XP Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Client Assets: Total client assets (AUM + AUA) reached BRL 2.1 trillion, a 21% year-over-year increase.
Active Clients: 4.8 million active clients, up 2% year-over-year.
Gross Revenues: BRL 4.9 billion, an 8% increase year-over-year.
EBT: BRL 1.4 billion, also up 8% year-over-year.
Net Income: BRL 1.3 billion, a 7% increase year-over-year.
Return on Equity (ROE): 21.7%.
Diluted EPS: Increased by 9% year-over-year.
Capital Ratio: Maintained at a comfortable 20.7%.

2. Strategic Updates and Business Highlights

Buyback Program: Announced a new BRL 1 billion share buyback program; nearly half of the previous program has been executed.
Dividends: Declared BRL 500 million in dividends to be paid in June.
Retail Strategy: Focus on goal-based investing and managed portfolios, with a new value proposition for retail clients.
NPS Recovery: Net Promoter Score (NPS) impacted by prior credit events but showing recovery, currently at 70, with expectations to return to historical levels by year-end.
Management Transition: New CFO Gustavo Vallejo appointed, with former CFO Victor Mansur transitioning to a different role within the company.

3. Forward Guidance and Outlook

Growth Expectations: Confident in achieving double-digit growth for the year despite recent market volatility.
Market Dynamics: Anticipates stabilization in credit spreads and a gradual easing of interest rates, which should support business momentum.
Long-term Goals: Aiming to become Brazil's leader in investments by 2033, with a focus on expanding the client base and enhancing service offerings.

4. Bad News, Challenges, or Points of Concern

Market Volatility: Increased global volatility and widening credit spreads in March negatively impacted local market sentiment and revenues.
NPS Decline: NPS was affected by specific credit events, leading to a temporary dip in customer satisfaction metrics.
Cost Management: While committed to maintaining efficiency, there are concerns about rising SG&A expenses, which increased 14% year-over-year.

5. Notable Q&A Insights

Management Transition: The transition to a new CFO was described as planned, aimed at enhancing banking product expertise.
Credit Spread Recovery: Management does not expect a full recovery of credit spreads in Q2 but remains optimistic about overall growth.
Cost Control: The company is prepared to manage costs effectively to maintain efficiency ratios if revenue growth slows.
Client Investment Trends: Clients are currently favoring short-term fixed income investments, reflecting a cautious approach amid market uncertainties.

Overall, XP demonstrated solid financial performance in Q1 2026, with strategic initiatives aimed at sustaining growth despite external challenges. The management transition and focus on enhancing client services are expected to support long-term objectives.

XP — XP Inc.