XP Inc (NASDAQ:XP) Reports Q3 2025 Results: Revenue Misses, Profitability Resilient

XP Inc (NASDAQ:XP) has reported its financial results for the third quarter of 2025, delivering a performance that fell short of analyst expectations on the top line while demonstrating resilience in profitability. The market's immediate reaction suggests a measured response to the mixed figures, with the stock showing modest movement following the announcement.

Earnings and Revenue Versus Estimates

The Brazilian financial platform reported quarterly revenue of R$4.94 billion, which translates to approximately $4.56 billion. This result came in below the analyst consensus estimate of $4.77 billion for the period. Despite the revenue miss, the company's bottom-line performance was more robust.

• Reported Revenue: ~$4.56B
• Estimated Revenue: ~$4.77B
• Reported EPS (Non-GAAP): $2.40
• Estimated EPS (Non-GAAP): $2.50

While earnings per share also missed the mark, the narrower gap relative to the revenue shortfall indicates effective cost management and sustained profitability. The company's net income reached a record R$1.33 billion, marking a 12% increase year-over-year.

Market Reaction and Price Action

Following the earnings release, XP's stock experienced limited volatility. The after-market trading session showed a gain of approximately 3.3%, suggesting some investor optimism. However, when viewed over broader timeframes, the stock has been relatively stable, with minimal movement over the past week and month. This tempered reaction implies that investors are digestering the mixed results, perhaps balancing the revenue disappointment against the company's continued profit growth and strong operational metrics.

Operational and Business Highlights

Beyond the headline financial figures, XP's third-quarter report highlighted significant growth across its platform ecosystem. The company continues to execute on its strategy of becoming a comprehensive financial services hub in Brazil.

Key operational achievements from the quarter include:

• Client Assets: Reached R$1.43 trillion, up 12% year-over-year
• Active Clients: Grew to 4.8 million, a 2% increase from the same period last year
• Expanded Loan Portfolio: Increased 33% year-over-year to R$67 billion
• Gross Written Premiums: Rose 25% to R$451 million
• Corporate & Issuer Services: This segment was a standout performer, with revenue surging 32% year-over-year to R$729 million

Capital Management and Shareholder Returns

The company demonstrated its commitment to returning value to shareholders through several announcements. XP declared a cash dividend of R$500 million and unveiled a new share repurchase program authorizing up to R$1 billion in buybacks. This capital return initiative aligns with the company's guidance to operate with a BIS Ratio between 16% and 19% by 2026, indicating confidence in its financial stability and future cash flow generation.

Forward Outlook and Analyst Expectations

Looking ahead, analysts have established estimates for the coming periods that suggest continued growth expectations. For the full year 2025, the consensus points to revenue of approximately $19.0 billion and earnings per share of $9.94. For the fourth quarter specifically, expectations are set at $4.96 billion in revenue and $2.57 in EPS. While the company's press release did not provide formal quantitative guidance for these periods, its operational momentum and strategic investments position it to potentially meet these targets.

For a detailed view of historical earnings performance and future analyst estimates, you can review the complete data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.