StoneCo (STNE) Q2 2025 earnings summary

Executive summary

• Strategic divestiture of software assets, including Linx and SimplesVet, to sharpen focus on core financial services, unlocking over R$4 billion in value, about 25% of market cap, with proceeds to be used per capital allocation framework.

• Financials and reporting now focus on continuing operations post-divestment, with historical data recast accordingly.

• Value generated from divested assets represents 25% of market cap, while these assets contributed less than 5% of adjusted net income.

Financial highlights

• Adjusted net income rose 27% year-over-year to R$631 million, mainly from financial services, with adjusted basic EPS up 45% to R$2.33.

• Revenues from continuing operations grew 20% year-over-year to R$3.5 billion; adjusted gross profit up 14% to R$1.6 billion, with a margin of 44.6%.

• MSMB payments active client base grew 17% to 4.5 million; MSMB TPV up 12% to R$122 billion.

• Active banking clients up 23% to 3.3 million; client deposits up 36% to R$8.8 billion.

• Credit portfolio grew 25% year-over-year to R$1.8 billion, with working capital disbursements up 41% quarter-over-quarter and stable NPL trends.

Outlook and guidance

• 2025 guidance for adjusted gross profit updated to over R$6.375 billion (+14.5% year-over-year); adjusted basic EPS expected to exceed R$9.6 (+32% year-over-year).

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

• Commitment to return R$3 billion in excess capital to shareholders in 2024, with 41% already returned by June; 12% distribution yield (LTM).

• MSMB TPV growth expected to stabilize at low double digits for the remainder of the year.