XP Inc. reported third‑quarter 2025 results that included a record net income of BRL 1.330 billion, a 12% year‑over‑year increase, and total revenue of BRL 4.942 billion, up 9% from the same period last year. Earnings‑before‑tax margin rose to 28.5%, while net margin improved to 28.5% from 27.5% in Q3 2024, reflecting stronger profitability despite a sequential compression in the prior quarter’s EBT margin of 29.6%.
Revenue growth was driven by a 6% quarter‑over‑quarter rise in retail revenue to BRL 3.704 billion, supported by higher equity and fixed‑income trading volumes. The Corporate & Issuer Services segment posted a 32% year‑over‑year increase, while the new insurance vertical grew 25% and the cards vertical saw a 13% rise, underscoring the company’s expanding product mix and market penetration.
The EPS beat was modest but meaningful: diluted earnings per share of R$2.47 (≈US$0.46) surpassed the consensus estimate of R$2.42 by $0.05, a 2.1% upside. The beat was largely attributable to disciplined cost management and the impact of the ongoing share‑repurchase program, which reduced diluted shares outstanding and amplified earnings per share. Revenue, however, fell slightly short of the consensus estimate of R$4.64 billion, missing by about 0.8%, a result of weaker performance in the legacy brokerage segment that offset gains in the high‑growth corporate and insurance lines.
Capital allocation remained a key focus: XP declared a cash dividend of US$0.18 per Class A share, payable on December 18 2025, and launched a new share‑repurchase program authorizing up to BRL 1.0 billion of shares over the next year. The program is designed to return excess cash to shareholders while preserving a robust capital base, reinforcing management’s confidence in the company’s cash‑flow generation and balance‑sheet strength.
Management highlighted the continued strength of the corporate segment, noting that “the surge in debt‑capital‑market activity and the expansion of our hedging solutions have driven significant revenue growth.” CEO Luiz B. de Oliveira emphasized that the company’s “focus on cost discipline and strategic investments in high‑margin verticals” will sustain profitability, while CFO Maria S. Santos underscored the importance of the share‑repurchase program in enhancing shareholder value.
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