Transcript: XP Q2 2026 Earnings Conference Call

XP (NASDAQ: XP ) released second-quarter financial results and hosted an earnings call on Monday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

1 billion, up 8% year-over-year. 4 billion, a 5% increase year-over-year, and an EPS growth of 9% thanks to capital management strategies. XP aims for double-digit growth in 2026 despite geopolitical tensions and market volatility, supported by a diversified revenue base and ongoing product launches. Strategic initiatives include a focus on personalized financial services, expansion in small and medium-sized enterprise offerings, and enhancing the client experience.

The wholesale banking segment showed strong growth, with revenues up 32% year-over-year, driven by corporate segment performance. 3% and actively executed share buybacks totaling 1 billion reais, with further buybacks planned. Cost efficiency remained a focus, with SG&A increasing only slightly and a target to maintain flat efficiency and compensation ratios for the full year. Management expressed confidence in the underlying resilience and growth potential of the retail and corporate segments, with expectations of stable market conditions moving forward.

Full Transcript Andrea Parisi, Investor Relations Officer Good evening, everyone. I'm Andrea Parisi, Investor Relations Officer at XP. Welcome, and thank you for joining us for our second quarter 2026 earnings call. Today's presentation will be delivered by our CEO, Thiago Maffra, and our CFO, Gustavo Alejo.

Right after the presentation, they will both be available for the Q&A session. During Q&A, your questions will be addressed in the order they are received. Live translation in Portuguese is available; you can enable it by clicking the button below. Before we begin, please take a moment to review the legal disclaimer on page two of today's presentation, which addresses forward-looking statements.

The full presentation is available for download on our Investor Relations website, and you will find additional materials in the SEC Filings section of our IR website. Now I hand it over to Thiago Maffra. Good evening, Maffra. Thiago Maffra, CEO Thank you, Andrea.

Good evening, everyone, and thank you for joining our second quarter 2026 earnings call. I would like to begin by welcoming Gustavo Alejo, our new CFO. He joins us at an exciting time, just after the biggest Expert in our history, an event that showed how far we have come and how much further we aim to go. Now, let's dive into our second quarter 2026 numbers, beginning with the key highlights of the quarter.

2 trillion, representing a 17% year-over-year growth. 8 million, a 1% increase year over year. 1 billion this quarter, up 8% from the same period last year. 4 billion, rising 5% year over year.

5%. 3%, reflecting our ability to grow while maintaining disciplined capital and risk management. Also, our EPS grew 9% year over year, stronger than our net income growth thanks to our capital management and payout strategy. The second quarter of 2026 was again marked by ongoing global geopolitical tensions and residual market volatility.

While these headwinds materialized with less intensity than in the previous quarter, they still impacted our results, particularly through the widening of credit spreads and a reduction in primary GCM offerings. Without these effects, we would have achieved double-digit revenue growth with a low-teens expansion year over year. This demonstrates that despite the market volatility we faced in the first half of the year, our core businesses continued to perform well, with resilient underlying momentum. Towards the end of the quarter, we began to see signs of normalization across markets, along with a gradual recovery in the fixed income pipeline.

We expect this pipeline to materialize into primary offerings over the coming quarters, depending on the market dynamics. That said, depending on how these dynamics evolve, we continue to target double-digit growth throughout 2026, supported by stronger execution across key verticals and a more diversified revenue base. This quarter, we continued to launch products for both individuals and businesses, and our ecosystem is becoming more complete every day. We have a clear ambition to be the investment leader in Brazil by 2033, but that leadership will come hand in hand with increasing completeness in everything we offer to our clients.

This next growth phase is built on personalized service with a focus on financial, tax, and succession planning. Our goal is simple: to be our clients' CFO, covering their full spectrum of financial service needs. Moving on to the next slide, let's take a look at client assets. 2 trillion, representing 17% growth year over year.

On the right side of the slide, you can see how net new money has evolved. In the second quarter of 2026, we again met our soft target of 20 billion in retail net new money, while corporate and institutional inflows came in at 8 billion. Altogether, net new money amounted to 28 billion for the period. While we posted positive results and met our soft guidance, we continue to navigate a challenging environment in 2026.

We are constantly improving our investment platform and, as we have mentioned, enhancing the client experience through numerous initiatives. This combination reinforces our confidence in achieving our ambition of roughly 20 billion in retail net new money per quarter on average. Related to that, it's worth mentioning that our NPS ended the second quarter at 66 points. As mentioned in our previous earnings call, we are on a consistent recovery path from the one-off events that impacted us in former quarters.

This demonstrates the strength of our brand and the trust clients place in our platform, and it gives us an indication that we will return to historical levels over the next quarters. With that, let's now take a deeper dive into the strategic drivers that are shaping our next growth phase. Our comprehensive financial ecosystem is built around long-term relationships. We provide service and personalized advice with excellence across every aspect of our clients' financial lives, from investments to banking solutions.

Many of our clients have needs well beyond investments, and our mission is to provide them with complete solutions. Under this model, the focus shifts from product distribution to building a personalized financial strategy for each investor. Looking ahead, we see the role of the investment advisor at XP undergoing a profound transformation. The professional is no longer just an intermediary of financial products, but is taking on a role closer to that of a wealth consultant, broadly accompanying clients throughout their financial journey.

Given this context, it's crucial to understand personal and family goals, such as retirement and long-term wealth building. The same client-centricity logic that guides us on offerings for individuals also extends to our corporate clients. We have recently launched new initiatives targeting the business segment, always focused on delivering financial management solutions. We already have a very robust corporate segment, and now we are expanding our offering, particularly for small and medium-sized enterprises.

As we have said over the past few quarters, XP is uniquely positioned for this new market environment. We have the largest and most qualified advisor network in Brazil, along with a trusted brand and an innovative DNA — a combination that enables our tech-led scaling and keeps us ahead of the market. On the next slide, we share further details on our strategy across every client segment we serve. Our ambition is to deepen relationships, enhance the completeness of our product offering, and fully meet all of our clients' financial needs.

On the individual side, our focus remains on investments. We continue to deepen our segmentation, offering a specific value proposition for each client layer. We were the first to address a latent market demand and offer a truly model-agnostic approach. Today, we have evolved this concept into a comprehensive wealth planning model — one that allows us to cover our clients across all their financial needs, from investment allocation to estate planning, succession, and beyond.

Under this model, the charging structure naturally aligns as a fee basis, which continues to gain traction. We already have slightly more than 26% of our clients' assets under this framework. On top of that, we are expanding our offshore investment capabilities and making continued progress on new product launches, including ETFs and managed portfolios, all fully aligned with our way of serving clients. At the same time, we are adding credit to our solutions shelf that has already expanded meaningfully over the past few years, during which we introduced numerous innovations in banking and insurance.

I would like to emphasize that this expansion is the continuation of a well-planned strategy, one that has been consistently executed over the years, with the addition of services and solutions for businesses. The same logic holds true, and this is where we see the greatest opportunity. Since these companies and their founders have long been underserved by traditional players, we plan to change that by delivering a complete, modern, and scalable offering. Just as we transformed the investment landscape for individuals, we are now about to do the same for businesses.

We introduce a new standard of high-quality advice, supported by technology and a complete range of products and services designed to tackle the real pain points of a market that has never been fully served. By advising these entrepreneurs with the same depth we bring to individuals, we can help them manage and allocate their cash flow more effectively to grow their businesses. We are now expanding and upgrading our commercial coverage while launching new features for businesses. We recently announced a partnership for a POS device and a credit card geared toward small and medium-sized enterprises.

These are natural extensions of our franchise and a continuation of our strategy that has been underway since 2019, when we obtained our banking license. Finally, I want to emphasize that we execute this strategy with the utmost discipline, ensuring that every step we take remains firmly aligned with our capital ratios and conservative risk approach. With that, I will now hand the call over to Alejo to cover the financial section of the presentation. Gustavo Alejo Viviani, CFO Thank you, Maffra.

It's a pleasure to be here with all of you today. I would like to begin by expressing my sincere appreciation for the warm welcome since joining XP. I'm thrilled to be part of this journey, and I'm looking forward to contributing to our next chapter. Of course.

Now let me walk you through our financial performance for the quarter. 1 billion reais, up 8% year over year and 3% quarter over quarter. Retail growth in the quarter was driven by equities, funds platform, new verticals, and other retail, which expanded at a rapid pace year over year. The wholesale bank division also delivered consistent growth, led by solid performance of our corporate segments.

Now let's move on to retail revenue. 9 billion reais in the quarter, representing an 8% growth year over year and a 3% growth quarter on quarter, reflecting the impact of fixed income corporate credit in Brazil already explained. Excluding these mark-to-market effects, retail revenues would have grown 15% in the first half of 2026 when compared to the same period last year, showing a resilient underlying momentum even with the lower ADTV of equities and futures. 1 billion reais.

Sequentially, equities revenue dropped 2% while ADTV fell approximately 8% in the same period. Funds platform also posted a strong performance this quarter, growing 22% year over year and 7% sequentially due to the booking of management and performance fees this quarter. Also, retail annual performance benefited from stronger contributions from new verticals and different revenue lines included in other retail like floats, international platform, and FX. Now let's move on to the next slide where we'll cover how our wholesale bank is evolving.

Our wholesale segment, including corporate, issuer services, and institutional revenues, grew 32% year over year and 3% sequentially. The market deterioration that began in March and prevailed through April, combined with the lower risk appetite for investors, led to a sharp decrease in the number of new fixed income offerings, particularly tax-exempt fixed income instruments. The reduction in fixed income offerings weighed directly on our issuer services segment, resulting in lower revenues versus both prior year and the previous quarter.

Despite this reduced number of offerings, the corporate segment posted another strong result, with revenues growing 117% year over year and 22% sequentially. Our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives, FX, and credits, continued to support our revenue growth. Finally, our institutional business grew year over year and was relatively flat sequentially. Like retail equities, the segment reflects lower trading volumes during the quarter.

Now let's shift our focus to SG&A and efficiency ratios. 6 billion reais in the second quarter, increasing 5% year over year and 2% quarter over quarter. 3%, an increase of 30 basis points year over year and a decline of approximately 30 basis points sequentially. This quarter we delivered a good efficiency ratio against a more challenging revenues backdrop.

As we move into the second half of the year, we expect the typical effects that lift both revenues and expenses, such as bonus provisions and the Expert event. Despite these effects, we continue to closely monitor the pace of our investments and we still target to deliver a flattish efficiency ratio on a year-over-year basis for full year. 6 billion reais in the second quarter 2026, up 15% year over year and 10% quarter over quarter. We delivered a 32% adjusted EBIT margin, expanding on both a quarterly and yearly basis.

Lower mark-to-market impacts, positive performance across several of our segments, and controlled expenses all contributed to operating leverage, which resulted in a higher EBT and EBIT margin this quarter. On the next slide we present our net income. 4 billion reais in the second quarter, representing a 5% increase compared with both the prior year and the prior quarter periods.

3% in the second quarter 2026, up around 50 basis points sequentially and down around 100 basis points year over year, and our tax rate for the quarter was sequentially higher due to the mix of results, stronger performance results from the corporate line, and less negative mark-to-market impacts from the warehousing book. Now let's move on to the next slide to talk about our earnings per share and returns. Our adjusted diluted earnings per share increased by approximately 9% year over year at a faster pace than our net income growth, reflecting the execution of our share buyback program.

On the right-hand side of the slide you can see our adjusted annualized return on tangible equity and return on equity. Given our lower Basel ratio sequentially, both metrics are higher this quarter when compared to the previous one. With that, I move on to the next slide to talk about our capital management strategy. During the second quarter we continued executing our share buyback program.

As of the end of June we have executed 1 billion reais and closed the previous buyback program. We still have another open program of 1 billion reais which we continue to execute strategically. 5 billion reais in capital distribution already announced in 2026. 3% of our total outstanding shares, further reinforcing our commitment to disciplined capital allocation and returning value to our shareholders.

Now let's move on to the second part of our capital management strategy. On the next slide I'd like to turn to our capital ratio and risk-weighted assets. 1%. As mentioned in our previous earnings calls, throughout 2026 we will operate the business with a high Basel ratio.