Pagbank (PAGS) Q4 2025 earnings summary

Executive summary

• Achieved robust performance in Q4 2025, with 16% year-over-year revenue growth to BRL 13.4 billion, strong expansion in credit and banking, and disciplined execution focused on long-term value creation.

• Net income (non-GAAP) for 2025 was BRL 2.4 billion, up 4% year-over-year, with EPS up 21% and total shareholder yield at 15% through buybacks and dividends.

• Q4 2025 saw ROAE at 18.4% (+100bps YoY), non-GAAP net income of BRL 678 million (+7.4% YoY), and a sequential inflection in acquiring volumes.

• Celebrated 20th anniversary, highlighting two decades of digital banking expansion and operational efficiency in Brazil.

• Advanced efficiency agenda through risk management, pricing, commercial optimization, and technology investments, including AI.

Financial highlights

• Total net revenue (excluding interchange and card scheme fees) rose 12.4% year-over-year to BRL 3.5 billion in Q4 2025.

• Banking net revenue grew 51% year-over-year to BRL 2.7 billion, while payment net revenue rose 9% to BRL 10.7 billion.

• Gross profit for 2025 increased 6.9% year-over-year, with Q4 gross profit margin at 58.0%.

• Non-GAAP net income for Q4 was BRL 678 million, up 7.4% year-over-year; GAAP net income fell 16.2% due to deferred CSLL recognition.

• Operational expenses as a percentage of revenue decreased by 320bps year-over-year in Q4 2025, reflecting improved efficiency.

Outlook and guidance

• 2026 guidance includes credit portfolio growth of 25%-35%, gross profit growth of 6%-9%, and non-GAAP diluted EPS growth of 9%-13%.

• CapEx for 2026 expected between BRL 1.8 billion and BRL 2.0 billion, reflecting efficiency focus and BRL 400 million lower than 2025.

• Long-term ambition targets BRL 25 billion credit portfolio by 2029, above 10% gross profit CAGR, and above 16% EPS CAGR.

• Focus for 2026 is on disciplined execution, credit portfolio expansion with quality, and targeted merchant acquisition.

• Continued investment in technology, data, and team development to drive efficiency.