PagSeguro (PAGS) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 20, 2026 astatine 10:24 AM CDT 35 min read

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DATE

Tuesday, May 12, 2026 astatine 6 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Ricardo da Silva

• Chief Executive Officer, PagBank — Carlos Mauad

• Chief Financial and Investor Relations Officer — Gustavo Bahia Sechin

Full Conference Call Transcript

Ricardo da Silva: Good evening, everyone, and convey you for joining our archetypal 4th 2026 net call. Starting connected Slide 4, we summarize the main highlights of the quarter. This archetypal 4th marks continued advancement successful the execution of our strategy with banking and recognition acceleration and operating leverage translated into net expansion, adjacent successful a challenging macroeconomic and a precocious involvement complaint environment. Total outgo measurement reached BRL 128 billion, level year-over-year, confirming a gradual reacceleration versus anterior quarters. Our recognition portfolio expanded to BRL 51 billion, up 11% year-over-year, driven chiefly by a 36% summation successful full loans. Growth was broad-based crossed each products with peculiar spot successful moving capital, which roseate 190% year-over-year.

Supporting this expansion, deposits reached BRL 42 cardinal successful Q1, a 23% year-over-year increase. On the fiscal highlights, nett revenue, excluding interchange fees, reached BRL 3.3 billion, 6.4% maturation year-over-year, reflecting chiefly recognition acceleration and the wide banking performance. Recurring nett income, non-GAAP reached BRL 575 million, a 4% increase, chiefly impacted by the summation successful fiscal expenses linked with the basal involvement complaint of Brazil, but with affirmative interaction from the operating leverage we delivered, which we'll spot aboriginal successful the presentation. Most importantly, diluted non-GAAP EPS accrued 12% year-over-year, boosted by the superior optimization initiatives deployed.

On the adjacent slide, we item our semipermanent way grounds of accordant shareholder worth creation, supported by a absorption connected profitability, disciplined maturation and superior efficiency. Over the past 12 months, the institution returned astir BRL 2.4 cardinal to shareholders done dividends and stock buybacks, translated into the past 12 months full output of astir 16%. Since our IPO successful 2018, we person delivered GAAP diluted EPS maturation of astir 16% CAGR, underscoring a beardown and accordant execution way grounds done aggregate cycles, including periods of important planetary disruption and macro volatility. Over this period, we person accomplished cardinal strategical milestones that expanded our addressable market, improved the profitability and established a robust level for sustainable net growth.