StoneCo (STNE) Q4 2025 earnings summary

Executive summary

• Leadership transitioned from Pedro Zinner to Mateus Scherer, with a focus on simplifying operations and sharpening the core around payments, banking, and credit.

• Software assets (Linx) were divested for over BRL 3 billion to focus on core strengths.

• Adjusted EPS grew 34% year-over-year, and return on equity reached 26% in Q4 2025.

• MSMB and banking segments expanded client bases and deposits, supporting profitability.

• The company remains committed to disciplined capital allocation and returning excess capital to shareholders.

Financial highlights

• Adjusted gross profit for FY2025 was BRL 6.319 billion, up 13.5% year-over-year.

• Adjusted basic EPS was BRL 9.71, a 34% increase year-over-year, exceeding guidance.

• Q4 2025 adjusted net income rose 12% year-over-year; adjusted basic EPS for Q4 was BRL 2.87, up 27%.

• Total revenue and income for Q4 2025 increased 13% year-over-year to BRL 3.7 billion.

• Adjusted gross profit margin for Q4 2025 was 44.6%.

Outlook and guidance

• 2026 adjusted gross profit guidance: BRL 6.6–7.0 billion; adjusted basic EPS: BRL 10.8–11.4.

• 2027 adjusted gross profit guidance: BRL 7.2–8.3 billion; adjusted basic EPS: BRL 11.8–13.4.

• Guidance assumes BRL 2 billion in buybacks for 2026, with Linx proceeds not yet included.

• Priorities for 2026–2027: earnings expansion, scaling credit, and capital return to shareholders.

• Effective tax rate expected in the mid-teens for 2026–2027.