XP (XP) Q3 2025 earnings summary

Executive summary

• Achieved significant profitability growth in 3Q25, with net income up 12% year-over-year and gross revenue up 9%, driven by Corporate & Issuer Services and technology investments.

• Client assets reached BRL 1.9 trillion, up 16% year-over-year, with active clients growing 2% to 4.8 million.

• Maintained leadership in investment services, expanding cross-sell initiatives and democratized wealth planning.

• Enhanced advisor productivity and client experience through proprietary AI-powered technology.

Financial highlights

• Gross revenues were BRL 4.9 billion, up 9% year-over-year and 6% quarter-over-quarter.

• Net income reached BRL 1.3 billion, up 12% year-over-year; EBT was BRL 1.3 billion, up 10% year-over-year.

• Diluted EPS grew 13% year-over-year, supported by share buybacks.

• ROE was 23%, flat year-over-year; capital ratio at 21.2%.

• Adjusted net margin improved by 106 bps year-over-year to 29.7%.

Outlook and guidance

• Retail net new money target remains BRL 20 billion per quarter.

• Revenue growth for 2025 expected to be close to, but slightly below, 10% guidance due to a soft first half; 2026 may require 17-20% growth to meet guidance.

• EBT margin guidance of 30% by end of next year remains achievable, though near-term margins may be flat due to ongoing investments.

• Capital ratio guidance for end of 2026 maintained at 16%-19%.

• Strategy centers on investment market leadership, expanding product offerings, and deepening client relationships.