Inter&Co Inc (NASDAQ:INTR) Posts Mixed Q3 2025 Results with Strong Growth but Narrow EPS Miss

Quarterly Earnings Analysis

Inter&Co Inc (NASDAQ:INTR) has released its financial results for the third quarter of 2025, presenting a mixed picture of robust operational growth against a backdrop of narrowly missed Wall Street expectations on profitability. The market's initial reaction appears to reflect this nuanced performance, with the stock trading lower in pre-market activity.

Earnings and Revenue Versus Estimates

The company's core financial metrics for the quarter came in close to, but slightly below, analyst consensus estimates. This near-miss on key profitability and top-line figures is likely the primary driver behind the negative pre-market price movement.

• Earnings Per Share (EPS): The company reported a Non-GAAP EPS of R$0.74 (approximately US$0.14). This fell short of the analyst estimate of US$0.80.
• Revenue: Reported revenue reached R$2.10 billion, which was just below the estimated R$2.14 billion.

Despite these slight misses, the underlying business performance showcased significant year-over-year growth. The reported EPS of R$0.74 and revenue of R$2.10 billion represent substantial improvements from the company's prior-year results, indicating that the fundamental growth trajectory remains strong even if it did not exceed the high expectations baked into analyst forecasts.

Market Reaction

The immediate market response to the earnings report has been negative. In pre-market trading, INTER & CO INC - CL A shares are down approximately 2.0%. This price action suggests that investors are focusing on the earnings and revenue miss relative to estimates. However, it is worth noting that the stock has shown positive momentum over the past month, gaining over 11%, which may indicate that some of the strong operational results were already anticipated by the market.

Operational Highlights from the Quarter

Beyond the headline financial figures, the earnings press release detailed exceptional operational strength. The quarter was characterized by record client growth, significant credit expansion, and soaring profitability.

• Record Client Growth: Inter&Co added 1.2 million new active clients, bringing its total active client base to 24 million. This demonstrates the continued traction and appeal of its super app platform.
• Robust Profitability: Net income surged to R$336 million (US$63.2 million), representing a 39% increase compared to the same quarter last year.
• Accelerating Credit Portfolio: The total credit portfolio expanded by 30% year-over-year, a growth rate the company notes is triple that of the broader Brazilian market. This was driven by strategic products like its Private Payroll offering.
• Improved Efficiency: The company highlighted a significant improvement in its efficiency ratio, which fell to 45.2%, while Return on Equity (ROE) reached 14.2%.

Management Outlook and Analyst Expectations

Leadership expressed strong confidence in the company's long-term strategy. Global CEO João Vitor Menin outlined ambitious targets, including reaching 60 million clients, a 30% efficiency ratio, and a 30% ROE. While the press release did not provide specific quantitative financial guidance for the next quarter, analyst estimates for Q4 2025 are already in place.

Looking ahead, analysts are forecasting revenue of approximately R$2.30 billion for the fourth quarter of 2025. The company's ability to meet or exceed these estimates while continuing its impressive client and credit growth will be a key focus for investors moving forward.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available here: INTR Earnings and Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in INTR. All investment decisions involve risk, and readers should conduct their own research before making any financial decisions.