By Brazil Stock Guide – XP Inc. (Nasdaq: XP) reported R$1.38 billion in second-quarter adjusted profit as net inflows jumped 188% and wholesale revenue advanced 32%, according to the company’s earnings release and presentation published Monday.
Adjusted net income rose 5% from a year earlier and matched the sequential growth rate. Adjusted diluted earnings per share increased 9% to R$2.67, outpacing profit growth after the Brazilian financial platform reduced its share count through buybacks.
Gross revenue climbed 8% to R$5.06 billion, while net revenue increased 9% to R$4.88 billion. Adjusted earnings before taxes rose 15% to R$1.57 billion, lifting the EBT margin to 32% from 30.3% a year earlier and 30% in the previous quarter.
The adjusted net margin reached 28.3%, up 50 basis points sequentially but 103 basis points below the 29.4% recorded a year earlier. Gross margin was virtually unchanged from the year-earlier period at 68.6%, while rising from 67.2% in the first quarter.
Inflows accelerate
Total net inflows reached R$28 billion, compared with R$10 billion a year earlier and R$14 billion in the first quarter. Retail accounted for R$20 billion, an increase of 28% from the second quarter of 2025 and 7% sequentially.
Client assets rose 12% to R$1.54 trillion. XP attributed the annual expansion to R$103 billion in cumulative net inflows and R$60 billion in market appreciation.
When assets under management and assets under administration are included, the total reached R$2.17 trillion, 17% higher than a year earlier. Active clients edged up 1% to 4.77 million, while the number of advisers increased at the same pace to 18,400.
The annualized retail take rate declined five basis points to 1.20%, though it increased two basis points from the previous quarter.
Wholesale banking leads growth
Retail revenue advanced 8% to R$3.88 billion. Equities revenue grew 11% to R$1.14 billion, and revenue from the funds platform increased 23% to R$418 million.
Those gains were partly offset by fixed-income revenue, which fell 16% to R$833 million following mark-to-market effects. Cards revenue rose 16% to R$375 million, credit increased 27% to R$105 million and insurance advanced 23% to R$80 million.
Revenue from other retail activities, which includes banking, floating income and newer business lines, climbed 28% to R$813 million.
Wholesale banking revenue rose 32% to R$1.18 billion. The corporate business more than doubled revenue to R$606 million, supported by activity in credit, derivatives, foreign exchange and trading. Issuer-services revenue was R$186 million, while institutional revenue reached R$383 million.
Credit and cards expand
XP’s expanded credit portfolio increased 16% from a year earlier and 5% from the previous quarter to R$77.9 billion.
Card payment volume rose 8% to R$13.5 billion. The company ended the quarter with 1.6 million active cards, including slightly more than 1 million credit cards and about 600,000 debit cards.
Pension client assets increased 18% to R$101 billion. Assets held by XPV&P, the group’s insurer, climbed 34% to R$97 billion, while collected insurance premiums rose 10% to R$489 million.
Costs rise as returns recover sequentially
Selling, general and administrative expenses increased 5% to R$1.64 billion. Personnel expenses rose 9% to R$1.11 billion as salaries and payroll charges climbed 23%, while share-based compensation fell 32%.
XP’s trailing 12-month efficiency ratio was 34.3%, compared with 34% a year earlier. The compensation ratio increased to 23.2% from 22.8%. Headcount rose 13% to 8,491 employees.
Adjusted return on average equity was 22.5%, below 24.4% a year earlier but above 21.7% in the first quarter. Adjusted return on tangible equity reached 27.2%, up from 26.2% sequentially and down from 30% a year earlier.
The managerial BIS capital ratio was 20.3%, while the CET1 ratio remained at 17.1%. XP completed about R$1 billion in share repurchases during the first half and retained a separate R$1 billion buyback program. The company said it remains comfortable bringing its BIS ratio into a target range of 16% to 19% by year-end through capital distributions.
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