XP (XP) Q4 2024 earnings summary

Executive summary

• Achieved record client assets of BRL 1.22 trillion in 2024, up 9% year-over-year, with 4.7 million active clients (+3% YoY) and 18,200 advisors (+5% YoY), aligned to strategic goals and 2026 guidance.

• Gross revenues reached BRL 18 billion (+15% YoY), with adjusted net income of BRL 4.5 billion (+17% YoY) and adjusted EBT of BRL 5 billion (+26% YoY), both historical highs.

• Strategic focus on expanding client service quality, segmentation, innovative products, and sales team, while maintaining strict cost control and operational efficiency.

• Ecosystem maturity, technology investments, and product innovation drove higher profitability and resilience amid macroeconomic volatility.

• Completed corporate restructuring in November 2024, lowering cost of capital by 35% and enhancing capital returns and funding efficiency.

Financial highlights

• 4Q24 gross revenue was BRL 4.7 billion (+10% YoY); adjusted net income BRL 1.2 billion (+16% YoY); adjusted EBT BRL 1.3 billion (+30% YoY).

• Adjusted diluted EPS for 2024 was BRL 8.28 (+16% YoY); ROTE reached 29.2% (+376 bps YoY); ROE at 23% (+164 bps YoY); BIS ratio at 17.7% after BRL 2 billion in dividends.

• Retail gross revenue grew 14% YoY, with fixed income as the main contributor; Corporate & Issuer Services revenue grew 45% YoY, reaching BRL 2.3 billion.

• Gross margin improved to 69.3% in 4Q24, up 122 bps YoY; full-year gross margin was 68.7%.

• EBT margin expanded to 29.1% for the year (+263 bps YoY), supporting the 2026 target range of 30%-34%.

Outlook and guidance

• On track to deliver 2026 guidance, requiring revenue CAGR of 12%-22% (or 14%-20% gross revenue CAGR); EBT margin target of 30%-34%.

• Expects net new money of BRL 20 billion per quarter in Retail for 2025 and total revenues to grow more than 10% in 2025.

• Flat take rate expected for 2025, with no significant compression anticipated.

• Retail and new verticals expected to continue driving growth, with focus on cross-sell and expanding product offerings.

• Ongoing share repurchase programs expected to drive EPS growth faster than net income.