XP (XP) Q3 2025 earnings summary

Executive summary

• Achieved consistent profitability growth in 3Q25, with net income up 12% year-over-year and gross revenue up 9% year-over-year, driven by Corporate & Issuer Services and technology initiatives.

• Client assets reached R$1.9 trillion, a 16% increase year-over-year, and active clients grew 2% to 4.8 million.

• Maintained leadership in investment services, expanding wealth planning, democratizing access to financial advice, and focusing on cross-sell initiatives.

• Focused on high-income and private banking client growth, with a strategic pause and planned resumption in low retail client acquisition.

Financial highlights

• Gross revenues reached R$4.9 billion, up 9% year-over-year and 6% quarter-over-quarter.

• Net income was R$1.3 billion, up 12% year-over-year; EBT also R$1.3 billion, up 10% year-over-year.

• Diluted EPS grew 13% year-over-year, reaching R$8.28.

• ROE was 23%, flat year-over-year; BIS Ratio at 21.2%, CET1 ratio at 18.5%.

• Retail net new money was R$20 billion, corporate/institutional R$9 billion; combined, 3x higher than last quarter.

Outlook and guidance

• Expect continued strong performance in wholesale banking for Q4, with robust pipeline in fixed income offerings.

• Maintain guidance for a BIS ratio between 16%-19% by end of 2026.

• Revenue growth for 2025 may fall short of 10% target but expected to be close; 2026 guidance still seen as achievable with 17%-20% growth needed.

• EBT margin guidance of 30% still considered doable by end of next year, though near-term margins may be flat due to ongoing investments.

• Strategy centers on investment market leadership, expanding product offerings, and deepening client relationships.