StoneCo (STNE) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with 19% revenue growth year-over-year, driven by pricing adjustments, client base expansion, and disciplined execution focused on profitability.

• Adjusted gross profit grew 19% year-over-year, exceeding guidance, while adjusted net income rose 23% and adjusted EPS increased 36% to R$1.97 per share.

• Continued commitment to capital return, with R$843.4 million in share repurchases this quarter and a new R$2 billion buyback program announced.

• Efficiency gains and balanced marketing spend contributed to profitability, with share buybacks reducing outstanding shares.

• Results reinforce confidence in achieving full-year 2025 guidance.

Financial highlights

• Total revenue reached R$3.67 billion, up 19% year-over-year and 1.7% sequentially, despite typical Q1 seasonality.

• Adjusted gross profit was R$1.65 billion, up 19% year-over-year, but down 3% sequentially due to lower TPV and timing mismatches.

• Adjusted net income was R$554.4 million, up 23% year-over-year, with adjusted net margin at 15.1%.

• Adjusted basic EPS was R$1.97, up 36% year-over-year.

• Adjusted net cash position at R$3.8 billion after share buybacks.

Outlook and guidance

• 2025 guidance: adjusted gross profit above R$7.05 billion (+14% y/y), adjusted basic EPS above R$8.6 (+18% y/y).

• 2027 guidance: MSMB TPV above R$670 billion (+14% CAGR), retail deposits above R$14 billion (+17% CAGR), credit portfolio above R$5.5 billion (+66% CAGR), adjusted gross profit above R$10.2 billion (+18% CAGR), adjusted basic EPS above R$15 (+27% CAGR).

• Profitability prioritized over pure volume growth; Pix expected to continue cannibalizing debit volumes but accretive to results.

• No plans to reduce prices despite yield curve tightening; pricing policy remains focused on profitability.

• 1Q25 results reinforce confidence in achieving full-year guidance.