PagSeguro Digital Ltd.
- Open
- 8.83
- Day high
- 8.92
- Day low
- 8.53
- Prev close
- 8.89
- Volume
- 5.5M
- Mkt cap
- $2.4B
- P/E (TTM)
- 6.1
- EPS (TTM)
- $1.42
- P/B
- 0.9
- P/S
- 0.6
- Yield
- 5.73%
- Per share
- $0.50
- ▼Insiders net selling -$685K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions mixed (13F)
PagSeguro Digital Ltd. (PAGS) is a Technology company listed on NYSE. The stock is down 8% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
PagSeguro Digital Ltd. (PAGS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PAGS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.39 | $0.41 | +5.4% | $979M | -2.2% |
| May 12, 2026 | $0.40 | $0.39 | -2.5% | $962M | +1.0% |
| Mar 4, 2026 | $0.42 | $0.43 | +2.4% | $966M | -7.2% |
| Nov 12, 2025 | $0.36 | $0.36 | -0.1% | $921M | -3.3% |
| Aug 14, 2025 | $0.31 | $0.34 | +9.7% | $900M | -3.8% |
| May 14, 2025 | $0.29 | $0.31 | +6.9% | $807M | -10.1% |
| Nov 14, 2024 | $0.29 | $0.31 | +4.7% | $861M | +2.5% |
| Aug 20, 2024 | $0.30 | $0.31 | +3.7% | $792M | +5.4% |
| May 24, 2024 | $0.29 | $0.31 | +9.4% | $869M | +6.7% |
| Mar 7, 2024 | $0.29 | $0.24 | -17.2% | $829M | — |
| Nov 16, 2023 | $0.27 | $0.28 | +3.0% | $786M | -14.8% |
| Aug 24, 2023 | $0.26 | $0.26 | +0.8% | $778M | -10.9% |
PAGS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 23, 2026 | Dutra da Silva Ricardoofficer: Principal Executive Officer | Sell | 25,000 | $9.24 |
| Jul 16, 2026 | Dutra da Silva Ricardoofficer: Principal Executive Officer | Sell | 25,000 | $9.25 |
| Jul 16, 2026 | Dutra da Silva Ricardoofficer: Principal Executive Officer | Sell | 24,160 | $9.22 |
| Apr 21, 2026 | Magnani Alexandre Mrdirector | Sell | 200,000 | $11.26 |
| Mar 31, 2026 | Frias Luisdirector | Buy | 249,250 | $9.99 |
Source: PAGS SEC Form 4 filings, latest Jul 23, 2026. For informational purposes only — not investment advice.
See the full PAGS insider & 13F page →PagSeguro Digital Ltd. company profile
Overview
PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazilian financial technology company founded in 2006 and headquartered in São Paulo. The company went public on the New York Stock Exchange in January 2018. PagSeguro operates as a comprehensive fintech ecosystem in Brazil, combining payment processing services with digital banking solutions. The company has evolved from a traditional payment processor into an integrated financial services platform serving over 33 million clients, including individual consumers, micro-merchants, and small to medium-sized businesses across Brazil and internationally.
Business
PagSeguro operates in Brazil's rapidly growing financial technology sector, providing an integrated ecosystem that combines payment processing and digital banking services. The company's core offering centers around two main business segments: Payment Processing Services (approximately 80% of revenue): The company's flagship PagSeguro Ecosystem serves as a comprehensive payment processing platform for merchants of all sizes. This includes point-of-sale (POS) solutions, online payment gateways, and mobile payment tools. The company processes credit and debit card transactions, handles cash-in solutions, and provides back-office services like sales reconciliation. Their PlugPag solution specifically targets medium and larger merchants, enabling direct integration between POS devices and enterprise resource planning software through Bluetooth connectivity. Digital Banking Services (approximately 20% of revenue): PagBank operates as a full-service digital bank offering checking accounts, savings products, credit cards, loans, and investment options through a mobile app platform. The banking segment has shown rapid growth, with deposits reaching BRL 36.1 billion in 2024. The company issues prepaid, credit, and cash cards, and operates peer-to-peer lending platforms. The company also provides value-added services including fraud protection, business management tools, insurance products for merchants, and cross-border payment solutions for international transactions. PagSeguro's business model creates a closed-loop ecosystem where clients can manage their complete financial needs - from receiving payments to accessing banking services and credit - all within a single integrated platform.
Revenue model
PagSeguro generates revenue through multiple complementary streams within its integrated financial ecosystem. The primary revenue model combines transaction-based fees from payment processing with interest income and service fees from banking operations. In the payments segment, the company earns revenue by charging merchants a percentage fee (take rate) on each transaction processed, typically ranging from 2-4% depending on transaction type and merchant size. This includes fees for credit card processing, debit card transactions, and digital payment solutions. The company also generates revenue from equipment rentals, monthly service fees, and value-added services like fraud protection and business management tools. The banking segment generates revenue through net interest income from its credit portfolio (currently BRL 3.4 billion), deposit spreads, and various banking service fees. The company focuses heavily on secured credit products like payroll loans and credit cards backed by investments, which typically offer higher margins and lower default rates. Additional banking revenue comes from interchange fees on issued cards, investment product commissions, and account maintenance fees. Several factors influence PagSeguro's profitability margins. Positive margin drivers include Brazil's high interest rate environment (which benefits deposit spreads), the company's focus on secured credit products with lower default rates, operational scale efficiencies, and successful repricing strategies in response to competitive pressures. Margin pressures come from intense competition in Brazil's fintech sector, the shift toward serving smaller merchants (which typically have lower transaction volumes), regulatory changes in the Brazilian financial sector, and macroeconomic volatility affecting credit demand and default rates. The company's integrated ecosystem model helps maintain margins by enabling cross-selling opportunities and reducing client acquisition costs across business lines.
Competitive moat
PagSeguro's competitive moat is moderately strong but faces significant challenges in Brazil's highly competitive fintech landscape. The company's primary moat stems from its integrated ecosystem approach, which creates switching costs and network effects by combining payment processing with comprehensive banking services in a single platform. This integration allows the company to cross-sell services, reduce customer acquisition costs, and generate multiple revenue streams from each client relationship. The company benefits from scale advantages in payment processing, with over BRL 518 billion in annual transaction volume providing operational leverage and negotiating power with card networks and financial institutions. PagSeguro's established merchant relationships, particularly with small and medium-sized businesses, create some customer stickiness due to the complexity of switching payment processors and the value of integrated financial services. However, the moat faces substantial competitive threats. Brazil's fintech sector is intensely competitive, with major players including Stone, Mercado Pago (MercadoLibre), and traditional banks like Itaú and Bradesco aggressively expanding their digital offerings. Large technology companies and international payment processors continue to enter the Brazilian market, often with significant capital resources. The regulatory environment also poses challenges, as Brazil's Central Bank has been promoting open banking initiatives that could commoditize payment processing services. The company's moat is further challenged by the relatively low switching costs for payment processing services and the rapid pace of technological change in fintech. While the integrated banking services create some differentiation, many competitors offer similar comprehensive financial platforms. PagSeguro's success depends heavily on execution, continued innovation, and maintaining competitive pricing - factors that can be difficult to sustain over time in such a dynamic market environment.
Risks & safety
PagSeguro demonstrates a reasonable margin of safety with some areas of concern around cash flow generation and competitive positioning. • Liquidity and Solvency: The company maintains adequate liquidity with BRL 154 million in cash and short-term investments, though this represents a decline from previous quarters. Current ratio of 1.51x indicates sufficient short-term liquidity coverage. Debt-to-equity ratio of 0.32x shows conservative leverage levels. • Cash Flow Concerns: Free cash flow has turned negative at -BRL 756 million for 2024, primarily due to significant working capital investments in the growing credit portfolio and deposit base. Operating cash flow of -BRL 568 million raises questions about cash generation efficiency. • Valuation Metrics: The stock appears attractively valued with P/E ratio of 5.8x, EV/EBITDA of 2.1x, and price-to-book ratio of 0.84x. These metrics suggest potential undervaluation relative to growth prospects and profitability. • Profitability: Strong return on equity of 14.4% and healthy EBITDA margins demonstrate operational efficiency. Net income growth of 28% year-over-year shows improving profitability trends. • Other Considerations: The company operates in Brazil's volatile economic environment, exposing it to currency fluctuations, interest rate changes, and regulatory shifts. Credit portfolio growth to BRL 3.4 billion requires careful monitoring of default rates, though the focus on secured products provides some protection.
Recent development
Over the past few years, PagSeguro has executed a strategic transformation from a traditional payment processor into an integrated financial services ecosystem. The company's most significant development has been the rapid expansion of its PagBank digital banking platform, which has grown deposits from BRL 21 billion in 2022 to BRL 36.1 billion in 2024, representing 87% growth over two years. The company has strategically shifted its credit portfolio composition toward secured products, with 70% now consisting of payroll loans, FGTS withdrawals, and credit cards backed by investments. This shift has dramatically improved credit quality, reducing NPL90 rates from 18% to 4.5% within 12 months. Management has cautiously resumed working capital loans and overdraft products for small and medium businesses in 2024. PagSeguro has significantly expanded its presence in the large merchant and e-commerce segment (LMEC), achieving 45% growth in this higher-margin business line. The company has developed cross-border payment capabilities and strengthened its e-commerce solutions, capitalizing on Brazil's growing digital commerce market. Technological innovation has been a key focus, with the company launching facial authentication for payment links, developing Tap on Phone solutions, and executing Brazil's first transaction using DREX (the country's digital currency pilot). The company has also expanded into adjacent services, launching business insurance for merchants and developing integrated solutions with SaaS providers. The company has implemented a strategic repricing initiative across its merchant base to offset the impact of Brazil's high interest rate environment, while simultaneously investing in sales force expansion and technology infrastructure to maintain competitive positioning in the rapidly evolving Brazilian fintech market.
PAGS company profile · for informational purposes only — not investment advice.
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