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XP
Earnings call · Jun 2026 (Q2 FY26)

XP Q2 FY26 earnings call XP

Aug 17, 2026 Source

Executive summary

XP Inc. Q2 FY26 — Strong Profitability and Capital Management Amidst Market Volatility

XP Inc. navigated a volatile Q2 FY26 with strong profitability and disciplined capital management, evidenced by a 22.5% ROE and 9% EPS growth. Despite market headwinds impacting fixed income and primary DCM, core businesses showed resilience, and the company continued to expand its comprehensive financial ecosystem for individuals and businesses, targeting double-digit growth for FY26. Management emphasized a cautious, step-by-step approach to credit expansion and a commitment to returning capital to shareholders.

Highlights

5

  • Client assets (AUM + AUA) reached BRL 2.2 trillion, up 17% YoY.

  • EBT advanced 15% YoY to BRL 1.6 billion.

  • ROE increased 80 bps sequentially to 22.5%.

  • Adjusted diluted EPS grew 9% YoY, faster than net income.

  • Retail net new money met soft target of BRL 20 billion, with total net new money at BRL 28 billion.

Concerns

4

  • Global geopolitical tensions and residual market volatility impacted results, particularly widening credit spreads and reduced primary DCM offerings.

  • Retail revenues were impacted by BRL 420 million mark-to-market effect in H1 FY26, with BRL 100M-BRL 160M in Q2 FY26.

  • Fixed income revenues impacted by mix shift to daily liquid products, representing 70% of fixed income sales, up from 30% three quarters ago.

  • Issuer Services segment experienced lower revenues YoY and QoQ due to sharp decrease in new fixed income offerings.

Guidance & targets

CategoryTargetConfidence
Company-wide growth
double-digit growth
high materiality
Medium
Retail net new money
roughly BRL 20 billion per quarter on average
medium materiality
High
Efficiency ratio
flattish
high materiality
High
Basel ratio
16% to 19%
high materiality
High
Efficiency ratio
flattish
medium materiality
Medium
Payout ratio
higher than 50%
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Retail
Growth driven by equities, funds platform, new verticals, and other retail. Impacted by fixed income corporate credit mark-to-market effects.
Underlying revenue growth (ex-mark-to-market): 15% (H1 FY26 YoY)Equities revenue growth: 11% YoYEquities revenue sequential drop: 2% QoQFunds platform growth: 23% YoYFunds platform growth: 7% QoQ
BRL 3.9 billion8%3%—
Wholesale Bank (including Corporate, Issuer Services, and Institutional)
Overall segment growth.
—32%3%—
Corporate (within Wholesale Bank)
Strong result driven by cross-selling and broader solutions (derivatives, FX, credit).
—117%22%—
Issuer Services (within Wholesale Bank)
Impacted by market deterioration, lower risk appetite, and sharp decrease in new fixed income offerings (DCM).
—lowerlower—
Institutional (within Wholesale Bank)
Reflects lower trading volumes during the quarter.
—grewrelatively flat—

XP operating KPIs by quarter

XP operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Active accounts
4.8M We ended the period with 18,300 advisers, up 1% year-over-year, while our active client base totaled BRL 4.8 million, a 2% year-over-year increase. Source transcript
4.8M We ended the period with 18,400 advisers, up 1% year-over-year, while our active client base totaled 4.8 million, a 1% increase year-over-year. Source transcript
0%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
AI adviserlaunch
Platform for SMBslaunch

Deals & partnerships

unnamed partner Partnership for POS device and credit card for SMBs.

Part of expanding offerings for businesses.

Risks & headwinds

Global geopolitical tensions and residual market volatility Q2 FY26, H1 FY26

Impacted results, particularly widening credit spreads and reduction in primary DCM offerings. Retail revenues impacted by BRL 420 million mark-to-market effect in H1 FY26.

Mitigation:Reduced books (investment banking primary book, secondary trading flow book) to mitigate future mark-to-market losses; cautious approach to credit expansion.

Shift in fixed income product mix Q2 FY26, ongoing

Daily liquid products now 70% of fixed income sales (up from 30% three quarters ago), leading to lower take rates and daily accruals, impacting revenues.

Mitigation:Constantly improving investment platform and enhancing client experience; management believes they are "close to the turning point."

Lower ADTV of equities and futures Q2 FY26

Equities revenue increased 11% YoY but dropped 2% QoQ, while ADTV fell approximately 8% QoQ.

Mitigation:Expect higher revenues in H2 FY26 if volatility picks up, benefiting Institutional and Retail trading clients.

Challenging environment for net new money Q2 FY26, ongoing

Met soft target of BRL 20 billion retail net new money, but environment remains challenging.

Mitigation:Improving investment platform, enhancing client experience, reinforcing confidence in achieving BRL 20 billion quarterly average.

What to watch in Q3 FY26

Retail net new money

Next quarter (Q3 FY26)
Current BRL 20 billion (Q2 FY26)
Target Maintain BRL 20 billion per quarter on average

Why it matters

Key indicator of client engagement and growth in the core retail segment, crucial for AUM/AUA expansion.

This combination reinforces our confidence in achieving our ambition of roughly BRL 20 billion in retail net new money per quarter on average.

Q&A highlights

How will expected volatility from elections impact Retail and Corporate revenues, especially given strong Corporate performance in H1?

High volatility is generally positive for Institutional and Retail trading volumes. Corporate business is expected to maintain strong levels, as it's a growing segment with a conservative, high-quality credit portfolio.

“usually, when we have a high volatility, it's positive in terms of volumes and revenues for some businesses, especially when we look the Institutional desks or Retail trading clients, if volumes pick up, as we have for most of the markets between 30% and 50% market share. If volumes pick up, we make more money.”

asked by Daniel Vaz · answered by Thiago Maffra

2 min read 6 chapters

Detailed narrative

Strategic Evolution Towards Comprehensive Financial Ecosystem

XP Inc. is transforming from an investment-focused broker-dealer to a comprehensive financial ecosystem, aiming to be clients' CFO by covering all financial service needs, including investments, banking, and insurance. This involves deepening relationships, enhancing product offerings, and expanding into wealth planning, estate planning, and succession. The company emphasizes personalized service and advice, moving beyond product distribution to holistic financial strategy.

Expansion into Business Segment

The company is significantly expanding its offerings for small- and medium-sized enterprises (SMBs), a segment historically underserved by traditional players. New initiatives include a platform for SMBs launching September 1st, offering cards, acquiring, and credit with collateral, building on its 2019 banking license. This expansion is part of a well-planned strategy to deliver a complete, modern, and scalable offering to businesses.

Impact of Market Volatility on Revenues

Q2 FY26 results were impacted by global geopolitical tensions and market volatility, particularly widening credit spreads and a sharp decrease in primary Debt Capital Markets (DCM) offerings. This led to a BRL 420 million mark-to-market effect on retail revenues in H1 FY26 (BRL 100M-BRL 160M in Q2 FY26) and significantly reduced primary market fees. Despite these headwinds, management noted that core businesses continued to perform well.

Shift in Fixed Income Mix

The fixed income platform has seen a substantial shift towards daily liquid products, which now represent approximately 70% of sales, up from 30% three quarters ago. This mix change, combined with lower take rates and daily accruals on these products, has negatively impacted fixed income revenues. Management believes the company is 'close to the turning point' for this trend.

Capital Management and Shareholder Returns

XP Inc. is actively managing its capital, aiming to bring its Basel ratio down from 20.3% to a target range of 16-19%. This strategy includes executing share buyback programs (BRL 1 billion completed, another BRL 1 billion open) and distributing dividends (BRL 500 million), totaling BRL 2.5 billion in capital distribution for FY26. The company also announced the cancellation of 11.8 million treasury shares.

Technology and AI Investment

The company is increasing its investment in technology, particularly AI, servers, and cloud infrastructure, which is driving growth in non-people SG&A. This investment supports the development of new client-facing technologies, including an upcoming AI adviser for digital retail clients, expected to accelerate client acquisition in 2027. This allows for good service and unit economics even for smaller ticket size clients.

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