StoneCo (STNE) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, May 19, 2026 astatine 10:49 AM CDT 39 min read

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DATE

Thursday, May 14, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Mateus Schwening

• Chief Financial Officer — Diego Salgado

• Operator

Full Conference Call Transcript

Mateus Schwening: Thank you, operator, and bully evening, everyone. Let maine statesman with a broader presumption of our archetypal quarter. The 4th was broadly accordant with the softer archetypal fractional dynamics we had anticipated. Three dynamics shaped the quarter. First, a macro situation that continues to measurement connected smaller merchants; second, emblematic archetypal 4th seasonality; and third, a recognition portfolio that continues to turn profitably, adjacent though NPLs came successful supra our expectations. All of this portion we enactment to bring churn to healthier levels and reaccelerate TPV growth. Against that backdrop, we grew revenue, held adjusted gross nett broadly unchangeable and proceed to instrumentality important superior to shareholders.

More importantly, this 4th marks the opening of a modulation signifier betwixt the bonzer superior organisation linked to the Linx divestiture and the operational momentum we expect to physique done the 2nd half. The enactment underway springiness america assurance successful the trajectory ahead, and we stay afloat focused connected execution. Now I privation to walk a fewer minutes connected what matters astir heading into the remainder of 2026, our superior allocation discipline, our operating priorities and our committedness to shareholder value. Let's crook to Slide 3, wherever we amusement our superior organisation to shareholders crossed the past mates of years with accent connected what we person delivered truthful acold successful 2026.

Year-to-date, we person distributed BRL 3.6 billion, representing a 27% organisation yield. This includes the bonzer dividend paid connected May 4 with proceeds from the Linx divestiture and astir BRL 0.6 cardinal successful mean stock buybacks. In addition, we inactive person astatine slightest different BRL 1.4 cardinal to beryllium repurchased passim this year. As we person consistently said, whenever value-accretive opportunities are not instantly available, excess superior gets returned to shareholders and the 27% output year-to-date is simply a nonstop reflection of that commitment. Moving on, Slide 4 outlines our cardinal priorities for the remainder of 2026. On payments, our precedence is to reaccelerate profitable TPV growth.

To bash that, we're focused connected improving retention, managing churn much actively and simplifying the mode we bring our broader acceptable of solutions to clients. As we deepened our knowing of the drivers down the elevated churn observed towards the extremity of 2025, 1 important constituent became clear. The churn unit is not broad-based. Our bequest lawsuit basal continues to execute successful enactment with humanities churn levels, reinforcing the spot of our halfway worth proposition. Instead, the unit has been much concentrated among clients onboarded during 2025, a play successful which the institution began offering a broader acceptable of products.