StoneCo Ltd. Q1 2026 Earnings Recap

StoneCo's shares edged up 0.8% post-earnings, reflecting a largely in-line quarter marked by stable margins and ongoing credit portfolio growth, though softer merchant dynamics and elevated provisions weighed on upside.

Key Takeaways

• Total revenue grew 6% year-over-year to BRL 3.6 billion, led by expanding credit revenues and solid payment profitability.
• Adjusted gross profit held steady at BRL 1.5 billion despite higher provisions and some one-off expenses including severance costs.
• Non-performing loans exceeded expectations, prompting tightened risk controls and pricing adjustments to preserve credit cohort profitability.
• Elevated churn persisted among clients onboarded in 2025 due to complex bundling and pricing, with management working to simplify offerings to improve retention.
• Capital returns remained significant, with BRL 3.6 billion distributed year-to-date including a large special dividend from the Linx divestiture, and further buybacks planned.