management feels good about visibility, noting strong performance in TPV growth and positive customer conversations [35][36] Question: Growth of value-added services - Value-added services are a high priority and are expected to become a larger growth driver as the business matures [37][41] Question: Drivers of adjusted EBITDA margin guidance increase - Strong gross profit growth driven by TPV and favorable mix, along with lower expenses, are key drivers of the adjusted EBITDA margin increase [45][46] Question: Regulatory environment impact - The regulatory environment is more business as usual, with some improvements in communication and coordination with bank partners [53][55] Question: International success and investment needs - The company sees significant growth potential in Europe, particularly with the capabilities gained from the TransactPay acquisition [70][73] Question: Crypto market performance - The crypto use case has been volatile but is performing better, with a focus on stablecoins and partnerships [82][84] Question: Traditional banks engagement - Conversations with traditional banks are ongoing, but broader support is still several years away [86][88] Question: TPV breakdown and spending patterns - No noticeable shifts in TPV breakdown, with strong performance across various use cases [92][94] Question: New BNPL capabilities - The company is developing a product that allows consumers to choose from multiple BNPL providers at the point of sale, enhancing value for issuing partners [95][96]

Q2 2025 Financial Performance - Adjusted EPS reached $5.13, a 13% year-over-year increase, or 17% on a constant macro basis[10] - Revenues totaled $1.102 billion, up 13% year-over-year[10] - Adjusted EBITDA was $621 million, a 12% year-over-year increase[10] - The company reported organic revenue growth of 11%[10] - Revenue retention improved to 92.3%[10] Segment Performance - Corporate Payments revenue grew by 18%[10] - Vehicle Payments organic revenue growth was 9%[16] - Lodging Payments experienced a decline of 2%[16] - Other segments, including Gift and Payroll Cards, grew by 18%[16] Liquidity and Capital Allocation - Liquidity as of June 30, 2025, was approximately $3.5 billion[23] - Adjusted EBITDA was reported as $621 million[26] - Free cash flow generated was $366 million[26] - The company's leverage ratio was 2.53x[23] 2025 Guidance - The company projects second-half adjusted EPS to accelerate to $11.40, an 18% increase over the first half of 2025[32] - Organic revenue growth in the second half is expected to be 10%[32]

Key Takeaways Analyze a company's revenues over a specific period, subtract the production costs, and you get the earnings. Whether it's a startup or a well-established company, earnings growth remains the primary focus for any organization. This is because if the company doesn't make a profit, it cannot survive. By the way, earnings are also considered the most important variable influencing the share price. But expectations of earnings play a striking role. Nonetheless, stocks such as Apple Inc. (AAPL) , ...

Financial Data and Key Metrics Changes - Payoneer reported revenues of $261 million, up 9% year over year, with revenue excluding interest income reaching a quarterly record of $200 million, up 16% year over year [25][33] - Adjusted EBITDA was $66 million, representing a 25% margin, with net income of $19 million compared to $32 million in the same quarter last year [31][32] - Customer funds held by Payoneer increased 17% year over year to $7 billion, reflecting customer trust in the platform [27] Business Line Data and Key Metrics Changes - B2B revenue grew 37% in Q2, driven by larger multi-entity customers with complex needs [14] - Checkout volumes surged 83% year over year, indicating strong product adoption [25] - SMB volume grew 9% year over year, with volume from B2B SMBs up 19% [25] Market Data and Key Metrics Changes - Approximately one-third of Payoneer's China revenue came from sellers selling to non-U.S. markets, indicating a shift in market focus [12] - In APAC, LatAm, and EMEA, mid-20% volume growth was achieved, with continued take rate expansion [14] Company Strategy and Development Direction - Payoneer is focused on building a financial stack for cross-border commerce, enhancing its product offerings, and expanding its global reach [7][8] - The company is exploring stablecoin functionality to enhance its service offerings and improve operational efficiency [19][20] - A strategic partnership with Stripe was launched to expand global checkout capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macro environment and reinstated full-year 2025 guidance, expecting total revenue between $1.04 billion and $1.06 billion [33][38] - The company anticipates high single-digit growth in total volume and low double-digit B2B volume growth in Q3, accelerating to high teens in Q4 [34][38] Other Important Information - Total operating expenses increased 19% year over year, driven by labor-related expenses and investments in scaling card products [28] - The company announced a refreshed $300 million share buyback authorization, reflecting confidence in its business value [21] Q&A Session Summary Question: What gave you the confidence to reinstate the higher guidance? - Management noted greater visibility into the tariff environment and a resilient business model, allowing for confidence in meeting full-year guidance [42][44] Question: What are merchants saying about their demand for stablecoins? - Management indicated that they are in the early stages of understanding merchant demand for stablecoins, but see long-term opportunities in supporting customers with new currencies [47][49] Question: How have merchants in China responded to tariffs? - Management highlighted that Chinese merchants are focused on expanding globally, with a third of revenue coming from non-U.S. markets [54][58] Question: Can you share metrics around churn levels? - Management reported improved revenue retention year over year, with higher retention among managed ICPs compared to non-managed ones [108][109] Question: How do you view the potential disruptive threat of stablecoins? - Management acknowledged that while stablecoins can be disruptive, Payoneer is well-positioned to integrate these innovations into its ecosystem [101][103]