StoneCo (STNE) Q3 2025 earnings summary

Executive summary

• Adjusted gross profit grew 15.2% year-to-date and 11.7% year-over-year, with adjusted basic EPS up 31%–37% year-over-year, reflecting progress toward 2025 objectives despite macroeconomic challenges.

• Adjusted net income increased 13%–18% year-over-year, driven by pricing, efficient funding, and a lower effective tax rate.

• ROE expanded by 8 percentage points year-over-year to 33%, supported by strong consolidated results and core business execution.

• Share buybacks returned R$2.8 billion to shareholders over the last 12 months, with R$465 million executed in 3Q25 and 74% of R$3 billion excess capital already distributed.

• Operational redesign enhanced bundled offerings and client focus, with divestment of software assets and a non-recurring gain from the sale of SimplesVet.

Financial highlights

• Total revenue and income grew 16%–16.5% year-over-year to R$3.6 billion, supported by core business execution.

• Adjusted gross profit from continuing operations reached R$1.6 billion, up 12% year-over-year, with a margin of 45.0%.

• Adjusted net income from continuing operations was R$641.5 million, up 13% year-over-year.

• Adjusted basic EPS was R$2.57, up 31% year-over-year, supported by share buybacks.

• IFRS net income from continuing operations was R$668.1 million, up 20% year-over-year.

Outlook and guidance

• 2025 guidance targets adjusted gross profit above R$6.375 billion (+14.5% y/y) and adjusted basic EPS above R$9.6 (+32% y/y).

• Credit is expected to contribute more significantly to earnings in 2026 as the portfolio matures.

• OPEX management and operational efficiency are key to meeting 2025 goals amid a weaker macro environment.

• Effective tax rate is anticipated to remain in the mid to high teens, pending regulatory changes.

• The company plans to update 2027 guidance early next year to reflect only continuing operations and recent market trends.