6-K
XP Inc. (XP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2025
Commission File Number: 001-39155
XP Inc.
(Exact name of registrantas specified in its charter)
20, Genesis Close
Grand Cayman, George Town
Cayman Islands KY-1-1208
+55 (11) 3075-0429
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| XP Inc. | |
|---|---|
| By: | /s/ Victor Andreu Mansur Farinassi |
| Name: Victor Andreu Mansur Farinassi | |
| Title: Chief Financial Officer |
Date: May 20, 2025
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated May 20, 2025 – XP Inc. Reports First Quarter 2025 Financial Results. |
| 99.2 | XP Inc. – 1Q25 Earnings Presentation. |
EXHIBIT 99.1
 |
|---|
XP Inc. Reports First Quarter 2025Results
São Paulo, Brazil, May 20, 2025 – XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading tech-enabled platform and a trusted pioneer in providing low-fee financial products and services in Brazil, reported today its financial results for the first quarter of 2025.
Summary
| Operating Metrics (unaudited) | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Total Client Assets (in R$ bn) | 1,328 | 1,177 | 13% | 1,286 | 3% |
| Total Net Inflow (in R$ bn) | 24 | 13 | 79% | 29 | -19% |
| Annualized Retail Take Rate | 1.25% | 1.24% | 2 bps | 1.33% | -8 bps |
| Active Clients (in '000s) | 4,693 | 4,587 | 2% | 4,684 | 0% |
| Headcount (EoP) | 7,356 | 6,579 | 12% | 7,442 | -1% |
| Total Advisors (in '000s) | 18.1 | 17.7 | 2% | 18.2 | -1% |
| Retail DATs (in mn) | 2.2 | 2.2 | 3% | 2.4 | -7% |
| Retirement Plans Client Assets (in R$ bn) | 83 | 73 | 15% | 81 | 3% |
| Cards TPV (in R$ bn) | 12.1 | 11.3 | 7% | 13.1 | -8% |
| Credit Portfolio (in R$ bn) | 22.2 | 22.5 | -1% | 21.2 | 4% |
| Gross Written Premiums (in R$ mn) | 348 | 248 | 40% | 401 | -13% |
| Financial Metrics (in R$ mn) | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
| Gross revenue | 4,557 | 4,270 | 7% | 4,725 | -4% |
| Retail | 3,441 | 3,131 | 10% | 3,569 | -4% |
| Institutional | 344 | 354 | -3% | 332 | 4% |
| Corporate & Issuer Services | 562 | 509 | 11% | 599 | -6% |
| Other | 210 | 276 | -24% | 224 | -6% |
| Net Revenue | 4,345 | 4,053 | 7% | 4,487 | -3% |
| Gross Profit | 2,915 | 2,737 | 6% | 3,109 | -6% |
| Gross Margin | 67.1% | 67.5% | -44 bps | 69.3% | -219 bps |
| EBT | 1,263 | 1,088 | 16% | 1,289 | -2% |
| EBT Margin | 29.1% | 26.9% | 220 bps | 28.7% | 33 bps |
| Adjusted Net Income | 1,236 | 1,030 | 20% | 1,210 | 2% |
| Adjusted Net Margin | 28.4% | 25.4% | 304 bps | 27.0% | 148 bps |
| Adjusted Diluted EPS (in R$) | 2.29 | 1.85 | 24% | 2.23 | 3% |
| Adjusted ROAE¹ | 24.1% | 20.7% | 340 bps | 23.4% | 68 bps |
| Adjusted ROTE^2^ | 30.2% | 25.4% | 474 bps | 29.2% | 101 bps |
1 – Please refer to the Non-GAAP Financial Reconciliation for a detailed breakdown of these adjustments.
2 – Annualized Return on Average Equity.
3 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill
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Operating KPIs
| 1. | INVESTMENTS |
|---|
Client Assets and Net Inflow (in R$ billion)
Client Assets totaled R$1.3 trillion in 1Q25, up 13% YoY and 3% QoQ. Year-over-year growth was driven by R$119 billion net inflow and R$32 billion of market appreciation.
In 1Q25, Net Inflow was R$24 billion, and RetailNet Inflow was R$20 billion, 1% lower QoQ, and 53% higher YoY.
Starting this quarter—and retrospectively back to 1Q24—we began including institutional client assets in our total client assets, which had not been accounted for previously. In addition, we are now also disclosing our assets under management (AuM) and assets under administration (AuA) separately. The combined total of client assets, AuM, and AuC reached R$1.8 trillion, representing a 13% YoY growth.
It’s important to note that the reported net inflow refers exclusively to total client assets and does not include AuM or AuA.
Active Clients (in ‘000s)
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Active clients grew 2% YoY and 0% QoQ, totaling 4.7 million in 1Q25.
Total Advisors (in ‘000s)
Total Advisors connected to XP, including (1) IFAs, (2) XP employees who offer advisory services, (3) Registered Investment Advisors, consultants and wealth managers, among others. As of 1Q25, we had 18.1 thousand Total Advisors, an increase of 2% YoY.
Retail Daily Average Trades (in million)
Retail DATs totaled 2.2 million in 1Q25, up 3% YoY and down 7% QoQ.
NPS
Our NPS, a widely known survey methodology used to measure customer satisfaction, was 73 in 1Q25. Maintaining a high NPS score remains a priority for XP since our business model is built around client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.
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| --- | | 2. | RETIREMENT PLANS | | --- | --- |
R****etirementPlans Client Assets (in R$ billion)
As per public data published by Susep, XPV&P’s individual’s market share (PGBL and VGBL) was stable at 4.9%. Total Client Assets were R$83 billion in 1Q25, up 15% YoY. Assets from XPV&P, our proprietary insurer, grew 16% YoY, reaching R$68 billion.
| 3. | CARDS |
|---|
Cards TPV (in R$ billion)
In 1Q25, Total TPV was R$12.1 billion, a 7% growth YoY, and 8% decrease QoQ, given the usual positive seasonality in the end of the year.
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Active Cards (in ‘000s)
Total Active Cards were 1.4 million in 1Q25, a growth of 13% YoY and 3% QoQ, being 1.0 million Credit Cards and 0.4 million Active Debit Cards.
| 4. | CREDIT^4^ |
|---|
Credit Portfolio (in R$ billion)
Total Credit Portfolio reached R$22 billion as of 1Q25, decreasing 1% YoY and growing 4% QoQ. Currently, this Credit Portfolio is 80% collateralized with Investments.
4 - From 3Q22 onwards, the credit portfolio is disclosed gross (versus previously net) of loan loss provisions, also retroactively, not including Intercompany transactions and Credit Card related loans and receivables
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| --- | | 5. | INSURANCE | | --- | --- |
Gross Written Premiums (in R$ million)
Gross written premiums (GWP) refer to the total amount of premium income that XPs has written or sold during a particular reporting period before deductions for provisions, reinsurance and other expenses. This figure represents the total premiums that customers have agreed to pay for life insurance policies issued by the company, or sold by the company and issued by third-party insurers, including both new policies and renewals. It is a crucial metric for assessing the total business volume of an insurance company or insurance broker within that period.
In the 1Q25, Gross Written Premiums grew 40% YoY and decrease 13% QoQ.
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Discussion of Financial Results
Total Gross Revenue^1^
Gross revenue reached R$4.6 billion in 1Q25, reflecting a 4% decrease quarter-over-quarter (QoQ) and a 7% increase year-over-year (YoY). Annual growth was primarily driven by our Retail and Corporate & Issuer Services.
Retail Revenue
| (in R$ mn) | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Retail Revenue | 3,441 | 3,131 | 10% | 3,569 | -4% |
| Equities | 959 | 1,128 | -15% | 1,001 | -4% |
| Fixed Income | 1,015 | 704 | 44% | 985 | 3% |
| Funds Platform | 322 | 316 | 2% | 364 | -11% |
| Retirement Plans | 107 | 95 | 12% | 103 | 4% |
| Cards | 319 | 297 | 8% | 333 | -4% |
| Credit | 82 | 55 | 48% | 81 | 1% |
| Insurance | 53 | 45 | 17% | 58 | -8% |
| Other Retail | 584 | 490 | 19% | 645 | -10% |
| Annualized Retail Take Rate | 1.25% | 1.24% | 2 bps | 1.33% | -8 bps |
Retail revenue reached R$3,441 million in 1Q25, marking a 4% decrease quarter-over-quarter (QoQ) and a 10% increase year-over-year (YoY). YoY growth was driven by (1) another strong quarter in fixed income, which grew 44%, and (2) Other Retail revenues, which include float, FX transactions, digital account, consortium, global investments, among others. For the first time, fixed income became the largest revenue contributor within retail. However, this was partially offset by a 15% decline in equities revenue YoY.
Take Rate
Annualized Retail Take Rate was 1.25% in 1Q25, 8 bps lower QoQ and 2 bps higher YoY.
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Institutional Revenue
Institutional revenue was R$344 million in 1Q25, up 4% QoQ and 3% lower YoY.
Corporate & Issuer Services Revenue
Corporate & Issuer Services revenue totaled R$562 million in 1Q25, down 6% QoQ and up 11% YoY.
Even in a scenario of lower industry-wide volumes, we gained market share in the DCM space, which allowed issuer services to deliver relatively stable revenues YoY, marking R$282mn and a decrease of 16% QoQ.
It was a strong quarter for our Corporate, as we captured cross-sell opportunities—mainly in derivatives and energy, posting R$280 million in the quarter, a 23% growth YoY and 7% growth QoQ.
Other Revenue
Other revenue was R$210 million in 1Q25, 6% lower QoQ and 24% lower YoY.
Costs of Goods Sold and Gross Margin^1^
Gross Margin was 67.1% in 1Q25 versus 67.5% in 1Q24 and 69.3% in 4Q24. The sequential decrease in Gross Margin was mainly related to the increase in Expected Credit Losses in the quarter.
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SG&A Expenses^1^
| (in R$ mn) | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Total SG&A | (1,417) | (1,416) | 0% | (1,577) | -10% |
| People | (970) | (1,007) | -4% | (1,087) | -11% |
| Salary and Taxes | (439) | (432) | 2% | (390) | 13% |
| Bonuses | (383) | (410) | -7% | (582) | -34% |
| Share Based Compensation | (148) | (164) | -10% | (115) | 29% |
| Non-people | (447) | (410) | 9% | (490) | -9% |
| LTM Compensation Ratio^5^ | 23.1% | 25.2% | -206 bps | 23.7% | -61 bps |
| LTM Efficiency Ratio^6^ | 34.1% | 36.5% | -239 bps | 34.7% | -58 bps |
| Headcount (EoP) | 7,356 | 6,579 | 12% | 7,442 | -1% |
SG&A expenses totaled R$1.4 billion in 1Q25, 10% lower QoQ, and flat YoY.
Our last twelve months (LTM) compensation ratio^5^in 1Q25 was 23.1%, an improvement from 25.2% in 1Q24 and from the 23.7% in 4Q24. Also, our LTM efficiency ratio^6^reached 34.1% in 1Q25, the lowest level since our IPO, reinforcing once again our focus on cost discipline and efficient expenses management. We have been making continued gains in operating leverage as we scale our business, even considering new investments to enhance our platform, such as improvements in our banking product offering and new hirings of internal advisors.
Earnings Before Taxes^1^
EBT was R$1,263 million in 1Q25, 2% lower QoQ and up 16% YoY. EBT Margin was 29.1%. Our EBT Margin was 33 bps lower QoQ, and 220 bps higher YoY.
Adjusted Net Income and Adjusted EPS^1^
In 1Q25, Adjusted Net Income reached a recordof R$1.2 billion, showing a 2% QoQ and a 20% rise YoY. Adjusted Basic EPS was R$2.31, reflecting a 3% QoQ growth and an 23% YoY increase. Adjusted diluted EPS was R$2.29 for the quarter, up 3% QoQ and 24% YoY. Earnings per share have been growing faster than net income as a result of the share buyback programs we have executed over the past few years.
Adjusted ROTE^1,7^ and Adjusted ROAE^1,8^
5 - Compensation ratio is calculated as People SG&A (Salary and Taxes, Bonuses and Share Based Compensation) divided by Net Revenue.
6 - Efficiency ratio is calculated as SG&A ex-revenue from incentives from Tesouro Direto, B3, and others divided by Net Revenue.
7 – Annualized Return on Tangible Common Equity, calculated as Annualized Net Income over Tangible Common Equity, which excludes Intangibles and Goodwill, net of deferred taxes.
8 – Annualized Return on Average Equity.
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We now present Return on Tangible Equity, which excludes Intangibles and Goodwill. We believe this metric allows a more meaningful comparison with our peers.
In 1Q25, annualized Adjusted ROTE^7^ was 30.2%, up 101 bps QoQ and up 474 bps YoY. Our annualized Adjusted ROAE^8^ in 1Q25 was 24.1%, up 68 bps QoQ and up 340 bps YoY.
Capital Management^9^
In 1Q25 our BIS Ratio was 19.0%, 127 bps higher QoQ and 182 bps lower YoY. While our total RWA was R$101.5 billion, with a 4% decrease QoQ and 19% increase YoY. Today, we also have announced a new share buyback program of R$1billion. It is part of our capital distribution plan, aligned with our guidance target of BIS Ratio to operate the business between 16% and 19% in 2026.
9 – Managerial BIS Ratio is calculated using the same methodology as the BIS Ratio for our Prudential Conglomerate. However, it is based on the total assets and equity of the entire group.
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Other Information
Webcast and Conference Call Information
The Company will host a webcast to discuss its fourth quarter financial results on Tuesday, May 20^th^, 2025, at 5:00 pm ET (6:00 pm BRT). To participate in the earnings webcast please subscribe at 1Q25 Earnings Web Meeting. The replay will be available on XP’s investor relations website at https://investors.xpinc.com/
Investor Relations Contact
Important Disclosure
In reviewing the information contained in this release, you are agreeing to abide by the terms of this disclaimer. This information is being made available to each recipient solely for its information and is subject to amendment. This release is prepared by XP Inc. (the “Company,” “we” or “our”), is solely for informational purposes. This release does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities. In addition, this document and any materials distributed in connection with this release are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
This release was prepared by the Company. Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this release or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. The information and opinions contained in this release are provided as at the date of this release, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information in this release is in draft form and has not been independently verified. The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this release and any errors therein or omissions therefrom. Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any.
The information contained in this release does not purport to be comprehensive and has not been subject to any independent audit or review. Certain of the financial information as of and for the periods ended of December 31, 2021 and December 31, 2020, 2019, 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements. A significant portion of the information contained in this release is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company’s internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results.
Statements in the release, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. These risks and uncertainties include factors relating to: (1) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business; (2) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future; (3) competition in the financial services industry; (4) our ability to implement our business strategy; (5) our ability to adapt to the rapid pace of technological changes in the financial services industry; (6) the reliability, performance, functionality and quality of our products and services and the investment performance of investment funds managed by third parties or by our asset managers; (7) the availability of government authorizations on terms and conditions and within periods acceptable to us; (8) our ability to continue attracting and retaining new appropriately-skilled employees; (9) our capitalization and level of indebtedness; (10) the interests of our controlling shareholders; (11) changes in government regulations applicable to the financial services industry in Brazil and
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elsewhere; (12) our ability to compete and conduct our business in the future; (13) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors; (14) changes in consumer demands regarding financial products, customer experience related to investments and technological advances, and our ability to innovate to respond to such changes; (15) changes in labor, distribution and other operating costs; (16) our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us; (17) other factors that may affect our financial condition, liquidity and results of operations. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements included herein speak only as at the date of this release and the Company does not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, the Company and its affiliates, officers, employees and agents do not undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and we do not intend to update any of these forward-looking statements.
Market data and industry information used throughout this release are based on management’s knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management’s review of industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this release involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information.
The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction.
This release includes Adjustments to Reported Net Income, which is non-GAAP financial information. We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. We also believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards (“IFRS”) results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Further, investors regularly rely on non-GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results. The non-GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparative purposes is limited. A reconciliation of such non-GAAP financial measures to the nearest GAAP measure is included in this release.
For purposes of this release:
“Active Clients” means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (Europe) brands, with Client Assets above R$100.00 or that have transacted at least once in the last thirty days. For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one “active client” for each such account. For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two “active clients” for purposes of this metric.
“Client Assets” means the market value of all client assets invested through XP’s platform and that is related to reported Retail Revenue, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão de Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Float Balances), among others. Although Client Assets includes custody from Corporate Clients that generate Retail Revenue, it does not include custody from institutional clients (asset managers, pension funds and insurance companies).
Rounding
We have made rounding adjustments to some of the figures included in this release. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
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Unaudited Managerial Income Statement (in R$mn)
| Managerial Income Statement | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Total Gross Revenue | 4,557 | 4,270 | 7% | 4,725 | -4% |
| Retail | 3,441 | 3,131 | 10% | 3,569 | -4% |
| Equities | 959 | 1,128 | -15% | 1,001 | -4% |
| Fixed Income | 1,015 | 704 | 44% | 985 | 3% |
| Funds Platform | 322 | 316 | 2% | 364 | -11% |
| Retirement Plans | 107 | 95 | 12% | 103 | 4% |
| Cards | 319 | 297 | 8% | 333 | -4% |
| Credit | 82 | 55 | 48% | 81 | 1% |
| Insurance | 53 | 45 | 17% | 58 | -8% |
| Other | 584 | 490 | 19% | 645 | -10% |
| Institutional | 344 | 354 | -3% | 332 | 4% |
| Corporate & Issuer Services | 562 | 509 | 11% | 599 | -6% |
| Other | 210 | 276 | -24% | 224 | -6% |
| Net Revenue | 4,345 | 4,053 | 7% | 4,487 | -3% |
| COGS | (1,430) | (1,316) | 9% | (1,378) | 4% |
| Gross Profit | 2,915 | 2,737 | 6% | 3,109 | -6% |
| Gross Margin | 67.1% | 67.5% | -44 bps | 69.3% | -219 bps |
| SG&A | (1,409) | (1,406) | 0% | (1,567) | -10% |
| People | (970) | (1,007) | -4% | (1,087) | -11% |
| Non-People | (439) | (400) | 10% | (480) | -9% |
| D&A | (74) | (68) | 9% | (60) | 25% |
| Interest expense on debt | (177) | (181) | -2% | (196) | -10% |
| Share of profit in joint ventures and associates | 7 | 7 | 5% | 2 | 204% |
| EBT | 1,263 | 1,088 | 16% | 1,289 | -2% |
| EBT Margin | 29.1% | 26.9% | 220 bps | 28.7% | 33 bps |
| Tax Expense (Accounting) | (27) | (59) | -55% | (79) | -66% |
| Tax expense (Tax Withholding in Funds)^9^ | (177) | (167) | 6% | (185) | -4% |
| Effective tax rate (Normalized) | (14.2%) | (18.0%) | 384 bps | (17.9%) | 375 bps |
| Adjusted Net Income | 1,236 | 1,030 | 20% | 1,210 | 2% |
| Adjusted Net Margin | 28.4% | 25.4% | 304 bps | 27.0% | 148 bps |
10 - Tax adjustments are related to tax withholding expenses that are recognized net in gross revenue.
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Accounting Income Statement (in R$ mn)
| Accounting Income Statement | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Net revenue from services rendered | 1,650 | 1,624 | 2% | 1,912 | -14% |
| Brokerage commission | 473 | 495 | -4% | 522 | -9% |
| Securities placement | 477 | 490 | -2% | 540 | -12% |
| Management fees | 413 | 411 | 1% | 444 | -7% |
| Insurance brokerage fee | 58 | 49 | 17% | 58 | -1% |
| Commission Fees | 241 | 208 | 15% | 317 | -24% |
| Other services | 152 | 128 | 19% | 218 | -30% |
| Sales Tax and contributions on Services | (165) | (157) | 5% | (186) | -12% |
| Net income from financial instruments at amortized cost | (902) | 227 | n.a. | (887) | 2% |
| Net income from financial instruments at fair value through profit or loss | 3,596 | 2,202 | 63% | 3,415 | 5% |
| Total revenue and income | 4,345 | 4,053 | 7% | 4,440 | -2% |
| Operating costs | (1,283) | (1,219) | 5% | (1,276) | 1% |
| Selling expenses | (57) | (32) | 77% | (41) | 37% |
| Administrative expenses | (1,448) | (1,452) | 0% | (1,528) | -5% |
| Other operating revenues (expenses), net | 23 | 9 | 145% | 3 | n.a. |
| Expected credit losses | (146) | (97) | 51% | (102) | 43% |
| Interest expense on debt | (177) | (181) | -2% | (196) | -10% |
| Share of profit or (loss) in joint ventures and associates | 7 | 7 | 5% | 2 | 204% |
| Income before income tax | 1,263 | 1,088 | 16% | 1,301 | -3% |
| Income tax expense | (27) | (59) | -55% | (121) | -78% |
| Net income for the period | 1,236 | 1,030 | 20% | 1,181 | 5% |
15
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| --- |
Balance Sheet (in R$ mn)
| Assets | 1Q25 | 4Q24 |
|---|---|---|
| Cash | 8,226 | 5,611 |
| Financial assets | 321,791 | 321,698 |
| Fair value through profit or loss | 213,089 | 196,185 |
| Securities | 162,095 | 149,985 |
| Derivative financial instruments | 50,994 | 46,200 |
| Fair value through other comprehensive income | 51,001 | 50,880 |
| Securities | 51,001 | 50,880 |
| Evaluated at amortized cost | 57,701 | 74,633 |
| Securities | 5,677 | 2,836 |
| Securities purchased under agreements to resell | 7,901 | 22,057 |
| Securities trading and intermediation | 4,703 | 6,499 |
| Accounts receivable | 928 | 779 |
| Loan Operations | 29,966 | 29,228 |
| Other financial assets | 8,526 | 13,233 |
| Other assets | 10,614 | 10,657 |
| Recoverable taxes | 555 | 453 |
| Rights-of-use assets | 355 | 313 |
| Prepaid expenses | 4,361 | 4,363 |
| Other | 5,344 | 5,528 |
| Deferred tax assets | 2,850 | 2,888 |
| Investments in associates and joint ventures | 3,515 | 3,519 |
| Property and equipment | 319 | 450 |
| Goodwill & Intangible assets | 2,650 | 2,634 |
| Total Assets | 349,966 | 347,457 |
16
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| --- | | Liabilities | 1Q25 | 4Q24 | | --- | --- | --- | | Financial liabilities | 258,017 | 257,965 | | Fair value through profit or loss | 65,457 | 55,301 | | Securities | 18,102 | 15,253 | | Derivative financial instruments | 47,354 | 40,048 | | Evaluated at amortized cost | 192,561 | 202,664 | | Securities sold under repurchase agreements | 54,372 | 71,780 | | Securities trading and intermediation | 20,717 | 18,475 | | Financing instruments payable | 99,622 | 95,248 | | Accounts payables | 871 | 763 | | Borrowings | 3,502 | 1,666 | | Other financial liabilities | 13,477 | 14,731 | | Other liabilities | 70,612 | 69,179 | | Social and statutory obligations | 619 | 1,311 | | Taxes and social security obligations | 516 | 418 | | Retirement plans liabilities | 68,432 | 66,224 | | Provisions and contingent liabilities | 173 | 146 | | Other | 872 | 1,080 | | Deferred tax liabilities | 290 | 265 | | Total Liabilities | 328,920 | 327,410 | | Equity attributable to owners of the Parent company | 21,042 | 20,044 | | Issued capital | 0 | 0 | | Capital reserve | 21,075 | 20,940 | | Other comprehensive income | (549) | (674) | | Treasury | (720) | (222) | | Retained earnings | 1,236 | - | | Non-controlling interest | 4 | 4 | | Total equity | 21,046 | 20,047 | | Total liabilities and equity | 349,966 | 347,457 |
17
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| --- |
Reconciliation of Adjusted Net Income
Adjusted Net Income is a financial measure that reflects the company’s net income, excluding certain non-recurring or non-cash items that management believes do not reflect the company’s core operating performance. In the current period, this includes adjustments related to social charges and deferred tax assets associated with Performance Stock Units (PSUs) that expired unvested.
These adjustments exclude accounting charges that neither impact cash flow nor reflect recurring earnings volatility. By removing these effects, Adjusted Net Income provides a more accurate view of the company’s underlying profitability.
Additionally, in 4Q24, Adjusted Revenue (+R$47mm) and Adjusted SG&A (-R$59mm) also resulted in an Adjusted EBT. These financial measures exclude certain items that management believes are not indicative of the company’s core operating performance. These adjustments relate to one-off impacts from hedging social charges associated with share-based compensation expenses.
By excluding these items, Adjusted Revenue and Adjusted Expenses offer a more accurate representation of the company’s recurring operating results, facilitating comparability across reporting periods.
| (in R$ mn) | 1Q25 | 1Q24 | YoY | 4Q24 | QoQ |
|---|---|---|---|---|---|
| Net Income | 1,236 | 1,030 | 20% | 1,181 | 5% |
| Hedge of Social Charges | - | - | - | 47 | - |
| Social Charges / Hedge of Social Charges | - | - | - | (59) | - |
| Tax Expenses | - | - | - | 41 | - |
| Adjusted Net Income | 1,236 | 1,030 | 20% | 1,210 | 2% |
18
EXHIBIT 99.2
1Q25 Earnings Presentation
2 Important Disclosure IN REVIEWING THE INFORMATION CONTAINED IN THIS PRESENTATION, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER . THIS INFORMATION IS BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT . This presentation is prepared by XP Inc . (the “Company,” “we” or “our”), is solely for informational purposes . This presentation does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities . In addition, this document and any materials distributed in connection with this presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction . This presentation was prepared by the Company . Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this presentation or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information . The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company . The information in this presentation is in draft form and has not been independently verified . The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this presentation and any errors therein or omissions therefrom . Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any . The information contained in this presentation does not purport to be comprehensive and has not been subject to any independent audit or review . Certain of the financial information as of and for the periods ended December 31 , 2019 , 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements . A significant portion of the information contained in this presentation is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate . The Company’s internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results . Statements in the presentation, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward - looking statements . These statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others . By their nature, forward - looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company . Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward - looking statements and there can be no assurance that such forward - looking statements will prove to be correct . These risks and uncertainties include factors relating to : ( 1 ) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business ; ( 2 ) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future ; ( 3 ) competition in the financial services industry ; ( 4 ) our ability to implement our business strategy ; ( 5 ) our ability to adapt to the rapid pace of technological changes in the financial services industry ; ( 6 ) the reliability, performance, functionality and quality of our products and services and the investment performance of investment funds managed by third parties or by our asset managers ; ( 7 ) the availability of government authorizations on terms and conditions and within periods acceptable to us ; ( 8 ) our ability to continue attracting and retaining new appropriately - skilled employees ; ( 9 ) our capitalization and level of indebtedness ; ( 10 ) the interests of our controlling shareholders ; ( 11 ) changes in government regulations applicable to the financial services industry in Brazil and elsewhere ; ( 12 ) our ability to compete and conduct our business in the future ; ( 13 ) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors ; ( 14 ) changes in consumer demands regarding financial products, customer experience related to investments and technological advances, and our ability to innovate to respond to such changes ; ( 15 ) changes in labor, distribution and other operating costs ; ( 16 ) our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us ; ( 17 ) the negative impacts of the COVID - 19 pandemic on global, regional and national economies and the related market volatility and protracted economic downturn ; and ( 18 ) other factors that may affect our financial condition, liquidity and results of operations . Accordingly, you should not place undue reliance on forward - looking statements . The forward - looking statements included herein speak only as at the date of this presentation and the Company does not undertake any obligation to update these forward - looking statements . Past performance does not guarantee or predict future performance . Moreover, the Company and its affiliates, officers, employees and agents do not undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward - looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation . You are cautioned not to unduly rely on such forward - looking statements when evaluating the information presented and we do not intend to update any of these forward - looking statements . Market data and industry information used throughout this presentation are based on management’s knowledge of the industry and the good faith estimates of management . The Company also relied, to the extent available, upon management’s review of industry surveys and publications and other publicly available information prepared by a number of third party sources . All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates . Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information . The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company . The Company is not acting on your behalf and does not regard you as a customer or a client . It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction . This presentation also includes certain non - GAAP financial information . We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations . We also believe that these non - GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards (“IFRS”) results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business . Further, investors regularly rely on non - GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS . We also believe that certain non - GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results . The non - GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements . The non - GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results . As other companies may determine or calculate this non - GAAP financial information differently, the usefulness of these measures for comparative purposes is limited . A reconciliation of such non - GAAP financial measures to the nearest GAAP measure is included in this presentation . For purposes of this presentation : “Active Clients” means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (Europe) brands, with Client Assets above R $ 100 . 00 or that have transacted at least once in the last thirty days . For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one “active client” for each such account . For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two “active clients” for purposes of this metric . “Client Assets” means the market value of all client assets invested through XP’s platform, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda . , XP Advisory Gestão Recursos Ltda . and XP Vista Asset Management Ltda . , as well as by third - party asset managers), pension funds (including those from XP Vida e Previdência S . A . , as well as by third - party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Floating Balances), among others .
Index 1Q25 Financials and Main KPIs 02 Final Remarks 03 01 Key Highlights Q&A 04 Appendix 05
- Key Highlights
5 1Q25 Highlights Notes: 1 – Managerial BIS Ratio, calculated in accordance with Central Brank methodology Starting the Year with New Records 2.11 3.71 6.26 6.25 7.16 8.28 8.67 2019 2020 2021 2022 2023 2024 1Q25 LTM Diluted EPS R$ R$ 1.8 trillion Client’s assets, AUM and AUA ( + 13 % YoY) Core Investment KPIs 1 8 .1 k Total Advisors ( +2% YoY) 4.7 million Active Clients ( +2% YoY) 24.1 % ROE (+ 340bps YoY) 19.0 % BIS Ratio 1 24.0 % Diluted EPS Growth YoY Balance Sheet and Profitability R$ 4.6 billion Gross Revenue ( + 7 % YoY) R$ 1.3 billion EBT (+16% YoY) R$ 1.2 billion Net Income (+20% YoY) Income Statement +31% CAGR Consistently Increasing Profitability
6 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs Starting from our clients’ needs, we will expand our offer to serve their complete financial needs , aiming to break the link of investors with the incumbent banks once and for all. Corporate & SMB Premier Service with Unique Value We want to fully explore the synergy of a Wholesale Bank offer with the investment universe, deepening our relationship with the main economic groups in Brazil.' Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s. ] ]
7 1,177 1,286 1,328 166 186 190 215 233 249 1Q24 4Q24 1Q25 1,558 1,705 1,766 +13% Total Client Assets 1 , AUM and AUA R$ Billion Retail Investments – Consistent Net New Money Serving Clients Wherever and However They Want New Disclosure: Asset Management and Fund Services Businesses. Total Client Assets, AUM and AUA in XP already totaling R$1.8 trillion Total Client Assets (in R$ bn) AUM (in R$ bn) AUA (in R$ bn) Total Client Assets - Net New Money 1 R$ Billion 1 - We have now included institutional client assets in the total client assets figure. Accordingly, previously reported numbers have been adjusted to reflect this change for both client assets and net new money metrics. Institutional and corporate client assets are now reported as a combined figure. 13 20 20 10 4 0 1Q24 4Q24 1Q25 13 29 24 +79% Retail Corporate & Institutional Retail Net New Money of R$20 billion
8 Retail Strategy – Keeping Our Moats Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs Product Platform Best Investment Options – from Fixed - Income to Alternative Investments Equities and Futures Market Share 47 % Equities 50 % Ibov Futures 43 % FX Futures 45 % Options 49 % ETFs Fixed Income Platform Value - Added Services And Accurate Value Proposition Through Large - Scale Financial Planning And Proper Segmentation New Distribution Channels Represented ~60% of Net New Money in 1Q25 Best Financial Advisory Platform 7 th Consecutive Year 1 Higher Productivity Channel Diversification 1 – Awarded by Folha de São Paulo Way of Work Results: - 19% YoY Client Churn +14% YoY Adherence to Recommended Allocation Quality Focus: +21% YoY Top - tier Advisors Financial Planning Advisory Excellence ~50 - 60 % of Brazilian Mid - Sized Banks’s Funding is Distributed Through XP ~ 40 thousand A vg Daily Fixed Income Trades in our Secondary Market Platform >75 Different Issuers Currently Available in the Platform 9 % Current 20 % 2025 Target Penetration of Target Clients Early Indicators +10 p.p NPS +5 0 % Lift in Net New Money
9 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs Starting from our clients’ needs, we will expand our offer to serve their complete financial needs , aiming to break the link of investors with the incumbent banks once and for all. Corporate & SMB Premier Service with Unique Value We want to fully explore the synergy of a Wholesale Bank offer with the investment universe, deepening our relationship with the main economic groups in Brazil.' Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s. ]
10 Retail Cross - Sell Notes: 1 - Active Credit Cards vs. Total Active Clients, 2 – Company Estimates for Peers and Market Average, 3 – Penetration base d on Active Clients from XP and Rico only, 4 - Excluding Credit Cards, 5 - Includes FX, Digital Account, Global Investments, Consortium and Other Insurance Penetration (2)(3) Cards TPV (in R$bn ) Main KPIs 11.3 13.1 12.1 1Q24 4Q24 1Q25 +7% 1Q25 Peers Avg. 30% 50% 248 401 348 1Q24 4Q24 1Q25 +40% 1Q25 Market Avg. 2% 17% 73 81 83 1Q24 4Q24 1Q25 +15% 1Q25 Market Leader 5% 27% 55 81 82 0 2 4 0 50 100 1.1% 1Q24 1.7% 4Q24 1.6% 1Q25 +48% Other New Products Revenue (5) (in R$mm ) 103 213 205 1Q24 4Q24 1Q25 +99% Life Insurance Gross Written Premium (in R$mm ) Retirement Plans Assets (in R$bn ) Credit – NII (4) (in R$mm ) ▪ FX ▪ Digital Account ▪ Global Investments ▪ Consortium Market Share Penetration (1)(2) Expected Credit Losses NIM < 1 % ECL Revenue Contribution with Product Higher Penetration
11 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs Starting from our clients’ needs, we will expand our offer to serve their complete financial needs , aiming to break the link of investors with the incumbent banks once and for all. Corporate & SMB Premier Service with Unique Value We want to fully explore the synergy of a Wholesale Bank offer with the investment universe, deepening our relationship with the main economic groups in Brazil. Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s. ]
12 4Q24 1Q25 Market Leader 16% 17% 18% Wholesale 3,357 3,705 1Q24 LTM 1Q25 LTM Institutional, Corporate and Issuer Services Gross Revenue R$ Million +10% YoY 1Q24 1Q25 Market Leader 10% 12% 31% 16 26 23 32 34 1Q24 2Q24 3Q24 4Q24 1Q25 +117% Investment Banking DCM Volume 1 (in R$bn ) Institutional Broker Dealer – Traded Volume 2 (in R$bn ) Market Share Market Share Note 1 - Source: Anbima, Distribuição de RF; 2 – Source: Bloomberg. 1 st in CRA and FII 3 rd in DCM Volume Industry: - 19% YoY XP: - 8% YoY 2 nd Broker Dealer Corporate Securities (in R$bn ) Market Share Gain Strategic Warehousing Under Different Market Conditions
- 1 Q25 Financials
14 73% 8% 12% 6% 1Q24 76% 7% 13% 5% 4Q24 76% 8% 12% 5% 1Q25 100% 100% 100% Gross Revenue Retail as the Highlight… …+3 p.p YoY out of Total Revenues Gross Revenue Breakdown % Gross Revenue Breakdown R$ Million Retail Institutional Corporate & Issuer Services Other 3,131 3,569 3,441 354 332 344 509 599 562 276 224 210 1Q24 4Q24 1Q25 4,270 4,725 4,557 +7%
15 Fixed Income as the Largest Contributor in Retail for the First Time Ever Retail Revenue Breakdown % Retail Revenue R$ Million 36% 22% 10% 16% 16% 1Q24 28% 28% 10% 16% 18% 4Q24 28% 29% 9% 16% 17% 1Q25 100% 100% 100% Retail Revenue 3,131 3,569 3,441 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 1Q24 4Q24 1Q25 +10% Equities Fixed Income Funds Platform New Verticals Other Retail Double Digit Growth YoY Driven by Strong Fixed Income Activity
16 Corporate & Issuer Services Revenue Corporate & Issuer Services Breakdown R$ Million 228 262 280 280 337 282 1Q24 4Q24 1Q25 509 599 562 +11% Corporate Issuer Services Steady DCM Revenue and Strong Corporate Activity During the Quarter
17 Efficiency and Compensation Ratios 1 LTM % Sales, General & Administrative Expenses (SG&A)¹ and Ratios Notes: 1 – Calculated as SG&A ex - revenue from incentives from Tesouro Direto , B3, and others divided by Net Revenue. 2 – Calculated as People SG&A (Salary and Taxes, Bonuses and Share Based Compensation) divided by Net Revenue;. 1,007 1,087 970 410 490 447 1Q24 4Q24 1Q25 1,416 1,577 1,417 0% People Non - people SG&A¹ R$ Million 28.5% 25.2% 23.1% 40.4% 36.5% 34.1% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Strict Expenses Control Another Record for Efficiency Ratio Compensation Ratio Efficiency Ratio
18 EBT 1 R$ Million 1 - Please refer to the Non - GAAP Reconciliation in the appendix. C onsiders the adjustment in Net Revenue of +R$47mm and SG&A of - R$59mm. Margin EBT Expanded +220bps During the Year Earning Before Taxes (EBT) 1,088 1,289 1,263 0 5 10 15 20 25 30 35 40 45 400 500 600 700 800 900 1,000 1,100 1,200 1,300 26.9% 1Q24 28.7% 4Q24 29.1% 1Q25 +16% EBT Margin
19 1 – Please refer to the Non - GAAP Reconciliation in the appendix All Time High Results in the Quarter… … with Net Income +20% Growth in the Year, and EPS Growth of 24% Adjusted Net Income and EPS Adjusted Net Income 1 R$ Million 1,030 1,210 1,236 0 5 10 15 20 25 30 35 40 45 400 500 600 700 800 900 1,000 1,100 1,200 1,300 25.4% 1Q24 27.0% 4Q24 28.4% 1Q25 +20% Net Margin
20 1Q24 4Q24 1Q25 29% 25% 16% 19% 20% 24% 25.4% 29.2% 30.2% 20.7% 23.4% 24.1% 1Q24 4Q24 1Q25 Adjusted Annualized ROTE¹ and ROAE² % EPS and Return on Tangible Equity Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – Annualized Retur n on Average Equity; 3 – Net Income Attributable to Owners of Parent Company. 4 – Calculated based on Adjusted Net Income ROTE ROAE Net Income and Adjusted EPS 4 Growth YoY % ROTE of 30.2% , driven by +20% YoY Net Income Growth and a R$2 billion dividend in 4Q24 Net Income Diluted EPS (R$) Faster EPS Growth Due to Share Buybacks
21 Consistent Capital Distribution to Shareholders Payout Ratio 1,815 3,542 2,000 498 916 1,354 2022 2023 2024 1Q25 4,458 3,354 Capital Management Today, we are announcing a new share buyback program of R$1 billion . Dividends Paid Share Repurchases Dividends Paid and Share Repurchases R$ Million 2022 2023 2024 2025 - 2026E 51% 114% 74% >50% (1) An additional ~R$400mm was repurchased between April and May, completing the previously announced R$1bn share buyback program. Following this, we canceled 12mm shares held in treasury.
22 18.8% 16.1% 17.3% 1.0% 0.8% 0.8% 0.8% 0.8% 1Q24 4Q24 1Q25 19.8% 17.7% 19.0% VaR 3 of R$33mm, or 16bps of Equity Capital Management Notes: 1 – Managerial BIS Ratio, calculated in accordance with Central Brank methodology, 2 – 1Q25 CET 1 reported by selected peers, 3 – Average Daily VaR,1 day, 95% BIS Ratio 1 0 100 0,010 0,020 0,030 0,015 0,025 0,035 0,000 0,005 50 150 48% 14% 37% 1Q24 40% 36% 24% 4Q24 46% 39% 16% 1Q25 86 106 102 31% 30% 29% 19.0% BIS Ratio, Positively Impacted by New Operational RWA Regulation Common Equity Tier 1 Additional Tier 1 Tier 2 Credit RWA Market RWA Operational RWA RWA % of Total Assets VaR 3 (% of Equity) 15 bps 16 bps 16 bps Peer CET1 2 Avg 11.6% Risk - Weighted Assets and VaR R$ Billion
- Q&A
24 Total Loan Portfolio¹ Note: 1 – Gross of Expected Credit Losses. Total Unsecured Secured R$ billion 22.2 4.5 17.7 Loans 8.3 2.4 5.8 Credit Card 33.8 28.4 5.4 Corporate Securities 64.2 35.3 29.0 Credit Portfolio Main Activities • Investment Banking • Fixed Income Distribution • Corporate Credit
25 Non - GAAP Financial Information Adjusted Net Income QoQ 4Q24 YoY 1Q24 1Q25 (in R$ mn) 5% 1,181 20% 1,030 1,236 Net Income - 47 - - - Hedge of Social Charges (1) - (59) - - - Social Charges / Hedge of Social Charges (2) - 41 - - - Tax Expenses 2% 1,210 20% 1,030 1,236 Adjusted Net Income Adjusted Net Income is a financial measure that reflects the company’s net income, excluding certain non - recurring or non - cash i tems that management believes do not reflect the company’s core operating performance. In the current period, this includes adjustments related to social charges and deferred tax assets associated wi th Performance Stock Units (PSUs) that expired unvested. These adjustments exclude accounting charges that neither impact cash flow nor reflect recurring earnings volatility. By remo vin g these effects, Adjusted Net Income provides a more accurate view of the company’s underlying profitability. Additionally, Adjusted Revenue (+R$47mm) and Adjusted SG&A ( - R$59mm) also resulted in an Adjusted EBT. These financial measures exclude certain items that management believes are not indicative of the company’s core operating performance. These adjustments relate to one - off impacts from hedging social charges associated wit h share - based compensation expenses. By excluding these items, Adjusted Revenue and Adjusted Expenses offer a more accurate representation of the company’s recurr ing operating results, facilitating comparability across reporting periods. (1) Total Revenue and Income (2) Administrative Expenses
1Q25 Earnings Presentation Investor Relations [email protected] https://investors.xpinc.com/