XP Inc (NASDAQ: XP) reported second quarter 2026 financial results showing robust top-line growth and profitability expansion. Net revenue reached R$4,884 million, representing a 9% increase year-over-year and a 3% rise quarter-over-quarter. This performance contrasts with earlier market expectations of $976.54 million in sales, as the company delivered stronger operational results across its diversified platform.

Adjusted diluted earnings per share (EPS) came in at R$2.67, marking a 9% increase compared to R$2.46 in the same period last year. This figure significantly exceeded the analyst consensus estimate of $0.51 per share, highlighting improved cost efficiency and favorable mix effects despite a slight deceleration in retail take rates.

Financial Performance

The divergence between earnings and revenue performance underscores a shift in profitability dynamics. While top-line growth accelerated to 9% from previous periods, the company delivered higher bottom-line returns than expected. Earnings before taxes (EBT) grew 15% year-over-year to R$1,565 million, with the EBT margin expanding by 172 basis points to 32.0%.

Segment Highlights

Retail revenue grew 8% year-over-year to R$3,881 million, supported by double-digit growth in equities (+11%) and funds platform (+23%). However, fixed income revenue declined 16% due to mark-to-market impacts. The wholesale banking segment emerged as a key growth driver, with revenue surging 32% year-over-year to R$1,175 million, primarily fueled by a 117% jump in corporate activity.

Operating metrics remained stable, with total client assets reaching R$1.5 trillion, up 12% year-over-year. Active clients totaled 4.8 million, reflecting steady user engagement. The annualized retail take rate stood at 1.20%, down 5 basis points year-over-year but up 2 basis points sequentially.

What the Numbers Show

The expansion in EBT margin to 32.0%, combined with a stable gross margin of 68.6%, indicates significant operating leverage. SG&A expenses grew only 5% year-over-year to R$1.6 billion, lagging revenue growth and contributing to the EPS beat. The surge in wholesale banking revenue, which more than doubled its corporate segment contribution, suggests a successful diversification beyond traditional retail brokerage fees.

Capital management remains strong, with the BIS ratio at 20.3% and CET1 ratio at 17.1%. The company continued executing share repurchases, having closed a previous program and maintaining another open program of R$1 billion, signaling confidence in its capital buffer and future returns.

XP Inc. reported strong financial performance for the first quarter of 2026, with client assets reaching 2.1 trillion reais, representing a 21% year-over-year growth. Gross revenues for the quarter stood at 4.9 billion reais, an 8% increase compared to the same period last year. The company announced a new share buyback program worth 1 billion reais and declared dividends totaling 500 million reais, payable in June, underscoring its commitment to shareholder returns.

Financial Performance

Net income for the quarter rose 7% year-over-year to 1.3 billion reais, while EBIT grew 8% to 1.4 billion reais. The company achieved a return on equity (ROE) of 21.7% and maintained a capital ratio of 20.7%. Diluted earnings per share (EPS) increased 9% year-over-year, outpacing net income growth due to the execution of the buyback program.

Operational Highlights

The company ended the period with 18.3 thousand advisors, a 1% increase year-over-year, and an active client base of 4.8 million, up 2% year-over-year. Net new money for the quarter totaled approximately 14 billion reais, with retail contributing 19 billion reais and corporate and institutional segments recording negative 4 billion reais. The retail segment revenue grew 10% year-over-year to 3.8 billion reais, while the wholesale banking division, which now includes the institutional business, grew 26% year-over-year.

Leadership Transition

XP announced a leadership transition, appointing Gustavo Vallejo as the new CFO. Vallejo succeeds Victor Mansour, who will remain a partner and support new ventures within the XP ecosystem. The transition is part of a planned strategy to bring in expertise aligned with the company's expanding banking and capital markets products.

Outlook

Despite global market volatility and widening credit spreads in March, XP maintains confidence in achieving double-digit growth for the year. The company noted that while spreads stabilized in May, it does not expect a full recovery in the second quarter. Management emphasized that its diversified revenue base and strategic initiatives position it well to navigate the current macroeconomic environment.