PicPay Q2 2026 Earnings Call: Complete Transcript

PicPay (NASDAQ: PICS ) reported second-quarter financial results on Monday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

Access the full call at Summary PicPay reported strong financial performance in Q2 2026, exceeding guidance across major metrics. 7 billion reais, and net interest income was 2 billion reais. 5% above guidance. This was driven by operating leverage and cost discipline.

4 million. 8 billion reais, indicating strong customer engagement and trust. PicPay's revenue mix is shifting towards lower credit risk, with 71% now from secured or low-risk products. Non-credit revenues grew by 57% year over year.

The acquisition of Cover, an insurtech platform, was completed, expected to contribute significantly to PicPay's bottom line and expand its insurance offerings. 3 billion reais. Management highlighted AI as a key driver of operational efficiency and cost savings, with significant productivity gains and a stable workforce since 2025. The company remains optimistic about the macroeconomic environment, with stable employment levels supporting credit quality, and continues to take a disciplined approach to risk management.

Full Transcript OPERATOR Good evening, everyone, and welcome to PicPay's second quarter 2026 earnings conference call. Joining the call today are Eduardo Chedid, Chief Executive Officer; André Cazotto, Chief Financial Officer and Investor Relations Officer; and Danilo Cafaro, Vice President of Consumer Banking. Please note that this presentation may contain forward-looking statements and non-GAAP financial measures. Please refer to the disclaimer on the screen and to the earnings materials available on the Investor Relations section of PicPay's website for additional information.

This call is being recorded, and a replay will be available on the company's website shortly after the conclusion of the call. At this time, I would like to turn the call over to Eduardo Chedid, Chief Executive Officer. Eduardo Chedid — CEO Operator, and welcome, everyone. This is our third earnings call as a public company, and I'm proud to share another quarter of strong execution across our platform.

Before we get into the results, I want to say a few words about our CFO transition. As we announced in early August, André Cazotto has succeeded Rodrigo Coto as our Chief Financial Officer. This transition is the result of a planned succession process, and I'm confident in the strength and continuity of our leadership team. Rodrigo played a key role in a critical phase of PicPay's evolution, strengthening our finance organization, leading our Sarbanes-Oxley preparation, and being instrumental in our successful IPO in January.

He has been a tremendous partner, and I'm glad he will continue working with us as Special Advisor through year-end. Cazotto brings over 20 years of experience in payments and financial services and has been with PicPay since 2021, leading the capital markets workstream for our NASDAQ listing, investor relations, and M&A. He has deep institutional knowledge and strong relationships with our financial stakeholders. Cazotto, I'm confident you are the right person for this role.

Welcome, and best of luck as we enter this new chapter together. André Cazotto — Chief Financial Officer Thank you, Eduardo. It's a privilege to step into this role at such an exciting moment for the company. I have spent the past few weeks working closely with Rodrigo and our teams to ensure a seamless transition.

What stands out to me is the strength of our financial foundation and the discipline with which this business operates. I'm excited to lead the next phase of PicPay's financial journey. Eduardo Chedid — CEO Thank you, Cazotto. Let's jump into the second quarter results now.

I'm proud of what we delivered in the second quarter. This slide tells the story in one picture: we beat guidance on virtually every metric. 9 billion reais, 3% above the high end of guidance. 9%, aligned within our guidance range.

4% above our guidance range. But the real story is in the profitability. 25 billion reais. 5% above guidance, reflecting strong top-line momentum and continued cost discipline.

That's the story: we delivered on our commitments across the board, with particularly strong beats on the profitability metrics that matter most. Let me start with our operating metrics, which are scaling with consistency. 4 million, up 10% year over year and 3% sequentially. 4 million, reflecting sustained engagement across our base.

6 billion reais, 27% above the prior year and 7% higher sequentially. 6 billion reais, up 19% year over year and 6% quarter over quarter. 4 billion reais, growing 17% versus a year ago and 9% sequentially—on average, more than 45 billion reais per month. 8 billion reais, up 45% year over year and 10% higher than last quarter.

This is a strong signal of increasing trust and principality in our franchise. 1 million, 63% ahead of last year and 9% above Q1, as our insurance vertical continues to scale rapidly. Across every metric: consistent sequential growth on top of already strong comparables. Turning to financials—and this is where the monetization engine really shows its power.

1 billion reais, a 67% increase year over year and 17% higher than last quarter. That's the top line growing fast, but let me highlight what's underneath. 7 billion reais, up 59% year over year and 17% sequentially. That acceleration is driven by secured and partially secured credit origination, deeper card engagement, and a richer fee-based product mix.

RPAC grew to 92 reais per active client, 52% above where we were a year ago and 14% ahead of Q1. 3 reais, showing that even on a like-for-like basis we're monetizing each client significantly more. 25 billion reais, up 48% year over year and 14% higher sequentially. The gap between revenue growth at 67% and cost growth at a fraction of that is the operating leverage this model was built for.

And that leverage shows up clearly in our unit economics. 3 reais per active client, up 13% year over year, but only 5% sequentially. 70 reais per client of opportunistic investments in marketing campaigns for seasonal events that we brought forward from the third quarter. 6 reais, representing only a 1% sequential increase.

Let me put that in perspective: revenue per client expanded 67% year over year, while cost to serve grew just 13%. For every real we invest in serving our clients, we are generating over four reais in revenue. That's the leverage embedded in this model. Adjusted earnings before taxes reached 291 million reais, up 174% year over year and 17% sequentially.

This reflects a business that is scaling efficiently and translating top-line growth into bottom-line results. Adjusted net income was 283 million, up 135% year over year and 67% above last quarter. The sequential jump from 169 million to 283 million reflects strong top-line momentum, continued cost discipline, and the positive tax benefit from Brazil's Lei do Bem incentive program for technology companies. I want to spend a moment on this slide because it captures a planned structural shift in PicPay's revenue mix.

1 billion reais is broken down as 29% from unsecured credit, 24% from secured and partially secured products, 24% from fees and commissions, and 23% from float and hedge accounting. The key number: 71% of our revenues are now driven by no or lower credit risk—float, hedge accounting, fees, commissions, and secured and partially secured credit. That's up from 63% just 12 months ago. Let me say that again: we are growing total revenue 67% year over year while simultaneously building a fundamentally more resilient business.

A more diversified revenue mix, combined with a higher share of collateralized credit revenues, allows us to balance growth across more mature collateralized portfolios while using intentional risk as a lever—growing through small and progressive limits on cards, buy now, pay later on loans, and selectively expanding into slightly higher-risk clusters within private payroll loans. All of this while maintaining the same risk appetite and targeted risk-adjusted returns. Looking at the three revenue engines individually over the last five quarters: secured credit revenues reached 1 billion reais, up 158% year over year and 23% sequentially.

The trajectory from 391 million to 1 billion in 12 months tells the story of our payroll loan franchise reaching meaningful scale. 2 billion reais, up 40% year over year and 11% above last quarter, growing at a strong, deliberate, but measured pace. 9 billion, up 57% year over year and 19% higher sequentially. This is fees, commissions, float, hedge accounting, insurance, and acquiring—all capital-light, all compounding quarter after quarter.

Three engines, three growth vectors, and each one getting stronger on returns. Let me walk you through the two charts on this slide. First, adjusted net income: 283 million reais, up 135% year over year and 67% sequentially. This represents a significant acceleration in profitability as we scale the business.

5% in the previous quarter. Both metrics benefited from the positive impact of Lei do Bem, our R&D tax incentive program, which contributed to the strong quarterly performance. 5 billion reais, up 40% year over year and 12% sequentially. Card engagement continues to deepen as our maturing vintages drive higher spend per user.

8 billion, up 78% year over year and 7% above last quarter. 9 billion reais, up 99% from a year ago and 14% higher sequentially. The consumer book represents 93% of the total, with SMBs and others comprising the remaining 7%. On our Audiences and Ecosystem business unit, we've built a portfolio that lets our users serve most of their daily needs within PicPay.

More reasons to use the app every day drives higher engagement, which creates opportunities to cross-sell financial products and increase customer lifetime value. From shopping and food delivery to travel, entertainment, telecom, and urban mobility, we cover the key journeys of everyday life. One standout example is iGaming. 7 million clients across lucky numbers, national lotteries, and themed World Cup games—all integrated into our ecosystem.

This broader everyday ecosystem increases our relevance, deepens engagement, and strengthens the financial relationship with our customers. On our small and medium businesses segment, we're seeing real momentum across the board. New small and medium business accounts reached 85,000 per month in the first half of 2026, up from 27,000 in the first half of 2025—a threefold acceleration. Supply chain finance is scaling fast.

05 billion reais in the quarter, from 40 million in the last quarter of last year and 693 million just a quarter ago. The trajectory is clear, and the unit economics are attractive. We're also rolling out tap on phone to individual consumers, turning 70 million PicPay users into potential merchants. It's a distribution play that uniquely positions us in the payments value chain.

And we just launched our marketing AI agent: SMBs now can create self-serve ads, and our platform identifies the most relevant customers within the merchant geographic footprint and delivers the ads to them. 7 million individuals reached. AI powering SMBs to boost sales through our base of more than 70 million customers. Danilo, please tell us more about our highlights on consumer finance products.

Danilo Cafaro — Vice President of Consumer Banking Thanks, Eduardo. I'm pleased to share an update on our progress and priorities. Our focus remains serve customers well, build products people value, and grow with discipline. Our day-to-day banking business continues to evolve, reflecting growing customer trust and deeper engagement across payments, credit, and everyday benefits, supported by disciplined execution, thoughtful risk management, and a strong customer experience.

Our investment platform now offers more than 280 products, including investment funds and fixed income. We also launched a brokerage platform that allows customers to buy and sell stocks through our app. We are gradually rolling out the EPIC segment to existing customers. The offer reached 23% penetration of the eligible base this quarter.

EPIC credit cards account for 14% of total card TPV, and 80% of the user base is actively using benefits such as Amazon Prime, Einstein Telemedicine, and Sem Parar toll tags in Brazil. Convenience matters. Whether paying a bill, using telemedicine, or passing through a toll, the experience should be quick and reliable. AI agents are also becoming central to our strategy.

We are the first Brazilian bank with an official plugin in both the Claude and OpenAI ecosystems. We are also rolling out second-generation WhatsApp and in-app agents with more tools, memory, internet access, and sequential multi-step execution. This reinforces our app list strategy, solving broken journeys wherever our users need us with contextual and relevant products and services. Turning to credit, we continue to gain market share by increasing our share of wallet across the products used by our customers.

2% in the credit card portfolio. We still believe we have significant room to grow. 9 billion reais in the second quarter. Eighty-six percent of that growth came from lower-risk loans and mature credit cards.

New cards also almost doubled their contribution to portfolio expansion compared with last quarter, reflecting our progressive limits approach and the maturation of newer card cohorts. Moving to underwriting strategy and cohort performance, we continue to execute our underwriting strategy across two complementary: performance optimization and growth optimization. Progressive limits are becoming a larger share of the portfolio as the cohorts mature. NPL creation in the credit card portfolio is trending better than in the same period last year across both strategies and remains relatively stable versus recent quarters even after considering seasonality.

Cohort performance across both strategies has remained relatively stable in recent quarters, reflecting the resilience of our models and our active risk management approach. In private payroll loans, we resumed increasing originations in growth clusters after regaining confidence in the product's operational maturity and implementing new features since the fourth quarter of 2025. This is increasing the growth strategy mix. Newer cohorts reflect the deliberate incremental risk assumed to accelerate growth while remaining within our approved risk appetite and targeted risk-adjusted returns.

Although we see no relevant early signs of credit deterioration within the same risk groups, we expect portfolio indicators to reflect additional intentional risk taking in private payroll loans and cohort aging and maturation in the coming quarters. These indicators include 90 NPL Stage 3 and cost of risk as a percentage of the total portfolio. As new originations become a smaller share of the outstanding portfolio, their dilution effect on these metrics will naturally decrease. Cazotto will provide further detail on these dynamics in the next session.

Now a deeper dive into our private payroll loans operation. 6 million contracts and well-diversified employer risk. Expected marginal ROEs remain attractive, supported by risk-adjusted pricing and credit-related revenues. We are also seeing better RPAC and cross-selling indicators for these clients, supporting other revenue streams.

We remain confident in our ability to scale this operation with healthy ROEs and risk-adjusted returns. Now I will pass it to André Cazotto, our CFO, to cover our financial results. André Cazotto — Chief Financial Officer Thank you, Danilo. Now let me go over the evolution of our delinquencies metrics and explain the dynamics behind these curves.

On the left-hand side, we show our early NPL, defined as loans between 15 and 90 days past due.