StoneCo Ltd. Q2 FY2025 earnings call

• Strategic Shift: Focus on financial services, with divestment of software assets. The sale of Linx to TOTVS for an enterprise value of BRL 3.05 billion and SimplesVet to PetLove for BRL 155 million. - Q2 2025 Results: Adjusted net income up 27% YOY to BRL 631 million. Revenues from continuing operations grew 20% YOY to BRL 3.5 billion. - Banking and Credit: Active banking clients grew 23% YOY to 3.3 million, deposits up 36% YOY. Credit portfolio grew 25% sequentially to BRL 1.8 billion, with higher provisions for expected losses due to credit portfolio expansion and conservative macro outlook.

Continuing Operations: Revenues from continuing operations grew 20% year-over-year to BRL 3.5 billion. Adjusted net income accelerated to a 27% year-over-year increase, reaching BRL 631 million. The Financial Services segment ROE achieved 30% and the consolidated ROE reached 22%. Discontinued Operations: Software assets accounted for approximately 8% of revenues and 5% of the consolidated bottom line in the first half of 2025.

• Gross profit guidance: Over 14.5% year-over-year growth, surpassing BRL 6.3 billion. - EPS: Expected EPS growth revised from 18% to 32% YOY. Adjusted net income guidance revised upward from BRL 2.4 billion to BRL 2.6 billion. - Capital Return: Committed to returning BRL 3 billion in excess capital to shareholders, with 41% returned by end of June 2025.

• Macro-economic challenges: Higher interest rates and economic deceleration. - Antitrust Approval Risk: Uncertainty around timing of Linx sale approval. - TPV Growth Risk: Potential downside risk to TPV growth due to macro environment and repricing impacts.

Q: How comfortable are you with delivering 2027 guidance given slower TPV growth?

A: Monitoring TPV dynamics closely, but confident in long-term plan despite TPV risks as overall profitability drivers (banking, credit) are strong.

Q: Timing of Linx sale and use of proceeds?

A: Uncertain timing for antitrust approval, but plan to return excess capital to shareholders upon closing of the transaction. Excess capital position and use of proceeds will be clarified upon closing.