XP (XP) Q2 2025 earnings summary

Executive summary

• Net income reached BRL 1.321 billion in Q2 2025, up 18% year-over-year, with diluted EPS growing 22% year-over-year, supported by share buybacks.

• Client assets (AUM + AUA) totaled BRL 1.9 trillion, up 17% year-over-year, with 4.7 million active clients (+2% YoY).

• Gross revenues reached BRL 4.7 billion, a 4% increase year-over-year, with retail revenues now representing 77% of total.

• Retail net new money was BRL 16 billion, while corporate and institutional saw outflows of BRL 6 billion, reflecting macroeconomic pressures.

• Diluted EPS grew 22% year-over-year, with a 30% CAGR since 2019.

Financial highlights

• EBITDA was BRL 1.3 billion, down 5% year-over-year due to non-recurring positive impacts in the prior year, but up 4% quarter-over-quarter.

• Net margin expanded to 29.7%, up 130 bps quarter-over-quarter and 320 bps year-over-year.

• ROE reached 24.4% for the quarter, a 223 bps increase year-over-year; capital ratio at a comfortable 20.1%.

• Efficiency ratio improved by 161 bps year-over-year, now at 34.5% for the last 12 months.

• SG&A expenses increased 10% year-over-year, mainly due to higher marketing and technology investments.

Outlook and guidance

• Confident in achieving BRL 20 billion per quarter in retail net new money for the remainder of the year, barring significant macroeconomic changes.

• Revenue growth expected to accelerate in the second half, aiming for around 10% for the year, with higher business days and new product rollouts as drivers.

• Capital distribution to shareholders expected to remain above 50% payout ratio for 2025-2026.

• BIS Ratio target for 2026 is set to operate between 16% and 19%, with current BIS Ratio at 20.1%.