Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
BRAZIL - XP Inc. (NASDAQ:XP), a leading tech-enabled financial platform in Brazil, saw its shares rise 2% after reporting second-quarter earnings that exceeded analyst expectations, despite a slight revenue miss.
The company reported adjusted earnings per share of R$2.46 for the second quarter of 2025, surpassing the analyst consensus of R$2.35 by R$0.11. However, revenue came in at R$4.46 billion, falling short of the R$4.57 billion analysts had projected. Compared to the same quarter last year, the company’s revenue increased 4% YoY.
XP’s net income reached a record R$1.3 billion in the quarter, representing an 18% increase YoY and a 7% rise from the previous quarter. The company’s client assets grew to R$1.4 trillion, up 14% from the same period last year, driven by R$96 billion in net inflows and R$72 billion in market appreciation.
"Our focus on cost discipline and efficient expense management continues to yield results," said an XP executive. "Despite investing more in marketing and technology this quarter, we’ve maintained strong profitability metrics with our efficiency ratio improving to 34.5%."
The company’s retail business was a bright spot, with revenue increasing 9% YoY to R$3.58 billion. Fixed income revenue grew 20% YoY, while the credit portfolio expanded 24% YoY to R$24 billion.
XP’s return on tangible equity (ROTE) reached 30.1% in the quarter, up 283 basis points from the same period last year. The company continued its share buyback program, repurchasing R$915 million worth of shares in the first half of 2025.
Despite challenges in some segments, including a 13% YoY decline in corporate and issuer services revenue, investors appeared to focus on the company’s earnings beat and continued growth in key business areas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.