Pagbank (PAGS) Q2 2025 earnings summary

Executive summary

• Ended Q2 2025 with 33.1 million clients, up 5% year-over-year, and maintained profitability and disciplined execution despite macroeconomic volatility and weaker consumer confidence.

• Banking segment contributed over 26% of total gross profit, outpacing payments in revenue growth.

• Strategic focus on long-term value creation, operational leverage, and shareholder value through buybacks and dividends.

Financial highlights

• Net revenues increased 11% year-over-year to R$5.1 billion; gross profit rose 7% to R$1.9 billion; non-GAAP net income was R$565 million, up 4% year-over-year.

• Diluted GAAP EPS reached R$1.79, a 14% increase; ROAE improved to 14.5%.

• Total payment volume (TPV) reached R$130 billion, up 4% year-over-year.

• Banking revenue grew 61% year-over-year to R$700 million; banking gross profit nearly doubled (+97%) with margin expanding to 74%.

• Credit portfolio reached R$3.9 billion, up 35% year-over-year; total funding was R$43 billion, up 15%.

Outlook and guidance

• Full-year guidance maintained, with gross profit and EPS growth tracking within guidance ranges; CapEx at the bottom of the range.

• Plans for additional dividend distributions and continued focus on profitability and client engagement.