Pagbank (PAGS) Q3 2025 earnings summary

Executive summary

• Ended Q3 2025 with 33.7 million clients, up 1.6 million year-over-year, demonstrating resilience amid a challenging macroeconomic environment and tough year-over-year comparisons.

• Achieved 14% year-over-year growth in both revenues and EPS for Q3 2025, with net income stable compared to the same quarter last year.

• Banking business expanded, now contributing over 27% of total gross profit, with gross profit from banking up 56%-59% year-over-year.

• Credit portfolio expanded 30% year-over-year to R$4.2 billion, with NPLs at half the industry average.

• Strategic focus on operational efficiency, disciplined execution, and long-term value creation, with a fully integrated payments and banking ecosystem.

Financial highlights

• Net revenue (excluding interchange and card scheme fees/ITC) rose 14%-14.4% year-over-year to R$3.4 billion.

• Gross profit totaled R$1.9 billion, up 1.6%-2% year-over-year.

• Non-GAAP net income was R$571 million, flat year-over-year; diluted GAAP EPS reached R$1.88, up 14% year-over-year.

• Banking revenue grew 50%-50.2% year-over-year to R$744 million; banking gross profit up 58.7%-59% year-over-year, now over 27% of total gross profit.

• Operating expenses decreased 3% year-over-year, mainly due to lower personnel expenses and disciplined market investments.

Outlook and guidance

• Gross profit growth guidance for 2025 revised to 5%-7% due to elevated financial costs in a high interest rate environment.

• Full-year diluted EPS growth guidance narrowed to 13%-15% year-over-year.

• Strategic targets for 2029 include R$25 billion credit portfolio, above 10% gross profit CAGR, and above 16% EPS CAGR.

• Dividend payout acceleration planned for 2026, with R$1.4 billion to be distributed.