StoneCo (STNE) Q1 2025 earnings summary

Executive summary

• Achieved strong first quarter results with 19% revenue growth, 23% higher adjusted net income, and 36% EPS increase, driven by repricing, efficiency, and client base expansion despite a challenging macroeconomic environment.

• Reaffirmed annual and long-term guidance, with performance tracking ahead of 2025 targets.

• Adjusted net cash position was R$3.8 billion after significant share buybacks.

Financial highlights

• Total revenue reached R$3.67 billion, up 19% year-over-year and 1.7% sequentially.

• Adjusted gross profit was R$1.65 billion, up 19% year-over-year but down 3% sequentially.

• Adjusted net income was R$554 million, up 23% year-over-year.

• Adjusted basic EPS was R$1.97, up 36% year-over-year.

• R$843 million used for share repurchases in 1Q25; R$2.4 billion in buybacks over the last 12 months.

Outlook and guidance

• 2025 guidance: adjusted gross profit above R$7.05 billion (+14% y/y), adjusted basic EPS above R$8.6 (+18% y/y).

• 2027 guidance: MSMB TPV above R$670 billion (+14% CAGR), retail deposits above R$14 billion (+17% CAGR), credit portfolio above R$5.5 billion (+66% CAGR), adjusted gross profit above R$10.2 billion (+18% CAGR), adjusted basic EPS above R$15 (+27% CAGR).

• Expect some deceleration in TPV growth due to repricing policy prioritizing profitability over volume.

• Full impact of repricing and cash sweep strategy to be realized from the second quarter onward.