PicS (PICS) Q4 2025 earnings summary

Executive summary

• Delivered strong operational and financial results in Q4 and FY2025, surpassing guidance on all key metrics, with adjusted net income reaching R$502M for the year (+99% YoY) and ROE at 24.4% in Q4.

• Achieved robust growth in total accounts (67M, +11% YoY), active clients (42.7M), and payment volumes, with accelerated credit portfolio expansion, especially in secured products and private payroll loans.

• Completed IPO, strengthening capital structure and enabling further investment in technology, innovation, and ecosystem expansion.

• Diversified revenue streams: 48% from float, fees, commissions, and services; 52% from credit, with insurance and digital wallet operations as key contributors.

• Strategic acquisition of Kovr to accelerate insurance business, pending regulatory approval.

Financial highlights

• Net revenue reached R$10.3B in 2025 (+85% YoY); Q4 net revenue was R$3.0B (+69% YoY), both above guidance.

• Gross profit for 2025 was R$3.6B (+29% YoY); Q4 gross profit was R$1.0B (+38% YoY).

• Adjusted net income was R$502M in 2025 (+99% YoY); adjusted EBT for 2025 was R$591.7M (+71% YoY).

• Deposits increased 44% YoY to R$28.7B in Q4 2025, with cost of funding stable at 93.6% of CDI.

• Credit portfolio reached R$24.1B outstanding (+128% YoY); total TPV for 2025 was R$550B (+31% YoY); personal loan origination was R$11.4B for the year (+67% YoY).

Outlook and guidance

• Q1 2026 guidance: total revenue and financial income ~R$3,150M, gross profit ~R$1,090M, GAAP net income ~R$140M, adjusted net income ~R$155M.

• Cost of risk expected at ~3.7% for Q1 2026; cost of credit projected at 3.5–4% for 2026.

• Priorities for 2026: sustainable, profitable growth, expanding credit penetration, scaling SMB operations, deepening customer engagement, and margin expansion.

• Guidance includes maintaining strong capital ratios (CET1 ~14%, Total Capital Ratio ~16%).