Slides
Page 1
3Q25 Earnings Presentation 3Q25
Page 2
3Q25 Forward-Looking Statements This document contains "forward-looking statements" within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact may be deemed forward-looking, including, but not limited to, statements regarding our intent, belief, current expectations, plans, strategies, prospects, and growth estimates. These forward-looking statements may include information about possible or assumed future results of our business, financial condition, results of operations, liquidity, strategies, growth, our expectations towards our software assets and our ability to manage them efficiently, plans and objectives. Such statements are based on our current expectations, estimates, and assumptions about future events and can be identified by words such as “believe”, “may”, “will”, “aim”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “forecast”, “plan”, “predict”, “project”, “potential”, “aspiration”, “objectives”, “should”, “purpose”, “belief” and similar expressions, although not all forward-looking statements contain these words. Forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control, that could cause our actual results, performance, or achievements to differ materially from those expressed or implied in these statements. You are cautioned not to place undue reliance on these statements, as reported results should not be considered an indication of future performance. The factors and risks that could cause material differences are detailed in our reports filed with the Securities and Exchange Commission ("SEC"), including the sections entitled "Risk Factors" and "Forward-Looking Statements" in our annual report on Form 20-F. Forward-looking statements speak only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, the occurrence of unanticipated events or otherwise, except as required by law. Non-IFRS Financial Measures This document includes certain non-IFRS financial measures that supplement the financial measures presented in accordance with International Financial Reporting Standards (IFRS). These non-IFRS measures are used by our management to assess operational performance, generate future operating plans, and make strategic decisions. We believe they provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. It is important to note that these non-IFRS measures have significant limitations as financial measures, should be considered supplementary in nature, and are not a substitute for, nor superior to, financial information prepared in accordance with IFRS. Furthermore, they may differ from similarly titled measures used by other companies. For a complete reconciliation of our non-IFRS financial measures to their most comparable IFRS measures and their detailed definitions, please refer to the tables and glossary provided in the Appendix of this document and in our Earnings Release. Other Information Certain market and industry information used in this document was obtained from internal estimates and studies, as well as market research and publicly available information. While we believe such data to be reliable, we do not guarantee its accuracy or completeness. Internal estimates and studies have not been independently verified. The trademarks included are the property of their respective owners. This document is provided for informational purposes only and does not constitute, nor should it be construed as, legal, tax, or investment advice. Disclaimer 2
Page 3
3Q25 3Note 1. Total Revenue and Income (-) Cost of Services (-) Financial expenses, net. Considerers continuing operations only. Note 2. 2025 Guidance reflects share buybacks until the end of June/25 with 271.1mn basic shares on a weighted average basis. Incorporates both continuing and discontinued operations. Note 3. The monthly execution of our share buyback programs is available in the Buyback section of our IR website. Guidance: focus on meeting our goals for 2025 Adj Gross Profit 1 (R$bn) Adj Basic EPS 2 (R$/share) 2025 Guidance Δ% y/y EFFICIENCY | MONETIZATION | GROWTH +14.5% +32% > 6.375 > 9.6 9M25 Results Δ% y/y +15.2% +37% 4.657 6.9 CAPITAL ALLOCATION (as of October 2025) ▪ R$2.8bn distributed to shareholders via buyback and 10% distribution yield (LTM) ▪ 74% of the R$3bn excess capital from 4Q24 deployed via buybacks Basic shares for Adj Basic EPS (mn on a weighted average basis) 271.116 271.103 PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS 3
Page 4
3Q25 X X X X X X 4 Adj Net Income R$mn Note 1. “Consolidated operations” refer to the aggregate of (i) “Continuing operations - Financial Services”, (ii) “Continuing operations from both Financial Services and Software” and (iii) “Discontinued Operations”. Figures for 3Q24 have been adjusted accordingly for comparability purposes. Note 2. ROE is calculated as the quarter's annualized Adjusted Net Income divided by the average of shareholders’ equity, based on the current and the previous quarter. Strong consolidated results fueling ROE expansion Consolidated operations 1 ROE 2 % Adj Basic EPS R$/share 1.97 2.33 2.57 3Q24 2Q25 3Q25 +31% 15% 22% 24% 29% 30% 33% 3Q24 2Q25 3Q25 Consolidated operations Continuing operations - Financial Services +4pp +8pp PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS 568 598 641 587 631 690 3Q24 2Q25 3Q25 Discontinued Operations Continuing operations (Financial Services + Software) X X +18% +13% y/y
Page 5
3Q25 5 Note 1. Continuing operations refer to our Financial Services segment and to certain software assets that were not included in the scope of the software divestments announced in the July 22, 2025 6-K filing, titled "StoneCo Announces Divestment of Software Assets". Consistent execution of our core business strategy Continuing operations 1 X X 3.1 3.5 3.6 3Q24 2Q25 3Q25 +16% X X 1.4 1.6 1.6 46.9% 44.6% 45.0% 3Q24 2Q25 3Q25 Adj Gross Profit Margin +12% Total Revenue and Income R$bn Adj Gross Profit R$bn PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS
Page 6
3Q25 6 Sustained expansion in the MSMB payment client base X X 4.0 4.5 4.7 34% 38% 38% 3Q24 2Q25 3Q25 % Heavy Users +17% X X 101 104 107 13 18 20 114 122 126 3Q24 2Q25 3Q25 MSMB CTPV MSMB PIX QR Code +11% +49.1% y/y +5.8% y/y Note 1. Heavy users are clients that use more than three different products from our payments, banking or credit solutions. 1 MSMB Payments Client Base ‘000 MSMB TPV R$bn PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS
Page 7
3Q25 7 Note 1. Retail Deposits represent the sum of (i) deposits from retail clients, and (ii) on-platform time deposits at the end of each period. More information can be found in Note 5.6.1 of the Financial Statements. Continued client base expansion and increased time deposit level X 6.7 1.5 1.4 7.3 7.6 6.8 8.8 9.0 6.0% 7.2% 7.1% 3Q24 2Q25 3Q25 Time deposits (on-platform) Deposits from retail clients % Retail Deposits over MSMB TPV X X 2.8 3.3 3.5 3Q24 2Q25 3Q25 Time deposits represented 84% of retail client deposits in 3Q25 Banking Active Clients mn Retail Deposits 1 R$bn +32%+22% PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS 6.3 8.3 8.8 Average daily Retail Deposits +40% y/y
Page 8
3Q25 Note 1. Consists of the sum of (i) working capital, and (ii) revolving credit. Note 2. Non-Performing Loans (NPL) is the total outstanding of merchant and credit card contracts, measured from the moment a client fails to pay at least one installment within the specified timeframe. More information can be found in Note 5.4.1 of the Financial Statements. Note 3. Coverage ratio consists of the accumulated loan loss provision expenses of merchant and credit cards over NPL over 90 days. Note 4. Annualized provision for expected credit losses of merchant and credit cards, divided by the average credit portfolio between the current and the previous quarter. Note 5. Defined as quarterly credit revenues converted to a monthly figure, divided by the average credit portfolio between the current and the previous quarter. X X 864 1,616 2,071 192 227 923 1,808 2,298 3Q24 2Q25 3Q25 Merchants Credit Card +27% 1 q/q +28% q/q +18% 1.88% 2.51% 3.12% 3.50% 4.67% 5.03% 3Q24 2Q25 3Q25 15-90 90+ 388% 280% 265% 3Q24 2Q25 3Q25 90+ Credit portfolio expansion with disciplined asset quality Credit Portfolio R$mn NPL 2 % Coverage Ratio 3 % Cost of Risk 4 % 10.2% 20.2% 16.8% 2.6% 2.7% 2.9% 1Q25 2Q25 3Q25 Average monthly credit rate 8 PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS 5
Page 9
3Q25 9 R$mn 3Q25 2Q25 3Q24 Δ% y/y Δ% q/q Total Revenue and Income 3,566.8 3,500.9 3,062.5 16.5% 1.9% Cost of services (817.8) (850.4) (728.7) 12.2% -3.8% % of Total Revenue and Income (22.9%) (24.3%) (23.8%) 90bps 140bps Administrative expenses (223.5) (214.9) (208.9) 7.0% 4.0% % of Total Revenue and Income (6.3%) (6.1%) (6.8%) 50bps (20)bps Selling expenses (527.2) (531.0) (437.2) 20.6% -0.7% % of Total Revenue and Income (14.8%) (15.2%) (14.3%) (50)bps 40bps Financial expenses, net (1,144.1) (1,089.0) (897.0) 27.6% 5.1% % of Total Revenue and Income (32.1%) (31.1%) (29.3%) (280)bps (100)bps Other income (expenses), net (95.6) (111.1) (93.8) 2.0% -13.9% % of Total Revenue and Income (2.7%) (3.2%) (3.1%) 40bps 50bps Effective tax rate (ETR) 15.3% 15.0% 18.6% 330bps (30)bps Adjusted Costs & Expenses Continuing operations Comments on y/y highlights as a % of Total Revenue and Income Decreased 90bps mostly as a result of (i) efficiency gains in logistics, (ii) lower transaction and technology costs, and (iii) lower provisions for acquiring losses, which were partially offset by higher loan loss provisions Declined 50bps due to continued operational leverage in support functions Increased 50bps mainly driven by higher marketing expenses, which were more evenly distributed across quarters this year Expanded 280bps mainly driven by a higher CDI and partially offset by lower average funding costs due to the use of client deposits in our operation Reduced 40bps mainly due to an increase in gains related to the sale of POS Decreased 330bps mainly due to intra-group IOC recognized this quarter and higher benefits from Lei do Bem PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS
Page 10
3Q25 X X ✔ +R$1,056mn of net income plus non-cash expenses 1 ✔ +R$68mn from tax effects ✔ -R$465mn from share buyback ✔ -R$322mn from our credit portfolio, net of provision expenses and interest ✔ -R$274mn of capex ✔ -R$169mn from the non-cash effect from fair value adjustment to accounts receivable from card issuers 2 ✔ -R$34mn from other effects Comments on q/q evolution Note 1. Depreciation and amortization, share-based payments, allowance for expected credit losses, loss on disposal of property, equipment and intangible assets, and loss (gain) on sale of subsidiary. Note 2. The non-cash effect from fair value adjustment to accounts receivable from card issuers flows through Other Comprehensive Income (OCI). Refer to the OCI in our Financial Statement for more information. X4.9 3.7 3.5 3Q24 2Q25 3Q25 -1.4 -0.1 R$465mn deployed in share buybacks in 3Q25 Consolidated operations 10 Adj Net Cash Position R$bn 465 5.6#mn R$mn Share buyback 5.7 398 10.0 745 PAYMENTSCONSOLIDATED RESULTS BANKING CREDIT CASH MANAGEMENTCOSTS & EXPENSESHIGHLIGHTS
Page 11
3Q25 Q&A
Page 12
3Q25 Appendix
Page 13
3Q25 ADJUSTED STATEMENT OF PROFIT AND LOSS FROM CONTINUING OPERATIONS R$mn 3Q25 % Rev 3Q24 % Rev Δ% y/y 2Q25 % Rev Δ% q/q Net revenue from transaction activities and other services 626.0 17.5% 808.5 26.4% (22.6%) 658.1 18.8% (4.9%) Net revenue from subscription services and equipment rental 224.1 6.3% 199.0 6.5% 12.6% 218.9 6.3% 2.4% Financial income 2,544.0 71.3% 1,918.8 62.7% 32.6% 2,409.2 68.8% 5.6% Other financial income 172.7 4.8% 136.2 4.4% 26.8% 214.7 6.1% (19.6%) Total revenue and income 3,566.8 100.0% 3,062.5 100.0% 16.5% 3,500.9 100.0% 1.9% Cost of services 1 (817.8) (22.9%) (728.7) (23.8%) 12.2% (850.4) (24.3%) (3.8%) Cost of services ex. Provision expenses for expected credit losses (731.4) (20.5%) (728.4) (23.8%) 0.4% (768.1) (21.9%) (4.8%) Provision expenses for expected credit losses (86.4) (2.4%) (0.3) (0.0%) n.m. (82.3) (2.4%) 5.0% Financial expenses. net (1,144.1) (32.1%) (897.0) (29.3%) 27.6% (1,089.0) (31.1%) 5.1% Adjusted gross profit 1,604.9 45.0% 1,436.8 46.9% 11.7% 1,561.5 44.6% 2.8% Administrative expenses (223.5) (6.3%) (208.9) (6.8%) 7.0% (214.9) (6.1%) 4.0% Selling expenses (527.2) (14.8%) (437.2) (14.3%) 20.6% (531.0) (15.2%) (0.7%) Other operating income (expense), net (95.6) (2.7%) (93.8) (3.1%) 2.0% (111.1) (3.2%) (13.9%) Gain (loss) on investment in associates (1.2) (0.0%) 0.4 0.0% n.m. (0.5) (0.0%) 139.4% Adjusted profit before income taxes (Adjusted EBT) 757.4 21.2% 697.4 22.8% 8.6% 704.0 20.1% 7.6% Income tax and social contribution (115.9) (3.3%) (129.6) (4.2%) (10.6%) (105.8) (3.0%) 9.5% Adjusted net income for the period 641.5 18.0% 567.8 18.5% 13.0% 598.1 17.1% 7.2% Note 1. Starting from 4Q24, write-offs are recognized under Cost of Services. Summary of Adjustment Statement of Profit and Loss Continuing operations 13
Page 14
3Q25 Statement of Profit & Loss from Continuing Operations (R$mn) 3Q25 Adjusted Adjustments Rationale 3Q25 IFRS 2Q25 IFRS Δ q/q% 3Q24 IFRS Δ y/y% Total revenue and income 3,566.8 - - 3,566.8 3,500.9 1.9% 3,062.5 16.5% Cost of services (817.8) - - (817.8) (850.4) (3.8%) (728.7) 12.2% Financial expenses, net (1,144.1) (3.0) R$1.7mn from earn-out interests on business combinations; and R$1.3mn of financial expenses from fair value adjustments on acquisitions (1,147.1) (1,091.8) 5.1% (899.6) 27.5% Gross Profit 1,604.9 (3.0) - 1,601.9 1,558.7 2.8% 1,434.3 11.7% Administrative expenses (223.5) (10.2) PPA (Purchase Price Allocation) amortization of acquired software companies (233.7) (225.1) 3.8% (219.8) 6.3% Selling expenses (527.2) - - (527.2) (531.0) (0.7%) (437.2) 20.6% Other income (expenses), net (95.6) 56.6 Capital gains on the sale of SimplesVet (39.0) (110.8) (64.8%) (93.8) (58.4%) Gain (loss) on investment in associates (1.2) - - (1.2) (0.5) 138.7% 0.4 n.m. Profit before income taxes 757.4 43.4 - 800.9 691.3 15.8% 683.9 17.1% Income tax and social contribution (115.9) (16.8) Taxes related to the adjusted items (132.7) (104.1) 27.4% (127.1) 4.4% Net Income - Continuing Operations 641.5 26.6 - 668.1 587.2 13.8% 556.8 20.0% Net income - Discontinued Operations 48.4 (1.3) PPA (Purchase Price Allocation) amortization of acquired software companies 47.1 15.8 197.9% (13.9) n.m. Net income - Continuing + Discontinued Operations 689.9 25.3 - 715.3 603.0 18.6¨% 542.9 31.8% P&L Adjustments (Non-IFRS) Continuing operations 14
Page 15
3Q25 Net Income Bridge (R$mn) 3Q25 2Q25 3Q24 Δ% y/y Δ% q/q Net income 668.1 587.2 556.8 20.0% 13.8% Amortization of fair value adjustment 1 11.6 11.4 11.5 0.6% 1.8% Other expenses 2 (55.0) 1.3 2.0 n.m. n.m. Tax effect on adjustments 16.8 (1.7) (2.5) n.m. n.m. Adjusted net income 641.5 598.1 567.8 13.0% 7.2% Note 1. Related to acquisitions. Consists of expenses resulting from the changes of the fair value adjustments as a result of the application of the acquisition method. Note 2. Consists of the fair value adjustment related to associates call option, earn-out interests related to acquisitions, loss of control of subsidiary, divestment of assets and remeasurement of previously held equity in associates. ADJUSTED NET INCOME RECONCILIATION FROM CONTINUING OPERATIONS Adjusted Net Income Reconciliation Continuing operations 15
Page 16
3Q25 3Q25 2Q25 3Q24 Δ% y/y Δ% q/q Adjusted net income – Continuing Operations (R$mn) 641.5 598.1 567.8 13.0% 7.2% Adjusted net income – Discontinued Operations (R$mn) 48.5 32.7 19.1 154.1% 48.3% Adjusted net income – Consolidated Operations (R$mn) 689.9 630.9 586.8 17.6% 9.4% Weighted Average Basic Number of Shares (mn of shares) 264.8 269.2 297.0 (10.9%) (1.7%) Weighted Average Diluted Number of Shares (mn of shares) 272.0 275.9 303.6 (10.4%) (1.4%) Adjusted Basic EPS – Continuing Operations (R$/share) 1 2.39 2.21 1.90 25.6% 8.3% Adjusted Basic EPS – Discontinued Operations (R$/share) 1 0.18 0.12 0.06 197.1% 55.2% Adjusted Basic EPS – Consolidated Operations (R$/share) 1 2.57 2.33 1.97 31.0% 10.6% Note 1. Calculated as Adjusted Net income attributable to owners of the parent (Adjusted Net Income reduced by Adjusted Net Income attributable to Non-Controlling interest) divided by basic number of shares. ADJUSTED EPS Adjusted EPS (Non-IFRS) Consolidated operations 16
Page 17
3Q25 ∙ “Active Payments Client Base”: refers to MSMBs and Large Accounts. Considers clients that have transacted at least once over the preceding 90 days, except for Ton active clients which consider clients that have transacted once in the preceding 12 months. As from 3Q22, does not consider clients that use only TapTon. ∙ “Adjusted Net Cash”: is a non-IFRS financial metric and consists of the following items: (i) Adjusted Cash: Cash and cash equivalents, Short-term investments, Accounts receivable from card issuers, Financial assets from banking solutions and Derivative financial instruments; minus (ii) Adjusted Debt: Retail deposits, Accounts payable to clients, Institutional deposits and marketable debt securities, Other debt instruments and Derivative financial instruments. ∙ “Banking”: refers to our digital banking solution. ∙ “Banking Active Clients”: clients who have transacted at least R$1 in the past 30 days. ∙ “Consolidated Credit Metrics”: refer to metrics for credit cards and merchants, the latter including the sum of working capital and revolving credit. ∙ "Continuing Operations”: refer to our Financial Services segment and to certain software assets that were not included in the scope of the software divestments announced in the July 22, 2025 6-K filing, titled "StoneCo Announces Divestment of Software Assets". ∙ “Credit Portfolio”: is gross of provisions for losses, but net of amortizations. ∙ “CTPV”: means Card Total Payment Volume and refers only to transactions settled through cards. Does not include PIX QR Code volumes. ∙ "Discontinued Operations”: refer to the software assets included in the scope of the software divestments announced in the July 22, 2025 6-K filing, titled "StoneCo Announces Divestment of Software Assets”. ∙ “MSMB segment”: refer to SMBs – small and medium business (online and offline) – and micro-merchants, from our Stone, Pagar.me and Ton products. Considers clients that have transacted at least once over the preceding 90 days, except for Ton active clients which consider clients that have transacted once in the preceding 12 months. As from 3Q22, does not consider clients that use only TapTon. ∙ ”Merchants solution (credit)”: consists of the sum of (i) working capital and (ii) revolving credit. ∙ “PIX QR Code”: includes the volume of PIX QR Code transactions from dynamic POS QR Code and static QR Code from MSMB and Large Accounts merchants, unless otherwise noted. ∙ “Revenue”: refers to Total Revenue and Income net of taxes, interchange fees retained by card issuers and assessment fees paid to payment schemes. ∙ “Retail Deposits”: includes deposits from retail clients and on platform time deposits from banking customers, including MSMB and Large Account clients. ∙ “TPV”: Total Payment Volume. Reported TPV figures consider all card volumes settled by StoneCo, including PIX QR Code transactions from dynamic POS QR Code and static QR Code from MSMB and Large Accounts merchants, unless otherwise noted. Glossary of Terms 17
Page 18
3Q25 Investor Relations investors@stone.co Thank you