Inter & Co Inc - Cl A (NASDAQ:INTR), the Brazilian digital banking group, reported its fourth-quarter and full-year 2025 financial results, delivering a mixed picture of robust underlying growth tempered by a slight miss against analyst expectations on key profitability and revenue metrics.
Earnings Versus Estimates
The company's results for the final quarter of 2025 fell short of Wall Street's consensus forecasts, a factor likely contributing to the stock's initial negative reaction in pre-market trading.
- Revenue: Inter & Co reported Q4 revenue of approximately R$2.30 billion. This came in below the analyst estimate of R$2.41 billion.
- Earnings Per Share (EPS): The company posted non-GAAP EPS of R$0.83 for the quarter, which was shy of the estimated R$0.87.
While the misses were relatively narrow, they occurred in a quarter the company itself described as "record" in terms of annual performance, potentially leading to some investor disappointment against elevated expectations. The stock was indicated up approximately 2.9% in pre-market activity following the report, which may reflect a relief rally or a focus on the strong annual growth trends despite the quarterly shortfall.
Press Release Highlights: A Year of Strong Growth
The earnings press release emphasized exceptional full-year 2025 performance, showcasing significant expansion across its client base, credit portfolio, and profitability. The core narrative from management focused on sustainable, high-quality growth.
- Client Acquisition: Inter & Co added a record 4.4 million new active clients in 2025, ending the year with 25 million active users.
- Credit Expansion: The company's credit portfolio grew by 36% year-over-year, a rate it states is more than three times that of the broader Brazilian market. This growth was driven by products like payroll loans, mortgages, and credit cards.
- Profitability Surge: Full-year net income reached R$1.3 billion (approximately US$250 million), representing a 45% increase compared to 2024. Annualized Return on Equity (ROE) surpassed 15%.
- Margin Improvement: Net Interest Margin (NIM) improved to 9.6% in Q4 2025, up from 8.7% a year earlier, indicating more profitable lending.
Management commentary underscored a disciplined capital allocation strategy. CFO Santiago Stel noted the company continues to "deploy capital in a disciplined, ROE-accretive manner" and sees "significant opportunities to further deepen credit penetration."
Looking Ahead
The press release did not provide specific quantitative financial guidance for the coming year. However, the company's stated focus on deepening credit penetration and putting excess liquidity to work suggests an ongoing aggressive growth strategy. This outlook will now be measured against analyst models for 2026.
Current consensus estimates project Q1 2026 revenue of approximately R$2.51 billion and EPS of R$0.88. For the full 2026 year, analysts are forecasting sales of roughly R$10.65 billion and revenue of R$4.22 billion. Investors will be listening to the accompanying conference call for any management commentary that aligns with or diverges from these street expectations.
For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can view the full earnings data for Inter & Co Inc here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
