Financial Data and Key Metrics Changes - Adjusted gross profit reached BRL 6.319 billion, a 13.5% year-over-year increase [7] - Adjusted basic EPS grew 34% year-over-year to BRL 9.71 per share, exceeding guidance [8] - Fourth quarter adjusted net income increased 10% year-over-year, with adjusted basic EPS at BRL 2.87, up 27% year-over-year [9] - Return on equity expanded to 26%, a 6 percentage point increase year-over-year [9] Business Line Data and Key Metrics Changes - Total revenue and income increased 13% year-over-year to BRL 3.7 billion, driven by mid-single-digit TPV growth [10] - Adjusted gross profit from continuing operations grew 9% year-over-year to BRL 1.7 billion [10] - Credit portfolio reached BRL 2.8 billion, growing 23% sequentially, with credit revenues at BRL 238 million, up 33% sequentially [14][15] - Client base for MSMB payments increased 15% year-over-year to 4.7 million, with heavy users rising to 41% [11] Market Data and Key Metrics Changes - MSMB TPV growth decelerated to 5.3% year-over-year due to macroeconomic pressures and operational performance [11] - Banking active client base increased 21% year-over-year to 3.7 million, with client deposits growing 27% year-over-year to BRL 11.1 billion [12][13] Company Strategy and Development Direction - The company aims to deepen client engagement and expand its credit business while maintaining a focus on profitability [11][12] - Strategic initiatives include enhancing bundled offerings and improving retention rates [11] - The company plans to return excess capital to shareholders, with BRL 2 billion in buybacks expected in 2026 [20][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macroeconomic environment impacting smaller clients and TPV growth [11][56] - The focus remains on executing strategies to improve operational performance and client engagement [11][56] - Future guidance for 2026 expects adjusted gross profit between BRL 6.6 billion and BRL 7 billion, with EPS between BRL 10.8 and BRL 11.4 [23] Other Important Information - The company sold its software assets, Linx, for over BRL 3 billion to sharpen its focus on payments, banking, and credit [4] - The effective tax rate decreased to 10.3% from 13.7% year-over-year, primarily due to higher benefits from Ledo Bank [19] Q&A Session Summary Question: Clarification on share count and earnings growth - Analyst inquired about the expected share count and the discrepancy between gross profit growth and earnings growth [27] - Management clarified that guidance does not include potential distributions from Linx and that share repurchases are factored into EPS guidance [29][30] Question: Perception of Stone as a bank - Analyst asked how the company plans to change the perception of being merely a payment provider [39] - Management responded that they are focusing on marketing and bundling products to enhance client perception [41] Question: Guidance on credit portfolio and operating expenses - Analyst sought clarification on the discontinuation of operational guidance for credit and future investment plans [64] - Management confirmed the discontinuation of specific operational KPIs and discussed ongoing investments in marketing and credit initiatives [66][68] Question: Expectations for gross profit yield and pricing dynamics - Analyst questioned the expectations for gross profit yield amidst lower rates and competition [85] - Management indicated that pricing dynamics remain healthy and that they expect to benefit from lower financial expenses as rates decrease [87]

StoneCo (NasdaqGS:STNE) Q4 2025 Earnings call March 02, 2026 05:00 PM ET Speaker12Good evening, everyone. Thank you for standing by. Welcome to StoneCo's fourth quarter and fiscal year 2025 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with its call. All material can be found online at investors.stone.co. Before we begin the call, I advise you to review the disclaimer included in the press release and presentation, w ...