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    XP
    Earnings call· Mar 2026(Q1 FY26)

    XP Q1 FY26 earnings call XP

    May 18, 2026 Source

    Executive summary

    XP Inc. Q1 FY26 — Double-Digit Growth Outlook Despite Q1 Volatility

    XP Inc. navigated a volatile Q1 FY26, delivering 8% year-over-year revenue growth and 7% adjusted net income growth, despite market headwinds from widened credit spreads and global volatility. The company reaffirmed its expectation for double-digit growth for the full year, driven by diversified revenue streams and strong execution in retail and corporate segments. Management also announced significant capital returns through a new BRL 1 billion buyback program and BRL 500 million in dividends, while maintaining a comfortable capital position.

    Highlights

    5

    • Client assets (AUM + AUA) reached BRL 2.1 trillion, up 21% YoY.

    • Gross revenues grew 8% YoY to BRL 4.9 billion.

    • Adjusted net income increased 7% YoY to BRL 1.3 billion.

    • Announced new BRL 1 billion share buyback program and BRL 500 million in dividends, totaling BRL 2.5 billion in capital distribution for 2026.

    • Retail organic net new money reached BRL 19 billion, meeting the BRL 20 billion quarterly guidance.

    Concerns

    5

    • Increased global volatility and widened domestic credit spreads in March impacted Q1 revenues, preventing double-digit growth.

    • Total gross revenue declined 7% QoQ to BRL 4.9 billion.

    • Retail revenue declined 2% QoQ due to corporate credit impact.

    • LTM efficiency ratio increased 100 bps YoY to 34.6% due to temporary revenue impact.

    • NPS was impacted by one-off credit events and Banco Master, remaining low at 61% (moving average).

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 revenue growth
    double-digit growth
    high materiality
    High
    Retail net new money
    around BRL 20 billion per quarter
    medium materiality
    High
    Full-year 2026 efficiency ratio
    flattish number when compared to 2025
    medium materiality
    High
    Year-end BIS ratio
    16% to 19%
    high materiality
    High
    Fixed base fee model adoption (AUC)
    half of the AUC
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Retail
    Growth driven by equity volumes (higher ADTV in equities and futures), float, and new verticals. Impacted QoQ by corporate credit.
    Equity revenues: BRL 1.2 billionEquity revenue growth QoQ: 13%Equity revenue growth YoY: 22%Equity revenue as % of total gross revenue: 31%
    		BRL 3.8 billion10%-2%—
    Wholesale Banking
    Includes institutional business. Issuer Services revenues were down. Corporate segment posted solid results, leveraging trading solutions with derivatives and FX. Institutional business grew both YoY and QoQ.
    Corporate segment revenues: almost BRL 500 million
    		—26%——

    Operational metrics

    36
    Client assets (AUM + AUA)
    BRL 2.1 trillion21% year-over-year growth
    Q1 FY26

    Combines assets under management from asset management business and assets under administration from fund administration business.

    Advisers
    18,3001% year-over-year
    Q1 FY26
    Active client base
    4.8 million2% year-over-year
    Q1 FY26
    Gross revenues
    BRL 4.9 billion8% year-over-year growth, 7% quarter-over-quarter decline
    Q1 FY26
    EBT
    BRL 1.4 billion8% growth
    Q1 FY26
    Net income
    BRL 1.3 billion7% year-over-year growth
    Q1 FY26
    ROE
    21.7%
    Q1 FY26
    Capital ratio (BIS)
    20.7%
    Q1 FY26
    Diluted EPS growth
    9%year-over-year
    Q1 FY26

    Outpaced net income growth due to share buyback program.

    Retail organic net new money
    BRL 19 billion
    Q1 FY26

    Met quarterly guidance of around BRL 20 billion.

    Corporate and Institutional net new money
    negative BRL 4 billion
    Q1 FY26
    Total net new money
    approximately BRL 14 billion
    Q1 FY26
    FGC-related inflows retention
    roughly 80%
    Q1 FY26

    Retention level following FGC-related inflows, which were not included in net new money calculation.

    NPS (moving average)
    61%
    Q1 FY26

    Impacted by one-off effects related to credit events and Banco Master, expected to recover to 70% in Q2 and historical levels by year-end.

    NPS (current indicator)
    70%
    Q2 FY26

    More recent indicators show NPS at 70%, on a consistent recovery path.

    Individual AUC under fixed/fee-based models
    about 25%
    Q1 FY26

    Growing share of total individual Assets Under Custody.

    SG&A
    BRL 1.6 billionincreased 14% year-over-year, declining 6% quarter-over-quarter
    Q1 FY26
    LTM efficiency ratio
    34.6%100 basis points YoY increase
    LTM Q1 FY26

    Short-term increase caused by market events temporarily impacting revenues.

    Adjusted EBT
    BRL 1.4 billion8% year-over-year, 14% quarter-over-quarter decline
    Q1 FY26
    Adjusted EBT margin
    30%stable versus the prior year, lower quarter-over-quarter
    Q1 FY26
    Adjusted net income
    BRL 1.3 billion7% increase year-over-year, roughly stable sequentially
    Q1 FY26
    Net margins
    27.8%down 30 bps year-over-year, 122 bps higher sequentially
    Q1 FY26
    New share buyback program
    BRL 1 billion
    Q1 FY26 (announced)

    Announced today, in addition to the existing program.

    Dividends declared
    BRL 500 million
    Q1 FY26 (declared)

    To be paid in June.

    Total capital distribution announced for 2026
    almost BRL 2.5 billion
    FY26

    Combines dividends and two buyback programs.

    Adjusted annualized ROTE (at 17.5% BIS ratio)
    around 30%
    Q1 FY26 (hypothetical)

    If operating at the midpoint of BIS ratio guidance.

    Adjusted annualized ROAE (at 17.5% BIS ratio)
    around 24%
    Q1 FY26 (hypothetical)

    If operating at the midpoint of BIS ratio guidance.

    VAR
    14 basis points3 basis points lower than prior quarter
    Q1 FY26
    RWA
    BRL 122 billionup 3% quarter-over-quarter
    Q1 FY26
    Credit RWA
    essentially stable
    Q1 FY26
    Market RWA
    2%grew
    Q1 FY26
    Operational RWA
    main trigger of expansion of risk
    Q1 FY26

    Main driver of RWA expansion.

    Warehouse portfolio duration
    3 to 6 months
    Q1 FY26

    Base case for credit duration in warehouse portfolio.

    IB fees (Corporate segment revenue)
    almost BRL 500 million
    Q1 FY26

    Corporate segment revenue, which includes investment banking-like activities.

    Trading solutions revenue (within Corporate segment)
    —
    Q1 FY26

    Derivatives and FX boosted revenues in the Corporate segment due to high volatility.

    Net interest income / Floating income
    —
    Q1 FY26

    Floating income inside "other retail" was one of the drivers of growth.

    Risks & headwinds

    2
    Increased global volatility and widened domestic credit spreadsMarch and April 2026

    7% quarter-over-quarter decline in total gross revenue; 2% decline quarter-over-quarter in retail revenue; 100 basis points YoY increase in LTM efficiency ratio.

    Mitigation: Diversified revenue base, strong execution across key verticals, expectation for other business lines to compensate, and commitment to maintaining efficiency ratio.

    NPS impact from one-off credit events and Banco MasterQ1 FY26, with impact from December/early January

    NPS at 61% (moving average for Q1 FY26).

    Mitigation: Consistent recovery path, current indicators at 70%, expected return to historical levels by year-end.

    What to watch in Q2 FY26

    5

    Credit spread compression/stabilization

    Q3 or Q4
    Currentwidening on the spreads (April), stable market (May)
    Targetspread compression

    Why it matters

    Impacts fixed income revenues and overall market sentiment, crucial for full-year double-digit growth target.

    I don't expect compression in Q2, okay? So it's more for Q3 or Q4.

    Q&A highlights

    6

    Seeking color on Victor Mansur's departure and Gustavo Alejo's appointment, and whether this indicates a major change in strategy, especially given XP's banking license and capital requirements.

    Management stated the transition was well-planned over several months to bring in banking expertise. It does not signal any major change in strategy, which remains consistent with the past three years. Victor Mansur will remain an important partner in new ventures.

    “We don't have any change on our strategy. So it's the same thing we have been talking for the past 3 years. So no major change, no big change. It's more of the same looking forward. So no change on the strategy.”

    asked by Tito Labarta · answered by Thiago Maffra

    2 min read5 chapters

    Detailed Narrative

    01

    CFO Transition and Strategic Continuity

    XP Inc. announced the appointment of Gustavo Alejo as the new CFO, succeeding Victor Mansur. This transition was described as well-planned, aiming to bring in expertise in banking and banking products to support the company's growing ecosystem. Management emphasized that this change does not signal a shift in the company's overall strategy, which remains consistent with its long-term vision of becoming Brazil's leader in investments by 2033.

    02

    Impact of Credit Spread Widening

    The company experienced headwinds in Q1 FY26 due to increased global volatility🌐 and a widening of domestic credit spreads, particularly in March and April. This impacted revenues, especially in tradable fixed income, leading to mark-to-market losses. While May showed signs of stabilization, management does not expect spread compression in Q2, anticipating it more in Q3 or Q4. Despite these challenges, the company remains confident in achieving double-digit revenue growth for the full year, with other business lines compensating for the impact.

    03

    Capital Allocation and Shareholder Returns

    XP Inc. demonstrated a strong commitment to shareholder returns, announcing a new BRL 1 billion share buyback program and BRL 500 million in dividends for Q1 FY26. This brings the total announced capital distribution for 2026 to BRL 2.5 billion. The company's adjusted diluted EPS grew 9% YoY, outpacing net income growth, reflecting the positive impact of its share buyback initiatives. Management aims to reduce its BIS ratio from 20.7% to a target range of 16-19% by year-end.

    04

    Retail Strategy and Client Segmentation

    The retail segment remains a core focus, with the company strengthening its product platform and adviser productivity. Through refined client segmentation, XP Inc. is developing tailored servicing models, including a new value proposition for retail clients focused on goal-based investing and managed portfolios. The high-income and private banking segments are also seeing continued market share gains, leveraging the broader ecosystem for cross-selling opportunities and comprehensive wealth management services.

    05

    Evolution of Fee Models

    XP Inc. is actively promoting multiple client service models, including fixed base fees and fee-based models. Currently, approximately 25% of the total individual Assets Under Custody (AUC) are under these models. The company projects this figure to grow significantly, potentially reaching 50% of AUC within the next 3 to 5 years, indicating a strategic shift towards more recurring and predictable revenue streams.

    AI-generated summary of the company’s earnings call. Not investment advice.