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XP Inc. receives a Buy rating based on attractive valuation and robust growth prospects amid Brazil's ongoing Selic rate cuts. XP's revenue is set to benefit from client asset growth, retail product expansion, and a diversified corporate segment, despite near-term headwinds from wider credit spreads. Gross margin was 67.2% in Q1 FY26, with operating leverage and higher-margin retail products expected to support largely flat margins in FY2026.

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either XP Inc.A (XP) or Blackstone Inc. (BX). But which of these two stocks offers value investors a better bang for their buck right now?

On June 22, 2026, XP Inc XP shares rose 4.5% today, with the current price at $15.99. The stock has traded within a 52-week range of $14.80 to $23.13.

GF Value™ verdict: 51.9% undervalued with a fair value of $33.21. GF Score™ of 72/100 indicates an above-average potential for long-term returns. Most notable signal: No insider transactions in the last 3 months. Is XP Overvalued or Undervalued? XP Inc XP currently trades at $15.99, while the GF Value™ estimates its fair value at $33.21. This suggests that XP is 51.9% undervalued, indicating a substantial margin of safety for potential investors. However, the GF Valuation label indicates that this stock may also be a possible value trap, prompting investors to think twice before making decisions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation presents an opportunity, it is important to consider the risks involved, particularly given the stock's recent performance and the warning sign from the GF Valuation label. This stock’s potential upside must be weighed against its historical volatility and current market sentiment.

How Does XP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.7x 13.7x (5-Year Median) Forward P/E 7.8x N/A The current P/E (TTM) of 8.7x is significantly below its 5-year median P/E of 13.7x, indicating that the stock is trading below its historical valuation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that XP is undervalued in the context of its historical performance.

What Does XP's GF Score™ Tell Us? Metric Rating GF Score™ 72/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 2/10 Momentum 7/10 The GF Score™ of 72/100 suggests that XP has above-average potential for long-term returns. Its strongest area is growth, with a score of 9/10, indicating robust future prospects. Conversely, the valuation score of 2/10 highlights significant concerns regarding its current pricing compared to intrinsic value, emphasizing caution in the investment approach.

What Are Insiders Doing with XP Stock? In the past three months, there have been no insider transactions in XP Inc XP stock. This lack of activity may suggest that insiders are either confident in the current valuation or are waiting for a more favorable market condition before making any moves. The absence of insider buying could also indicate a lack of urgency to capitalize on the company's current pricing.

What This Means for Investors Based on the GF Value™ assessment, XP Inc XP appears to be undervalued at its current price of $15.99, with a fair value estimation of $33.21. However, potential investors should remain cautious due to the identified risks and the possible value trap indicated by the GF Valuation label.

For the complete analysis, visit the XP Inc XP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is XP's GF Score™?

XP's GF Score™ is 72/100, indicating above-average potential for long-term returns based on key financial metrics.

Is XP overvalued or undervalued?

XP is currently undervalued, trading at $15.99 compared to a fair value of $33.21, representing a potential upside of 51.9%.

What is XP's P/E ratio?

XP's current P/E ratio is 8.7x, which is 37% below its 5-year median of 13.7x, indicating it is trading below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is XP (XP - Free Report) . XP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that XP has a P/B ratio of 2.7. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.01. XP's P/B has been as high as 3.08 and as low as 1.60, with a median of 2.34, over the past year.

Finally, we should also recognize that XP has a P/CF ratio of 11.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. XP's current P/CF looks attractive when compared to its industry's average P/CF of 17.29. Within the past 12 months, XP's P/CF has been as high as 12.54 and as low as 6.71, with a median of 9.85.

Value investors will likely look at more than just these metrics, but the above data helps show that XP is likely undervalued currently. And when considering the strength of its earnings outlook, XP sticks out as one of the market's strongest value stocks.

XP Inc.A (XP - Free Report) closed the last trading session at $19.16, gaining 3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $25.51 indicates a 33.1% upside potential.

The mean estimate comprises 10 short-term price targets with a standard deviation of $2.46. While the lowest estimate of $22.00 indicates a 14.8% increase from the current price level, the most optimistic analyst expects the stock to surge 56.6% to reach $30.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in XP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why XP Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 0.7% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, XP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much XP could gain, the direction of price movement it implies does appear to be a good guide.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is XP (XP - Free Report) . XP is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Another notable valuation metric for XP is its P/B ratio of 2.7. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.12. Over the past 12 months, XP's P/B has been as high as 3.08 and as low as 1.60, with a median of 2.34.

Finally, investors should note that XP has a P/CF ratio of 11.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.69. Over the past 52 weeks, XP's P/CF has been as high as 12.54 and as low as 6.71, with a median of 9.85.

These figures are just a handful of the metrics value investors tend to look at, but they help show that XP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, XP feels like a great value stock at the moment.

XP Inc.A (XP - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for XP Inc.A is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for XP Inc.A imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for XP Inc.AFor the fiscal year ending December 2026, this company is expected to earn $2.06 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for XP Inc.A. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of XP Inc.A to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

SÃO PAULO--(BUSINESS WIRE)--XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading tech-enabled platform and a trusted pioneer in providing low-fee financial products and services in Brazil, reported today its financial results for the first quarter of 2026.

Summary

Operating Metrics (unaudited)

1Q26

1Q25

YoY

4Q25

QoQ

Total Client Assets (in R$ bn)

1,529

1,328

15%

1,491

3%

Total Net Inflow (in R$ bn)

14

24

-39%

32

-55%

Annualized Retail Take Rate

1.18%

1.25%

-7 bps

1.25%

-7 bps

Active Clients (in '000s)

4,790

4,693

2%

4,762

1%

Headcount (EoP)

8,280

7,356

13%

8,093

2%

Total Advisors (in '000s)

18.3

18.1

1%

18.0

2%

Retail DATs (in mn)

2.7

2.2

23%

2.2

21%

Retirement Plans Client Assets (in R$ bn)

98

83

17%

95

3%

Cards TPV (in R$ bn)

13.3

12.1

10%

14.6

-9%

Expanded Loan Portfolio (in R$ bn)

74.3

64.2

16%

78.0

-5%

Gross Written Premiums (in R$ mn)

405

348

16%

502

-19%

Financial Metrics (in R$ mn)1

1Q26

1Q25

YoY

4Q25

QoQ

Gross revenue

4,919

4,557

8%

5,279

-7%

Retail

3,773

3,441

10%

3,862

-2%

Wholesale Bank

1,146

906

26%

1,241

-8%

Other

-

210

-100%

175

-100%

Net Revenue

4,733

4,392

8%

5,017

-6%

Gross Profit

3,179

2,963

7%

3,481

-9%

Gross Margin

67.2%

67.5%

-29 bps

69.4%

-222 bps

EBT

1,418

1,314

8%

1,640

-14%

EBT Margin

30.0%

29.9%

5 bps

32.7%

-273 bps

Adjusted Net Income

1,318

1,236

7%

1,331

-1%

Adjusted Net Margin

27.8%

28.1%

-30 bps

26.5%

132 bps

Adjusted Diluted EPS (in R$)

2.49

2.29

9%

2.56

-3%

Adjusted ROAE2

21.7%

24.1%

-235 bps

22.8%

-108 bps

Adjusted ROTE3

26.2%

30.2%

-391 bps

27.7%

-145 bps

Capital Ratio

20.7%

19.0%

169 bps

20.4%

27 bps

  1 – Please refer to the Non-GAAP Financial Reconciliation.

2 – Annualized Return on Average Equity.

3 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill.

Operating KPIs

1. INVESTMENTS

Client Assets and Net Inflow (in R$ billion)

Client Assets totaled R$1.5 trillion in 1Q26, up 15%YoY and 3% QoQ. Year-over-year growth was driven by R$85 billion net inflow and R$116 billion of market appreciation.

In 1Q26, Net Inflow was R$14 billion, and Retail Net Inflow was R$19 billion, in line with both year-on-year and quarter-on-quarter levels.

Active Clients (in ‘000s)

Active clients grew 2% YoY and 1% QoQ, totaling 4.8 million in 1Q26.

Total Advisors (in ‘000s)

Total Advisors connected to XP, including (1) IFAs, (2) XP employees who offer advisory services, (3) Registered Investment Advisors, consultants and wealth managers, among others. As of 1Q26, we had 18.3 thousand Total Advisors, an increase of approximately 1% YoY.

Retail Daily Average Trades (in million)

Retail DATs totaled 2.7 million in 1Q26, up 23% YoY and 21% QoQ.

NPS

Our NPS, a widely known survey methodology used to measure customer satisfaction, was 61 in 1Q26. The NPS calculation as of a given date reflects the average scores in the prior six months.

2. RETIREMENT PLANS

Retirement Plans Client Assets (in R$ billion)

As per public data published by Susep, XPV&P’s individual’s market share (PGBL and VGBL) was stable at 5%. Total Client Assets were R$98 billion in 1Q26, up 17% YoY. Assets from XPV&P, our proprietary insurer, grew 39% YoY, reaching R$95 billion.

3. CARDS

Cards TPV (in R$ billion)

In 1Q26, Total TPV was R$13.3 billion, a 10% growth YoY and 9% decrease QoQ, given the year-end seasonality in 4Q25.

Active Cards (in ‘000s)

Total Active Cards were 1.5 million in 1Q26, representing a 9% growth YoY and 1% up QoQ, being close to 1.0 million Credit Cards and 0.5 million Active Debit Cards.

4. CREDIT

Expanded Loan Portfolio (in R$ billion)

Expanded Loan Portfolio reached R$74 billion as of 1Q26, expanding 16% YoY and 5% lower QoQ.

5. INSURANCE

Gross Written Premiums (in R$ million)

Gross written premiums (GWP) refer to the total amount of premium income that XPs has written or sold during a particular reporting period before deductions for provisions, reinsurance and other expenses. This figure represents the total premiums that customers have agreed to pay for life insurance policies issued by the company or sold by the company and issued by third-party insurers, including both new policies and renewals. It is a crucial metric for assessing the total business volume of an insurance company or insurance broker within that period.

In 1Q26, Gross Written Premiums grew 16% YoY and decreased 19% QoQ.

Discussion of Financial Results

Total Gross Revenue1

Gross revenue reached R$4.9 billion in 1Q26, reflecting an increase of 8% year-over-year and 7% lower quarter-over-quarter.

The year-over-year growth was driven by equities, retail new verticals, and other retail, with new ventures and floating expanding at a rapid pace. The Wholesale bank division also delivered year-over-year growth.

Retail Revenue

(in R$ mn)

1Q26

1Q25

YoY

4Q25

QoQ

Retail Revenue

3.773

3.441

10%

3.862

-2%

Equities

1.167

959

22%

1.035

13%

Fixed Income

756

1.015

-25%

934

-19%

Funds Platform

392

322

22%

412

-5%

Retirement Plans

118

107

11%

131

-9%

Cards

356

319

12%

398

-11%

Credit

90

82

10%

83

9%

Insurance

59

53

11%

123

-52%

Other Retail

834

584

43%

747

12%

Annualized Retail Take Rate

1,18%

1,25%

-7 bps

1,25%

-7 bps

Retail revenue reached R$3,773 million in 1Q26, representing a 2% decrease quarter-over-quarter and a 10% increase year-over-year.

Retail revenue growth in 1Q26 was supported by increase in equity volumes, driven by higher ADTV in equities and futures. Consequently, Equities revenues increased 13% quarter-over-quarter and 22% when compared to the same period of last year, reaching almost R$1.2 billion. Retail Revenue performance also benefited from strong contributions from float and new verticals, which are reported in the Other Retail line and gained representativeness during the quarter.

Take Rate

Annualized Retail Take Rate was 1.18% in 1Q26, 7bps lower QoQ and YoY.

Wholesale Banking

We now include our Institutional business in the Wholesale segment. Taken together, Corporate, Issuer Services and Institutional grew 26% year-over-year, with revenues totaling R$1,146 million in 1Q26. The YoY performance was driven by a robust Corporate activity, with revenues reaching R$498 million, a 78% increase YoY. Due to high volatility, we were able to serve our clients with more derivatives, foreign exchange and trading solutions, boosting this segment’s revenues.

Other Revenue

Accompanying the final phase of our restructuring, the Other revenue line has become less relevant over the years and ceased to exist, being incorporated in the net interest margin across our business lines.

Costs of Goods Sold and Gross Margin

Gross Margin was 67.2% in 1Q26 versus 69.4% in 4Q25 and 67.5% in 1Q25.

SG&A Expenses

(in R$ mn)

1Q26

1Q25

YoY

4Q25

QoQ

Total SG&A

(1,610)

(1,416)

14%

(1,722)

-6%

People

(1,096)

(970)

13%

(1,140)

-4%

Salary and Taxes

(480)

(439)

9%

(450)

7%

Bonuses

(505)

(383)

32%

(565)

-11%

Share Based Compensation

(111)

(148)

-25%

(124)

-11%

Non-people

(514)

(447)

15%

(582)

-12%

LTM Compensation Ratio4

-23.2%

-22.8%

-39 bps

-22.9%

-26 bps

LTM Efficiency Ratio5

-34.6%

-33.6%

-102 bps

-34.2%

-41 bps

Headcount (EoP)

8,280

7,356

13%

8,093

2%

SG&A expenses totaled R$1.6 billion in 1Q26, 6% lower QoQ, and 14% higher YoY.

Our last twelve months (LTM) compensation ratio4 in 1Q26 was 23.2%. Also, our LTM efficiency ratio5 reached 34.6% in 1Q26.

Earnings Before Taxes

EBT was R$1,418 million in 1Q26, down 14% QoQ and up 8% YoY. The EBT margin was 30.0%, slightly up versus the prior year and lower quarter-over-quarter.

Adjusted Net Income and Adjusted EPS1

In 1Q26, Adjusted Net Income reached R$1.3 billion, roughly stable QoQ and increasing 7% on a year-over-year comparison. Adjusted Basic EPS was R$2.53, 2% lower QoQ growth and 9% higher YoY. Adjusted Diluted EPS was R$2.49 for the quarter, 3% lower QoQ and 9% higher YoY.

Adjusted ROTE1,6 and Adjusted ROAE1,7

In 1Q26 our Adjusted Return on Equity (ROAE) reached 21.7%, while return on tangible equity (ROTE) was 26.2%. Both metrics were down this quarter as we maintained a higher BIS ratio.

Capital Management8

In 1Q26 our BIS Ratio was 20.7%, 27 bps higher QoQ and 169 bps higher YoY, while our total RWA was R$122.2 billion, with a 3% increase QoQ and 20% increase YoY. Our CET1 ratio remains at a comfortable level of 17.5%. During 1Q26, we executed share repurchases of approximately R$200 million. In addition, we are announcing a new buyback program of R$1 billion and new dividends in the amount of R$500 million, to be paid on June 18th, 2026. We are comfortable with getting our BIS ratio to our target range of 16% to 19% toward the end of the year, through capital distributions, while still maintaining a comfortable capital buffer.

  6 – Annualized Return on Tangible Common Equity, calculated as Annualized Net Income over Tangible Common Equity, which excludes Intangibles and Goodwill, net of deferred taxes.

7 – Annualized Return on Average Equity.

8 – Managerial BIS Ratio is calculated using the same methodology as the BIS Ratio for our Prudential Conglomerate. However, it is based on the total assets and equity of the entire group.

Other Information

Webcast and Conference Call Information

The Company will host a webcast to discuss its fourth quarter financial results on Monday, May 18th, 2026, at 5:00 pm ET (6:00 pm BRT). To participate in the earnings webcast please subscribe at 1Q26 Earnings Web Meeting. The replay will be available on XP’s investor relations website at https://investors.xpinc.com/.

Important Disclosure

In reviewing the information contained in this release, you are agreeing to abide by the terms of this disclaimer. This information is being made available to each recipient solely for its information and is subject to amendment. This release is prepared by XP Inc. (the “Company,” “we” or “our”), is solely for informational purposes. This release does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities. In addition, this document and any materials distributed in connection with this release are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This release was prepared by the Company. Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this release or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. The information and opinions contained in this release are provided as at the date of this release, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information in this release is in draft form and has not been independently verified. The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this release and any errors therein or omissions therefrom. Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any.

The information contained in this release does not purport to be comprehensive and has not been subject to any independent audit or review. Certain of the financial information as of and for the periods ended of December 31, 2021 and December 31, 2020, 2019, 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements. A significant portion of the information contained in this release is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company’s internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results.

Statements in the release, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. These risks and uncertainties include factors relating to: (1) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business; (2) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future; (3) competition in the financial services industry; (4) our ability to implement our business strategy; (5) our ability to adapt to the rapid pace of technological changes in the financial services industry; (6) the reliability, performance, functionality and quality of our products and services and the investment performance of investment funds managed by third parties or by our asset managers; (7) the availability of government authorizations on terms and conditions and within periods acceptable to us; (8) our ability to continue attracting and retaining new appropriately-skilled employees; (9) our capitalization and level of indebtedness; (10) the interests of our controlling shareholders; (11) changes in government regulations applicable to the financial services industry in Brazil and elsewhere; (12) our ability to compete and conduct our business in the future; (13) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors; (14) changes in consumer demands regarding financial products, customer experience related to investments and technological advances, and our ability to innovate to respond to such changes; (15) changes in labor, distribution and other operating costs; (16) our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us; (17) other factors that may affect our financial condition, liquidity and results of operations. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements included herein speak only as at the date of this release and the Company does not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, the Company and its affiliates, officers, employees and agents do not undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and we do not intend to update any of these forward-looking statements.

Market data and industry information used throughout this release are based on management’s knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management’s review of industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this release involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information.

The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction.

This release includes Adjustments to Reported Net Income, which is non-GAAP financial information. We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. We also believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards (“IFRS”) results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Further, investors regularly rely on non-GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results. The non-GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparative purposes is limited. A reconciliation of such non-GAAP financial measures to the nearest GAAP measure is included in this release.

For purposes of this release:

“Active Clients” means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (Europe) brands, with Client Assets above R$100.00 or that have transacted at least once in the last thirty days. For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one “active client” for each such account. For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two “active clients” for purposes of this metric.

“Client Assets” means the market value of all client assets invested through XP’s platform and that is related to reported Retail Revenue, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão de Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Float Balances), among others. Although Client Assets includes custody from Corporate Clients that generate Retail Revenue, it does not include custody from institutional clients (asset managers, pension funds and insurance companies).

Rounding

We have made rounding adjustments to some of the figures included in this release. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

Unaudited Managerial Income Statement (in R$ mn)

Managerial Income Statement

1Q26

1Q25

YoY

4Q25

QoQ

Total Gross Revenue

4.919

4.557

8%

5.279

-7%

Retail

3.773

3.441

10%

3.862

-2%

Equities

1.167

959

22%

1.035

13%

Fixed Income

756

1.015

-25%

934

-19%

Funds Platform

392

322

22%

412

-5%

Retirement Plans

118

107

11%

131

-9%

Cards

356

319

12%

398

-11%

Credit

90

82

10%

83

9%

Insurance

59

53

11%

123

-52%

Other Retail

834

584

43%

747

12%

Wholesale

1.146

906

26%

1.241

-8%

Issuer Services

269

282

-5%

404

-33%

Corporate

498

280

78%

491

1%

Institutional

379

344

10%

346

9%

Other

-

210

-100%

175

-100%

Net Revenue

4.733

4.392

8%

5.017

-6%

COGS

(1.554)

(1.429)

9%

(1.536)

1%

Gross Profit

3.179

2.963

7%

3.481

-9%

Gross Margin

67,2%

67,5%

-29 bps

69,4%

-222 bps

SG&A

(1.609)

(1.408)

14%

(1.703)

-6%

People

(1.096)

(970)

13%

(1.140)

-4%

Non-People

(512)

(438)

17%

(563)

-9%

D&A

(68)

(72)

-5%

(63)

9%

Interest expense on debt

(103)

(177)

-42%

(130)

-21%

Share of profit in joint ventures and associates

19

7

150%

55

-66%

EBT

1.418

1.314

8%

1.640

-14%

EBT Margin

30,0%

29,9%

5 bps

32,7%

-273 bps

Tax Expense

(100)

(77)

29%

(309)

-68%

Tax expense (Tax Witholding in Funds)

(30)

(177)

-83%

(45)

-33%

Effective Tax Rate

-9.0%

-17.1%

0 bps

-21.0%

-1 bps

Adjusted Net Income

1.318

1.236

7%

1.331

-1%

Adjusted Net Margin

27,8%

28,1%

-30 bps

26,5%

132 bps

Accounting Income Statement (in R$ mn)

Accounting Income Statement

1Q26

1Q25

YoY

4Q25

QoQ

Net revenue from services rendered

1,932

1,650

17%

2,432

-21%

Brokerage commission

582

473

23%

522

12%

Securities placement

477

477

0%

883

-46%

Management fees

532

413

29%

547

-3%

Insurance brokerage fee

58

58

1%

58

-1%

Commission Fees

268

241

11%

359

-25%

Other services

202

152

32%

326

-38%

Sales Tax and contributions on Services

(186)

(165)

13%

(262)

-29%

Net income from financial instruments at amortized cost and at fair value through other comprehensive income

(1,170)

(902)

30%

(2,434)

-52%

Net income from financial instruments at fair value through profit or loss

3,912

3.596

9%

4,940

-21%

Total revenue and income

4,674

4,345

8%

4,938

-5%

Operating costs

(1,442)

(1,283)

12%

(1,470)

-2%

Selling expenses

(70)

(57)

24%

(80)

-12%

Administrative expenses

(1,641)

(1,448)

13%

(1,712)

-4%

Other operating revenues (expenses), net

18

23

-18%

3

464%

Expected credit losses

(112)

(146)

-24%

(66)

68%

Interest expense on debt

(103)

(177)

-42%

(130)

-21%

Share of profit or (loss) in joint ventures and associates

19

7

150%

55

-66%

Income before income tax

1,343

1,263

6%

1,537

-13%

Income tax expense

(26)

(27)

-3%

(256)

-90%

Net income for the period

1,318

1,236

7%

1,282

3% 

Balance Sheet (in R$ mn)

Assets

1Q26

4Q25

Cash

8,791

10,357

Financial assets

383,856

365,169

Fair value through profit or loss

266,127

239,755

Securities

210,523

198,834

Derivative financial instruments

55,603

40,921

Fair value through other comprehensive income

30,263

42,223

Securities

30,263

42,223

Evaluated at amortized cost

87,467

83,191

Securities

5,740

7,407

Securities purchased under agreements to resell

15,823

17,063

Securities trading and intermediation

9,265

6,299

Accounts receivable

1,161

1,366

Loan Operations

32,328

34,142

Other financial assets

23,150

16,913

Other assets

11,099

10,770

Recoverable taxes

520

443

Rights-of-use assets

347

341

Prepaid expenses

4,530

4,063

Other

5,702

5,923

Deferred tax assets

3,497

3,371

Investments in associates and joint ventures

3,691

3,635

Property and equipment

468

464

Goodwill & Intangible assets

2,908

2,763

Total Assets

414,311

396,528

Liabilities

1Q26

4Q25

Financial liabilities

291,959

276,497

Fair value through profit or loss

73,527

58,590

Securities

23,202

21,043

Derivative financial instruments

50,325

37,547

Evaluated at amortized cost

218,432

217,907

Securities sold under repurchase agreements

61,809

58,714

Securities trading and intermediation

26,271

22,421

Financing instruments payable

117,047

123,404

Accounts payables

890

810

Borrowings

478

238

Other financial liabilities

11,938

12,321

Other liabilities

97,127

95,994

Social and statutory obligations

736

1,365

Taxes and social security obligations

625

853

Retirement plans liabilities

95,171

93,023

Provisions and contingent liabilities

218

192

Other

377

560

Deferred tax liabilities

498

489

Total Liabilities

389,585

372,981

Equity attributable to owners of the Parent company

24,717

23,547

Issued capital

0

0

Capital reserve

24,118

24,009

Other comprehensive income

(387)

(337)

Treasury

(323)

(125)

Retained earnings

1,310

-

Non-controlling interest

8

1

Total equity

24,726

23,548

Total liabilities and equity

414,311

396,528

Non-GAAP Reconciliation 

Bridge from Accounting P&L to Managerial P&L – 1Q26

In R$mm

Accounting P&L

Reclassifications and Adjustments

Managerial P&L

Gross Revenues

4,919

-

4,919

Sales Taxes & Deductions

(245)

59

(186)

Net Revenues

4,674

59

4,733

COGS

(1,554)

-

(1,554)

Gross Profit

3,120

59

3,179

Total SG&A

(1,609)

1

(1,609)

People

(1,096)

-

(1,096)

Non-People

(513)

1

(512)

Depreciation & Amortization

(83)

15

(68)

Interest expense on debt

(103)

-

(103)

Share of profit in joint ventures and associates

19

-

19

EBT

1,343

74

1,418

Tax expense

(26)

(74)

(100)

Net Income

1,318

-

1,318

Non-GAAP Reconciliation of Adjusted Net Income

Adjusted Net Income is a financial measure that reflects the company’s net income, excluding certain non-recurring or non-cash items that management believes do not reflect the company’s core operating performance. In the current period, this includes adjustments related to social charges and deferred tax assets associated with Performance Stock Units (PSUs) that expired unvested.

These adjustments exclude accounting charges that neither impact cash flow nor reflect recurring earnings volatility. By removing these effects, Adjusted Net Income provides a more accurate view of the company’s underlying profitability.

Additionally, in 4Q25, Adjusted Revenue (+R$13mm) and Adjusted SG&A (-R$3mm) also resulted in an Adjusted EBT. These financial measures exclude certain items that management believes are not indicative of the company’s core operating performance. These adjustments relate to one-off impacts from hedging social charges associated with share-based compensation expenses.

By excluding these items, Adjusted Revenue and Adjusted Expenses offer a more accurate representation of the company’s recurring operating results, facilitating comparability across reporting periods.

(in R$ mn)

1Q26

1Q25

YoY

4Q25

QoQ

Net Income

1,318

1,236

7%

1,282

3%

Hedge of Social Charges

-

-

-

13

-

Social Charges / Hedge of Social Charges

-

-

-

(3)

-

Tax Expenses

-

-

-

39

-

Adjusted Net Income

1,318

1,236

7%

1,331

-1%

More News From XP Inc.

SÃO PAULO--(BUSINESS WIRE)--XP Inc. (Nasdaq: XP), announced, in a planned and mutually agreed succession, a transition in its Chief Financial Officer role as part of the Company’s continued evolution and next phase of growth. Mr. Gustavo Alejo Viviani has been appointed by the Board of Directors of the Company (the “Board”) to serve as the Company’s new Chief Financial Officer, effective August 3, 2026. The Company believes that Mr. Alejo brings the expertise, skillset and experience needed to support XP in its continued growth and the execution of its long-term strategy.

Mr. Alejo began his career in January 1996 at Citibank Brasil. In January 2000, he joined Santander Brasil, where over 26 years he held various leadership positions in Wholesale and Retail Banking. In the Wholesale segment, he served as Managing Director of Corporate and Investment Banking and was responsible for the Wholesale Credit Recovery area. In the Retail segment, he was the Director responsible for Credit Collections and Recovery, and Consumer Lending, also accumulating the role of Retail CFO. In the last 3 years he held the positions of Chief Financial Officer, Investor Relations Officer, and Executive Vice-President responsible for the Consumer Finance Business, in addition to having served as a member of the Board of Directors of Zurich Santander Brasil. He is a CFA Charterholder, holds a degree in Economics and extension programs in Business Administration at the University of California-Berkeley, Advanced Corporate Finance at the London Business School, and Leadership at The University of Chicago Booth School of Business.

The Company also announced that, as part of the planned transition process, Mr. Victor Andreu Mansur Farinassi will step down from his position as Chief Financial Officer effective May 31, 2026. The Board has appointed XP’ Chief Executive Officer, Thiago Maffra to serve as interim Chief Financial Officer, effective upon Mr. Mansur’s departure. Mr. Maffra will oversee the Company's financial operations until Mr. Alejo takes office and will assist with the transition to the incoming CFO, ensuring continuity across XP´s finance function.

André Parize will continue in his role as Investor Relations Officer of the Company, ensuring full continuity in XP’s engagement with the investment community.

The Company expresses its sincere gratitude to Mr. Mansur for his more than 14 years of dedication and his meaningful contributions to XP’s growth and strategic development throughout his tenure. The Company wishes Mr. Mansur continued success in his future endeavors.

About XP

XP is a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by:

Educating new classes of investors; Democratizing access to a wider range of financial services; Developing new financial products and technology applications to empower clients; and Providing high-quality customer service and client experience in the industry in Brazil. XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 800 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," “aim,” "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control. XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.

More News From XP Inc.

XP Inc. (XP) Q1 2026 Earnings Call Transcript

I reiterate my buy rating on XP Inc., citing sector leadership and compelling valuation at 7.4x forward earnings. XP's Q1 results showed mixed performance: net revenue +8% YoY, EBT margin at 30%, but fixed income revenue declined 25% YoY. Operational challenges include slower revenue growth, rising expenses, and a lower take rate, but management expects normalization next quarter.

Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both XP Inc.A (XP - Free Report) and Futu Holdings Limited Sponsored ADR (FUTU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

XP Inc.A has a Zacks Rank of #2 (Buy), while Futu Holdings Limited Sponsored ADR has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that XP has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

XP currently has a forward P/E ratio of 8.07, while FUTU has a forward P/E of 9.63. We also note that XP has a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUTU currently has a PEG ratio of 1.01.

Another notable valuation metric for XP is its P/B ratio of 1.9. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FUTU has a P/B of 2.72.

These metrics, and several others, help XP earn a Value grade of A, while FUTU has been given a Value grade of C.

XP has seen stronger estimate revision activity and sports more attractive valuation metrics than FUTU, so it seems like value investors will conclude that XP is the superior option right now.