Q4 2025 XP Inc Earnings Call

February 12, 2026

Speaker #2: We are investing in different initiatives to support our future growth. But for now, we money reaching $20 billion per quarter. Retail cross-sell has been one of our focuses to diversify revenue streams over the last few years.

Speaker #2: In 2025, we achieved important milestones in this business vertical. As a result, we have observed higher engagement from our clients across different products. Across insurance, cards, consortium, retirement plans, and new launches are driving market share gains and record contributions.

Speaker #2: For 2026, we'll continue to innovate and expand our offering, improving the integration of these products in financial planning and enhance the customer journey through a better digital experience.

Speaker #2: For instance, insurance will launch new products: travel, home, and credit line insurance. And in life insurance, we will expand our product range with new coverage.

Speaker #2: Taking cards into consideration, the new launches we had during the year made it possible to increase the share of spending while increasing penetration among target clients.

Speaker #2: In 2026, we also be launching new products to enhance our cross-sell offering. In the first half of 2026, we are rolling out a proprietary dollar-backed stablecoin.

Speaker #2: Targeting clients who seek to diversify or hedge against effects volatility. While providing true 24/7 liquidity. This stablecoin launches clear proprietary digital currency strategy. And we'll expand the portfolio over time.

Speaker #2: Finally, we will reintroduce crypto services that are fully integrated into our platform. With Xp operating as a virtual asset brokerage. This ensures a seamless and untrusted experience.

Speaker #2: Fully embedded within our broader investment ecosystem. Overall, this stead evolution in cross-sell products is strengthened client relationships, increased share of wallet, and diversified recurring revenue.

Speaker #2: Let's move ahead to the next slide and review some KPIs for our cross-sell products. Let's start with credit card, where TPV rose 11% year over year to $14.6 billion in the fourth quarter of '25.

Speaker #2: In 2025, we launched a new product offering unique value propositions for high-income and private banking segments. Life insurance retained premium grew 25% year over year in the fourth quarter, after we enhanced our offering.

Speaker #2: Including new coverage. In retirement plans, our client assets posted 17% growth year over year in fourth quarter, reaching $95 billion. Cross-channel campaigns and client initiatives led to positive inflows.

Speaker #2: In 2025, we had, for example, record inflows in the defined contribution pension plan, with 17% growth year over year. Other new products, which include FX, global investments, digital account, and consortium, collectively grew 21% year over year, generating $258 million in revenue this quarter.

Speaker #2: It's worth noting that these products were built from the scratch only a few years ago. And a red account for more than $1 billion in revenues per year.

Speaker #2: On the next slide, we'll cover the evolution of our wholesale bank. We are operating a complete ecosystem, where our wholesale bank has become a key pillar of our strategy.

Speaker #2: Just a few years after we started our wholesale banking activities, we have grown into one of the Brazil's largest players. As our retail platform scaled, it generated increased flow and liquidity demand enabling us to grow our wholesale bank by leveraging our global markets and market-making capabilities.

Speaker #2: What started as a client facilitation has evolved into a sophisticated wholesale banking franchisee, integrating investment banking, institutional access, and other capabilities. Through the combination of strong retail distribution with wholesale and market-making capabilities, we have built a powerful ecosystem that improves execution quality and liquidity for clients.

Speaker #2: In fact, we are leaders in equities, futures, options, and ETFs, representing roughly 50% of this market. Additionally, we have created a complete investment banking offering a full range of capital market solutions to our corporate clients.

Speaker #2: This robust structure benefits us in several ways, as it not only diversifies our revenue streams but also generates multiple synergies with our investment business.

Speaker #2: We have been gaining relevance in GCM, for example, and we'll continue to invest in strengthening our franchise in the coming years. Finally, in credit agribusiness receivables, we are leader in distribution as well as in real estate funds.

Speaker #2: Our wholesale bank has posted strong results over the past few years. And there's much more to come as we keep investing in our franchise.

Speaker #2: Now, let's move on to the next slide and see more details on our progress agenda. Looking ahead, over the coming years, we'll continue working on different business opportunities.

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Speaker #2: At this stage, we understand that Xp is ready to address and capture share in new markets being credit and SMBs. The main prospects in the long-term agenda.

Speaker #2: In SMBs, we'll leverage Brazil's largest advisory network to expand our reach and deepen relationships. Moreover, we'll broaden our product portfolio beyond investments and FX to generate more engagement and address SMBs' day-to-day financial needs more holistically.

Thiago Maffra: ... Across AUC, AUM, and AUA, supported by a nationwide network of around 18,000 advisors, serving approximately 5 million clients. Our presence spans almost 800 investment centers across 23 Brazilian states and the Federal District, combining scale with local reach. We ranked number one in traded volume on B3 and processed nearly 50,000 fixed income transactions per day. We had some challenges last year, but by strengthening our business fundamentals, we have positioned ourselves to capture future opportunities. With a robust platform, disciplined execution, and a fully committed team, we are starting 2026 ready to grow, whatever the market scenario. On the next slide, we will explore how our ecosystem transformed over time and how that transformation brought us to where we are today. This slide captures where XP stands today.

Speaker #2: When it comes to credit, we see opportunities for both individuals and corporates. For individuals, credit acts as a catalyst for our investment business, helping us move toward greater primacy.

Speaker #2: Expanding our tailored solutions particularly for high-income segments will be central to our agenda. For corporate clients, we remain focused on structured solutions and expanding our corporate product offering to improve competitiveness, including receivables, government-sponsored funds, and real estate solutions.

Speaker #2: Overall, our strategy is to expand our credit offering while maintaining the conservative prudent approach that has long defined our business. This opportunities are once again medium to long term.

Thiago Maffra: We are entering a more mature phase while retaining the disruptive DNA that has always defined our journey. Our evolution has happened in waves. The first wave was focused on democratizing access to financial products that until then, were not largely offered by incumbent banks, like equities and third-party funds. The education of individual investors was an important pillar in the first wave, and through that, we fostered the development of the investment advisory industry in Brazil. In the second wave, we scale, broaden our distribution, and built a comprehensive ecosystem, consolidating XP as one-stop-shop financial platform. Now, we are advancing to a third wave, a move that democratize the wealth services model. We are taking a holistic and agnostic approach to give clients true freedom of choice. We have always put clients' power of choice at the heart of our strategy.

Speaker #2: I will now hand the presentation over to Victor, who will discuss the quarter and full-year financial results. Thank you. Thank you, Mafra. And good evening, everyone.

Speaker #2: Before I start, I would like to do a quick recap of some achievements and commitments for the past two years. First, corporate restructuring. We are now entering into the final phase of our corporate restructuring.

Speaker #2: In which we will further concentrate activities in XP Bank, materially improving our capital and funding cost. The new structuring has increased our competitiveness, optimizing our warehouse strategy during the year.

Speaker #2: We already captured part of these benefits in 2025, with a reduction in funding costs. Plus, there was a reduction in the cost of action due to the emission of subordinate notes.

Speaker #2: And we expect to have another positive impact in 2026 and the following years. As a result, we see the expansion of both of our financial margin and EBT margin for 2025, and we expect to keep the space for 2026.

Speaker #2: Second, our balance sheet management. In 2025, both our EPS and net income grew faster than our total assets and total risk-weighted assets. Combined with our disciplined capital allocation and distributions, this drove our ROE expansion of approximately 90 basis points.

Thiago Maffra: We remain committed to leading the market forward, guided by our long-standing belief that we play a key role in society by continuously improving the way people invest, manage, and think about their money. Our ultimate goal is to help clients achieve their dreams. Now, moving on to the next slide. Our transformative track record has brought us to where we are today. We have built a distinctive business that delivers profitability while maintaining a conservative capital structure, giving us the option to operate in a broad range of scenarios. We posted gross revenues of BRL 19.5 billion in 2025, up 8% year-over-year. As I mentioned last quarter, we expected double-digit growth on the second half of 2025, and we managed to achieve that level.

Speaker #2: Even though our BIS ratio is higher than 20. Third, efficiency. Our continued technology investments are delivering operational leverage across many business fronts. Allowing us to keep our investment pace while we keep a stable efficiency ratio year over year.

Speaker #2: So now, starting with total gross revenue. In our fourth quarter, total gross revenue reached $5.3 billion, representing a 12% increase year over year and 7% sequentially.

Speaker #2: For the full year of 2025, total gross revenue was $19.5 billion, growing 8% compared to 2024. The performance highlight was corporate and issue services.

Speaker #2: If I strum second half of 2025. When we compare to gross revenue breakdown on the high-hand side of the slide, in 2025, retail maintained 75% of total revenues, and corporate issue services gained space.

Thiago Maffra: In the second half, we grew slightly more than 10% versus second half of 2024, showing that the initiatives we implemented during the year and earlier are responding positively. Year-over-year, EBT grew 10%, reaching BRL 5.5 billion. Adjusted net income in Q4 2025 was BRL 1.3 billion and BRL 5.2 billion for the full year, representing a 15% expansion year-over-year. Regarding balance sheet and profitability, we achieved 23.9% ROE in 2025, representing a 94 basis points expansion versus 2024. Our year-end BIS ratio was 20.4%, a very comfortable level, even after the payment of BRL 500 million in dividends and BRL 1.9 billion in share buybacks executed in 2025. Finally, our adjusted diluted EPS increased by 18% during the year.

Speaker #2: Now, let's move on to the next slide. If more details on the different business. In the fourth Q25, retail revenues totaled $3.9 billion, up 8% year over year and 4% sequentially.

Speaker #2: For the full year, retail gross revenue reached $14.6 billion, an increase of 8% versus last year. Retail revenue growth in 2025 was supported by float for both investments and checking accounts, new verticals such as credit cards, retirement plans, and insurance leading the way, and, as a new initiative, international investments.

Speaker #2: Fixed income performance, if you have strong first half of 2025 and decent figures for the second half, supported by warehousing strategy. So now let's turn to corporate and issue services.

Speaker #2: In the fourth quarter, revenues reached $895 million, representing a 49% increase year over year, and a 23% increase sequentially. This was the strongest performance in our history for this business, both in corporate and issue services.

Thiago Maffra: Now that we covered our platform, our disruptive profile, and the highlights of the financial results, I would like to go into more detail on our business strategy. We have spent the past 2 years developing our service excellence agenda. At first, we focused on building the foundations, systems, incentive models, and salesforce training. In 2025, we took the next step and began to scale this model. At the same time, we refined our client segmentation, offering tailored service models and value propositions for each segment, supported by multiple pricing structures. It's worth mentioning that today, approximately 23% of our retail AUC is already under a fee-based model. We continue to adopt this approach, recognizing that there is no single best model, but rather the most appropriate model for each client. We have also developed different ways to objectively track adherence to this way of serving.

Speaker #2: The strong performance was driven by a robust activity in the DCM space, re-accelerating from a software first half. In addition, our ability to cross-sell and deliver a broader set of solutions to our corporate clients.

Speaker #2: Such as derivatives and credit, that continue to support our revenues, leveraging on our strong distribution capabilities across the platform. For the full year of 2025, corporate and issue services revenue totaled $2.7 billion, up 19% compared to 2024, making a new level of corporate revenues and consolidating the segment as an important business line for XP.

Speaker #2: And now, let's move to our SG&A and efficiency ratios. SG&A in the fourth quarter amounted to $1.7 billion, growing 10% year over year and 4% quarter over quarter.

Speaker #2: For the full year, SG&A totaled $6.3 billion, reflecting continued investments in technology, such as AI and CRM, and also our expansion of our advisory network.

Speaker #2: As I mentioned earlier, it is the operational leverage captured from technology and innovation developments that allows us to keep our elevated investment pace in different areas of the business while maintaining the same efficiency level.

Thiago Maffra: One of the most important tools we have is the XP Service Model Index. It incorporates metrics such as financial and wealth planning, quality of client relationships, and adherence to recommended asset allocation. Initial results are tangible. Clients above the index target show meaningfully better financial outcomes, with 21% higher revenues and more than double the net asset inflows. As we roll out this agenda, different KPIs will move accordingly. Currently, clients above the index target make up 39% of our AUC, and we expect this number to continue expanding. We will cover this topic in more detail on the next slide. Two important pillars of our foundation are financial and wealth planning and our expert allocation model. We support our clients with a holistic approach based on financial and wealth planning. We help clients navigate complex and highly personal decisions with clarity and confidence.

Speaker #2: Additionally, the efficiency ratio in 2026 should remain broadly in line with 2025 levels, without any material change. As we can see on the right-hand side of the slide, our last 12 months' efficiency ratio for the fourth quarter stood at 24.7, stable compared to 2024.

Speaker #2: Our adjusted EBT reached $1.5 billion in the fourth quarter of 2025, increasing 20% year over year and 16% quarter over quarter. We also had an adjusted EBT margin of 31.3%, up 252 basis points year over year and 271 basis points quarter over quarter.

Speaker #2: That means that we have reached the range of our guidance margin during this quarter. For the full year of 2025, adjusted EBT totaled $5.5 billion, growing 10% versus last year.

Speaker #2: EBT margin of 29.6%, expanding 52 basis points year over year. On the next slide, we will see our adjusted net income. Adjusted net income for the quarter was $1.3 billion, up 10% year over year and stable sequentially.

Thiago Maffra: Our work goes beyond investments, encompassing succession, estate, and tax planning, always tailored to each client's objectives, family structure, and long-term vision. We offer financial planning for our clients with at least BRL 300,000 in AUC, and comprehensive wealth planning for clients with invested assets above 3 million BRL. We were truly pioneers on democratizing access to these services in Brazil at a time when they were largely restricted to a small group of very wealthy individuals. Additionally, we developed in-house technology that allow us to go beyond and scale the offering of financial planning while maintaining governance and quality, and this is something no other player in Brazil can do. Our second pillar is the expert allocation model, which is a proprietary tool based on algorithmic intelligence designed to propose a smart asset allocation.

Speaker #2: Our net margins were 26.9% in the fourth Q25, 9 basis points lower year over year and 166 basis points lower sequentially. For the full year, adjusted net income reached $5.2 billion, growing 15% compared to 2024, with 28.3% net margin, 173 basis points expansion in the period.

Speaker #2: Let's move on to the next slide to talk about capital management. Starting with capital returns, in 2025, we returned $2.4 billion in capital to shareholders through dividends and buybacks.

Speaker #2: We also continue to have our $1 billion share buyback program currently open. On the right-hand side of the slide, you can see the evolution of our payout ratio over the years, including last year, when we had a close to 15% payout, considering both buybacks and dividends.

Speaker #2: Now, talking about earnings per share and ROE, once again, we would like to highlight that our earnings per share continues to grow faster than net income, driven by our consistent buyback execution, just like we explored in the previous slide.

Speaker #2: Adjusted EPS in the fourth quarter was $2.56, growing 15% year over year and 4% quarter over quarter. For the full year, adjusted EPS reached $9.81, increasing 18% versus last year.

Thiago Maffra: The use of this technology goes hand in hand with our advisory capabilities and considers multiple variables such as available products, liquidity, client profile, the structure of the current portfolio, among others. Through it, we combine the best of both human and technological capabilities, data intelligence, complemented by the depth of human knowledge and the strong client relationships built by our advisors. To track the development of our agenda, we measure how usage of these two tools evolves over time. Currently, 21% and 12% of targeted clients track their financial and wealth planning with an advisor. Additionally, adherence to the expert allocation tool has been rapidly growing across all segments, and December 2025 was a record month for allocation using this tool.

Speaker #2: Only in 2025, we have retired more than 24 million shares, approximately 4% of the total shares outstanding. Now, looking at our profitability, ROE and ROTE, we see our adjusted return on equity for 2025 reached 23.9%, a 94 basis points expansion, while return on tangible equity was 29.5%, a 78 basis points expansion versus 2024.

Speaker #2: This reflects our capital disciplines that allow us to consistently return capital to shareholders while simultaneously growing and investing in the business to further differentiate ourselves from our peers.

Speaker #2: Finally, on capital ratio and risk-weight assets, we close the quarter if a BIS ratio of 20.4%, if the C21 ratio at 17.3%, in 2026, we will operate the business if a high BIS ratio during the year.

Thiago Maffra: Besides the fact that we are democratizing this service, we can also see on the right-hand side of the slide. We are delivering positive performance to clients. Looking at the number of advised client portfolios, 39% achieved returns of more than 110% of the Selic rate. 23% had returns between 100 and 110, and 28% obtained returns between 80 and 100% of the Selic rate. This means that 90% of the advised client base is registering returns of 90% and higher than the Selic rate. Given that technology is a key component of our business, we will explore in a greater detail on the next slide. Technology is a core pillar of XP's growth strategy. Our proprietary platforms and AI-driven capabilities enable scalable expansion while maintaining strong governance and improving advisor productivity.

Speaker #2: We are comfortable with getting our BIS ratio to our target range of 19 to 16 toward the end of the year for capital distributions, while still maintaining a comfortable capital buffer.

Speaker #2: Additionally, we ended the year if a C21 ratio of 17.3% compared to our PE average of 12%. If we were running the business at the same C21 of 12% or ROE would have been above 30%.

Speaker #2: Now, looking at the right-hand side of the slide, you can see our RWA breakdown by category. Risk-weighted assets totaled $119 billion, growing 13% year over year and 11% quarter over quarter.

Speaker #2: As we expected and communicated on certain occasions, total RWA growth was lower than our net income and EPS for the year, even with a strong performance from the wholesale business.

Speaker #2: In parallel, our total assets adjusted for assets under management from retirement plans grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the warehousing of fixed income securities, mainly corporate cred, aligned with strong DCM activity or growing capacity to originate corporate use and market timing opportunities.

Thiago Maffra: We believe in what we call an augmented advisor, which is an advisor whose capabilities are enhanced by AI. This improvement can be seen in different aspects. First, relationships. We are now able to monitor the frequency and quality of advisors' interactions with clients, providing us with data and intelligence that will ultimately be used to make the advisors better equipped to serve their clients. Second, asset allocation. Technology and AI play a central role in asset allocation, supporting portfolio reviews and personalized recommendations aligned with our expert allocation framework. Third, automation. By reducing the operational workload of advisors, automation allows them to focus on higher value client relationships. By augmenting advisors with AI across relationship management, operations, and allocation, we can increase account load and advisor productivity while improving client satisfaction. By monitoring and scoring client interactions, we ensure strong governance, consistent service quality, and scalable growth.

Speaker #2: Lastly, because of this increase in warehousing, our value at risk from some important companies' credit risk spread went to $39 million. Our 17 basis points of our action.

Speaker #2: Stable on a year-over-year perspective, and 4 basis points higher sequentially. But still at a very conservative level. We expect to distribute a portion of these assets at the beginning of 2026.

Speaker #2: This level of warehousing capability was only possible through the development of XP Bank and its funding structure, as previously highlighted. With that, I end my presentation and hand it over to Maffra so he can make his final remarks, and then we go to the Q&A.

Speaker #2: Thanks, Victor. Before the Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar.

Speaker #2: Over the past years, we have invested heavily in scalable process, governance, and technology, and in 2026, we begin to see these investments maturing and starting to translate into results.

Speaker #2: This is reinforced by a skilled and well-trained sales force with aligned incentives ensuring consistent execution across the organization. We continue to invest in a highly disciplined manner particularly focus on wholesale banking and the B2C channel.

Thiago Maffra: To close this section of the presentation, I would like to talk about a core part of XP, our advisor network. XP basically create the modern investment advisor role in Brazil, and that role has continued to evolve over time. What began with education and access to equity products has grown into a highly professional, scalable advisor model that supports increasingly complex client needs. While we offer a unique value proposition to clients, we also have a differentiated value proposition for our advisors. We equip them with proprietary tools, data, and intelligence that enhance their productivity, improve advice quality, and strengthen client relationships. This combination of technology, training, and incentive alignment is something no other platform offers at scale in Brazil.

Speaker #2: While refining our segmentation to ensure a clear and accurate value proposition for each client profile, this will enable us to grow with quality in a profitable and sustainable manner.

Speaker #2: On the capital front, our priority is to sustain strong and consistent returns, backed by a conservative capital structure. This discipline provides the flexibility to operate across different market scenarios, maintaining resilience and readiness to capture opportunities.

Speaker #2: Together, this foundation ensures that we enter 2026 with structured and disciplined capital allocation. Lastly, before starting the Q&A, I would like to address an ongoing topic within the financial system.

Thiago Maffra: By continuously investing in the development of more than 18,000 advisors, we reinforce the strength of our distribution network, enhance clients' relationships, and the quality of the service delivered, while ensuring the long-term sustainability of our model. Finally, this powerful combination of service excellence, strong client relationships, and financial performance, together with a sales force that has aligned incentives and robust capabilities, corroborates our conviction that disciplined execution, backed by governance and technology, will drive the performance of all our segments towards our strategic objectives. Now, let's move on to the next slide to explore our retail investments strategy. This slide summarizes the results we are achieving across our core segments and shows how our strategic investments are producing concrete outcomes. Starting with retail, this segment continues to represent a significant opportunity for us.

Speaker #2: First of all, we would like to express our deep concern regarding everything that has been revealed in recent months involving Banco Master and the extent of irregularities identified.

Speaker #2: We also want to acknowledge the important and diligent work carried out by the central bank as well as the responsible media coverage that has helped Brazilian society better understand with greater transparency what has occurred through ABBC and FEBRABAN.

Speaker #2: We are actively supporting structural improvements aimed at preventing situations like this from happening again in our financial system. The central bank has been advancing in the right direction over the past years, although we understand some relevant adjustments are still necessary.

Speaker #2: That said, this change must be implemented responsibly, so that Brazil does not risk reversing the significant progress achieved in recent decades in terms of competition and broader, more efficient access to financial products and services.

Thiago Maffra: While we have faced market share pressure and margin compression over the last two years, we have taken decisive action to redesign the way we serve these clients, with the objective of improving efficiency. The current scenario already reflects early signs of progress, with a new value proposition grounded in goal-based investing and managed portfolios. We already see strong initial improvements with a margin accretive dynamics. Our strategy now is to expand this initial test to other client layers, using technology, process, and governance as key enablers to scale in a profitable way. In high income, our core segment, fundamentals remain very strong. We have focused most of our investments here, and it's where our competitive advantage stand out the most. We continue to see solid growth supported by our multi-model service approach.

Speaker #2: We should be careful not to adopt measures whose unintended consequence would be to re-establish excessive banking concentration or to enable business models built on consumer lack of information or, as Director Galipolo rightly pointed out some months ago, products that function as a reversing Robin Hood.

Speaker #2: For more than a decade, the central bank has consistently pursued an agenda to increase competition and improve both quality and the cost of financial services through initiatives such as BC Plus.

Speaker #2: Digital banks and investment platforms have played a central role in this transformation. Expanding access to banking services without fees and reducing long-standing asymmetries in traditional investment products such as poupança, saving accounts, PIC, and títulos de capitalização.

Speaker #2: Twenty-five years ago, we helped transform the system by building the first open platform in Brazil, giving clients across all income levels access to financial education and high-quality investment products.

Thiago Maffra: As previously shown, financial planning, wealth planning, and expert allocation remain at the center of the strategy, reinforcing client engagement and long-term value creation. In private banking, we are seeing the results of our recent investments. The segment is transitioning into a full wealth management model, covering both individuals and corporate client needs, supported by a robust product platform and a highly skilled team. Growth has resumed with market share gains and expansion in credit and cross-selling within the XP ecosystem. We are still investing in this segment, and we expect to see further market share gains accompanied by margin expansion. On the next slide, we'll share our consolidated client assets figure. In Q4 2025, our total client assets, combined with AUM and AUA, totaled BRL 2.1 trillion, representing a 22% growth year-over-year.

Speaker #2: Over time, we have contributed to reshaping the market by fostering competition, improving product quality, reducing costs, and ultimately delivering better outcomes for our clients.

Speaker #2: We do offer proprietary products, but we have always distributed third-party solutions, including from competitors. Choice, transparency, and alignment with the client always come first.

Speaker #2: We do not charge abusive or opaque fees, and clients pay nothing to open or maintain an account with us. Our mission is simple: to improve people's lives by helping them invest better.

Speaker #2: This principle guides every decision we make and remains the foundation of our work as we continue to support Brazilians in managing their money, investing responsibly, and planning for their future.

Speaker #2: André Paris will now start our Q&A session. Thank you, Mafra. Now we're going to start the Q&A. The first question is from Eduardo Hosman from BTG.

Thiago Maffra: This was an important milestone for XP, crossing the BRL 2 trillion reais threshold. On the right hand of this slide, we show how net new money related to client assets evolved during the last quarter of the year. In 2025, one of the most frequently asked questions for XP was around net new money. To clarify some of the questions we received, we'd like to exceptionally give a little more color on this metric... This quarter, we once again achieved BRL 20 billion in retail net new money, and BRL 12 billion in corporate and institutional, totaling BRL 32 billion for the period. As we have been saying in the previous quarters, retail net new money has been impacted by the dynamics of SMBs. In Q4 2025, small and medium enterprise withdrew BRL 3 billion in investments from our platform.

Speaker #2: Hosman, you may proceed.

Speaker #3: Hi. Hi, everyone. I have two questions for Maffra. The first one is regarding the ambition to become Brazil's leading investment platform by 2033. Can you provide a little bit more detail?

Speaker #3: Why 2033? What's the metric that you use to define the being a leading firm? Is that market share that you see, revenue, client base, or something else?

Speaker #3: And do you believe that doing more of the same but better will be enough to reach this goal, or would you require more powerful banking and credit capabilities?

Speaker #3: That would be the first one. And the second one, regarding your entry into the controlling group, practically speaking, what does that change mean to you?

Speaker #3: Thanks.

Speaker #4: Good evening, everyone, again, and thank you for your questions, Hosman. The first question is, when we say that we want to be leaders in investments in 2023, it's about market share.

Thiago Maffra: On the other hand, inflows from individual clients in all our segments totaled BRL 23 billion. While we posted positive figures this quarter and met our soft guidance, we still face a challenging environment for 2026. We are investing in different initiatives to support our future growth, but for now, we remain expecting retail net new money reaching BRL 20 billion per quarter. Retail cross-sell has been one of our focuses to diversify revenue streams over the last few years. In 2025, we achieved important milestones in this business vertical. As a result, we have observed higher engagement from our clients across different products. Across insurance, cards, consortium, retirement plans, and new loans are driving market share gains and record contributions.

Speaker #4: Okay? So that means that we have our internal plans here, or long-term view, is to become leaders in 2023 in market share, and that it's 33 because our plans—every plan that we have—gives us that we can get there in seven years.

Speaker #4: Okay? So that's the number, the reasons when we look at how much net new money we have to bring in the next years by different channels, by different segments, the plans, they point out that we can get there in '33.

Speaker #4: How do we get there? First, with the third wave. Okay? So, as we mentioned in the past earnings call and in all the conferences, we have been investing a lot in the third wave, on democratizing wealth planning for retail clients in Brazil.

Thiago Maffra: For 2026, we will continue to innovate and expand our offering, improving the integration of these products in financial planning, and enhance the customer journey to a better digital experience. For instance, in insurance, we will launch new products: travel, home, and credit line insurance. And in life insurance, we will expand our product range with new coverage. Taking cards into consideration, the new loans we had during the year, made it possible to increase the share of spending while increasing penetration among target clients. In 2026, we'll also be launching new products to enhance our cross-sell offering. In the first half of 2026, we are rolling out a proprietary dollar-backed stable coin, targeting clients who seek to diversify or hedge against FX volatility, while providing true 24/7 liquidity. This stable coin launch clears proprietary digital currency strategy and will expand the portfolio over time.

Speaker #4: So, democratizing the service that only private banking clients or even multifamily office clients have in Brazil—so that's the main point here. A lot of people don't get how big the change is here, because most of the financial companies in Brazil, and banks, are pushing products.

Speaker #4: Okay? It can be basket of products, an investment portfolio, but the product-driven approach. We have been changing that for the past two years. We have changed incentives.

Speaker #4: We have changed the way of serving clients. We have done a new segmentation on the company, new value propositions, and we are seeing big improvements in all the numbers—churn, NPS, and a lot of other metrics here.

Speaker #4: So we are very excited with the next year's when we look everything that we have been doing on foundations and changing almost changing the business model in the past years for the future.

Thiago Maffra: Finally, we will reintroduce crypto services that are fully integrated into our platform, with XP operating as a virtual asset brokerage. This ensures a seamless and trusted experience, fully embedded within our broader investment ecosystem. Overall, this steady evolution in cross-sell products strengthens client relationships, increases share of wallet, and diversifies recurring revenue. Let's move ahead to the next slide and review some KPIs from our cross-sell products. Let's start with credit card, where TPV rose 11% year-over-year, to BRL 14.6 billion in Q4 2025. In 2025, we launched new products, offering unique value propositions for high income and private banking segments. Life insurance retained premium grew 25% year-over-year in Q4, after we enhanced our offering, including new coverage. In retirement plans, our client assets posted 17% growth year-over-year in Q4, reaching BRL 9.5 billion.

Speaker #4: Of course, we have different strategies for different segments. We have been investing a lot in the private banking platform in the past three years.

Speaker #4: We have been gaining market share in the past two years, and last year, 2025, it accelerated, and we believe that we can grow faster here on private banking.

Speaker #4: On the middle, the affluent clients, it's more of the same with more intensity, with more technology, with more process, with the new value proposition of more service, more wealth planning.

Speaker #4: And when we go to the retail clients, we have found a new way of serving more goal-based, low human touch. So, a completely different value proposition that is becoming a reality.

Speaker #4: I would say in the last year that we are very confident that we can accelerate in the next years. So different strategies for different segments, but all based on the third wave here.

Speaker #4: So, of course, as you mentioned, the full ecosystem—the banking part, insurance, all of that—reinforces the value proposition for investor clients. And as you have seen in the past quarters and past years, we are, every quarter, every year, better on the cross-sell of products, and we have a big roadmap for the next quarters here.

Thiago Maffra: Cross-channel campaigns and client initiatives led to positive inflows. In 2025, we had, for example, record inflows in the defined contribution pension plan, with 17% growth year over year. Other new products, which include FX, global investments, digital account, and consortium, collectively grew 21% year over year, generating BRL 258 million in revenue this quarter. It's worth noting that these products were built from scratch only a few years ago, and already account for more than BRL 1 billion in revenues per year. On the next slide, we will cover the evolution of our wholesale bank. We are operating a complete ecosystem, where our wholesale bank has become a key pillar of our strategy. Just a few years after we started our wholesale banking activities, we have grown into one of Brazil's largest players.

Speaker #4: So, but we are ready to accelerate in the future, okay? About the second question, the control—being 100% honest with you—for myself, nothing changed.

Speaker #4: I've been with the company for 11 years. I was a partner in a different way, but I was a partner. I have always acted as an owner of the company.

Speaker #4: So, nothing changed in the way I behave or the way I see the company. But I believe there's even stronger alignment between the executives that are running the company.

Speaker #4: José Berenguer and I, alongside Fabrício Almeida and Guilherme Santana—so four executives that run the company on a daily basis. And of course, Guilherme, so I believe it's a stronger alignment for the long term. But nothing changed in the way we manage the company here.

Thiago Maffra: As our retail platform scaled, it generated increased flow and liquidity demand, enabling us to grow our wholesale bank by leveraging our global markets and market-making capabilities. What started as a client facilitation has evolved into a sophisticated wholesale banking franchisee, integrating investment banking, institutional access, and other capabilities. Through the combination of strong retail distribution with wholesale and market-making capabilities, we have built a powerful ecosystem that improves execution quality and liquidity for clients. In fact, we are leaders in equities, futures, options, and ETFs, representing roughly 50% of these markets. Additionally, we have created a complete investment banking, offering a full range of capital market solutions to our corporate clients. This robust structure benefits us in several ways, as it not only diversifies our revenue streams, but also generates multiple synergies with our investment business.

Speaker #4: And besides that, Gabriel, Bruno, and Bernardo, they continue to be shareholders in the company. They continue on the board, so it's a natural evolution here and a natural process.

Speaker #4: So, there’s no big change here on the company.

Speaker #3: Great. Thanks a lot, Mafra.

Speaker #1: Okay. Next question from Thiago Batista, UBS. Thiago, you may proceed.

Speaker #3: Are you hear me?

Speaker #1: Yes.

Speaker #3: Oh, okay. Hi, Maffra. Mansur, Parizi, Antonio. I have one question. Regarding the recommendation that CVM related yesterday about the internalization of orders, in my understanding, this should be a little bit positive for your RRP business.

Speaker #3: But do you have any view if this is really positive or not for XP? And the second question on the taxes: we normally complain when the taxes were low.

Speaker #3: Now we're complaining that the tax increased. But my question on the taxes is trying to understand if this hike in the taxes in this quarter is related to the change in the collision structure.

Thiago Maffra: We have been gaining relevance in GCM, for example, and we will continue to invest in strengthening our franchise in the coming years. Finally, in credit agribusiness receivables, we are leader in distribution as well as in real estate funds. Our wholesale bank has posted strong results over the past few years, and there is much more to come as we keep investing in our franchise. Now, let's move on to the next slide and see more details on our progress agenda. Looking ahead, over the coming years, we will continue working on different business opportunities. At this stage, we understand that XP is ready to address and capture share in new markets, being credit and SMBs, the main prospects in the long-term agenda. In SMBs, we will leverage Brazil's largest advisor network to expand our reach and deepen relationships.

Speaker #3: And also, if this is linked with the consumption of the tax on tax losses carried forward, you reduced or XP reduced by R$700 million, R$800 million of those tax credits.

Speaker #3: Only in one quarter, if all those things are correlated.

Speaker #1: Thiago here. So, I will take the first question. It's very positive news for us. Once you don't have the cap, and you can include other assets.

Speaker #1: So it's very positive. Okay? You remember that we were the first company back in 2015. I remember it was the one responsible for building RLP back in '15 here for XP.

Thiago Maffra: Moreover, we'll broaden our product portfolio beyond investments and assets to generate more engagement and address SMBs' day-to-day financial needs more holistically. When it comes to credit, we see opportunities for both individuals and corporates. For individuals, credit acts as a catalyst for our investment business, helping us move toward greater primacy. Expanding our tailored solutions, particularly for high-income segments, will be central to our agenda. For corporate clients, we remain focused on structured solutions and expanding our corporate product offering to improve competitiveness, including receivables, government-sponsored funds, and real estate solutions. Overall, our strategy is to expand our credit offering while maintaining the conservative, prudent approach that has long defined our business. These opportunities are once again medium- to long-term. I will now hand the presentation over to Victor, who will discuss the quarter and full year financial results. Thank you.

Speaker #1: And until 2019 was, I would say, a big journey to make the product regulated. So, and today seeing the product evolving, not having cap, going to other assets, other types of instruments.

Speaker #1: So that's very positive because we are the largest market maker in Brazil for retail clients. So it's positive for business, it's positive for the market, for the clients.

Speaker #1: So, and of course, we'll generate more revenues and more results for our market-making. Positive.

Speaker #4: Hi, Thiago. This is Victor. First of all, taxes—I think we talked a lot about that in the past. Our base tax rate is something near 15%.

Speaker #4: If the business is more toward the banking activity, investment banking, DCM, and broker-dealer, we're going to pay a bit more. And if the business is more toward market-making, we're going to pay a bit less.

Victor Mansur: Thank you, Mafra, and good evening, everyone. Before I start, I would like to do a quick recap of some achievements and commitments for the past 2 years. First, corporate restructuring. We are now entering into the final phase of our corporate restructuring, in which we will further concentrate activities within XP Bank, materially improving our capital and funding cost. The new structuring has increased our competitiveness, optimizing our warehouse strategy during the year. We already captured part of these benefits in 2025, with reduction in funding costs, plus the reduction in cost of equity due to the emission of subordinate notes. We expect to have another positive impact in 2026 and the following years.

Speaker #4: If you look at the revenue mix for the quarter, the main highlights were issue services and corporate banking—both, of course, made inside the bank and the broker dealer.

Speaker #4: And that's why we are paying more taxes. Also, those revenues are less heavy in terms of commission. Those assets were not distributed to retail clients.

Speaker #4: So, DBT margin associated to those revenues are also higher. Talking about the collision structure, this change will only happen in 2026. It did not happen yet in 2025.

Speaker #4: So it has nothing to do with the taxes. The taxes are an effect of the revenue mix. I'm sorry. What was the other question?

Victor Mansur: As a result, we see the expansion of both of our financial margin and EBT margin for 2025, and we expect to keep this pace for 2026. Second, our balance sheet management. In 2025, both our EPS and net income grew faster than our total assets and total risk-weighted assets. Combined with our disciplined capital allocation and distributions, this drove our ROE expansion of approximately 90 basis points, even though our BIS ratio is higher than 20. Third, efficiency. Our continued technology investments are delivering operational leverage across many business fronts, allowing us to keep our investment pace while we keep a stable efficiency ratio year-over-year. So now, starting with total gross revenue. In our Q4, total gross revenue reached BRL 5.3 billion, representing a 12% increase year-over-year, and 7% sequentially.

Speaker #3: Was it that the higher taxes were the cause of the reduction in the tax losses carried forward?

Speaker #4: It's not because of that. It's the revenue mix that explains both revenue tax and EBT.

Speaker #1: Okay. Very clear. Thanks, Mansur and Maffra.

Speaker #4: Okay. Next question is from Gustavo Schrödinger from Citi. Gustavo, you may proceed.

Speaker #5: Hello, guys. Thanks for the question. I'm going to do two questions as well. So, the first one is regarding the reimbursements by the FGC to the depositors of Banco Master.

Speaker #5: So, estimated at R$40 billion. So, how has XP been performing? I believe that the company has designed a strategy to capture these volumes or part of these volumes.

Victor Mansur: For the full year of 2025, total gross revenue was BRL 19.5 billion, growing 8% compared to 2024. The performance highlight was corporate and issue services, with a strong second half of 2025. When we compare to gross revenue breakdown on the right-hand side of this slide, in 2025, retail maintained 75% of total revenues and corporate and issue services gained space. Now, let's move on to the next slide with more details on the different business. In the 4Q25, retail revenues totaled BRL 3.9 billion, up 8% year-over-year and 4% sequentially. For the full year, retail gross revenue reached BRL 14.6 billion, increased 8% versus last year.

Speaker #5: So any color on that would be great. If you should expect any positive impact in the first quarter of '26 regarding it. And my second question is regarding the NPS—we saw a decline in NPS to 65 points from the plus 70 points baseline.

Speaker #5: So, could you elaborate on this? What's behind this decline, and how is the company addressing these declining NPS? Thank you.

Speaker #1: Okay, thank you for the question. I will start with the NPS question. The drop is related to two events that we had in the fourth quarter: we had the MBPAR structured notes, and we had a lot of news and noise about Banco Master.

Victor Mansur: Retail revenue growth in 2025 was supported by float for both investments and checking accounts, new verticals with credit card, retirement plans, and insurance leading the way. And there's a new initiative, international investments. Fixed income performance has had a strong first half of 2025, and decent figures for the second half, supported by our real housing strategy. So now let's turn to corporate and issue services. In Q4, revenues reached $895 million, representing a 49% increase year-over-year and a 23% increase sequentially. This was the strongest performance in our history for this business, both in corporate and issue services. The strong performance was driven by a robust activity in the DCM space, reaccelerating from a softer first half.

Speaker #1: Especially in December. So there is a selection bias for clients who were impacted by these two events. They are more likely, like, to respond to the NPS than clients that were not impacted by the event that happened.

Speaker #1: So, when we look at margin, we see the NPS improving again. So, we believe it's going to be temporarily affected by the two events that I just mentioned.

Speaker #1: And to give a color that the impact is not that material, usually when we have big maturities of fixed income, for example, inflation government bonds or big corporate maturing bonds in Brazil, usually we retain 70 or 75 percent of the amount because usually people take the liquidity to pay bills or to do something outside of XP.

Victor Mansur: In addition, our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives and credit, that continued to support the revenues, leveraging on our strong distribution capabilities across the platform. For the full year of 2025, corporate and issue services revenue totaled BRL 2.7 billion, up 19% compared to 2024, making a new level of corporate revenues and consolidating the segment as an important business line for XP. Now let's move to our SG&A and efficiency ratios. SG&A in the fourth quarter amounted BRL 1.7 billion, growing 10% year over year and 4% quarter over quarter. For the full year, SG&A totaled BRL 6.3 billion, reflecting continuing investments in technology such as AI and CRM, and also our expansion of our advisor network.

Speaker #1: So, give or take, it’s 70 percent, the rotation rate. Okay? And when we look at Banco Master, today it is above 85. Okay? So it's higher than a regular maturing event.

Speaker #1: So, I'm not sure how we are going to disclose the net new money for Q1, but somehow we'll have to show these numbers. There's a huge inflow of money from Banco Master, as we are keeping more than 85%.

Victor Mansur: As I mentioned earlier, it is the operational leverage captured from technology and innovation developments that allow us to keep our elevated investment pace in different areas of the business, while keeping the same efficiency level. Additionally, the efficiency ratio in 2026 should remain broadly in line with 2025 levels, without any material change. As we can see on the right-hand of this slide, our last twelve months efficiency ratio for the fourth quarter stood at 24.7, stable compared to 2024. Our adjusted EBT reached $1.5 billion in the Q4 of 2025, increasing 20% year-over-year and 16% quarter-over-quarter. With an adjusted EBT margin of 31.3%, up to 252 basis points year-over-year and to 271 basis points quarter-over-quarter.

Speaker #1: But not sure yet how we are going to disclose it, but we'll disclose it between net new money and the retention. Okay?

Speaker #3: Okay. Great, Mafra. Thank you.

Speaker #4: Okay, next question is from Glenn Migresper from JP Morgan. Grace, you may proceed.

Speaker #6: Hi, good evening. Thank you, Parize, Maffra, Mansur. Thank you for the call. My question is just on the outlook for 2026 in this environment that we are seeing.

Speaker #6: Four quarters still showed similar trends, right? Issue services very strong, corporate solutions very strong. Fixed income a little bit weaker, equities recovering a little bit, but still timid.

Victor Mansur: That means that we have reached the range of our guidance margin during this quarter. For the full year of 2025, adjusted EBT totaled BRL 5.5 billion, growing 10% versus last year, with an EBT margin of 29.6%, expanding 52 basis points year-over-year. On the next slide, we will see our adjusted net income. Adjusted net income for the quarter was BRL 1.3 billion, up 10% year-over-year and stable sequentially. Our net margins were 26.9% in the Q4 of 2025, 9 basis points lower year-over-year, and 166 basis points lower sequentially.

Speaker #6: But my question is more going forward. The question, maybe just one: Do you think this performance of Corporate Solutions and Issue Services is sustainable in the beginning of this year?

Speaker #6: And question number two, if this environment that we are seeing here today is a good performance of risk assets, but it's mostly led by foreigners, right?

Speaker #6: We don't see a huge change in the local dynamics. If you believe you are benefiting much from this environment or not, you don't benefit as much because it's mostly foreigner-driven.

Speaker #6: This is good performance. Thank you so much.

Speaker #1: Yeah. Hi, Jeremy. Thank you for the question, Victor here. First, talking about corporate, I think our corporate business is in another pattern. We evolved a lot in terms of product cross-sell clients.

Victor Mansur: For the full year, adjusted net income reached $5.2 billion, growing 15% compared to 2024, with 28.3% net margin, 173 basis points expansion in the period. Let's move on the next slide to talk about capital management. Starting with capital returns, in 2025, we returned $2.4 billion in capital to shareholders through dividends and buybacks. We also continue to have our $1 billion share buyback program currently open. On the right-hand side of this slide, you can see the evolution of our payout ratio over the years, including last year, we had a close to 15% payout, considering both buybacks and dividends. Now, talking about earnings per share and our win.

Speaker #1: And so, I think we are able to keep the space over 2026. And talking about the performance of the other risk assets, as you said, it's still too soon to say that this will reflect in take rate.

Speaker #1: If you see volumes, both in fixed income and equities, from retail clients, they are not going up. The movement is mainly driven by foreign clients.

Speaker #1: I think if the performance keeps this way over the year, we may see a bit of trading activity coming from individuals and, of course, that will reflect in equity revenues, but it's still too soon to talk about that.

Victor Mansur: Once again, we would like to highlight that our earnings per share continues to grow faster than net income, driven by our consistent buyback execution, just like we explored in the previous slide. Adjusted EPS in the fourth quarter was R$ 2.56, growing 15% year-over-year and 4% quarter-over-quarter. For the full year, adjusted EPS reached R$ 9.81, increasing 18% versus last year. Only in 2025, we have retired more than 24 million shares, approximately 4% of the total shares outstanding. Now, looking at our profitability, ROE and ROTE. We see our adjusted return on equity for 2025 reached 23.9%, a 94 basis points expansion, while return on tangible equity was 29.5%, a 78 basis points expansion versus 2024.

Speaker #1: Also, in terms of fixed income, I think we need to see the central bank delivering the cuts that we have in the interest rate curve.

Speaker #1: If that happens, we may see a decompression of the duration in fixed income, or something that we talk a lot about over the last two quarters.

Speaker #1: But again, we need to see the market going in this direction, both in equities and fixed rates, to be able to see something reflecting on revenues.

Speaker #3: That's clear. Thank you.

Speaker #4: Great. Next question is from Marcello Mizahi from BBI Bradesco. Mizahi, you may proceed.

Speaker #5: Hello, everyone. Thanks for the opportunity, and congratulations on the results. Two questions. First is regarding the guidance: do you guys plan to update the guidance to 2026, given the environment that we are talking about now, first?

Victor Mansur: This reflects our capital disciplines that allow us to consistently return capital to shareholders, while simultaneously growing and investing in the business to further differentiate ourselves from our peers. Finally, on capital ratio and risk-weighted assets, we closed the quarter with a BIS ratio of 20.4%, with the CET1 ratio at 17.3. In 2026, we will operate the business with a high BIS ratio during the year. We are comfortable with getting our BIS ratio to our target range of 19 to 16 toward the end of the year for capital distributions, while still maintaining a comfortable capital buffer. Additionally, we ended the year with a CET1 ratio of 17.3, compared to our peer average of 12. If we were running the business at the same CET1 of 12, our ROE would have been above 30.

Speaker #5: Second, the guidance of revenues and the guidance of margins. Second question is regarding the perspective to have—I think it's better just to talk about the guidance, please.

Speaker #5: Thank you.

Speaker #1: Mizahi. Yes, the guidance holds. We have no reason today to change the guidance. We believe 2026 is going to be a stronger year than 2025.

Speaker #1: As we have been talking in the past quarters, we are projecting to get very close to the guidance. Margin is there already, okay? And when we look at revenues, if you project, we are very close.

Victor Mansur: Now, looking at the right-hand side of this slide, you can see our RWA breakdown by category. Risk-Weighted Assets totaled-

Thiago Maffra: ... BRL 119 billion, growing 13% year-over-year, and 11% quarter-over-quarter. As we expected and communicated on certain occasions, total RWA growth was lower than our net income and EPS for the year, even if a strong performance from the wholesale business. In parallel, our total assets, adjusted for assets under management from retirement plans, grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the warehousing of fixed income securities, mainly corporate credit, aligned with strong DCM activity, our growing capacity to originate corporate use, and market timing opportunities. Lastly, because of this increase in warehousing, our value at risk, from which important companies' credit risk spread, went to BRL 39 million, or 17 basis points of our Selic.

Victor Mansur: ... BRL 119 billion, growing 13% year-over-year, and 11% quarter-over-quarter. As we expected and communicated on certain occasions, total RWA growth was lower than our net income and EPS for the year, even if a strong performance from the wholesale business. In parallel, our total assets, adjusted for assets under management from retirement plans, grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the warehousing of fixed income securities, mainly corporate credit, aligned with strong DCM activity, our growing capacity to originate corporate use, and market timing opportunities. Lastly, because of this increase in warehousing, our value at risk, from which important companies' credit risk spread, went to BRL 39 million, or 17 basis points of our Selic.

Speaker #1: So there's no reason to change the guidance right now.

Speaker #5: I remember my question. So my question is regarding the RWA. So we saw an increase of this—the leverage. So definitely because of the offers.

Speaker #5: So looking forward, how much this leverage, so the RWA, could increase? Do you guys have some cap on that or some target that you can share with us?

Speaker #5: Thank you.

Speaker #4: Thank you. Thanks for your question, Mizahi. First, as usual, we bought assets for our housebook in the fourth quarter to have assets to sell to our clients in the first.

Speaker #4: That is exactly what is happening. I think what we can say about RWA is the same. We said last year we are very confident that net income will grow faster than the risk.

Thiago Maffra: Stable on a year-over-year perspective and 4 basis points higher sequentially, but still in a very conservative level. We expect to distribute a portion of these assets at the beginning of 2026. This level of our housing capability was only possible through the development of XP Bank and funding structure, as previously highlighted. With that, I end my presentation and hand it over to Mafra, so he can make his final remarks, and then we go to the Q&A. Thanks, Victor. Before the Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar. Over the past years, we have invested heavily in scalable process, governance, and technology, and in 2026, we begin to see these investments maturing and starting to translate into results.

Victor Mansur: Stable on a year-over-year perspective and 4 basis points higher sequentially, but still in a very conservative level. We expect to distribute a portion of these assets at the beginning of 2026. This level of our housing capability was only possible through the development of XP Bank and funding structure, as previously highlighted. With that, I end my presentation and hand it over to Mafra, so he can make his final remarks, and then we go to the Q&A.

Speaker #4: And that will be the case for 2026.

Speaker #5: Any perspective of adjustments on the payout policy to increase payouts or to reduce the payouts with that? Thank you.

Speaker #4: We have our BIS ratio guidance for the end of the year. As we said during the presentation, we're going to pass the year with a more strong capital base.

Thiago Maffra: Thanks, Victor. Before the Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar. Over the past years, we have invested heavily in scalable process, governance, and technology, and in 2026, we begin to see these investments maturing and starting to translate into results.

Speaker #4: But we are confident that we're going to be inside the guidance by the end of 2026.

Speaker #5: Okay. Thank you, guys.

Speaker #4: Okay. Next question is from Tito Labarta from Goldman Sachs. Tito, you may proceed.

Speaker #3: Okay, thanks, Patrice. Good evening, Maffra, Mansoor. Thanks for the call, and thank you. My question—following up on Mizrahi's questions on the guidance—did I miss anything?

Thiago Maffra: This is reinforced by a skilled and well-trained sales force, with aligned incentives, ensuring consistent execution across the organization. We continue to invest in a highly disciplined manner, particularly focused on wholesale banking and the B2C channel, while refining our segmentation to ensure a clear and accurate value proposition for each client profile. This will enable us to grow with quality in a profitable and sustainable manner. On the capital front, our priority is to sustain strong and consistent returns, backed by a conservative capital structure. This discipline provides the flexibility to operate across different market scenarios, maintaining resilience and readiness to capture opportunities. Together, these foundations ensure that we enter 2026 with a solid business structure and disciplined capital allocation. Lastly, before starting the Q&A, I would like to address an ongoing topic within the financial system.

Speaker #3: The guidance you had given was back at the Investor Day, where you guided for gross revenues of $22.8 to $26.8 billion. I mean, even at the low end, that would imply almost 20% revenue growth year over year.

Speaker #3: Just to make sure that's the guidance we're talking about. And that would be a big acceleration from the 8% growth that we're seeing here this year.

Speaker #3: And you also mentioned net inflows. You expect to remain around $20 billion, so we don't see an acceleration there. Just to make sure that I'm understanding the guidance on the revenues that we should be thinking about.

Speaker #3: Thank you.

Speaker #1: Thank you, Tito. Yes, we are talking about the same guidance. So, the number to get at the bottom of the guidance this year is 17%.

Speaker #1: The growth for revenues for 2026, so as we have been talking, it's not going to be easy. But if we miss, it's going to be by a small percentage.

Speaker #1: So, there's no reason to change guidance for three years if we miss by a very small amount. So, again, we believe it is possible to get there.

Thiago Maffra: First of all, we would like to express our deep concern regarding everything that has been revealed in recent months involving Banco Master and the extent of irregularities identified. We also want to acknowledge the important and diligent work carried out by the Central Bank, as well as the responsible media coverage that has helped Brazilian society better understand, with greater transparency, what has occurred. Through ABBC and FEBRABAN, we are actively supporting structural improvements aimed at preventing situations like this from happening again in our financial system. The Central Bank has been advancing in the right direction over the past years, although we understand some relevant adjustments are still necessary. That said, this change must be implemented responsibly, so that Brazil does not risk reversing the significant progress achieved in recent decades in terms of competition and a broader and more efficient access to financial products and services.

Speaker #1: Okay, so about net new money, we don't see any reason today to change the—it's not a guidance, but we have been talking about the $20 billion level.

Speaker #1: That's what happened in the past three quarters, so there's no reason to change for the next quarters. But again, for our ambition to get to 2033 as a leader in investments, it will have to accelerate at some point in the future.

Speaker #1: But we don't see that happening in Q1 or Q2, for all the reasons we are—and numbers we are seeing here.

Speaker #3: Okay. No, thanks for clarifying, Maffra. That's good to hear as well. And I guess the driver of the acceleration—I mean, you're saying first Q2, Q3, maybe you don't see it.

Speaker #3: So, second half of 2026, as interest rates come down—I think, I mean, equity and fixed income are still the biggest portion of your revenues. You think that should accelerate.

Speaker #3: I guess, as rates come down, is that the right way to think about that?

Thiago Maffra: We should be careful not to adopt measures whose unintended consequence would be to reestablish excessive banking concentration, or to enable business models built on consumers' lack of information. Or, as Director Galípolo rightly pointed out some months ago, products that function as a reversing Robin Hood. For more than a decade, the Central Bank has consistently pursued an agenda to increase competition and improve both quality and the cost of financial services through initiatives such as BC Plus. Digital banks and investment platforms have played a central role in this transformation, expanding access to banking services without fees, and reducing long-standing asymmetries in traditional investment products, such as Poupança, savings accounts, PIC, and títulos de capitalização. 25 years ago, we helped transform the system by building the first open platform in Brazil, giving clients across all income levels access to financial education and high-quality investment products.

Speaker #4: No, we're not considering a better take rate here or a marketing improvement to get there. They're all levers that we control, so we are confident that we can grow this year at a higher pace than 2025.

Speaker #3: Okay. But it is back and loaded, right? More in the second half of the year, if I understood the comment earlier?

Speaker #1: We always have seasonality. This year was lower than the past years. But usually, we do 45 and 55 of our results on the first.

Speaker #1: It was a little bit more flat-ish in 2025. But yes, usually, we accelerate more in the second half of the year.

Speaker #3: Okay, perfect. Great. Thank you so much, Maffra.

Speaker #4: Okay. Next question is from Pedro Leduc from Itaú. Leduc, you may proceed.

Speaker #6: Okay, guys. Thank you so much. Our first question on SG&A here: you grew for the full year about 8%. Now, I understand you're going through an investment cycle.

Thiago Maffra: Over time, we have contributed to reshaping the market by fostering competition, improving product quality, reducing costs, and ultimately delivering better outcomes for our clients. We do offer proprietary products, but we have always distributed third-party solutions.

Speaker #6: So here, I would like to hear your

Speaker #1: Thoughts on what the priorities will be in 2026. What are the pains that you're trying to solve with investments? And you mentioned in the call, I believe, stable efficiency for 2026.

Speaker #1: Now we're talking about high teens revenue growth So help us reconcile that that SG&A really , really understand what priorities you are doing .

Thiago Maffra: ... including from competitors. Choice, transparency, and alignment with the client always come first. We do not charge abusive or opaque fees, and clients pay nothing to open or maintain an account with us. Our mission is simple: to improve people's lives by helping them invest better. This principle guides every decision we make and remains the foundation of our work as we continue to support Brazilians in managing their money, investing responsibly, and planning for their future. Andre Parise, we will now start our Q&A session.

Speaker #1: And where should we look for signs of success from these investments? Thank you.

Speaker #2: Hi . Thank you . Thank you for your question I think our main investments will be , as always , in our core business .

Speaker #2: So we're going to be investing in advisory expansion over the year, the same as the last years. We're going to be investing in technology.

Speaker #2: So, we have a lot of technology investments in AI. Those technologies will be used for customer relationship management and to make advisors more productive, both focused on having more account load.

André Parize: Thank you, Mafra. Now we're gonna start the Q&A. The first question is from Eduardo Hosman from BTG. Hosman, you may proceed.

Speaker #2: If more quality and more apps. And I think that's the way that we're going to measure that. And also, we have some investments in our international platform and our PM platform: cash account, bank account.

Eduardo Rosman: Hi. Hi, everyone. I have two questions for Mafra. The first one is regarding, you know, the ambition to become Brazil's leading investment platform by 2033. Can you provide a little bit more detail, you know, why, why 2033? What's the metric that you use to, to define that, the being a leading firm? Is it that market share that you see revenue, client base, you know, or something else? And, and, and do you believe that doing more of the same but better will be enough to reach this goal, or would you require more powerful banking and credit capabilities? That would, that would be the first one, and the second one, regarding your entry into the controlling group, practically speaking, what does that change mean to you? Thanks.

Speaker #2: Every every product around the the companies , the companies that we're going to provide over 20 , 26 and 27 . And I think that's mostly those are the big chunks of investments that we're going to do in 2026 .

Speaker #2: The same as we did in 2025.

Speaker #1: Okay. Efficiency level, you mentioned flattish—that talks with the mid-teens revenues.

Speaker #2: Yeah. As far as Maffra said, we are confident that we are going to pursue our guidance level. And that implies the efficiency ratio and the expenses.

Speaker #2: We're going to grow and of course , we have some some kind of maneuverability here in the number . If the Rev doesn't come , if they're faster than what we expect .

Thiago Maffra: Good evening, everyone, again, and thank you for your questions, Hosman. The first question, it's when we say that we want to be leaders in investments in 2023, it's about market share, okay? So that means that we have our internal plans here, our long-term view is to become leaders in 2033, in market share, and that's it. It's 2033 because our plans, every plan that we have gives us that we can get there in seven years, okay? So that's the number, the reasons. When we look how much money, net new money, we have to bring in the next years, by different channels, by different segments, the plans, they point out that we can get there in 2033. How we get there?

Speaker #2: But the numbers around that

Speaker #1: Okay . And sorry just to be picky on this part . On the revenues . We understand you're going to go through some structured changes that will change .

Speaker #1: Also income tax and revenues . So when we talk about , you know , mid-teens high teens revenues , that's excluding any accounting changes that will happen as you transfer these these operations .

Speaker #1: Correct to be comparable

Speaker #2: If you look at 2025, we did a lot of restructuring over the group. We sent some companies to the bank, and we started changing the way we look at indebtedness in the company.

Speaker #2: We lost something around $500 million in revenues over 2025. That went to the net interest margin. And we said nothing about that.

Speaker #2: So, I think the growth of the revenues in the area, we're going to have a lot of mixes. The same as we have in 2025 with other companies going to the bank.

Thiago Maffra: First, with the third wave, okay, so, as we mentioned in the past earnings call, in all the conference, we have been investing a lot on the third wave, on democratizing wealth planning for retail clients in Brazil. So democratizing the service that only private banking clients or even multifamily office clients have in Brazil. So that's the main point here. It's... A lot of people don't get how big is the change here, because most of the financial companies in Brazil and banks, they still have, like, the model of pushing products, okay? It can be basket of products, an investment portfolio, but it's a product-driven approach. We have been changing that for the past two years.

Speaker #2: We're paying some corporate debt and changing for banking debt, and therefore we're going to reduce the revenues, and we're going to have some positive effects also.

Speaker #2: And I think, in the net, we're going to be delivering the numbers that Maffra said.

Speaker #1: Okay , no , that's that's very clear . The overall message is very clear . Thank you so much

Speaker #3: Okay. Next question is from Antonio José from Bank of America. Antonio, you may proceed.

Speaker #4: Hey , thank you for your time . I have two questions on my side . The first one is a follow taxes . I understand that you should have an average tax rate of close to 15 and higher than that .

Speaker #4: If revenues are more skewed to banking. But now, if I'm looking here in your tax withholding funds line, I see a very sharp decline.

Thiago Maffra: We have changed incentives, we have changed the way of serving clients, we have done a new segmentation on the company, new value propositions, and we are seeing big improvements in all the numbers, churn, NPS, and all a lot of other metrics here. So we are very excited with the next years when we look everything that we have been doing on foundations and changing almost changing the business model in the past years for the future. Of course, we have different strategies for different segments. We have been investing a lot on the private banking platform in the past three years. We have been gaining market share in the past two years, and last year, 2025, it accelerated, and we believe that we can grow faster here on private banking.

Speaker #4: Q-on-Q, and this line is very below your historical average. And it does not look related to the revenue mix. So if you could, please explain what’s the reason for that.

Speaker #4: And that's also a second one. AI, I think it's an important topic, particularly when you are shifting between business models.

Speaker #4: So you are looking towards migrating towards the B2C model. I understand, I understand that this is an opportunity to grow in B2C with lower expenses, lower investments, but also it's a threat, right?

Speaker #4: Because it's a model without in person interaction . And that could be mimicked by AI by another player . So so how how do you see your strategic shift right now considering AI ?

Thiago Maffra: On the middle, the affluent clients, it's more of the same, with more intensity, with more technology, with more process, with the new value proposition of, more services, more wealth planning. And when we go to the retail clients, we have found a new way of serving, more goal-based, low human touch, so a completely different value proposition that is, becoming a reality, I would say, in the last, in the last year, and that we are very confident that we can accelerate in the next years. So different strategies for different segments, but all based on the third wave here. So of course, as you mentioned, the full ecosystem, the banking part, insurance, all of that reinforce the value proposition for investor clients.

Speaker #4: Thank you

Speaker #2: Hi , Antonio . I'm going to take the first question here . First , it's very hard to talk about the results of individual entities in the group .

Speaker #2: And as we said before , it's you cannot explain the performance of one business or another . Looking at the gladius or the performance and also after 2026 , if the restructuring of the group , we're not going to have a fault .

Speaker #2: Any more and we're not going to disclose these numbers . So I think the important thing here is to look the it should look at the mix .

Speaker #2: If you look at the accounting levels , you're going to see the same things . We are looking at the managerial levels . We're going to see the banking revenues , banking fees , credit fees , fees from DCM offerings .

Thiago Maffra: And as you have seen in the past quarters and past years, we are like, every quarter, every year, like, better on the cross-sell products, and we have a big roadmap for the next quarters here. So, but we are ready to accelerate in the future, okay? About the second question, the control, being 100% honest with you, myself, nothing changed. I've been with the company for 11 years. I was a partner in a different way, but I was a partner. I have always acted as owner of the company, so nothing changed on the way I behave or the way I see the company.

Speaker #2: And that was the strong part of the quarter. And that's why we are paying higher taxes than before.

Speaker #5: The second one, so I'm not sure if it was clear on the presentation, but not believe in us taking the financial advisor.

Speaker #5: The human out of the equation here . Okay , so it's always using technology , using AI to improve , to make the advisor better .

Speaker #5: Okay . So we have different AI , AI agents here to help the the advisor to have more relationship with the clients to take the operational workload out of from from our out from the advisor .

Thiago Maffra: But I believe it's even a stronger alignment between the executives that are running the company, José Berenguer and I, alongside Fabrício Almeida and Guilherme Santana. So four executives that run the company on a daily basis, and of course, Guilherme. So I believe it's a stronger alignment for the long term, but nothing changed the way we manage the company here. And besides that, Gabriel, Bruno, and Bernardo, they continue to be a shareholder in the company. They continue on the board. So it's a natural evolution here, a natural process, so there's no big change here on the company.

Speaker #5: We have a lot of tools that we have been creating in the past two years to help the advisors to perform better, to increase their account load, to increase productivity, to increase the level of service that we deliver to customers.

Speaker #5: But it's always about how to improve the human. Of course, when we talk about that, remember that I said we have three big segments here.

Speaker #5: Of course we have some other in between segments , but three big ones , of course , for the 0 to 100 K segment here , we can do 100% digital , okay .

Tito Labarta: Great. Thanks a lot, Mafra.

Eduardo Rosman: Great. Thanks a lot, Mafra.

André Parize: Okay, next question is from Thiago Batista, UBS. Thiago, you may proceed.

Speaker #5: But we don't believe, or we don't like, the idea of having, like, a million real clients or 10 million clients going only through, like, an AI.

Thiago Batista: Hello, hear me?

André Parize: Yes.

Thiago Batista: Oh, okay. Hi, Mafra, Mansur, Parise, Antonio. I have one question regarding the recommendation that CVM released yesterday about the international internalization of orders. In my understanding, this should be a little bit positive for your RLP business. But do you have any view if this is really positive or not for XP? And the second question on the taxes. We normally complain when the taxes were low; now we're complaining with that the tax increased.

Speaker #5: It doesn't help. It doesn't happen because it's a trust business. Okay. So people like to talk to people when they are talking about their life.

Speaker #5: Their dreams. So they want to talk to someone. So the whole idea here is, we use AI to improve the performance, to improve the service that we deliver to our customers.

Speaker #5: So we have been developing a lot of initiatives here . It's some of them are very promising . For example , today we listen , we read .

Thiago Batista: But my question on the taxes is trying to understand if this hike in the taxes in this quarter is related to the change in the compensation structure, and also if this is linked with the consumption of the tax on tax losses carryforward. You reduced or XP reduced it by BRL 700 to 800 million reais of those tax credits, only in one quarter, if all those things are correlated.

Speaker #5: So, we have governance over all the interactions that are B2C internal advisors have with customers. With Classify, 100% of them.

Speaker #5: So we know everything that's happening. We give our advice to the internal advisors about what they are doing right or wrong.

Thiago Maffra: It's Thiago. It's Thiago here, so I will take the first question. It's a very positive news for us. Once you don't have the cap and you can include other assets, so it's very positive, okay? You remember that we were the first company back in 2015. I remember was the one responsible for building RLP back in 2015 here for XP. And until 2019 was a big journey to make the product regulated. So, and today, seeing the product like evolving, not having cap, going to other assets, other type of instruments. So that's very positive because we are the largest market making in Brazil for retail clients.

Speaker #5: We give advice. We give us advice on interactions with customers. So we are very excited with the results that we are getting from AI on the company.

Speaker #5: And, but again, it's not about replacing the human or the human advisor. It's about enhancing the advisor. Okay, so that's the idea.

Speaker #4: Thank you

Speaker #3: Okay. Next question is from Daniel Voss from Safra. You may proceed.

Speaker #4: Thank you .

Speaker #6: And thank sorry , guys . Yeah . Thank you . Thank you buddy . And good night . Good night monsieur , I want to try to understand the the aftermath of Banco Master .

Speaker #6: Right ? Episode , both for XP internally and for your client base . So trying to break this down into two parts . First , for you , anyway , any changes in the way you filter your products to distribute ?

Thiago Maffra: So, it's positive for, for business, it's for positive for the market, for the clients. So, and of course, we'll generate more revenues and, and more results for, for our market making. So it's positive.

Speaker #6: I mean , how how did that episode was discussed in your board of directors ? So I is it got to the point that you're discussed like , are we going to distribute these types of products again ?

Speaker #6: So how is the filter that you want to do after it? Or if there is any that you want to put.

Victor Mansur: Hi, Thiago, this is Victor. First about taxes, I think we talked a lot about that in the past. Our base tax rate is something near 15%. If the business is more toward the banking activity, investment banking, DCM and broker-dealer, we're gonna pay a bit more. And if the business is more towards market-making, we're gonna pay a bit less. If you look at the revenue mix for the quarter, the main highlights was issue services and corporate banking. Both, of course, made inside the bank and the broker-dealer, and that's why we are paying more taxes. Also, those revenues are less heavy in terms of commission. Those assets were not distributed to retail clients, so DBT margin associated to those revenues are also higher.

Speaker #6: Additionally and to your client behavior such as the ones that were involved probably you mentioned , I think it was in the past presentation about clients going to more risk averse CDs , kind of 50% of your marginal allocation in fixed income was a little more to high liquidity products .

Speaker #6: And less, less yields. So I want to try to understand, like, what has changed into the third quarter so far to the fourth quarter so far in terms of investment, investment decisions by your clients, and mainly on the aftermath of the episode of Uncle Master.

Speaker #6: Thank you

Speaker #5: It's important to remember that our clients , they 99.9% of them , they are like under the f f FGC . The FDIC , Brazilian FDIC coverage .

Victor Mansur: Talking about the capital structure, it's this change will only happen in 2026. It did not happen yet in 2025, so it has nothing to do with the taxes. The taxes are an effect of the revenue mix. I'm sorry, what was the other question?

Speaker #5: So our clients , they didn't lose any money on the opposite , they they made an investment that had a good return . Okay .

Thiago Batista: Was, if this was the higher taxes, was the cause of the reduction in the tax losses carry forward?

Speaker #5: So our clients, they didn't lose any money. We don't recommend Banco over FGC, as we don't recommend for any bank below a certain threshold of our internal rating.

Victor Mansur: It's not because of that. It's the revenue mix that explain both revenue, tax, and EBT.

Thiago Batista: Okay. Very clear. Thanks, Mansur and Mafra.

Speaker #5: Okay. So, of course, every time that something like that happened, we look for our internal controls or credit analysis to see what we can improve.

André Parize: Okay, next question is from Gustavo Sherons, from Citi. Gustavo, you may proceed.

Gustavo Schroden: Hello, guys. Thanks for the question. I'm gonna do two questions as well. So the first one is regarding the reimbursements by the FGC to the depositors of Banco Master. So estimated in BRL 40 billion. So how has XP been performing? So I believe that the company has designed a strategy to capture these volumes, or part of this volume. So any color on that would be great. If you should expect any positive impact in Q1 2026, regarding it. And my second question is regarding the NPS. We saw a decline in NPS to 65 points from +70 points baseline. So could you elaborate on this? What's behind this decline, and how the company is addressing this decline in NPS? Thank you.

Speaker #5: And we are improving . Okay . It's part of the the journey . But remember that we we have more than 50% of the of market share of all middle sized and small size banks in in Brazil .

Speaker #5: So because remember that the traditional incumbent banks , they they don't distribute third party So it's basically only the independent investment platforms . So and we are the largest one in the market .

Speaker #5: So far, and remember that in some other cases, like Casa Belgica, we distribute the Puerto credit. We do not have the products on our platform.

Speaker #5: Okay. So our credit analysis was good in some events in the past. When you have frauds or the kind of events that everyone is reading on the news right now, it's almost impossible.

Thiago Maffra: Okay, thank you for the question. I will start with the NPS question. It's the drop is related to two events that we had on the fourth quarter. We had the Ambipar structured notes, and we had a lot of news and noise about Banco Master, especially in December. So there is a selection bias for clients who were impacted by these two events. They are more prone likely to respond the NPS than clients that were not impacted by the events that happened. So when we look at margin, we see the NPS improving again. So we believe it's gonna be temporary, affected by the two events that I just mentioned.

Speaker #5: Otherwise, no, no one would lose money on credit. No one would have lost money on the Americanas or Eike Batista companies or other frauds.

Speaker #5: Okay , so when you have this type of problems , it's hard to get . But of course we have to look inside , see what we have to improve in our controls .

Speaker #5: But again, we have only distributed products that we believe are suitable for our clients, with the right risks for the right customer profile.

Speaker #5: We have internal controls today that do not allow us to allocate more to any type of fixed income products with credit risk above the threshold for that rating.

Speaker #5: For that type of client . Okay , so we are very strict on controlling that . And again , our clients , they didn't lose any money here on on master okay .

Thiago Maffra: To give a color that the impact is not that material. Usually when we have big maturing of fixed income, for example, inflation government bonds, or like big corporate maturing bonds in Brazil, usually we retain 70-75% of the amount. Because usually people take the liquidity to pay bills or to do something outside of XP. Give or take, 70% is the retention rate. Okay? When we look at Banco Master, today it is above 85%. Okay, so it's higher than a regular maturing event. I'm not sure how we are going to disclose the net new money for Q1, but somehow we'll have like to show the numbers.

Speaker #5: So that's important about the changing mix after the event . We don't see any big change okay . To be honest . We don't see of course you have one or other name that were involved on the same problem .

Speaker #5: For those names . They are not even on our platform for a few months or even years . Okay , so . But besides that , we don't see big change for other type of small or midsize banks .

Speaker #5: Okay .

Speaker #6: No, pretty clear. Thank you.

Speaker #3: Okay. Our initial call is coming to an end. Thank you for your time. We see that there are more people who want to ask questions.

Thiago Maffra: There's a huge inflow of money from Banco Master, as we are keeping more than 85%, but not sure yet how we are going to disclose, but we'll disclose between net new money and the retention. Okay.

Gustavo Schroden: Okay, great, Mafra. Thank you.

André Parize: Okay, next question is from Glenn Grespan from JP Morgan. Grespan, you may proceed.

Gustavo Schroden: Okay, next question is from Glenn Grespan from JP Morgan. Grespan, you may proceed.

Guilherme Grespan: Hi, good evening. Thank you, Parise, Mafra, Mansur, thank you for the call. My question is just on the outlook for 2026 in this environment that we are seeing. 4 quarters still showed similar trends, right? Issuance service is very strong, corporate solutions very strong. Fixed income a little bit weaker, equities recovering a little bit, but still timid. But my question is more going forward, like, question maybe one: Do you think this performance of corporate solutions and issuer services is sustainable in the beginning of this year? And question number 2: If this environment that we are seeing year to date, it's a good performance of risk assets, but it's mostly led by foreigners, right? We don't see a huge change on the local dynamics.

Guilherme Grespan: If you believe you're benefiting much from this environment or no, you don't benefit as much because it's mostly foreigner driven, this good performance. Thank you so much.

Thiago Maffra: Hi, Jeremy, thank you for our question. Victor here. First, talking about corporate. I think our corporate business is in another platform. We evolved a lot in terms of product, cross-sell clients, and do so I think we can-- we are able to keep the pace over 2026. Talking about the performance of the other risk assets, as you said, it's still too soon to say that this will reflect in take rate. If you see volumes both in fixed income and equities, from retail clients, they are not going up. The movement is mainly driven by foreign clients.

Victor Mansur: Hi, Jeremy, thank you for our question. Victor here. First, talking about corporate. I think our corporate business is in another platform. We evolved a lot in terms of product, cross-sell clients, and do so I think we can-- we are able to keep the pace over 2026. Talking about the performance of the other risk assets, as you said, it's still too soon to say that this will reflect in take rate. If you see volumes both in fixed income and equities, from retail clients, they are not going up. The movement is mainly driven by foreign clients.

Thiago Maffra: I think if the performance keep this way over the year, we may see, we may see a bit of trading activity coming from individuals, and of course, they will reflect in actual revenues, but it's still too soon to talk about that. Also, in terms of fixed income, I think we need to see the central bank delivering the cuts that we have in the interest rate curve. If that happen, we may see a decompression of the duration in fixed income, or something that we talk a lot about over the last two quarters. But again, we need to see the market, the marketing going in this direction, both in equities and fixed income and rates, to be able to see something reflecting on revenues.

Victor Mansur: I think if the performance keep this way over the year, we may see, we may see a bit of trading activity coming from individuals, and of course, they will reflect in actual revenues, but it's still too soon to talk about that. Also, in terms of fixed income, I think we need to see the central bank delivering the cuts that we have in the interest rate curve. If that happen, we may see a decompression of the duration in fixed income, or something that we talk a lot about over the last two quarters. But again, we need to see the market, the marketing going in this direction, both in equities and fixed income and rates, to be able to see something reflecting on revenues.

Guilherme Grespan: That's clear. Thank you.

Victor Mansur: ... Great. Next question is from Marcelo Mizahi, from Bradesco BBI. Mizahi, you may proceed.

André Parize: ... Great. Next question is from Marcelo Mizahi, from Bradesco BBI. Mizahi, you may proceed.

Marcelo Mizrahi: Hello, everyone. Thanks for the opportunity. Congratulations on the results. Two questions. So first is regarding the guidance. So if you guys plan to update the guidance to 2026, with the environment that we are talking now, first, second, the guidance of revenues and the guidance of margins. Second question is regarding the perspective to have. I think it's better to just talk about the guidance, please. Thank you.

Thiago Maffra: Mizahi, yes, the guidance holds. We have no reason today, like, to change the guidance. We believe 2026 is gonna be a stronger year than 2025, as we have been talking in the past quarters. We are projecting to get very close to the guidance. Margin is there already, okay? And when we look revenues, if you project, we are very close, so there's no reason to change the guidance right now.

Marcelo Mizrahi: I remember my question. So my question is regarding the RWA. So we saw an increase of this, the leverage, so definitely because of the offers. So looking forward, how much this leverage, so the RWA could increase? So you guys have some cap on that or some targets that you can share with us? Thank you.

Victor Mansur: Thank you. Thank you for our question, Mizahi. First, as usual, we, we bought assets for our house book in Q4 to have assets to sell to our clients in Q1. That is exactly what is happening. I think what we can say about RWA is the same we said last year. We are very confident that net income will grow faster than the risk, and that will be the case for 2026.

Marcelo Mizrahi: Any perspective of adjustments on the payout policy to increase payouts, or to reduce the payouts with that? Thank you.

Victor Mansur: We have our BIS ratio guidance for the end of the year. We, as we said it during the presentation, we're gonna pass the year of more strong capital base, but we are confident that we're gonna be inside the guidance by the end of 2026.

Marcelo Mizrahi: Okay. Thank you, guys.

Victor Mansur: Okay, next question is from Cito Labarda from Goldman Sachs. Cito, you may proceed.

André Parize: Okay, next question is from Cito Labarda from Goldman Sachs. Cito, you may proceed.

Tito Labarta: Okay. Thanks, Parise. Good evening, Mafra, Mansur, thanks for the call, and thank you for my question. Following up on Mizahi's questions on the guidance, just so I'm clear, make sure I didn't miss anything. The guidance you had given was back at the investor day, where you guided for gross revenues of BRL 22.8 to 26.8 billion. No, I mean, even at the low end, that would imply almost 20% revenue growth year-over-year. Just to make sure that's the guidance we're talking about. And that would be a big acceleration from, you know, the 8% growth that we're seeing here this year. And you also mentioned net inflows, you expect to remain around BRL 20 billion, so we don't see an acceleration there.

Tito Labarta: Just to make sure that I'm understanding the guidance on the revenues that we should be thinking about. Thank you.

Thiago Maffra: Thank you, Cito. Yes, we are talking about the same guidance. So, the number to get at the bottom of the guidance this year is 17%, the growth for revenues for 2026. So as we have been talking, it's not gonna be easy, but, if we miss, it's gonna be, by a small percentage, so there's no reason like to change our guidance for three years if we miss, by a very small amount. So and again, we believe it is possible to get there. Okay, so, and about net new money, we don't see any reason, today to change the. It's not a guidance, but we have been talking about the $20 billion level. It's what happened in the past, three quarters.

Thiago Maffra: So there's no reason to change for the next quarters. But again, for our ambition to get to 2033, as a leader in investments, it will have to accelerate at some point in the future, but we don't see that happening on Q1 or Q2, for all the reasons we are, and numbers we are seeing here.

Tito Labarta: Okay. No, thanks for clarifying, Mafra. That's good. Good to hear as well. And, and I guess the, the driver of the acceleration, I mean, you're saying first Q2, Q, maybe you don't see it, so second half of 2026, as interest rates come down, I think, I mean, equity and fixed income are still, like, the biggest portion of your revenues. You think that should accelerate, I guess, as rates come down? Is that the, the right way to think about that?

Thiago Maffra: No, we're not considering, like, a better take rate here or, like, on marketing improvement, to get there. They're like, all levers that we control. So we are confident that we can grow this year, at higher pace than 2025.

Tito Labarta: ... Okay, but it is back-end loaded, right? More second half of the year, if I understood the comment earlier.

Victor Mansur: We always have some seasonality. This year was lower than the past years, but usually we do 40, 45, and 55, of our results on the first. It was a little bit more flattish in 2025, but yes, usually we accelerate more on the second half of the year.

Thiago Maffra: We always have some seasonality. This year was lower than the past years, but usually we do 40, 45, and 55, of our results on the first. It was a little bit more flattish in 2025, but yes, usually we accelerate more on the second half of the year.

Tito Labarta: Okay, perfect. Great. Thank you so much, Mafra.

André Parize: Okay, next question is from Pedro Leduc from Itaú. Leduc, you may proceed.

Pedro Leduc: Okay, guys. Thank you so much. On first question on SG&A, here, you grew for the full year about 8%. Now, I understand you're going through an investment cycle. So here I'd like to hear your thoughts on what the priorities will be in 2026. What are the pains that you're trying to solve with investments? And you mentioned in the call, I believe, stable efficiency for 2026. Now we're talking about high teens revenue growth. So, help us reconcile that SG&A, really, really understand what priorities you are doing and where we should look for signs of success of these investments. Thank you.

Victor Mansur: Hi, Leduc. Thank you. Thank you for our question. I think our main investments will be, as always, in our core business. So we're gonna be investing in advisory expansion over the year, the same as the last years. We're gonna be investing in technologies. So we have a lot of technology investments in AI. Those technologies will be used to customer relationship management and advisory productivity, both focused on having more account load, with more quality and more NPS. And I think that's the way that we're gonna measure that. And also, we have some investments in our international platform and our PME platform, cash account, bank account, every product around the companies that we're gonna provide over 2026 and 2027.

Victor Mansur: I think that's mostly, those are the big chunks of investments that we're gonna do in 2026, the same as we did in 2025.

Pedro Leduc: Okay. And the efficiency level you mentioned, flattish, that talks with the mid-teens revenues?

Victor Mansur: Yeah, as Mafra said, we are confident that we are gonna pursue our guidance level, and that implies the efficiency ratio and the expenses are gonna grow. And of course, we have some kind of maneuverability here in the number, if the revenue doesn't come, if they are faster than what we expect. But the number is around that.

Pedro Leduc: Okay. Sorry, just to be picky on this part, on the revenues, we understand you're gonna go through some structured changes that will change also income tax and revenues. So when we talk about, you know, mid-teens, high teens, revenues, that's excluding any accounting changes that will happen as you transfer these operations, correct? To be comparable.

Victor Mansur: If you look at 2025, we did a lot of restructuring over the group. When we sent some companies to the bank and we start changing the way we look at the indebtedness in the company, we lost something around BRL 500 million in revenues over 2025. That went to the net interest margin, and we said nothing about that. So I think the growth of the revenues in the area, we're gonna have a lot of mixes. The same as we have in 2025, with other companies going to the bank. We're paying some corporate debt and changing for banking debt, and therefore, we're gonna reduce their revenues, and we're gonna have some positive effects also. And I think in the net, we're gonna be delivering the numbers that Mafra said.

Pedro Leduc: Okay. No, that's very clear. The overall message is very clear. Thank you so much.

André Parize: Okay, next question is from Antonio Ruete from Bank of America. Antonio, you may proceed.

Tito Labarta: Hey, thank you for your time. I have two questions on my side. The first one is a follow-up on taxes. I understood that you should have an average tax rate of close to 15 and, and, higher than that, if revenues are more skewed to banking. But, now, if I'm looking here in your tax withholding in funds line, I see a very sharp decline, Q on Q, and this line very below your historical average. And it does not look related to the revenue mix. So if you could please explain what's it related for? And also a second one, AI. I think it's an important topic, particularly when you are shifting between business models. So, you are looking towards migrating towards the B2C model.

Antonio Ruette: Hey, thank you for your time. I have two questions on my side. The first one is a follow-up on taxes. I understood that you should have an average tax rate of close to 15 and, and, higher than that, if revenues are more skewed to banking. But, now, if I'm looking here in your tax withholding in funds line, I see a very sharp decline, Q on Q, and this line very below your historical average. And it does not look related to the revenue mix. So if you could please explain what's it related for? And also a second one, AI. I think it's an important topic, particularly when you are shifting between business models. So, you are looking towards migrating towards the B2C model.

Tito Labarta: I understood-- I understand that this is an opportunity to grow in the B2C with lower expenses, lower investments, but also it's a threat, right? Because it's a model without in-person interaction, and that could be mimicked by AI, by another player. So, so how, how do you see your strategic shift right now, considering AI? Thank you.

Antonio Ruette: I understood-- I understand that this is an opportunity to grow in the B2C with lower expenses, lower investments, but also it's a threat, right? Because it's a model without in-person interaction, and that could be mimicked by AI, by another player. So, so how, how do you see your strategic shift right now, considering AI? Thank you.

Victor Mansur: Hi, Antonio. I'm gonna take the first question here. First, it's very hard to talk about the results of individual entities in the group. As we said before, you cannot explain the performance of one business or another looking at the Glagius or the Condurial performance. Also, after 2026, if the restructuring of the group, we're not gonna have a photo tax anymore, and we're not gonna disclose this number. I think the important thing here is to look, you should look at the mix. If you look at the accounting levels, you're gonna see the same things we are looking at the managerial levels.

Victor Mansur: You're gonna see the banking revenues, banking fees, credit fees, fees from DCM offerings, and that was the strong part of the quarter, and that's why we are paying higher in taxes than before.

Thiago Maffra: The second one. So, not sure if it was clear on the presentation, but we do not believe in taking the financial advisor, the human out of the equation here, okay? So it's always using technology, using AI to improve, to make the advisor better, okay? So we have different AI agents here to help the advisor to have more relationship with the clients, to take the operational workload out from the advisor. We have a lot of tools that we have been creating in the past two years to help the advisors to perform better, to increase the account load, to increase productivity, to increase the level of service that we deliver to customers, but it's always how to improve the human. Of course, when we talk about the...

Thiago Maffra: Remember that I said we have three big segments here? Of course, we have some other in between segments, but three big ones. Of course, for the 0 to 100K segment, here we can do 100% digital, okay? But we don't believe or we don't we don't like the idea of having, like 1 million real client or 10 million real clients going only through, like an AI. It doesn't help. It doesn't happen because it's a trust business, okay? So people like to talk to people when they are talking about their life, their dreams, so they want to talk to someone. So the whole idea here is how we use AI to improve the performance, to improve the service that we deliver to our customers. So we have been developing a lot of initiatives here.

Thiago Maffra: It's some of them are very promising. For example, today, we listen, we read, so we have governance over all the interactions that our B2C internal advisors have with customers. We classify 100% of them, so we know everything that's happening. We give advice for the internal advisors about what they are doing right or wrong. We give product advice; we give advice of interactions with customers. So, we are very excited with the results that we are getting from AI on the company. And but again, it's not about replacing the human or the human advisor, it's about enhancing the advisor, okay? So that's the idea.

Pedro Leduc: Thank you.

Antonio Ruette: Thank you.

André Parize: Okay, next question is from Daniel Vaz, from Safra. Vaz, you may proceed.

Daniel Vaz: Thank you, Parise. Sorry, guys. Yeah, thank you. Thank you, Parise, and good night, Matthew, good night, Mansur. I wanna try to understand the aftermath of Banco Master, right? The episode, both for XP internally and for your client base. So trying to break this down into parts. First, for you, any way, any changes in the way you filter your products to distribute? I mean, how did that episode was discussed in your board of directors? So is it got to the point that you discussed, like, are we going to distribute these types of products again? So how is the filter that you wanna do after it, or if there is any that you wanna put additionally?

Daniel Vaz: And to your clients' behavior, such as, the ones that were involved, probably, you mentioned, I think it was in the past presentation about clients going to more risk-averse CDs, kind of 50% of your marginal allocation in fixed income was a little more to, high liquidity products and less, less yields. So I wanna try to understand, like, what has changed in to the third quarter so far, to the fourth quarter so far, in terms of investment decisions by your clients, and mainly on the aftermath of the episode of Banco Master. Thank you.

Thiago Maffra: It's important to remember that, our clients, they, 99.9% of them, they are like, under the FGC, the Brazilian FGC, coverage. So our clients, they didn't lose any money. On the opposite, they, they made, an investment that, had a good return, okay? So our clients, they didn't lose any money. We don't recommend Banco Master over FGC, as we don't recommend for any bank below a certain threshold of our internal rating, okay? So of course, every time that something like that happen, we look for our internal controls, our credit analysis, to see what we can improve, and we are improving, okay. It's part of the journey.

Thiago Maffra: But remember that we have more than 50% of the market share of all middle-sized and small-sized banks in Brazil. So because remember that the traditional incumbent banks, they don't distribute third-party CGs. So it's basically only the independent investment platforms, so, and we are the largest one in the market. So for -- And remember that in some other cases, Gicasa, BRK, we didn't distribute the Porto Credi. We didn't have the products on our platform, okay? So our credit analysis was good in some events in the past. When you have frauds or the kind of events that everyone is reading on the news right now, it's almost impossible. Otherwise, no one would lose money on credit.

Thiago Maffra: No one would have lost money on Lojas Americanas or Eike Batista companies or other frauds, okay? So when you have this type of problems, it's hard to get. But of course, we have to look inside, see what we have to improve in our controls. But again, we have only distributed products that we believe they are suitable for our clients on the right risks, for the right, customer profile. We have internal controls today that we cannot allocate more of, any type of, fixed income, products with credit risk, above the threshold, for that rating, for that type of client, okay? So we are very strict on controlling that. And again, our clients, they didn't lose any money here, on Master, okay? So that's important.

Thiago Maffra: About the changing mix after the event, we don't see any big change, okay, to be honest. We don't see ... Of course, you have one or other name that were involved on the same problem. For those names, they are not even on our platform for a few months or even years, okay? So but besides that, we don't see big changes for other type of small or mid-sized banks. Okay.

Daniel Vaz: No, pretty clear. Thank you.

André Parize: Okay, our earnings call has come to an end. Thank you for your time. We see that there are more people who want to make questions, so our team will be more than happy to attend you. Just contact us and see you soon. Thank you very much.

Operator: Goodbye.

Q4 2025 XP Inc Earnings Call

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