XP Inc. Q4 FY2025 earnings call

• Shareholder change: Thiago Maffra and Jose Berenguer, CEO of XP's Wholesale Bank, became holders of XP Control LLC alongside Guilherme Benchimol, Fabricio de Almeida, and Guilherme Sant'Anna as part of strengthening corporate governance. - Business strategy: Invested in key areas, enhanced core processes, scaled financial planning, deepened segmentation, launched new products. Celebrated fifth anniversary of Wholesale Bank. - Service excellence agenda: Spent 2 years developing, scaled in 2025, refined client segmentation, offered tailored models, 23% of retail AUC under fee-based model. - Financial and wealth planning: Offer financial planning for clients with at least BRL 300,000 in AUC and comprehensive wealth planning for those with invested assets above BRL 3 million, pioneering in Brazil. - Expert allocation model: Proprietary tool using algorithmic intelligence for smart asset allocation, adherence growing. - Technology as core pillar: Proprietary platforms and AI-driven capabilities enhance adviser productivity, relationships, asset allocation, and automation. - Adviser network: Created modern investment advisory role in Brazil, invest in 18,000 advisers with tools and training. - Retail investments strategy: Retail segment has opportunities, high income segment strong, Private Banking transitioning to wealth management model with market share gains. - Wholesale Bank evolution: Grew into key pillar, leader in equities, futures, etc., strong in investment banking and credit agribusiness receivables. - Progress agenda: Focus on credit and SMBs, expand product portfolio, improve cross-sell integration.

In 2025, XP had total gross revenues of BRL 19.5 billion, up 8% year-over-year. For the fourth quarter of 2025, total gross revenue was BRL 5.3 billion, a 12% year-over-year increase and 7% sequentially. Retail revenues in the fourth quarter were BRL 3.9 billion, up 8% year-over-year and 4% sequentially. Full-year retail gross revenue was BRL 14.6 billion, up 8% versus 2024. Corporate & Issuer Services revenues in the fourth quarter were BRL 895 million, a 49% year-over-year increase and 23% sequentially. Full-year Corporate & Issuer Services revenue was BRL 2.7 billion, up 19% compared to 2024. Adjusted EBT in the fourth quarter of 2025 was BRL 1.5 billion, up 20% year-over-year. Full-year adjusted EBT was BRL 5.5 billion, up 10% versus 2024. Adjusted net income in the fourth quarter of 2025 was BRL 1.3 billion, and full-year adjusted net income was BRL 5.2 billion, a 15% expansion year-over-year. ROE in 2025 was 23.9%, a 94 basis point expansion versus 2024. The BIS ratio was 20.4%, and adjusted diluted EPS increased by 18% during 2025.

• 2026 guidance: Expect revenues to grow around 17%, net new money to remain around BRL 20 billion per quarter, efficiency ratio to remain stable. Full-year revenue guidance ranges from BRL 22.8 billion to BRL 26.8 billion, implying high teens growth. - Confidence: Believes in achieving guidance with disciplined execution, leveraging service excellence, client relationships, and financial performance.

• Banco Master episode: Concern regarding irregularities, supporting structural improvements in financial system to prevent similar situations. Impact on client behavior and internal controls reviewed to improve processes.

Q: Eduardo Rosman from BTG asked about ambition to be Brazil's leading investment platform by 2033 and entry into controlling group.

A: Thiago Maffra said it's about market share, aiming for 2033, driven by third wave strategy; entry into controlling group means stronger alignment but no big change in management.

Q: Thiago Bovolenta Batista from UBS asked about CVM's recommendation on internalization of orders and taxes.

A: Thiago Maffra said CVM's recommendation is positive for RRP business; Victor Mansur explained taxes related to revenue mix, higher taxes from issuer services and corporate banking.

Q: Gustavo Schroden from Citi asked about FGC reimbursements and NPS decline.

A: Thiago Maffra said FGC reimbursements have high retention, NPS decline temporary due to events like Ambipar structured notes and Banco Master news.

Q: Guilherme Grespan from JPMorgan asked about outlook for 2026 and performance sustainability.

A: Victor Mansur said Corporate Solutions & Issuer Services performance sustainable, but impact of risk asset performance on revenues still early.

Q: Marcelo Mizrahi from BBI Bradesco asked about guidance and RWA.

A: Thiago Maffra said guidance holds, Victor Mansur explained RWA and payout policy.

Q: Daer Labarta from Goldman Sachs asked about 2026 revenue guidance.

A: Thiago Maffra said 2026 revenue growth expected around 17%, net new money around BRL 20 billion.

Q: Pedro Leduc from Itau asked about SG&A priorities.

A: Victor Mansur said priorities include adviser expansion, technology investments in AI for CRM and adviser productivity.

Q: Antonio Gregorin Ruette from Bank of America asked about taxes and AI.

A: Victor Mansur explained tax mix related to revenue segments; Thiago Maffra said AI is to enhance advisers, not replace them.

Q: Daniel Vaz from Safra asked about aftermath of Banco Master.

A: Thiago Maffra said clients didn't lose money, internal controls reviewed, no big change in client investment behavior post-event