StoneCo Ltd. Q2 2026 Earnings Call Summary

Moby Intelligence

Fri, August 14, 2026 at 3:30 PM GMT+3 3 min read

StoneCo Ltd. Q2 2026 Earnings Call Summary - Moby

Strategic Execution and Ecosystem Integration

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.

Performance was driven by a reacceleration in TPV growth to 4% and a doubling of the credit portfolio year-over-year, reflecting early success in retention initiatives.
Management launched a new brand positioning, 'Stone, the bank for entrepreneurs,' to close the perception gap and establish the company as a primary banking partner from day one.
The integration of Pagar.me into the Stone platform consolidates online and physical operations into a single account, unlocking deeper merchant insights for credit and cross-selling.
Banking franchise growth was supported by a 22% year-over-year increase in retail deposits, enhancing the company's funding profile to roughly 85% of CDI.
Operational leverage was achieved by keeping expense growth below revenue growth while scaling AI applications for merchant catalog and content management.
Management noted that while the ecosystem strategy is working, the macro backdrop is considerably more challenging than anticipated at the start of the year due to 'higher for longer' interest rates.

Guidance Assumptions and Strategic Outlook

Management is now targeting the lower end of its 2026 adjusted gross profit (BRL 6.6B to 7.0B) and adjusted basic EPS (BRL 10.8 to 11.4) guidance ranges.
Guidance assumes a significant headwind from interest rates, with every 100 basis points on Selic carrying a pretax impact of roughly BRL 200 million to BRL 250 million.
Credit cost of risk is expected to trend down to the high teens by year-end as the portfolio mix shifts toward government-backed facilities and better-rated clients.
TPV acceleration is expected to be gradual as retention initiatives for the complex SMB segment require more testing and calibration compared to the micro-merchant segment.
The company plans to continue returning capital to shareholders, having already returned BRL 4.3 billion in the first half of 2026.

Risk Factors and Non-Recurring Adjustments

A BRL 200 million non-recurring provision was taken for a liquidated credit card issuer, though management expects to eventually recover these funds from the card networks.
The dedicated credit desk faced pressure from record bankruptcy protection filings in Brazil, including a specific BRL 11-12 million default from a long-standing retail client.
Credit coverage ratio decreased to 204% due to a mix shift toward government-backed loans (FGI PEAC) which require lower provisioning due to 75% loss guarantees.
Management is proactively reducing maximum ticket sizes on the dedicated desk to minimize single-client exposure and volatility.

Q&A Session Insights

Rationale for BRL 200 million issuer provision and recovery outlook

One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Management treated the asset as distressed after 90 days of non-payment for accounting prudence but remains 'cautiously optimistic' about recovery.
They asserted that card networks bear the ultimate responsibility for risk management and settlement of authorized transactions under Central Bank legislation.

Sustainability of 2026 guidance amid rising interest rates

Management acknowledged that the current Selic rate environment (near 14%) creates a headwind of over BRL 300 million compared to their initial 12.5% assumption.
Growth in the second half is expected to be driven by credit revenue compounding and improved risk profiles, despite the demanding macro backdrop.

Impact of government-backed programs on credit P&L

Government programs like FGI PEAC guarantee roughly 75% of defaulted amounts, allowing Stone to be more aggressive in pricing for competitive clients.
These programs structurally lower the required upfront provisioning and Stage 2 coverage because guarantees are collectible 91 days after default.

SMB churn challenges versus micro-merchant success

Micro-merchant churn improved quickly due to simpler offerings, whereas SMB retention requires complex adjustments across multiple bundles and channels.
Management emphasized there is 'no silver bullet' for SMBs; improvements will be gradual and visible primarily through steady TPV acceleration.