XP Inc.

Good evening, everyone. I'm Andrew Parisi, Investor Relations Officer at XP. It's a pleasure to be here with you today. On behalf of the company, I would like to thank you all for your interest and welcome you to our third quarter 2025 earnings call. Today's presentation will be led by our CEO, Thiago Mafra, and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. If you would like to ask a question, please use the raise hand feature on Zoom and we will address them in the order we received. We also offer the option of simultaneous translation to Portuguese. If you would like to activate it, please click the button below. Before we begin, please refer to our legal disclaimers on page 2, where we provide additional information regarding forward-looking statements. You can also find more information in the SEC filing section on our IR website. Now, I'll turn it over to Thiago Mafra. Good evening, Mafra.

Thank you, André. Good evening, everyone. I appreciate you all joining us today for the third quarter 2025 earnings call. 2025 has been a very important year for XP, as we have achieved significant progress on our agenda of excellence. From the launch of the new way to attend and serve clients, implementing a culture to better understand clients' financial cycles as part of the main KPIs, new and more intelligent segmentation through a brand new app with much more features and easier data access and new credit card offering. These few examples demonstrate our folks to become the leader in investments in the country while it brings a completely new approach on how Brazilians invest. Despite these advances we have made in different areas, the year has still proven to be challenging. But even with this challenge, our team is fully committed to keep evolving our business to deliver growth and profitability under different circumstances. Now, going to the main KPIs, the first one is client assets AUM and AUA, for which we posted $1.9 trillion. a 16% growth year-over-year. Total advisors accounted for 18.2 thousand, representing a small decrease year-over-year, on the back of many of them becoming employees and a more restricted policy which requests higher standards of commercial behavior and productivity. And on activity clients, we posted 4.8 million clients with a 2% growth year over year. It's important to mention that we have been growing on core client segments, high income and private banking. For some quarters, we were not investing to cap rate. and maintain low retail clients since it was too expensive to serve them in our old model. But now, after some tests, we are almost ready to resume growth in this segment. We already see early stages of development on how to better serve the segment with profitability. Let's wait some quarters to be sure about the way we design to attend retail clients, and maybe we'll see the overall number of clients growing again as this dynamic evolves. In the quarter, gross revenues marked R$ 4.9 billion, representing 9% growth year-over-year. EBT is 10% higher year-over-year, making R$ 1.3 billion. These results were positively impacted by the more constructive dynamics in corporate and issuer service segments. Following this positive trend, our board online also posted an impressive growth year-over-year, reaching R$1,330,000,000 and representing a 12% growth when compared to the same period last year, which represents a new record. On profitability, we achieved 23% ROE during the quarter, a flat performance year-over-year. This represents our commitment to deliver profitability even in more challenging market scenarios. On capital ratio, we maintained a very comfortable level of 21.2%, which represented an increase of 180 bps quarter over quarter regarding diluted eps we posted 13 growth year over year another quarter in which it grew faster than net income driven by our share buyback program execution now let's see more details on the next slides our total client assets combined with the assets under management from our asset management business and with the aoe from our fund administration business total over 1.9 trillion reais which represented a 16 growth year over year on the right hand of the slide we show how net new money related to client assets developed in the period This quarter, we achieved 20 billion reais in retail net new money and 9 billion reais in corporate and institutional, which combined represented 5 billion reais lower than last year, but three times higher than last quarter. On the retail side, we started to see the early signs of progress on our agenda of excellence we mentioned before. Lower noise of some events we had during the first half of the year, and better gcm activity towards the end of the quarter all these combined positively impacted the inflows coming from individuals additionally despite the maintenance of the same market dynamics during the third quarter of the year we saw better net new money figures both from smes which are incorporated in retail fears and large corporates recent developments in our product range offering and more positive capital markets activities translated into higher net new money for both segments we are constantly improving our investment platform and as we mentioned before enhancing clients experience through advisor initiatives This combination reinforced our confidence to achieve our target of around R$ 20 billion in retail net new money per quarter. On the next slide, we will explore our retail strategy. As I mentioned earlier, 2025 has been a year of significant progress in our agenda of excellence. We are constantly enhancing our way of serving clients with the aim of once again disrupt the market with our value proposition focused on service level. Going back to our foundation, XP disrupted the investment industry in Brazil by democratizing access to investments through an open and comprehensive platform of products and services. In a second stage, we scaled this innovative business model by building the largest and most qualified base of financial advisors in the market. We have come this far by offering best-in-class investment products built by top market specialists. Now, we are once again disrupting how Brazilians invest by democratizing access to high-quality wealth planning, a service that, until now, has been reserved for high-net-worth clients of multifamily offices. We deliver personalized and premium planning for clients with more than 3 million reais, scaling financial planning for those with over a million reais, and offering goal-based investment planning for clients with less than a million reais. Our approach is holistic, encompassing the complete financial lives of our clients, assets, liabilities, expenses, and savings. tax and state planning solutions are also considered in the end we are serving our clients with top tier solutions for both their personal and business finance we are doing this at scale powered by proprietary technology we have developed over the past years this technology enables process standardization scalability and consistent quality in our service model Examples include our CRM system, proprietary allocation platform, and sales activity management, among others, all of them powered by AI. Some of these process KPIs are shown here, proving that this journey towards excellence is gaining traction day by day. Additionally, combined with all this progress I have just mentioned, we are leading another change in the industry by having an agnostic business model. We are able to serve clients in the way that best fits their needs and preferences. The fee-based model already accounts for 21% of total retail AUC. It started in the wealth service segment, which still has more representativeness in the model, but we are accelerating in the other segments from this year on. We will still capture considerable growth coming from this new way to serve. It will happen in the medium term as we are transforming our business model and our value proposition. Nevertheless, we strongly believe that will give us a sustained competitive advantage in the long run. Finally, XP once again is a pioneer. We are not only leading this redefinition on how clients are served, but we are also uniquely positioned to capture future growth coming from this change in client behavior and new market trends. Retail cross-sell has been one of our focuses to diversify revenue streams during the last years. During Q3, we achieved important milestones in this business segment. Starting with credit card, TPV grew 9% year-over-year, marking R$13.1 billion during Q3. As we anticipated last quarter, at the end of Q2, we launched new products targeting affluent and private banking clients. We estimate that with this new segmentation, each one of them with a unique value proposition, we should grow faster in the coming quarters. Life insurance written premium posted 25% growth year-over-year in Q3. As we have mentioned in the past, our insurance business is still in its early stages. Given its significant expansion potential, we expect it to continue growing. On retirement plans, our client assets posted 15% growth year-over-year in Q3 and reached R$90 billion. We keep expanding our sales force and our product offering to increase our relevance in the industry. As mentioned before, we see a lot of potential in life insurance business segment, with a significant addressable market to penetrate in the coming years. Credit posted 11% growth year-over-year in Q3, achieving $83 million in NII. In new products, we consider FX, global investments, digital accounts, and consortium. Altogether, they presented 24% growth year-over-year, with revenues reaching R$250 million this quarter. Beyond consortium, we also saw FX and digital accounts posting relevant growth this quarter. Moving to the next slide, we will address our wholesale bank evolution. Taking GCM into consideration, this quarter we saw a sequential increase in industry volumes when compared to the previous quarter. This growth was pretty much concentrated in the last half of the period, backed by the progress in the tax discussion regarding tax exempt and incentivized instruments. In the third quarter of 2025, we had 10% market share in that capital markets distribution. We still have a robust pipeline of fixed income offerings and depending on market conditions, we might see these mandates materializing into real deals still in 2025. Regarding XP Broker Jiller, it was another positive quarter and we kept leadership in the local industry with 17% market share. On corporate securities, this quarter we kept about the same size of our corporate securities book. with 33 billion reais. The quarter started with possible changes in taxation of tax exempt fixed income instruments and finished with many companies taking advantage of low credit spreads to issue new debt. Next year, we can possibly see an increase in volatility and therefore a reduction in corporate clients' appetite for new offerings. So, our strategy, that being the case, is to increase this warehouse book in the last quarter of 2025 to sell it to our retail clients during the next year. As a final message, I would like to once again emphasize our ability to disrupt the market. We are the pioneers of this transformation trend, bringing clients unique value proposition. Our innovative offering, combined with an agnostic business model and strong capital discipline, position us as a distinctive player that successfully combines growth potential, profitability, and risk management. I would also like to reinforce that our ecosystem today is far more complete than it was just a few years ago, and there are multiple opportunities to be explored across all our businesses. We are confident that, by executing this strategy, we will achieve our goals of market leadership in investments and deliver sustainable long-term growth. Now, I will hand it over to Victor, who will provide a deeper look into our financial performance this quarter. And I will be back for the Q&A session.

Thanks, Mafra. Thank you all for being here today. Now, we'll discuss our financial performance for the third quarter. Starting with gross revenues, we posted gross revenue of R$4.9 billion, with 9% growth year-over-year and 6% growth quarter-over-quarter. In retail, revenues reached R$3.7 billion, representing 6% growth year-over-year and 4% growth quarter-over-quarter. Institutional revenues were stable at R$304 million, flat year-over-year, and slightly decreased quarter-over-quarter. Corporate and issue servers delivering outstanding performance, reaching a historical record of R$729 million. with 32% growth year-over-year and 33% growth quarter-over-quarter. This was driven by strong capital markets activity, followed by our leading position in corporate client solutions, which we will discuss in more detail in the next slides. Now, starting with retail revenue. The performance was mainly driven by floating from both checking and investment accounts, which benefited from higher average volumes and higher interest rates during the period. And second, new verticals included in other retail, such as international investments and global accounts, which delivered strong results. Lastly, it is important to mention that this quarter also includes the revenue of the expert event. If that, the other retail category totaled R$ 757 million, marking 24% growth year-over-year, 19% growth quarter-over-quarter. offsetting our weaker performance from other product lines due to lower ADTV and shorter duration. Now, let's move to the next slide of corporate and issue services. This was the best quarter in our history. The outstanding performance was driven by a pick-up in DCM activity compared to the previous quarter and the continued development of our corporate clients franchise. Issue services posted 323 million reais, stable year over year and 21% growth quarter over quarter. Corporate revenues reached 406 million reais, representing 77% growth year-over-year and 46% growth quarter-over-quarter. The strong growth reflects our increasing capability to deliver solutions to large corporate clients, particularly in hedging solutions. Moving on to the next slide, we will explore SG&A and efficiency ratios. SG&A expenses, totally, 1.7 billion reais in the quarter. representing 10% growth year-over-year and 7% growth quarter-over-quarter. We remain committed to invest in the areas we consider critical for long-term growth, including Salesforce expansion, marketing, and technology, as highlighted by Mafra earlier. These initiatives are designed to enhance the client journey and elevate our overall service level. While this strategy may lead to stable or slight software efficiency ratio in the short term, we see these investments as fundamental to sustain a competitive edge over time. Our last 12 months' efficiency ratio was 34.7%. Compared to the last year, the ratio improved by 79 base points. As usual in the third quarter, results also reflect the impact of the export event. which once again proved to be an outstanding opportunity to connect with our stakeholders. From another angle, the impact of it in the current efficiency ratio was approximately 70 base points. Moving on to the next slide, let's see our EBT. As a result, our EBT was R$1.3 billion, representing 10% growth year-over-year and remaining sequentially stable. The EBT margin expanded 47 base points on the annual comparison, while compressing 103 base points quarter-over-quarter. Now, looking at the net income, we reached R$1.3 billion, a 12% growth year-over-year and 1% increase quarter-over-quarter, The net margin expanded 106 base points on annual comparison and compressed 912 base points sequentially, closing the third quarter of 2025 at 28.5. Now, let's focus on capital management. This year, we have been highly active in returning capital to our shareholders. In 2025, we repurchased 2 billion reais, of which 850 million occurred after the end of the third quarter, and, therefore, are not reflected in the accounting metrics we are presenting today, such as ROE and EPS. Today we are announcing the retirement of all outstanding treasury shares bought back during the year, and the new 1 billion share buyback program should be executed over the next 12 months. On top of that, we are also announcing a dividend of R$ 500 million to be paid in 2025. This represents R$ 2.4 billion in capital returned to shareholders in 2025, approximately 50% payout if you analyze our net income. If considered the new buyback program, the payout ratio would be around 70% for the year. So let's focus on earnings per share on ROE detail over the next slides. In the third quarter, our diluted EPS once again outpaced net income growth, reaching R$2.47 per share, supported by our activity capital distribution strategy through share-by-backs. In this quarter, EPS grew 13% year-over-year and remained stable quarter-over-quarter. On the right-hand side of the slide, ROT stands at 28% and ROE at 23%. It's likely to be lower than last quarter since we had a capital generation without a corresponding distribution. Assuming the execution of the new $1 billion buyback program and $500 million dividend payment, ROTE and ROE would have been 30% and 24% respectively. Now, moving to the next slide. To conclude my presentation, our capital ratio ended the third quarter at 21.2% and the C21 at 18.5%, well above peers average and the regulatory requirements. This comfortable capital position gives us a strong eye to navigate different scenarios and be ready for the upcoming volatility. also during 2026 we expect to have the opportunity to deploy capital in a more efficient manner it's important to remember that we maintain our guidance for a bas ratio between 16 and 19 percent for the end of 2026 now talking about risk on the right hand side of the slide you can see that our rwa totaled 108 billion reais representing a 13% growth year-over-year and a 6% increase quarter-over-quarter. Finally, our VAR stood at R$29 million, or 12 base points of equity. Even in a quarter of outstanding performance from our wholesale business, we maintain a very conservative risk profile. In this quarter, it is worth to mention that our balance sheet grew 6%. But adjusting for retirement plans and secured funding, its growth would have been lower than the CDI for the period. This increase in retirement plans is associated with a one-off bulk migration we did from other insurance companies to our own, and we don't expect to see it in other quarters. Besides that, as you can see, we kept our market RWA stable and decreased our VAR sequentially, reinforcing our position as a robust ecosystem with a strong risk recycling capability. And now, we can go on to the Q&A.