Q2 2026 XP Inc Earnings Call

August 17, 2026

André Parize: Good evening, everyone. I am André Parize, Investor Relations Officer at XP Inc. Welcome, and thank you for joining us for our Q2 2026 earnings call. Today's presentation will be delivered by our CEO, Thiago Maffra, and our CFO, Gustavo Alejo. Right after the presentation, they will be both available for the Q&A session. To ask a question during Q&A, your questions are in the order they are received. Live translation in Portuguese is available. You can enable it by clicking the button below. Before we begin, please take a moment to review the legal disclaimer on page 2 of today's presentation, which addresses forward-looking statements. The full presentation is available for download on our Investor Relations website, and you will find additional materials in the SEC Filings section of our IR website. Now I hand it over to Thiago Maffra. Good evening, Maffra.

Speaker #2: Good evening, everyone. I'm Andre Parizi, Investor Relations Officer at XP Inc. Welcome, and thank you for joining us for our second quarter 2026 earnings call.

Speaker #2: Today's presentation will be delivered by our CEO, Thiago Maffra, and our CFO, Gustavo Alejo. Right after the presentation, both will be available for the Q&A session.

Speaker #2: To ask a question during Q&A, please submit your questions in the order they are received. Live translation in Portuguese is available. You can enable it by clicking the button below.

Speaker #2: Before we begin, please take a moment to review the legal disclaimer on page 2 of today's presentation, which addresses forward-looking statements. The full presentation is available for download on our Investor Relations website, and you'll find additional materials in the SEC filings section of our IR website.

Speaker #2: Now, I'll hand it over to Thiago Maffra. Good evening, Maffra.

Speaker #3: Thank you, Andre. Good evening, everyone, and thank you for joining our second quarter 2026 earnings call. I would like to begin by welcoming Gustavo Alejo, our new CFO.

Thiago Maffra: Thank you, André. Good evening, everyone, and thank you for joining our Q2 2026 earnings call. I would like to begin by welcoming Gustavo Alejo, our new CFO. He joins us at an exciting time, just after the biggest Expert in our history, an event that showed how far we have come and how much further we aim to go. Now, let us dive into our Q2 2026 numbers. Beginning with the key highlights of the quarter, client assets, combining AUM and AOA, reached BRL 2.2 trillion, representing a 17% year-over-year growth. We ended the period with 18,400 advisors, up 1% year over year, while our active client base totaled 4.8 million, a 1% increase year over year. Gross revenues amounted to BRL 5.1 billion this quarter, up 8% from the same period last year.

Speaker #3: He joins us at an exciting time, just after the biggest expert in your history—an event that showed how far we have come and how much further we aim to go.

Speaker #3: Now, let's dive into our second quarter 2026 numbers. Beginning with the key highlights of the quarter, client assets, combining AUM and AUA, reached $2.2 trillion, representing 17% year-over-year growth.

Speaker #3: We ended the period with 18,400 advisors, up 1% year-over-year, while our active client base totaled 4.8 million, a 1% increase year-over-year. Gross revenues amounted to $5.1 billion this quarter, up 8% from the same period last year.

Speaker #3: EBITDA advanced 15% to $1.6 billion, while net income came to $1.4 billion, rising 5% year-over-year. In terms of profitability, our ROE increased 80 bps sequentially to 22.5%.

Thiago Maffra: EBT advanced 15% to BRL 1.6 billion, while net income came to BRL 1.4 billion, rising 5% year over year. In terms of profitability, our ROE increased 80 bps sequentially to 22.5%. Our capital ratio stood at a comfortable 20.3%, reflecting our ability to grow while maintaining disciplined capital and risk management. Also, our EPS grew 9% year over year, stronger than our net income growth, thanks to our capital management and payout strategy. The Q2 2026 was again marked by ongoing global geopolitical tensions and residual market volatility. While these headwinds materialized with less intensity than in the previous quarter, they still impacted our results, particularly through the widening of credit spreads and a reduction in primary DCM offerings. Without these effects, we would have achieved double-digit revenue growth with a low teens expansion year over year.

Speaker #3: Our capital ratio stood at a comfortable 20.3%, reflecting our ability to grow while maintaining disciplined capital and risk management. Also, our EPS grew 9% year-over-year, stronger than our net income growth, thanks to our capital management and payout strategy.

Speaker #3: The second quarter of 2026 was again marked by ongoing global geopolitical tensions and residual market volatility. While these headwinds materialized with less intensity than in the previous quarter, they still impacted our results.

Speaker #3: Particularly, through the widening of credit spreads and our reduction in primary GCM offerings. Without this effect, we would have achieved double-digit revenue growth, with a low chance of expansion year-over-year.

Speaker #3: This demonstrates that, despite the market volatility we faced in the first half of the year, our core businesses continued to perform well, with resilient underlying momentum.

Thiago Maffra: This demonstrates that despite the market volatility we faced in H1 of the year, our core businesses continued to perform well with resilient underlying momentum. Towards the end of the quarter, we began to see signs of normalization across markets, along with a gradual recovery in the fixed income pipeline. We expect this pipeline to materialize into primary offerings over the coming quarters, depending on the market dynamics. That said, depending on how these dynamics evolve, we continue to target double-digit growth throughout 2026, supported by stronger execution across key verticals and a more diversified revenue base. This quarter, we continued to launch products for both individuals and businesses, and our ecosystem is becoming more complete every day.

Speaker #3: Toward the end of the quarter, we began to see signs of normalization across markets, along with a gradual recovery in the fixed income pipeline.

Speaker #3: We expect this pipeline to materialize into primary offerings over the coming quarters, depending on the market dynamics. That said, depending on how these dynamics evolve, we continue to target double-digit growth throughout 2026, supported by stronger execution across key verticals and a more diversified revenue base.

Speaker #3: This quarter, we continued to launch products for both individuals and businesses, and our ecosystem is becoming more complete every day. We have a clear ambition: to be the investment leader in Brazil by 2033, but that leadership will come hand in hand with increasing completeness in everything we offer to our clients.

Thiago Maffra: We have a clear ambition to be the investment leader in Brazil by 2033, but that leadership will come hand in hand with increasing completeness in everything we offer to our clients. This next growth phase is built on personalized service with a focus on financial, tax, and succession planning. Our goal is simple, to be our clients' CFO, covering their full spectrum of financial service needs. Moving on to the next slide, let's take a look at client assets. During Q2 of 2026, our total client assets, combined with assets under management from our asset management business and AOA from our fund administration business, totaled approximately BRL 2.2 trillion, representing 17% growth year-over-year. On the right side of the slide, you can see how net new money has evolved.

Speaker #3: This next growth phase is built on personalized services, with a focus on financial, tax, and succession planning. Our goal is simple: to be our clients' CFO, covering their full spectrum of financial services needs.

Speaker #3: Moving on to the next slide, let's take a look at client assets. During 2026, our total client assets, combined with assets under management from our asset management business and AUA from our fund administration business, totaled approximately $2.2 trillion, representing 17% growth year-over-year.

Speaker #3: On the right side of the slide, you can see how net new money has evolved. In the second quarter of 2026, we again met our soft target of $20 billion in retail net new money, while corporate and institutional inflows came in at $8 billion.

Thiago Maffra: In Q2 of 2026, we again met our soft target of BRL 20 billion in retail net new money, while corporate and institutional inflows came in at BRL 8 billion. Altogether, net new money amounted to BRL 28 billion for the period. While we posted positive results and met our soft guidance, we continue to navigate a challenging environment in 2026. We are constantly improving our investment platform, and as we have mentioned, enhancing the client experience through numerous initiatives. This combination reinforces our confidence in achieving our ambition of roughly BRL 20 billion in retail net new money per quarter on average. Related to that, it's worth mentioning that our NPS ended Q2 at 66 points. As mentioned in our previous earnings call, we are on a consistent recovery path from the one-off events that impacted us in former quarters.

Speaker #3: Altogether, net new money amounted to $28 billion for the period. While we posted positive results and met our soft guidance, we continue to navigate a challenging environment in 2026.

Speaker #3: We are constantly improving our investment platform and, as we have mentioned, enhancing the client experience through numerous initiatives. This combination reinforces our confidence in achieving our ambition of roughly $20 billion in retail net new money per quarter, on average.

Speaker #3: Related to that, it's worth mentioning that our NPS ended the second quarter at 66 points. As mentioned in our previous earnings call, we are on a consistent recovery path from the one-off events that impacted us in former quarters.

Speaker #3: This demonstrates the strength of our brand and the trust clients place in our platform, and it gives us an indication that we will return to historical levels over the next quarters.

Thiago Maffra: This demonstrates the strength of our brand and the trust clients place in our platform, and it gives us an indication that we will return to historical levels over the next quarters. With that, let's now take a deeper dive into the strategic drivers that are shaping our next growth phase. Our comprehensive financial ecosystem is built around long-term relationships. We provide service and personalized advice with excellence across every aspect of our clients' financial lives, from investments to banking solutions. Many of our clients have needs well beyond investments, and our mission is to provide them with complete solutions. Under this model, the focus shifts from product distribution to building a personalized financial strategy for each investor. Looking ahead, we see the role of the investment advisor at XP undergoing a profound transformation.

Speaker #3: With that, let's now take a deeper dive into the strategic drivers that are shaping our next growth phase. Our comprehensive financial ecosystem is built around long-term relationships.

Speaker #3: We provide services and personalized advice with excellence across every aspect of our clients' financial lives, from investments to banking solutions. Many of our clients have needs well beyond investments, and our mission is to provide them with complete solutions.

Speaker #3: Under this model, the focus shifts from product distribution to building a personalized financial strategy for each investor. Looking ahead, we see the role of the investment advisor at XP undergoing a profound transformation.

Speaker #3: The professional is no longer just an intermediary of financial products, but is taking on a role closer to that of a wealth consultant, broadly accompanying clients throughout their financial journey.

Thiago Maffra: The professional is no longer just an intermediary of financial products, but it is taking on a role closer to that of a wealth consultant, broadly accompanying clients throughout their financial journey. Given this context, it is crucial to understand personal and family goals, such as retirement and long-term wealth building. The same client-centricity logic that guides us on offerings from individuals also extends to our corporate clients. We have recently launched new initiatives targeting the business segment, always focused on delivering financial management solutions. We already have a very robust corporate segment, and now we are expanding our offering, particularly for SMBs. As we have said over the past few quarters, XP is uniquely positioned for this new market environment.

Speaker #3: Given this context, it's crucial to understand personal and family goals, such as retirement and long-term wealth building. The same client-centric logic that guides us in offerings for individuals also extends to our corporate clients.

Speaker #3: We have recently launched new initiatives targeting the business segment, always focused on delivering financial management solutions. We already have a very robust corporate segment, and now we are expanding our offering, particularly for small and medium-sized enterprises.

Speaker #3: As we have said over the past few quarters, XP is uniquely positioned for this new market environment. We have the largest and most qualified advisor network in Brazil.

Thiago Maffra: We have the largest and most qualified advisor network in Brazil, along with a trusted brand and an innovative DNA, a combination that enables our tech lead scaling and keeps us ahead of the market. On the next slide, we share further details on our strategy. Across every client segment we serve, our ambition is to deepen relationships, enhance the completeness of our product offering, and fully meet all of our clients' financial needs. On the individual side, our focus remains on investments. We continue to deepen our segmentation, offering a specific value proposition for each client layer. We were the first to address a latent market demand and offer a truly model-agnostic approach. Today, we have evolved this concept into a comprehensive wealth planning model, one that allows us to cover our clients across all their financial needs, from investment allocation to estate planning, succession, and beyond.

Speaker #3: Along with a trusted brand and an innovative DNA, this combination enables our tech leads to scale and keeps us ahead of the market. On the next slide, we share further details on our strategy.

Speaker #3: Across every client segment we serve, our ambition is to deepen relationships and enhance the completeness of our product offering, fully meeting all of our clients' financial needs.

Speaker #3: On the individual side, our focus remains on investments. We continue to deepen our segmentation, offering a specific value proposition for each client layer. We were the first to address a latent market demand and offer a truly model-agnostic approach.

Speaker #3: Today, we have evolved this concept into a comprehensive wealth planning model—one that allows us to cover our clients across all their financial needs, from investment allocation to estate planning, succession, and beyond.

Speaker #3: Under this model, the charging structure naturally aligns as fee-based, which continues to gain traction. We already have slightly more than 26% of our clients' assets under this framework.

Thiago Maffra: Under this model, the charging structure naturally aligns as fee-based, which continues to gain traction. We already have slightly more than 26% of our clients' assets under this framework. On top of that, we are expanding our offshore investment capabilities and making continued progress on new product launches, including ETFs and managed portfolios, all fully aligned with our way of serving clients. At the same time, we are adding credit to a solutions shelf that has already expanded meaningfully over the past few years, during which we introduced numerous innovations in banking and insurance. I would like to emphasize that this expansion is the continuation of a well-planned strategy, one that has been consistently executed over the years with the addition of services and solutions.

Speaker #3: On top of that, we are expanding our offshore investment capabilities and making continued progress on new product launches, including ETFs and managed portfolios, all fully aligned with our way of serving clients.

Speaker #3: At the same time, we are adding credit to a solutions shelf that has already expanded meaningfully over the past few years. During that time, we introduced numerous innovations in banking and insurance.

Speaker #3: I would like to emphasize that this expansion is the continuation of a well-planned strategy, one that has been consistently executed over the years with the addition of services and solutions.

Speaker #3: For businesses, the same logic holds true, and this is where we see the greatest opportunity, since these companies and their founders have long been underserved by traditional players.

Thiago Maffra: For businesses, the same logic holds true, and this is where we see the greatest opportunity, since these companies and their founders have long been underserved by traditional players. We plan to change that by delivering a complete, modern, and scalable offering. Just as we transformed the investment landscape for individuals, we are now about to do the same for businesses. We introduce a new standard of high-quality advice, supported by technology and a complete range of products and services designed to tackle the real pain points of a market that has never been fully served. By advising these entrepreneurs with the same depth we bring to individuals, we can help them manage and allocate their cash flow more effectively to grow their businesses. We are now expanding and upgrading our commercial coverage while launching new features for businesses.

Speaker #3: We plan to change that by delivering a complete, modern, and scalable offering. Just as we transformed the investment landscape for individuals, we are now about to do the same for businesses.

Speaker #3: We will introduce a new standard of high-quality advice, supported by technology and a complete range of products and services, designed to tackle the real pain points of a market that has never been fully served.

Speaker #3: By advising these entrepreneurs with the same depth we bring to individuals, we can help them manage and allocate their cash flow more effectively to grow their businesses.

Speaker #3: We are now expanding and upgrading our commercial coverage while launching new features for businesses. We recently announced a partnership for a POS device and a credit card geared toward small and medium-sized enterprises.

Thiago Maffra: We recently announced a partnership for a POS device and a credit card geared toward small and medium-sized enterprises. These are natural extensions of our franchise and a continuation of our strategy that has been underway since 2019, when we obtained our banking license. Finally, I want to emphasize that we execute this strategy with the utmost discipline, ensuring that every step we take remains firmly aligned with our capital ratios and conservative risk approach. With that, I will now hand the call over to Alejo to cover the financial section on the presentation.

Speaker #3: These are natural extensions of our franchise and a continuation of our strategy that has been underway since 2019, when we obtained our banking license.

Speaker #3: Finally, I want to emphasize that we will execute this strategy with the utmost discipline, ensuring that every step we take remains firmly aligned with our capital ratios and conservative risk approach.

Speaker #3: With that, I will now hand the call over to Alejo to cover the financial section of the presentation.

Speaker #2: Thank you, Maffra. It's a pleasure to be here with all of you today. I would like to begin by expressing my sincere appreciation for the warm welcome since joining XP.

Gustavo Alejo Viviani: Thank you, Maffra. It is a pleasure to be here with all of you today. I would like to begin by expressing my sincere appreciation for the warm welcome since joining XP. I am thrilled to be part of this journey, and I am looking forward to contributing to our next chapter of growth. Now, let me walk you through our financial performance for the quarter. Total gross revenue in this Q2 2026 reached BRL 5.1 billion, up 8% year over year and 3% quarter over quarter. Retail growth in the quarter was driven by equities, funds platform, new verticals, and other retail, which expanded at a rapid pace year over year. The wholesale bank division also delivered consistent growth, led by solid performance of our corporate segments. Now, let us move on to retail revenue.

Speaker #2: I'm thrilled to be part of this journey, and I'm looking forward to contributing to our next chapter of growth. Now, let me walk you through our financial performance for the quarter.

Speaker #2: Total gross revenue in the second quarter of 2026 reached $5.1 billion, up 8% year over year and 3% quarter over quarter. Retail growth in the quarter was driven by equities, funds platform, new verticals, and other retail.

Speaker #2: Which expanded at a rapid pace year over year. The Wholesale Bank division also delivered consistent growth, led by solid performance of our corporate segments.

Speaker #2: Now, let's move on to retail revenue. Retail revenue totaled $3.9 billion in the quarter, representing 8% growth year over year and 3% growth quarter over quarter.

Gustavo Alejo Viviani: Retail revenue totaled BRL 3.9 billion in the quarter, representing an 8% growth year over year and a 3% growth quarter on quarter, reflecting the impact of fixed income corporate credit in Brazil already explained. Excluding this mark-to-market effect, retail revenues would have grown 15% in the H1 2026 when compared to the same period last year, showing a resilient underlying momentum. Even with the lower ADTV of equities and futures in the Q2, equities revenue increased 11% when compared to the same period of last year, reaching almost BRL 1.1 billion. Sequentially, equities revenue dropped 2%, while ADTV fell approximately 8% in the same period. Funds platform also posted a strong performance this quarter, growing 22% year over year and 7% sequentially due to the booking of management and performance fees this quarter.

Speaker #2: Reflected in the impact of fixed income corporate credit in Brazil, already explained. Excluding this mark-to-market effect, retail revenues would have grown 15% in the first half of 2026 when compared to the same period last year.

Speaker #2: Showing a resilient underlying momentum. Even with the lower ADTV of equities and futures in the second quarter, equities revenue increased 11% compared to the same period last year.

Speaker #2: Which was almost $1.1 billion. Sequentially, equities revenue dropped 2%, while ADTV fell approximately 8% in the same period. The funds platform also posted a strong performance this quarter, growing 23% year over year and 7% sequentially.

Speaker #2: Due to the booking of management and performance fees this quarter. Also, retail annual performance benefited from stronger contributions from new verticals, and different revenue lines included in other retail, like float, international platform, and FX.

Gustavo Alejo Viviani: Also, retail annual performance benefited from stronger contributions from new verticals and different revenue lines included in other retail like float, international platform, and FX. Now, let us move on to the next slide, where we will cover how our wholesale bank is evolving. Our wholesale segment, including corporate issuer services and institutional revenues, grew 32% year over year and 3% sequentially. The market deterioration that began in March and prevailed through April, combined with the lower risk appetite from investors, led to a sharp decrease in the number of new fixed income offerings. Particularly, tax exempt fixed income instruments. The reduction in fixed income offerings weighed directly on our issuer services segments, resulting in lower revenues versus both prior year and the previous quarter. Despite the reduced number of offerings, the corporate segment posted another strong result, with revenues growing 117% year over year and 22% sequentially.

Speaker #2: Now, let's move on to the next slide, where we'll cover how our wholesale bank is evolving. Our wholesale segment, including corporate, issuer services, and institutional revenues, grew 32% year-over-year and 3% sequentially.

Speaker #2: The market deterioration that began in March and prevailed through April, combined with the lower risk appetite from investors, led to a sharp decrease in the number of new fixed income offerings, particularly tax-exempt fixed income instruments.

Speaker #2: The reduction in fixed income offerings weighed directly on our issuer services segment, resulting in lower revenues versus both the prior year and the previous quarter.

Speaker #2: Despite this reduced number of offerings, the corporate segment posted another strong result, with revenues growing 117% year over year and 22% sequentially. Our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives, FX, and credit, continued to support our revenue growth.

Gustavo Alejo Viviani: Our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives, FX, and credit, continued to support our revenue growth. Our institutional business grew year over year and was relatively flat sequentially. Like retail equities, the segment reflects lower trading volumes during the quarter. Now, let's shift our focus to SG&A and efficiency ratios. Our SG&A totaled BRL 1.6 billion in the second quarter, increasing 5% year over year and 2% quarter over quarter. On the right-hand side of the slide, our last 12 months efficiency ratio stood at 34.3%, an increase of 30 basis points year over year and a decline of approximately 30 basis points sequentially. This quarter, we delivered a good efficiency ratio against a more challenging revenues backdrop.

Speaker #2: Finally, our institutional business grew year-over-year and was relatively flat sequentially, like retail equities. The segment reflects lower trading volumes during the quarter.

Speaker #2: Now, let's shift our focus to SG&A and efficiency ratios. Our SG&A totaled $1.6 billion in the second quarter, increasing 5% year over year and 2% quarter over quarter.

Speaker #2: On the right-hand side of the slide, our last twelve months' efficiency ratio stood at 34.3%—an increase of 30 basis points year over year, and a decline of approximately 30 basis points sequentially.

Speaker #2: This quarter, we delivered a good efficiency ratio against the more challenging revenue backdrop. As we move into the second half of the year, we expect the typical effects that lift both revenues and expenses.

Gustavo Alejo Viviani: As we move into the second half of the year, we expect the typical effects that lift both revenues and expenses, such as bonus provisions and the Expert event. Despite these effects, we continue to closely monitor the pace of our investments, and we still target to deliver a flattish efficiency ratio on a year over year basis for full year. Moving to earning before taxes now. Our adjusted earnings before taxes totaled BRL 1.6 billion in the second quarter 2026, up 15% year over year and 10% quarter over quarter. We delivered a 32% adjusted EBT margin, expanding on both a quarterly and a yearly basis. Lower mark-to-market impacts, positive performance across several of our segments, and controlled expenses all contributed to operating leverage, which resulted in a higher EBT and EBT margin this quarter. On the next slide, we present our net income.

Speaker #2: Such as bonus provisions and the Expert event. Despite these effects, we continue to closely monitor the pace of our investments, and we still target delivering a flattish efficiency ratio on a year-over-year basis for the full year.

Speaker #2: Moving to earnings before taxes now, our adjusted earnings before taxes totaled $1.6 billion in the second quarter of 2026, up 15% year over year and 10% quarter over quarter.

Speaker #2: We delivered a 32% adjusted EBT margin, expanding on both a quarterly and yearly basis. Lower mark-to-market impacts, positive performance across several of our segments, and controlled expenses all contributed to operating leverage, which resulted in a higher EBT and EBT margin this quarter.

Speaker #2: On the next slide, we present our net income. Adjusted net income reached $1.4 billion in the second quarter, representing a 5% increase compared with both the prior year and the prior quarter periods.

Gustavo Alejo Viviani: Adjusted net income reached BRL 1.4 billion in the second quarter, representing a 5% increase compared with both the prior year and the prior quarter periods. Net margin was 28.3% in the second quarter 2026, up around 50 basis points sequentially and down around 100 basis points year over year. Our tax rate for the quarter was sequentially higher due to the mix of results. The stronger performance results from the corporate line and less negative mark-to-market impact from the warehousing book. Now, let's move on to the next slide to talk about our earnings per shares and returns. Our adjusted diluted earning per shares increased by approximately 9% year over year at a faster pace than our net income growth, reflecting the execution of our share buyback program.

Speaker #2: Net margin was 28.3% in the second quarter of 2026, up around 50 basis points sequentially and down around 100 basis points year over year. Our tax rate for the quarter was sequentially higher due to the mix of results.

Speaker #2: Stronger performance results from the corporate line, and less negative mark-to-market impacts from the warehousing book. Now, let's move on to the next slide to talk about our earnings per share and returns.

Speaker #2: Our adjusted diluted earnings per share increased by approximately 9% year over year, at a faster pace than our net income growth, reflecting the execution of our share buyback program.

Speaker #2: On the right-hand side of the slide, you can see our adjusted annualized return on tangible equity and return on equity. Given our lower Basel ratio, sequentially both metrics are higher this quarter when compared to the previous one.

Gustavo Alejo Viviani: On the right-hand side of the slide, you can see our adjusted analyzed return on tangible equity and return on equity. Given our lower Basel ratio sequentially, both metrics are higher this quarter when compared to the previous one. With that, I move on to the next slide to talk about our capital management strategy. During the second quarter, we continued executing our share buyback program. As of the end of June, we have executed BRL 1 billion and closed the previous buyback program. We still have another open program of BRL 1 billion, which we continue to execute strategically. Combining the two buyback programs and approximately BRL 500 million in dividends distributed in June, we reached nearly BRL 2.5 billion in capital distribution already announced in 2026.

Speaker #2: With that, I will move on to the next slide to talk about our capital management strategy. During the second quarter, we continued executing our share buyback program.

Speaker #2: As of the end of June, we have executed $1 billion and closed the previous buyback program. We still have another open program of $1 billion, which we continue to execute strategically.

Speaker #2: Combining the two buyback programs and the approximately $500 million in dividends distributed in June, we reached nearly $2.5 billion in capital distribution, already announced in 2026.

Speaker #2: Additionally, I would also like to announce that we will be canceling approximately 11.8 million treasury shares, representing roughly 2.3% of our total outstanding shares.

Gustavo Alejo Viviani: Additionally, I would also like to announce that we will be canceling approximately 11.8 million treasury shares, representing roughly 2.3% of our total outstanding shares, further reinforcing our commitment to discipline, capital allocation, and returning value to our shareholders. Now, let's move on to the second part of our capital management strategy on the next slide. I'd like to turn to our capital ratio and risk-weighted assets. We closed the quarter with a Basel ratio of 20.3% and a CET1 ratio of 17.1%.

Speaker #2: Further reinforcing our commitment to disciplined capital allocation and returning value to our shareholders. Now, let's move on to the second part of our capital management strategy, on the next slide.

Speaker #2: I'd like to turn to our capital ratio and risk-weighted assets. We closed the quarter with a Basel ratio of 20.3% and a CET1 ratio of 17.1%.

Speaker #2: As mentioned in our previous earnings calls, throughout 2026, we will operate the business with a high Bezel Ratio. However, we are comfortable bringing it down to our target range of 16% to 19%, while still maintaining a comfortable capital buffer.

Thiago Maffra: As mentioned in our previous earnings calls, throughout 2026, we will operate the business with a high Basel ratio. However, we are comfortable bringing it down to our target range of 16% to 19% while still maintaining comfortable capital buffer. On the right-hand side of the slide, we show our RWA. The main growth driver was credit RWA, mostly associated with our corporate business. It's worth noting that while total RWAs grew around 26% year-over-year, our corporate revenues expanded 117% over the same period. This shows that we will continue to evaluate and seize growth opportunities as they arise while maintaining our focus on risk-return criteria. With that, we can move on to the Q&A section. Thank you.

Gustavo Alejo Viviani: As mentioned in our previous earnings calls, throughout 2026, we will operate the business with a high Basel ratio. However, we are comfortable bringing it down to our target range of 16% to 19% while still maintaining comfortable capital buffer. On the right-hand side of the slide, we show our RWA. The main growth driver was credit RWA, mostly associated with our corporate business. It's worth noting that while total RWAs grew around 26% year-over-year, our corporate revenues expanded 117% over the same period. This shows that we will continue to evaluate and seize growth opportunities as they arise while maintaining our focus on risk-return criteria. With that, we can move on to the Q&A section. Thank you.

Speaker #2: On the right-hand side of the slide, we show our RWA. The main growth driver was credit RWA, mostly associated with our corporate business. It's worth noting that while total RWAs grew around 26% year over year, our corporate revenues expanded 117% over the same period.

Speaker #2: This shows that we will continue to evaluate and seize growth opportunities as they arise, while maintaining our focus on risk-return criteria. And with that, we can move on to the Q&A section.

Speaker #2: Thank you.

Speaker #1: Pro, Danielle, please go on.

André Parize: Maffra. Daniel, please go on.

Speaker #3: Hi, guys. Good night, and Maffra, Alejo, and Parize, thank you for taking my question. And Alejo, welcome aboard. I wish you the most success at XP.

[Analyst]: Hi, guys. Good night. Maffra, Alejo, and Parize, thanks for taking my question. Alejo, welcome aboard. I hope you'll have the most of success in XP. I'd like to hear a little bit more about volatility. I guess we're heading to an election period. I'll be curious to hear what your expectations for the volatility and your revenues, mostly if you could break down into the retail revenues and also for the corporate, because corporate, we are seeing a very strong H1. You delivered close to $1.1 billion. So trying to understand whether that's a level on the corporate side that could even go higher compared to the H1 of the year as you have more opportunities for maybe sell hedging derivatives effects and also protection for rates ahead of the October and November election period.

Speaker #3: I'd like to hear a little bit more about volatility and, I guess, as we're heading into an election period, I'd be curious to hear your expectations for volatility and your revenues—mostly if you could break it down into retail revenues and also for corporate. Because for corporate, we are seeing a very strong first half.

Speaker #3: You delivered close to $1.1 billion, so I'm trying to understand whether that's a level on the corporate side that could even go higher compared to the first half of the year, as you have more opportunities for maybe selling hedging derivatives, FX, and also protection for rates ahead of the October and November election period.

Speaker #3: And also, breaking down into retails and corporates would be very good to hear about. Thank you.

[Analyst]: And also breaking down in retail and corporates would be very good to hear about that. Thank you.

Speaker #2: Thank you for your question, Voss. This is Thiago. Yes, about volatility—it's important to mention that usually, when we have high volatility, it's positive in terms of volumes and revenues for some businesses.

Thiago Maffra: Thank you for your question, Vas. This is Thiago. Yes, about volatility, it is important to mention that usually when we have a high volatility, it is positive in terms of volumes and revenues for some businesses, especially when we look the institutional desks or retail trading clients. If volumes pick up, as we have for most of the markets between 30% and 50% market share, if volumes pick up, we make more money. Yes, when you look especially just two business lines, institutional and retail traders, we expect higher revenues on the H2. About corporate revenues, I believe we have been investing on this business since 2021, so the business has been growing year-over-year in a very conservative way. For example, we had this year a lot of credit events.

Speaker #2: Especially when we look at the institutional desks or retail trading clients, if volumes pick up—as we have for most of the markets, with between 30% and 50% market share—if volumes pick up, we make more money.

Speaker #2: So yes, when you look especially at these two business lines—institutional and retail traders—we expect higher revenues in the second semester. Regarding corporate revenues, I believe we have been investing in this business since 2021, so the business has been growing year over year.

Speaker #2: In a very conservative way—for example, this year we had a lot of credit events. We didn't have any exposure to these names, so we have a very high-quality credit portfolio.

Thiago Maffra: We did not have any exposure for these names, so we have a very high quality credit portfolio. The derivative business is growing, energy among FX and a lot of other business they are growing. So we believe this level of corporate business, it is a normal level for the future. Okay? I know it was very strong, but we expect that Q3 also is strong for corporate. So it is part of the business that is growing. Okay? So it is a normal level looking forward.

Speaker #2: The derivatives business is growing—energy, FX, and a lot of other businesses are growing. So, we believe this level of corporate business is a normal level for the future, okay?

Speaker #2: I know it was very strong, but we expect Q3 to also be strong for corporate. So it's part of the business that's growing, okay? So it's a normal level looking forward.

Speaker #3: All right, thank you.

[Analyst]: All right. Thank you.

Speaker #1: All right, thank you. Okay, next question is from Eduardo Hosman from BTG. Hosman, you can go ahead.

André Parize: Okay, next question is from Eduardo Rosman from BTG. Rosman, you can go on.

Operator: Okay, next question is from Eduardo Rosman from BTG. Rosman, you can go on.

Speaker #2: Hi. Hi, everyone. I have a couple of questions here about the wholesale banking business. If you can share with us your expectations on how relevant this business could become within XP as a whole over the next few years.

Eduardo Rosman: Hi, everyone. I have a couple of questions here about the wholesale banking business. If you can share with us your expectations on how relevant this business could become within XP as a whole over the next few years. If you think you already have the right teams and all the alignment in place to expand the lending business. If not, what is still needed to get there? Finally, if you could share your view about payout ratio medium term. In the short term, I think you mentioned you still expect to pay more than 50% in the form of dividends and buybacks. But given that you expect to use more your balance sheet in the future, should we expect any change in that? Thanks a lot.

Speaker #2: If you think you already have the right teams and all the alignment in place, you know, to expand the lending business, you know, if not, you know, what's still needed, you know, to get there.

Speaker #2: And finally, if you could share your view about, you know, payout ratio for the medium term, right? I think, in the short term, you mentioned you still expect to pay more than 50% in the form of dividends and buybacks. But given that you expect to use more of your balance sheet in the future, should we expect any change in that?

Speaker #2: Thanks a lot.

Speaker #3: Thank you for the question, Hosman. Taking the first question about the wholesale, we don't have any change in strategy. The strategy that we started four or five years ago, we will continue to grow step by step.

Thiago Maffra: Thank you for the question, Rosman. Taking the first question about the wholesale. We do not have any change in strategy, the strategy that we started four years, five years ago. We will continue to grow step by step on the business. We received a lot of questions if Gustavo Alejo was coming here because we are planning a shift on credit business, but that is not the case. Of course, he has a great background on different areas of banking, including the wholesale, but also retail. As you can see, all the, I would say, banking business for both individuals and companies, they are growing in the past years, insurance as well. The strategy is to complete the ecosystem and to serve our clients as a whole, and we will continue to do that.

Speaker #3: On the business, we received a lot of questions asking if Gustavo Alejo was coming here, like to do a—because we are planning a shift on the credit business—but that's not the case.

Speaker #3: Of course, he has a great background in different areas of banking, including wholesale but also retail. As you can see, all the, I would say, banking business for both individuals and companies is growing in the past years, insurance as well.

Speaker #3: So, the strategy is to complete the ecosystem and to serve our clients as a whole, and we'll continue to do that. So, you guys probably saw that we announced that we are launching a platform for SMBs. It's going live on September 1st, okay?

Thiago Maffra: You guys probably saw that we announced that we are launching a platform for SMBs. It is going live on 1 September, okay, with cards, acquiring, credit with collateral, and so on, a lot of different products. It is part of the evolution of the business. There is no big shift in strategy. There is no big shift on credit. We are not going to start to grow the credit portfolio in a very different pace. It is, I would say, more of the same. Of course, when we compare ourselves with the other banks, we still have a lot of room to build new business lines, to grow, but it is going to be step by step, always being cautious on credit, always being cautious on risk. About people, I would say that we have most of the people that we need, most of the capabilities.

Speaker #3: With cards, acquiring, credit with collateral, and so on—a lot of different products. So it's part of the evolution of the business. There’s no big shift in strategy, there's no big shift on credit. We are not going to start to grow the credit portfolio at a very different pace.

Speaker #3: So, it's, I would say, more of the same. Of course, when we compare ourselves with the other banks, we still have a lot of room to build new business lines, to grow, but it's going to be step by step—always being cautious on credit, always being cautious on risk.

Speaker #3: So, about people, I would say that we have most of the people that we need, most of the capabilities. Of course, as you know very well, the company—we were born as a broker-dealer, focused on individuals, focused on investments.

Thiago Maffra: Of course, as you know very well, the company, we were born as a broker-dealer, focused on individuals, focused on investments. So it took us, I would say, 4 or 5 years to get to this point, where we are comfortable on building new business lines. We always can bring, and we are always looking to bring people that complement our capabilities and our skills. It's always going to be part of the business, and Gustavo Alejo is one of these example. For sure, he will help us, not only on the wholesale, but also on the individual part, on investments, and on everything. Yes, I believe we are ready to grow and to execute the strategy that we have been executing in the past years. Not sure if you want to share something, Alejo.

Speaker #3: So it took us, I would say, four or five years to get to this point where we are comfortable building new business lines.

Speaker #3: We always can bring, and we are always looking to bring, people that complement our capabilities and our skills. It's always going to be part of the business, and Gustavo Alejo is one of these examples. For sure, he will help us not only on the wholesale, but also on the individual part, on investments, and on everything.

Speaker #3: So yes, I believe we are ready to grow and to execute the strategy that we have been executing in the past years. Not sure if you want to share something, Alejo?

Speaker #3: I'm saying that today he's here listening, but next time he will be up to speed. He has been with us for two weeks, and it has been great.

Thiago Maffra: I'm saying that today he's here listening, but next time he will be up to speed. It has been 2 weeks with us, and it has been great. A lot of good discussions already. So I'm happy to have you here.

Speaker #3: There have already been a lot of good discussions, so I'm happy to have you here.

Speaker #1: Yeah. Hi, Hosman. I hope you are doing well. It's a real pleasure to reconnect with you. Well, I'm entering my third week at this great company.

Gustavo Alejo Viviani: Hi, Ruy, everyone. I hope you're doing well. It's a real pleasure to reconnect with you. Well, I'm entering my third week in this great company, so I'm energized and generally pleased to be part of such remarkable growth story. The strategy is written. We are not changing the strategy. I will be part of this growth story, so part of the team. I saw a very strong team, focused team, and very strong metrics in terms of credit. We have all set to keep growing at a good pace and with good profitability. Very good to talk to you again.

Speaker #1: So I'm energized, and I'm genuinely pleased to be part of such a remarkable growth story. The strategy is written; we are not changing the strategy.

Speaker #1: I just want to be part of this growth story, to be part of the team. I saw a very strong, focused team, and very strong metrics in terms of credit.

Speaker #1: So we have everything set to keep growing at a good pace and with good profitability. Very good to talk to you again.

Speaker #2: And taking your second question about payout, as we mentioned, we have guidance to get our BIS ratio between 16 and 19. Today, we are above 20, meaning that we will likely distribute more capital throughout the year.

Thiago Maffra: Take your second question about payout. As we mentioned, we have a guidance to get our BIS ratio between 16% and 19%. Today, we are above 20%, meaning that we will have to distribute more capital throughout the year. We already executed a BRL 1 billion buyback. We have another BRL 1 billion open that we are executing at these levels. We already execute BRL 500 million in dividends. Totally, and assuming that we execute the BRL 1 billion that's open, 2.5, I believe this year we are going to be higher than 50% for sure. Otherwise, we don't get below 19%. So you can expect more buybacks or more dividends throughout the year, depending on the price that we have during the year. At this price, of course, we lean towards buybacks more than dividends. That's the idea today.

Speaker #2: We already executed a billion buyback, we have another billion open that we are executing at these levels. We already executed 500 million in dividends, so totally and assuming that we execute the billion that's open, 2.5, I believe this year we are going to be higher than 50% for sure, otherwise we don't get below 19.

Speaker #2: So you can expect more buybacks or more dividends throughout the year, depending on the price that we have during the year. At this price, of course, we lean towards buybacks more than dividends, so that's the idea today.

Speaker #3: Thank you. Thank you both. Thanks a lot.

Gustavo Alejo Viviani: Thank you. Thank you both. Thanks a lot.

Speaker #1: Okay, the next question is from Mario Pierre from Bank of America. Mario, you may proceed.

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

Operator: Okay, next question is from Mario Pierry from Bank of America. Mario, you may proceed.

Speaker #4: Hey guys, good evening. Thanks for taking my question. Alejo, yeah, welcome—good luck to you. It's nice to be talking to you again. Let me ask you a question.

Mario Pierry: Hey, guys. Good evening. Thanks for taking my question. Alejo, welcome. Good luck to you. It is nice to be talking to you again. Let me ask you a question on what you talked about the retail revenues would have increased 15%, excluding the impact of the mark-to-market. So we are estimating that is about a BRL 420 million impact on revenues in the H1 of the year. Is that correct? Because I think we had discussed that the impact was close to BRL 400 million in the Q1. So is it fair to assume that the impact in the Q2 was very marginal?

Speaker #4: What you talked about—the retail revenues—would have increased 15%, excluding the impact of the mark-to-market. So, we are estimating that's about R$420 million impact on revenues in the first half of the year.

Speaker #4: Is that correct? Because I think we had discussed that the impact was close to R$400 million in the first quarter, so is it fair to assume that the impact in the second quarter was very marginal?

Speaker #3: It's Thiago here. I will take the question. So yes, your math is right. It was around R$420 million. I would say it was below R$300 million in the first quarter, and the other part in the second.

Thiago Maffra: It is Thiago here. I will take the question. So yes, your math is right. It was around BRL 420 million. I would say it was below BRL 300 million on the Q1 and the other part on the Q2. So I would say BRL 100, BRL 150, BRL 160 on the Q2. Okay.

Speaker #3: So I would say 100, 150, 160 on the second quarter, okay? So, those are the numbers.

Mario Pierry: Okay, that's

Thiago Maffra: Those are the numbers.

Speaker #4: Thanks, that's clear. So Maffra, then when we look, I would imagine this was an impact on your fixed income revenues. So when I looked at your fixed income fees, I get an average of about 89 basis points first half of '26, down from 99 basis points first half of last year.

Mario Pierry: Thanks. That's clear. Maffra, when we look, I would imagine, this was an impact on your fixed income revenues. When I looked at your fixed income fees, I get an average of about 89 basis points H1 2026, down from 99 basis points H1 last year. This drop is primarily because of a changing mix?

Speaker #4: So this drop is primarily because of the changing mix?

Speaker #3: Yes, there are two effects there, okay? The first one is what you mentioned: mix. We have never seen a mix so much concentrated on Selic post-fixed instruments and with very short-term duration, mostly on daily liquid products.

Thiago Maffra: Yes. There are two effects there. The first one is what you mentioned, mix. We have never seen a mix so much concentrated on Selic post fixed instruments and with very short-term duration, mostly on the daily liquid products. That's one of the biggest problems with fixed income revenues today. There is also, when we say that we lost more than BRL 400 million on mark-to-market, it's mainly on the book from our investment banking. If you take into consideration that there was almost no market for DCM for debt capital markets on Q2, there was also a huge impact on the primary market fees. The impact on Q2 was almost the same of the same quarter if you consider the revenue we lost on primary market and the mark-to-markets on the secondary market. It was a very low volume.

Speaker #3: So that's one of the biggest problems with fixed income revenues today. But also, when we say that we lost more than $400 million on mark-to-market, it's mainly on the book from our investment banking, okay?

Speaker #3: And if you take into consideration that there was almost no market for GCM for that capital markets in the second quarter, there was also a huge impact on the primary market fees. So, the impact on the second quarter was almost the same as the same quarter if you consider the revenue we lost on primary market and the mark-to-markets on the secondary market.

Speaker #3: So, it was a very low volume. We have done less in a quarter than we typically do in a month, okay? When you compare Q2 with Q1, okay?

Thiago Maffra: We have done less in a quarter than we do in a month. When you compare Q2 with Q1, it was a huge drop on primary markets. We are seeing that stabilizing again on Q3 on a lower level than in the past, but better than Q2. So those are the impacts when you look, because remember, there is revenue split between primary market on retail and investment banking, and that is why the mark-to-market is there. So, there are two impacts here.

Speaker #3: So, it was a huge drop in the primary market. We are seeing that stabilizing again in Q3 at a lower level than in the past, but better than Q2. Okay?

Speaker #3: So, those are the impacts when you look, because remember, there is revenue split between primary market on retail and investment banking, and that's why the mark-to-market is there.

Speaker #3: So, there are two impacts here.

Speaker #4: Okay. And just for clarification on these daily liquidity products, what percentage do they represent of your assets today—your fixed income assets, roughly?

Mario Pierry: What percentage does it represent of your assets today, your fixed income assets, roughly?

Speaker #3: Yeah, we don't open the mix by type of product, but today, out of everything that we sell on the fixed income platform, I would say that almost 70% is on daily liquidity products. Seventy, okay, seventy.

Thiago Maffra: We do not open the mix by type of product. But today, out of everything that we sell on the fixed income platform, I would say that almost 70% it is on daily liquidity product. 70, okay, 7-0. So that number was 30, I would say three quarters ago, four quarters ago. So it is a huge change on mix. And remember that when we sell a daily liquidity CD or this kind of products, we get a daily accrual on a very low take rate. So you have two effects here. When you sell corporate bond, you make duration times spread upfront. When you sell daily liquidity product, you get a daily accrual on a lower level. So it is a double impact here.

Speaker #3: So that number was 30, I would say, three quarters ago—four quarters ago, okay? So, it's a huge change in mix. And remember that when we sell a daily liquid CD or these kinds of products, we get a daily accrual on a very low take rate.

Speaker #3: So you have two effects here. When you sell a corporate bond, you make a duration times spread, upfront. When you sell a daily liquidity product, you get a daily accrual on a lower level.

Speaker #3: So, it's a double impact here.

Speaker #4: Okay. And you're not seeing any changes in that mix in the short term?

Mario Pierry: Are you not seeing any changes in the mix in the short term?

Speaker #3: Not yet. If you look at the fund platform, we are starting to see a more stable level. It's early to say there's an improvement, but we are seeing an improvement in funds.

Thiago Maffra: Not yet. If you look the fund platform, we start to see more stable level. It is early to say an improvement, but we are seeing an improvement on funds. I believe we are close to the turning point here, but early to say that we are already there.

Speaker #3: But I believe we are close to the turning point here, though it's early to say that we are already there.

Speaker #4: Okay. Thank you very much.

Mario Pierry: Okay. Thank you very much.

Speaker #1: Okay, next question is from Tito Labarda from Goldman Sachs. Tito, you may proceed.

André Parize: Okay, next question is from Tito Labarta from Goldman Sachs. Tit, you may proceed.

Operator: Okay, next question is from Tito Labarta from Goldman Sachs. Tit, you may proceed.

Speaker #2: Okay, thanks, Patrice. Good evening, Maffra, Alejo—also, welcome. Good to see you here. A couple of questions also. I guess following up on Mario's question on the mark-to-market, right?

Tito Labarta: Okay. Thanks, Fabrice. Good evening, Maffra, Alejo. Also welcome, good to see you here. A couple questions also, I guess, following up on Mario's question on the mark-to-market. Do you expect any more impact going forward, or do you think we are at a point that we can see retail revenues growing around that 15% level going forward? Or could there still be more impacts? Just to understand what is the real underlying growth of the retail revenues that we can factor in going forward. Then second question, there was a bit of a jump on the JV and associates. It was about BRL 30 million, BRL 32 million higher than last quarter. Was there anything significant there to highlight just to understand that jump? Thank you.

Speaker #2: I mean, do you expect any more impact going forward, or do you think we're at a point where we can see retail revenues growing around that 15% level going forward? Or could there still be more impact? Just to understand, what is the real underlying growth of the retail revenues that we can kind of factor in going forward?

Speaker #2: And then, second question, there was a bit of a jump in the JV and associates. It was about R$30 million to R$32 million higher than last quarter.

Speaker #2: Was there anything significant to highlight there, just to help us understand that jump? Thank you.

Speaker #3: I think, for your question, Tito—about your first question—we have reduced our books a lot because, remember, it's mainly from the primary book from investment banking and also from what we call facilitation, the secondary trading flow book for retail clients and institutional clients.

Thiago Maffra: Thanks for your question, Chitu. About your first question, we have reduced a lot our books because remember, it is mainly from the primary book from investment banking and also from what we call facilitation, the secondary trading flow book for retail clients, institutional clients. We have reduced a lot the book during the H1 of the year, but it is part of the business. We still have a big book. Remember, we have 30% to 40% market share here on this kind of instrument, so we always keep a book. If we see another credit spread widening the same size it happened in the past, we are going to lose less than we lost in the H1 because the book is smaller today, but we are going to lose something. We are not seeing the spreads there at the same level for, I would say, 2 months.

Speaker #3: So, we have reduced the book significantly during the first half of the year, but it's part of the business. We still have a big book.

Speaker #3: Remember, we have 30 to 40 percent market share here on this kind of instrument. So, we always keep a book if we see another credit spread widening of the same size as it happened in the past.

Speaker #3: We are going to lose less than we lost in the first half because the book is smaller today. But we are going to lose something.

Speaker #3: We are not seeing the spreads there at the same level for, I would say, two months. It opens and closes—five bps, 10 bps.

Thiago Maffra: It opens and close 5 bps, 10 bps, so that is not much, okay? But we are seeing a stable level right now. Let us see. If there is no big change, you should expect no mark-to-market provisions in the future. But again, the book is smaller, but it is part of the business, so I cannot guarantee that we are not going to lose or make money in the future, okay? Your second question was?

Speaker #3: So, that's not much, okay? But we are seeing a stable level right now. Let's see—if there's no big change, you should expect no mark-to-market provisions in the future.

Speaker #3: But again, the book's smaller, but it's part of the business. So I cannot guarantee that we are not going to lose or make money in the future, okay?

Speaker #3: Your second question was.

Speaker #2: And the share of profit from JV and associates had, like, a $32 million jump quarter over quarter.

Tito Labarta: On the share profit from JV and associates that had a BRL 32 million jump quarter-over-quarter.

Speaker #3: Yeah, yeah. Remember that we have invested a lot of money in IFAs, asset managers, and some other businesses in the past. Most of these businesses are growing.

Thiago Maffra: Yeah. Remember that we have invested a lot of money on IFAs, on asset managers, and some other businesses in the past. Most of these business they are growing, so you should expect this line to grow year-over-year. There is a seasonality because remember, part of this business, they are asset managers. Usually, you have performance fees at the end of the semesters. That is what explain most of the increase there. But again, we put a lot of money on this business. They should grow over the years, okay?

Speaker #3: So you should expect this line to grow year over year. And there is a seasonality, because remember, part of this business—they are asset managers.

Speaker #3: Usually, you have performance fees at the end of the semesters, so that's what explains most of the increase there. But again, we put a lot of money into this business.

Speaker #3: They should grow over the years, okay?

Speaker #2: Great. Thank you, Maffra. That's great.

Tito Labarta: Great. Thank you, Francisco.

Speaker #1: Okay. Next question is from Niha Argala from HSBC. Niha, you may proceed.

André Parize: Okay. Next question is from Neha Agarwala from HSBC. Neha, you may proceed.

Operator: Okay. Next question is from Neha Agarwala from HSBC. Neha, you may proceed.

Speaker #5: Hi, thank you for taking my question. Just a quick clarification on the cost side—you’ve shown very good control over costs, both on cost and opex.

Neha Agarwala: Hi, thank you for taking my question. Just quick clarification on the cost side, you've shown very good control over costs, both on COGS and OpEx. Can we just dig a bit deeper to understand what are the key levers that you're using and what can we expect in 2027? Where do you see additional room for optimization, if any? Are there any more revenue play in 2027? Thank you.

Speaker #5: Can we just dig a bit deeper to understand what are the key levers that you're using, and what can we expect in '27? Where do you see additional room for optimization, if any, or will it be more of a revenue play in '27?

Speaker #5: Thank you.

Speaker #3: Thank you for the question, Niha. When we think about the SG&A for the future, remember that at the beginning of the year, we said that you should expect a flat-ish efficiency ratio, compensation ratios, for the year.

Thiago Maffra: Thank you for your question, Neha. When we think about our SG&A for the future, remember that, at the beginning of the year, we said that you should expect a flattish efficiency ratios, compensation ratios for the year. That's the case so far. Remember that there's a seasonality historically on our revenues. The H2 of the year is usually stronger than the H1, meaning that if we keep the same efficiency ratios, you should expect SG&A to grow nominally, in nominal terms on the H2 of the year. Okay? On top of that, on Q3, we have XPEED. So it's a big cost for us. So you should expect costs to pick up a little bit on H2. But again, you can expect flattish efficiency ratios and compensation ratios.

Speaker #3: That's the case so far. Remember that there is a seasonality historically in our revenues. The second half of the year is usually stronger than the first half.

Speaker #3: Meaning that if we keep the same efficiency ratios, you should expect SG&A to grow nominally, in nominal terms, in the second half of the year, okay?

Speaker #3: So, on top of that, in Q3, we have Expert. So it's a big cost for us. So you should expect costs to pick up a little bit in the second half.

Speaker #3: But again, you can expect flattish efficiency ratios and compensation ratios.

Speaker #5: And how should we think about '27 in terms of what the room for cost optimization should be, if cost efficiency continues to remain flattish going into '27? Or do you see room for it to come down?

Neha Agarwala: How should we think about 2027 in terms of further room for cost optimization? Should cost efficiency continue to remain flattish going into 2027, or do you see room for it to come down?

Speaker #3: I would say 'flattish' is a good assumption, but remember that we are building a lot of new business lines, new channels, and growing. So it's not a commitment that we will gain efficiency or be flat, but I would say 'flattish' is a good assumption.

Thiago Maffra: I would say flattish is a good assumption, but remember that we are building a lot of new business lines, new channels, growing. It is not a commitment that we will gain efficiency or be flat, but I would say flattish is a good assumption.

Speaker #5: Super clear. Thank you so much.

Neha Agarwala: Super clear. Thank you so much.

Speaker #1: Okay. Next question is from Marcello Mizahi from Bradesco. Marcello, please, you can ask your question.

André Parize: Next question is from Marcelo Mizrahi from Bradesco. Marcelo, please, you can make your question.

Operator: Next question is from Marcelo Mizrahi from Bradesco. Marcelo, please, you can make your question.

Speaker #6: Hello, everyone. Congratulations on the results, and thanks for the opportunity. My question is regarding the gross margins. I want to understand, since the dynamics have been changing.

Marcelo Mizrahi: Hello, everyone. Congratulations for the results and thanks for the opportunity. My question is regarding the gross margins. To understand, the dynamic has been changing, gaining margin on the fees, on the rebates, which is a dynamic of the channels. But we are seeing the gross margins pretty stable. This quarter was pretty strong. Can we expect going forward, these gross margins going up in the next quarters with the dynamics of the mix that probably the company will have in the next quarters? Thank you.

Speaker #6: So, gaining margin on the fees and on the rebates, which is a dynamic of the channels. But we are seeing the gross margins pretty stable.

Speaker #6: So, this quarter was pretty strong. Can we expect, going forward, these gross margins going up in the next quarters with the dynamics of the mix that the company will probably have in the next quarters?

Speaker #6: Thank you.

Speaker #3: Yeah, we have a lot of operational leverage when we think about the business. And it's the same case when we think about the channels.

Thiago Maffra: Yeah. We have a lot of operational leverage when we think about the business, and it is the same case when we think about the channels. When we look on the long run, you could expect gross margins to improve. But remember that the mark-to-market also impact these kind of ratios because when we have more than BRL 400 million on our top line, there is no correlation to our sales channels or to IFAs. It distorts a little bit, the ratios, the commission ratios and so on. That is the main explanation.

Speaker #3: Okay? So, when we look in the long run, you could expect gross margins to improve. But remember that the mark-to-market also impacts these kinds of ratios, because when we have more than R$400 million on our top line, there is no correlation to our sales channels or to IFAs.

Speaker #3: It distorts the ratios a little bit—the commission ratios and so on. So that's the main explanation.

Speaker #1: Okay, next question is from Pedro Leduc from Itaú. Leduc, you may proceed.

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

Operator: Okay. Next question is from Pedro Leduc from Itaú. Leduc, you may proceed.

Speaker #7: Thanks, everyone. Congrats on navigating this challenging quarter. I want to go back a little bit to the SG&A side. I know you've been very clear about the seasonality in the second half.

Pedro Leduc: Thanks, everyone. Congrats on navigating this challenging quarter. I want to go back a little bit to the SG&A side. You have been very clear about the seasonality in the H2. We can clearly see you investing here more behind people. But then I go back to a conversation we had earlier in the year that you are looking to revamp your tech-based client facing, especially for the massified or the base of the clients, and where you were maybe losing a little bit of traction. When I think about this flat efficiency and you are paying up for more people, but you also have to boost the tech/AI investment deck. So question is, are you being able to accommodate both, here in these figures that you are talking about? And where are you in this upgrade that you meant to do in the base channel or service facing technology?

Speaker #7: We can clearly see you investing here more behind people. But then I go back to a conversation we had earlier in the year that you are looking to revamp your tech-based, client-facing strategy, especially for the massified, or the base of the clients.

Speaker #7: And where you were maybe losing a little bit of traction. And when I think about this flat efficiency, and you're paying up for more people, but you also have to boost the tech/AI investment deck.

Speaker #7: So, the question is: are you able to accommodate both here in the figures that you're talking about? And where are you in this upgrade that you mentioned, to do in the base channel or service-facing technology?

Speaker #7: Thank you.

Pedro Leduc: Thank you.

Speaker #6: Yeah. Great question.

Thiago Maffra: Yeah, great question. Especially when you look the H1 of the semester, you see non-people SG&A growing a little bit more. It is mainly technology, okay? Technology is growing a lot, and it is mainly concentrated on AI, on servers, cloud, and so on. We have been able to manage investing on these new technologies while maintaining the efficiency ratios. About the segment that you mentioned, we always talk about when we are simplifying 3 segments, the digital retail segment, the affluent clients, and the private bank clients. You are right, we have been creating a value proposition for these retail digital clients in the past, I would say more than a year. We are about to launch an AI advisor, I would say this month or beginning of next month.

Speaker #3: Yeah. Especially when you look at the first half of the semester, you see non-people SG&A growing a little bit more. And it's mainly technology, okay?

Speaker #3: So, technology is growing a lot, and it's mainly concentrated on AI, servers, cloud, and so on. We have been able to invest in these new technologies while maintaining our efficiency ratios.

Speaker #3: And about the segment that you mentioned, we always talk about it when we simplify into three segments: the digital retail segment, the affluent clients, and the private bank clients.

Speaker #3: And you are right. We have been creating a value proposition for these retail digital clients for the past, I would say, more than a year.

Speaker #3: We are about to launch an AI advisor, I would say this month or beginning of next month, because today, as we have a more complete shelf of products—including banking, insurance, and so on—we are able to provide a good service and have good economics with these smaller ticket size clients.

Thiago Maffra: Because today, as we have a more complete shelf of products, including banking and insurance and so on, we are able to provide a good service and have a good unit economics, with these smaller ticket size clients. You can expect, especially in 2027, the number of clients coming from this segment to accelerate. I would say 2027, it is a good year to take a look on this segment.

Speaker #3: So you can expect, especially in 2027, the number of clients coming from this segment to accelerate. So I would say 2027 is a good year to take a look at this segment.

Speaker #7: Amazing. Thank you for the update, and talk soon.

Pedro Leduc: Amazing. Thank you for the update and talk soon.

Speaker #1: Okay. Next question is from Arnold Shirazi from Citi. Arnold, you may proceed.

André Parize: Okay, next question is from Arnon Shirazi from Citi. Arnaud, you may proceed.

Operator: Okay, next question is from Arnon Shirazi from Citi. Arnaud, you may proceed.

Speaker #8: Hi, y'all. Good evening. My question is still on expenses. When analyzing people expenses, I can see that salary has been increasing 23% year over year, while the headcount 13%.

Arnon Shirazi: Hi, all. Good evening. My question is still on expenses. When analyzing people expenses, I can see that salary has been increasing 23% year-over-year, while the headcount 13%. Is there any change in compensation recently? Also, we see a lower magnitude of share-based compensation. Just trying to see the moving pieces here. Thank you.

Speaker #8: Has there been any change in compensation recently? Also, we see a lower magnitude of share-based compensation. Just trying to see the moving pieces here. Thank you.

Speaker #3: It's hard to segregate salaries from the bonuses and total compensation and so on. So, I would say the best way of looking at it is the compensation ratio, because the mix of people is very different that we are hiring and so on.

Thiago Maffra: It's hard to segregate salaries from the bonus and total compensation and so on. I would say the best way of looking is the compensation ratio, because the mix of people is very different, that we are hiring and so on. Look at the total compensation. I would say that's the best way of analyzing people costs, including also the RSUs and so on.

Speaker #3: So, look at the total compensation. I would say that's the best way of analyzing people costs, including also the RSUs and so on.

Speaker #8: Okay. Got it. Thanks.

Arnon Shirazi: Okay, got it. Thanks.

Speaker #1: Okay. Next question is from Guilherme Grayspun from JP Morgan. Grayspun, you can go ahead.

André Parize: Okay, next question is from Guilherme Grespan from J.P. Morgan. Grespan, you can go on.

Operator: Okay, next question is from Guilherme Grespan from J.P. Morgan. Grespan, you can go on.

Speaker #8: Thank you, Parize. Good evening, Maffra, Gustavo. Thank you for the presentation. Two quick follow-ups on our side. Maffra, first, just confirming issuer services.

Guilherme Grespan: Thank you, Parise. Good evening, Maffra, Gustavo. Thank you for the presentation. Two quick follow-ups on our side, Maffra. First on just confirming issuer services. I think you mentioned that primary markets has rebounded a little bit versus Q2, but still at very soft levels compared to last year. I just want to confirm that's kind of the message for Q3. My actual question is more a follow-up on the SME strategy going forward. You mentioned a little bit the credit card strategy. You have the POS partnership. But focusing specifically on the credit side of the business, what is going to be the strategy here? Is it going to be credit plus working capital? The working capital, it's going to be with collateral or not? Do you plan to do government-related programs? I just want to understand the mindset for lending specifically. Thank you.

Speaker #8: I think you mentioned that the primary market has rebounded a little bit versus the second quarter, but it's still at very soft levels compared to last year.

Speaker #8: I just want to confirm that’s kind of the message for the third question. And then, my actual question is more a follow-up on the SME strategy going forward.

Speaker #8: You mentioned a little bit about the credit card strategy. You have the POS partnership, but focusing specifically on the credit side of the business, what is going to be the strategy here?

Speaker #8: Is it going to be credit plus working capital? Is the working capital going to be with collateral or not? Do you plan to do government-related programs?

Speaker #8: I just want to understand the mindset for lending specifically. Thank you.

Speaker #3: Thank you for the question. About the first question, yes, you're right. Q3, when we think about it again, we are talking about debt capital markets—GCM, okay?

Thiago Maffra: Thank you for the question. About the first question, yes, you're right. Q3, when we think about, again, we are talking about Debt Capital Markets, DCM, okay? If you look funds and other products, they are performing well, okay? But when we look DCM, that's a big chunk of our issuer service. It's better than Q2 but softer than the recent past, okay? Especially when we compare to 2025, that the volumes were all-time high. So it's recovering, but at a softer level, okay? The second part, SMBs. Yes, the strategy when we go to credit here, remember that we are not aggressive even on corporate clients. As we are going down, we are going to be even more conservative, okay? So it's always with collateral. Yes, we are joining some government programs, other credits with collateral from cards, from other receivables.

Speaker #3: If you look at funds and other products, they are performing well, okay? But when we look at GCM, that's a big chunk of our issuer services.

Speaker #3: It's better than Q2, but softer than the recent past, okay? Especially when we compare to 2025, when the volumes were at an all-time high. So, it's recovering, but at a softer level, okay?

Speaker #3: The second part, SMBs—yes, the strategy when we go to credit here, remember that we are not aggressive, even on corporate clients. So, as we are going down, we are going to be even more conservative, okay?

Speaker #3: So, it's always with collateral. Yes, we are joining some government programs—other credits with collateral, from cards, from other receivables. So it's always going to have some collateral, okay?

Thiago Maffra: It's always going to have some collateral, okay? Of course, we can have very small revolving lines, but the main part here is with collateral and very low risk. So that's the strategy when we think about credit for these segments here. So not big risks, not clean. We are going to go step by step here.

Speaker #3: Of course, we can have very small revolving lines, but the main point here is collateral and very low risk. So that's the strategy when we think about credit for these segments here.

Speaker #3: So, not big risks, not clean. So, we are going to go step by step here.

Speaker #8: That's clear. Thank you.

Guilherme Grespan: That is clear. Thank you.

Speaker #1: Okay. Thank you, everyone. So this is the time that we're going to finish the call. Thank you for joining us today. We'll keep in touch.

André Parize: Okay, thank you, everyone. Here is the time that we are going to finish the call. Thank you for joining us today. We are going to keep in touch. Any further questions, the IR team is more than happy to address. See you next quarter. Thank you.

Speaker #1: Any further questions, the IR team is more than happy to address. And see you next quarter. Thank you.

Operator 2: Goodbye

Operator: Goodbye