StoneCo Ltd. (STNE) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening, everyone. Thank you for standing by. Welcome to Stone Co.' 's first quarter 2026 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with this call. All material can be found online at investors.stone.co. Before we begin the call, I advise you to review the disclaimer included in the press release and presentation, which outlines important information about forward-looking statements and non-IFRS financial measures. In addition, many of the risks regarding the business are disclosed in the company's Form 20F, filed with the Securities and Exchange Commission, which is available at www.sec.gov. Before we begin, I would like to highlight that the company is restricting the number of questions to one per analyst. Joining the call today is StoneCo's CEO, Matheus Scherer, the CFO and IRO, Diego Salgado, and the head of IR, Roberta Noronha. I would now like to turn the conference over to Matheus. Please proceed. Thank you, operator, and good evening, everyone. Let me begin with a broader view of our first quarter. The quarter was broadly consistent with the software first half dynamics we had anticipated. Three dynamics shaped the quarter. First, a macro environment that continues to weigh on smaller merchants. Second, typical first quarter seasonality. And third, a credit portfolio that continues to grow profitably even though NPLs came in above our expectations. All of this while we worked to bring churn to healthier levels and re-accelerate TPD growth. Against that backdrop, we grew revenue, held adjusted gross profit broadly stable, and continued to return significant capital to shareholders. More importantly, this quarter marks the beginning of a transition phase betwee...