Pagbank (PAGS) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw resilient profitability, increased client engagement, and expansion of the multi-product ecosystem across payments, banking, and credit, with diluted non-GAAP EPS up 10% year-over-year.

• Total Payment Volume (TPV) reached R$133.4 billion, up 3% year-over-year, reflecting gradual re-acceleration and ecosystem expansion.

• Credit portfolio expanded 30.7% year-over-year to R$5.1 billion, with portfolio quality remaining strong and NPL90 below market average.

• R$2.0 billion returned to shareholders over the last twelve months via dividends and buybacks, yielding 13.4%.

• Maintained robust profitability and capital strength, supporting long-term strategic ambitions.

Financial highlights

• Net revenue (excluding interchange fees) was R$3.4 billion, up 2% year-over-year, driven by acquiring volume and credit portfolio growth.

• Recurring non-GAAP net income grew 1.9% to R$576 million; diluted non-GAAP EPS rose 9.7% year-over-year to R$2.06.

• Gross profit reached R$2.0 billion, up 2.8% year-over-year and 6% sequentially, with a margin of 59.1%.

• Total deposits increased 15.1% year-over-year to R$42.8 billion.

• Annualized non-GAAP ROE/ROAE was 15.6%, up 0.3 p.p. year-over-year.

Outlook and guidance

• Full-year 2026 guidance maintained: credit portfolio growth of 25% y/y, gross profit growth of 6-9%, and EPS growth of 9-13%.

• Long-term targets for 2029 include R$25 billion credit portfolio, >10% gross profit CAGR, and >16% EPS CAGR.

• Guidance achievement depends on second-half performance and continued cost discipline.