StoneCo Ltd. reported third‑quarter 2025 results that ended September 30, 2025, with revenue rising 16.5% year‑over‑year to R$3.57 billion (≈$667 million). Adjusted basic earnings per share matched the consensus estimate of $0.43, while GAAP EPS of R$2.57 ($0.48) beat the $0.41 consensus. The company’s adjusted gross profit margin slipped to 45.0% from 46.9% in the same quarter a year earlier, reflecting modest pricing pressure in its payments segment and higher operating costs in its credit portfolio.
Revenue growth was driven primarily by the financial services segment, which grew 18.2% to R$2.10 billion, supported by a 20% increase in active client accounts and a 12% rise in transaction volume. The software segment, which StoneCo is divesting, contributed 8.5% of revenue but saw a 4% decline, underscoring the company’s strategic shift toward core financial services. The credit portfolio, now a larger contributor to earnings, grew 15% in loan balances, offsetting a 3% decline in fee‑based revenue.
StoneCo’s EPS beat can be attributed to disciplined cost management and a robust share‑buyback program that reduced diluted shares outstanding. While revenue fell slightly short of the $668.84 million consensus, the company’s margin compression was limited to 1.9 percentage points, and operating income increased 12% year‑over‑year to R$1.02 billion, driven by higher gross margin in the payments segment and lower interest expense due to the recent debt refinancing.
Management raised its 2025 EPS guidance to more than R$9.6 ($1.74) from the prior guidance of more than R$8.6 ($1.61), citing stronger-than‑expected first‑half results and confidence in the continued acceleration of its credit portfolio. Revenue guidance for the full year was also increased to R$4.40 billion from R$4.30 billion, reflecting a 3% growth expectation versus the previous 2% forecast. CEO Pedro Zinner emphasized that the company remains focused on operational expense management and adapting to interest‑rate changes, while planning to update 2027 guidance early next year to reflect only continuing operations.
Investors reacted cautiously to the earnings release, weighing the modest revenue miss against the company’s upward guidance and the high valuation multiples it currently trades at. Analysts noted that while StoneCo’s earnings beat and margin stability signal resilience, the slight revenue shortfall and competitive pressure in the SME banking space may temper enthusiasm for the near‑term outlook.
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