XP (XP) Q4 2024 earnings summary

Executive summary

• Achieved record client assets of BRL 1.22 trillion in 2024, up 9% year-over-year, with 4.7 million active clients (+3% YoY) and over 18,000 advisors (+5% YoY).

• Gross revenues reached BRL 18 billion, a 15% increase year-over-year, and adjusted net income rose 17% to BRL 4.5 billion, both historical highs.

• Strategic focus on expanding client service, segmentation, product innovation, and sales force, while maintaining strict cost control and operational efficiency.

• Completed corporate restructuring in November 2024, lowering cost of capital by 35% and enhancing capital returns and funding efficiency.

• Ecosystem maturity and technology investments drove higher profitability and resilience in a challenging macro environment.

Financial highlights

• 4Q24 gross revenue was BRL 4.7 billion (+10% YoY); full-year gross revenue reached BRL 18 billion (+15% YoY); adjusted net income for 4Q24 was BRL 1.2 billion (+16% YoY); full-year adjusted net income was BRL 4.5 billion (+17% YoY).

• Adjusted diluted EPS grew 16% YoY; ROTE reached 29.2% (+376 bps), ROE 23% (+163 bps); adjusted ROAE was 23.4% in 4Q24.

• Efficiency ratio improved to 34.7% for the year and reached an all-time low of 23.7% in 4Q24.

• Gross margin improved to 69.3% in 4Q24, up 122 bps YoY; full-year gross margin was 68.7%.

• Net inflow in 4Q24 was BRL 25 billion, up 37% YoY.

Outlook and guidance

• On track to deliver 2026 guidance, requiring 12%-22% CAGR in revenues; gross revenue CAGR guidance of 14–20%.

• 2025 revenue expected to grow more than 10%, with flat take rate and continued double-digit AUC growth.

• EBT margin target for 2026 remains 30%-34%; 2025 efforts focused on expanding ecosystem and margin.

• Net new money target of BRL 20 billion per quarter in Retail for 2025.

• Ongoing share repurchase programs expected to drive EPS growth faster than net income.