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.

Starting with our Q&A session, the first question is from Eduardo Osman from BTG. Osman, you may proceed.

Hi, everyone. Should we expect a similar performance in the fourth quarter, or do you think, you know, a slowdown should be expected, right? And my second question is on what Marta mentioned, right, during the call, right, the strategy to increase the warehousing book in the fourth quarter. If you can give us a little bit more details, you know, because you also mentioned that corporate spreads are very low, so wouldn't that be a risky strategy in an election year? Thanks.

Hello, Rosman. How are you? Thank you for your question and good evening, everyone. So, we are seeing the wholesale banking with a good performance for Q4. So, as we mentioned earlier in the last call, we have seen the second half of the year is stronger than the first half of the year, especially for the wholesale bank.

Hi, Osman. This is Victor. Talking about credit spread first, we think that the credit spreads are really tightened, and the probability is that they can go a bit more wider over the end of the year and next year. But also, there is a lot of netting flow in fixed income funds that keep putting pressure in these spreads. And it's important to remember that our strategy is to hold high-quality assets, and the velocity of turnover of our portfolio is higher than the average of the industry. And we are not as susceptible as widespread volatility as the rest of the competition. And also in terms of RWA, we expect to sell a bit of what we bought over the third quarter, And depending on the performance of the CM, warehouse a bit more to go through the first quarter of 2026. As we all know, the first quarter usually is a quarter if lack of activity in the CM. So it's important to us to have assets to sell in the beginning of the year.

Perfect. Crystal clear. Thanks a lot.

Okay, next question is from Yuri Fernandes, JP Morgan. Yuri, you may proceed.

Thank you, Paris. Hello. Good evening, everyone. Just to follow up on Hosmer's on corporate, can you remind what was the 46? I think you mentioned hedging strategy, but I'm not sure what was it. So just trying to understand a little bit again, the corporate, inside corporate initiatives, the 46% quarter over quarter increase. And on bonus, this line was a little bit heavier this quarter, but coming from, I would say, a softer base, right? When we we go to the nine months i think total bonus is up eight ninety percent over here so not a not a big increase but if you can comment a little bit on what to expect on people expenses like salaries like just to get some idea on sgna i i would appreciate and if you want to comment on bonuses also i think it's it's also a good point given it was a little bit higher this quarter thank you

Hi, Yuri. Thank you for your question. This is Victor. First, talking about the corporate performance, it's important to remember the corporate business is tied to the DCM activity. So, one of the main drivers of P&L Incorporate is it has solutions to companies issuing debt. So, for example, the company issue a debt, tax exempt corporate bond, inflation-linked bond, and it doesn't want this exposure inflation, it hedge against us in CDI+. That's one of the business and it's highly correlated with the same activity. Also, another business that is really important is the originate of crap. operations that will be secretized and sold to clients in the next quarters. If you go to our credit portfolio, you'll see that it's flattish. Basically, we sold quasi-sovereign bank notes, and we originated corporate operations, but those operations will be secretized and then sold to clients, the same as we did in other quarters. And now moving to bonus. It's normal to see the bonus going higher after the performance of investment banking going higher the way it did over the quarter. So part of that is explained by performance in wholesale banking. Another part is explained by the new hires over the year. We hired almost 500 new employees, mostly on Salesforce expansion over the year, and this is one part of the drivers of salary growth and bonus provisions.

Super clear, Victor. Thank you very much. Thank you, and congrats on the net new money improvement for the quarter.

Okay, next question is from Mario Pierre, Bank of America. Mario, you may proceed.

Hey, guys, good evening. Let me ask two questions as well. First one, when we look at your retail revenues growing 6% year over year, but if we double-click on that, we see that fixed income revenues actually contracted year over year, I have been contracting 2%, even as the AUC grew 22%. So it means there was like significant pressure on take rates. Can you explain why that happens, right? Because when we look at fixed income, revenues were growing like 40%, I think, on average for the past like six quarters. So just trying to understand if it was a one-off event that impacted fixed income revenues. And then my second question is related a little bit to what Yuri asked. But, you know, when we look at your EBT margin, it had been expanding for the past three quarters, I think, and this quarter it contracted because of the pickup in expenses. And you're running below your guidance, right, your medium-term guidance of about, I think, 29% to 32%. So just trying to get a sense here also, like, should we expect the trend to start to improve in the next quarters, or do you think that the EBT guidance end of 2026. Thank you.

Hello, Mario. This is Thiago. I will take the first question. I can answer the second one and Victor compliment myself here. About the fixed income revenue, the mainly The main problem here is if you look the take rate for investments, if you compare Q4 last year to Q3 this year, it's down 10 bps overall. So it's a huge draw here. drawdown and when you look only fixed income 20 beeps okay so it's a big decrease in take rate and it's mainly explained because first one mix okay so if you look CG's with daily liquidity they used to represent a 25% of the new allocations. Okay, so 25%. Today it's 45%. Because of the high selling rate, we are selling almost half of everything that we sell for fixed income. It's CGs with daily liquidity. When you compare the revenue we make here, it's basically a daily spread on CGs with daily liquidity. against duration times spread okay so it's a completely different revenue stream okay and the second one is shorter duration okay so right now everyone is only buying like a very short term durations okay so when you combine uh the mix of more cgs with daily liquid and shortened duration we are selling a lot more volume in fixed income but with a lower take rate About your second question, we are investing in Salesforce expansion, we are investing in SMB, we are investing in technology, so we are doing a lot of investments this year and we are planning to do more investments next year. I would say that it's still possible to get to the, at the end of the next year, to the guidance we gave. But you see, because in the past, I would say, two years or even more, we have been gaining a lot of efficiency quarter after quarter. I would say that right now we should be more flattish. when you look the next quarters because you are investing more, okay? So, but still do a vote to get to the guidance by the end of the next year.

Very clear, Mafra. Thank you.

Okay, next question is from Gustavo Chirodin, Citi. Gustavo, you may proceed.

Hello, guys. Thanks for the opportunity. I have two questions as well. The first one is, sorry to insist in this Salesforce that you guys mentioned, but because if I'm not wrong, you mentioned something around 500 new employees and most of them related to Salesforce. When we analyze the total number of advisors that you have, it is decreasing, right? So year-on-year and stable quarter-on-quarter at 18.2 thousand advisors, including IFAs and EXPs employees. So I'd like to understand what kind of sales force Are you hiring? And if it is possible to reconcile with this total number of advisors. And my second question is related to financial expenses. We saw a decent decrease quarter on quarter and year on year, so 28% below quarter on quarter. 45% decrease year-on-year despite this high SEDC rate. We could see that there was a reduction of 1.5 billion reais in borrowings. So my question is, this reduction is related to these lower borrowings, or are there different reasons behind this decrease in financial expense? Thank you.

Okay, I'll take the first one. About the total number of IFAs, as Victor mentioned, that we are hiring more internal advisors, okay, here, it's because when you look at the IFA, the B2B network, they have been converting some of the IFAs into employees because of the change in regulation that has been happening, I would say, for over a year now. And the second part, it's because we have been part of the third wave that we mentioned a lot here on quality, the way we serve clients. We have been focused a lot more on quality, so more skilled IFAs, okay? So we have been... I would say even forcing some of the low-quality IFAs to leave the network. So we have been increasing on what we call AAA advisors, and we have been decreasing on what we call C&D curve of IFAs. So those are the main reasons why you don't see the number of IFAs growing. But as we don't open the number of what we call AAA IFAs here, but this number has been increasing. So we have been focusing more on more qualified advisors.

Hi, Gustavo. This is Victor taking the second part about the financial expenses. Just remembering here, we went through an organization of our conglomerate over the last year, changing the bank to the top of the business. And that had an important effect in... financial expenses and also in other revenues. So when a debt that was a corporate debt inside a holding mature and it is rollover for a debt inside of the bank, it gets out of the financial expense lines and go inside of net interest margin. So it's just a geographic effect. it goes from the depth to the to be a reductor of revenues and that's also why other revenues is lower quarter over quarter you're going to see that the change between lines they are closer to each other and that's the main effect just a geographic movement between lines and also it's important to note that the bank debt is much cheaper than a corporate debt So you do have this geographic movement, but also the overall cost of debt of the company is considerably lower when you compare 2024 to 2025.

Very clear, guys. Thank you.

Okay, next question from Daniel Vaz from Safra. You may proceed, Daniel. Okay.

Thanks. Hi, everyone. Good evening. Thanks for the opportunity of making questions. I wanted to follow up on Mario's question on fixed income. Instead of looking on the 2% drop, I wanted to talk about the 7% drop quarter for quarter. I mean, DCM activity improved, right? So we saw that on your insurance services. Net new money improved. Warehouse of security did increase, and we had higher business days, right? So it's probably – it's probable that you distribute a higher volume to the clients. So I heard you on the mix change, but was this a quarter-for-quarter change? I mean, the CDs with daily liquidity went up from 25% to 45% in one quarter. Just wanted to touch base on that again, if you could explore a little more what the change quarter-for-quarter means. And if I may follow up on the guidance, I wanted to check on your comment, Mafra, if you're able to get on the fourth quarter of next year on your EBT margin instead of the full year. Is that correct? Did I understand well? Thank you.

Hi, Daniel. This is Victor taking the first part here in Fixed Income. If you remember a few questions ago, I told that we sold quasi-sovereign banking notes from our warehouse book, and we warehoused corporate bonds. So, basically, that is what happened in real life when Mafra said that clients are buying short-term floating rates. That is what's happening. The products originated by the DCM markets over the quarter are still in our books, and we are going to sell them over the fourth quarter and first quarter of next year. And what we sold are short-duration banking notes. That's why we see this behavior in the revenue quarter over quarter.

And the guidance, if you can comment on the fourth quarter or full year of ABT margin.

Yeah, sorry for that. Yes, we still that it's possible to target that next year. We don't give guidance quarter required, so it's hard to say what's going to be Q1 or Q2 or Q4 next year, but we still that the 30% is still doable.

Okay, thanks, guys.

Okay, next question is from Thiago Batista, UBS. Thiago, you may proceed.

Hi, guys. Can I place all the results? Can you hear me? Hello?

Yes, we are, Thiago.

Okay, okay. Sorry, sorry, Marco. So I have two questions. The first one, on the buyback. The intention of the 1 billion buyback is to be concluded this year. I know that depends on the price of the shares, etc. But the initial intention is to conclude this year. And the second one, about the IOC in the equity business, we saw that this quarter, or the 30Q, the IOC was basically slashed to the Q. And we have the Bovespa in the all-time high now. I've already seen, not exactly in the 30Q, but more recently, Clients trying to move the money towards more risk investments like equities, or not yet? Or maybe we need to see Selic rate at, let's say, single digits or something like this. So my question is, are you already seeing this migration from fixed income to high-risk investment?

Hi, Thiago. This is Victor, first on the share buyback. The buyback program is open and we are going to be buying over the next 12 months. And the same as before, We are going to wait for the best opportunity to deploy the capital and maximize the return to our shareholders. So we cannot give you an idea when it will be complete or if it will be the beginning of the next year or the end of this year. But I can guarantee you that we are going to be buying everything the same as we did in all the other programs we opened.

And just to compliment Victor on the payout strategy here, if you guys see, we still have a very high business ratio and we mentioned that we would like to bring it down. through something between 16 and 19 by the end of next year. And that's still the case, but why we are not giving more money back to the market right now, because we believe we will have good opportunities next year. It's going to be a volatile year, and for sure we will have opportunities to do more more buyback next year so that's why we are not deploying or paying out more capital right now okay about the second part of your question is we don't see a big changing mix yet okay because remember that the retail clients is a they are a little of course it's our job here to help them not to have this behavior but they are a little bit lagging okay so once we start to see rate cuts and other things price moving up and so on people start to to move money from one asset class to other okay but we are seeing a stronger Funds platform right now, especially primary offering for closing or open end funds, REITs and so on. So the demand has been increasing for that type of products, but not yet for equities or for some other products. So I would say that we... We are not in a point that we could say that we are seeing a lot of, like, change in the portfolio. As we mentioned for fixed income, it's still the opposite. People are moving even more money to daily liquidity prods, CDs, because they are seeing 15%. Okay. So I would say that we are not there yet.

Thank you, Omar. Thank you, Mansour.

Okay, next question is from Chito Labardo, Goldman Sachs. Chito, you may proceed.

Hi, good evening, guys. Thanks for the call and taking my questions. A couple questions also. First, a follow-up on the corporate revenues, right? You mentioned it's related to hedging solutions for companies issuing the tax-exempt bonds. Is this a function of, I guess, companies just anticipating tax reform so that remains strong in the second half of the year but potentially subsides next year? Or do you think that there's more sustainability to that? And then second question, so a jump in retail inflows, right? I mean, $20 billion, which is more or less what you've been saying, but it was up significantly from last quarter. So was there anything significant she would read into this is just normal volatility, or should that begin to accelerate from here? Just any color you can give on how that continues to evolve. Thank you.

Hi, Tito. The first one about corporate revenues. Hedging is related to issues, but I think the issues, they are a function of the risk of the new tax regulation, but also the level of credit spreads. It's really cheap to raise debt here right now. Next year will be extremely volatile, so I think companies are moving around and doing whatever they need to do in terms of ION this year. Also, there is not only hedging solutions. We have power trading, cash management, FX operations. The credit originates to sell, as we commented before. I think what the hedging solution was one that gave a bit of highlights for the quarter, but there is still a lot of revenue lines inside of the corporate franchise.

I will take the second one about net new money. Of course, we have been doing a lot of things here, especially on what we call the third wave on increasing the level of service, the value proposition that we deliver to our clients. We mentioned a lot today on the presentation about that. So we have been democratizing the wealth system. service business to all our retail clients here for the past, I would say, year or year and a half. So we have been developing a lot of technology, CRM, AI capabilities. So I would say that the level of service that we are delivering to our clients right now It's much better than it was a year or two years ago and much better than most of our competitors, talking about, of course, here, our retail clients. So we are delivering a level of service that nobody provides in the industry in Brazil. That's why we are calling the third wave. But it's early to say that that is moving a lot the needle here, okay? So I would say that's more like a medium-term impact. So we are around $20 billion. We have been saying that's the level for the past quarters. I don't see any reason right now to change that for – Up or down here. So we are seeing 20 billion as the level for the next quarters. But again, 16, 18, 22 or 23 for us is the same 20 billion. OK, so you could see one quarter higher than that, one quarter lower than that.

Okay, that's helpful, Mafra. If I can, just one follow-up on that, right, because just on the revenue guidance, right, you had 10% for this year. I mean, expectations are that you'll probably be below that, but then also thinking on your 2026 guidance, the bottom end, $22.8 billion would be like a 20% jump. I mean, is that still real? Like, what would need to happen for that to happen? for that to be realized, or is that likely some downside risk just given the tougher macro that we've seen since you initially gave that guidance? Thank you.

Yeah. Yeah, as we mentioned the last earnings call, the second half of this year is going to be stronger than the first half in terms of growth, top-line growth. But as the first half was soft, it's going to be hard for us to get to the 10%, but we can get close to that. For 2026, I would say it's almost the same situation. rational here because as 2025 was a little bit soft next year we are going to we have to grow not to give like a number here but 17 to 20 percent okay still doable but we might be a little bit short like to to the guy in this next year but if we are short it's for a bit not for much

Okay, very helpful. Thanks, .

Okay, next question is from . Marcelo, you may proceed.

Hello, guys. Thank you for the opportunity. So my question first, the first one is regarding the workdays. I want to understand how the workdays impacted the revenues terms of the other retail revenues in terms of fun custom revenues so what's the main impact here and if looking forward we will if we will see a reduction of these lines and and the other question is uh regarding the investments so you guys are talking about investment in technology so we were seeing a lot of platforms investing in ai tools digital tools and also the channel, totally a robot digital channel. So are you guys already working on that, using AI to advise or to give advice to the clients, especially to the clients that are lower income? or the lower tickets to bring them a better service and to increase engagement and the revenues. Thank you.

I'm Zahi. This is Victor. Thank you for our question. First here on business days. As expected, business days gave us a positive impact in terms of floating and trading days. But this was compensating the negative way in terms of lower DTV for equities and the shortening in duration that Mafra explained in the fixed income platform. So those effects go in opposite directions and the mix overcomes in terms of business days. That's basically what happens. but that's why we see equities and fixed income a bit down, and other retail which have the floating company a bit up over the quarter.

On the second question, Mizar, yes, we have been working a lot with AI on different verticals here. I will mention some of them. The first one is internal productivity. It can be for engineers. It can be for engineers. management people so we have been working on operations on customer experience so we have a lot of use cases live right now more on the productivity side the second one we have been trying i would say the idea here is not like to replace advisors but how we enhance our advisors using different agents it can be relationship agents ai agents of course It can be transactional agents. So we have been creating a lot of these type of agents to give more productivity and to increase the level of service that we deliver to our customers. And I would say a third one, we have been creating investing a lot on on portfolio allocation of our customers so we have been creating more rules we have been creating a centralized portfolio location and we are using a lot of technology to make it happen so I There are many use cases here, some already at scale, some at very early stage. Another one that is already at scale, today we listen, read, hear everything that our advisors, especially internal advisors today, 100% of them, And we can classify all the conversations, all the interactions with our customers. It's a product offering if it's only a relationship activity. So the level of information and sales management that we have today, it's very, very high. And we will continue to invest on that. But again, not to replace advisors, okay, but to enhance them. Of course, when you go to very small clients, more like a digital or what we call here self-direct clients, then you can have like a fully deployed AI solution. But that's a very small part of our business today. It could grow in the future. But, again, the focus here is how we enhance the advisors and how we free them, like, to focus 100% of their time on relationships, not like on operations or allocation or other activities that don't generate value for our customers.

Very good. Thank you very much.

Okay, we're up to the hour, so I'd like to thank you once again for participating of our earnings call, and our team will be more than happy to attend any further questions you may have. Have a good night, and we're going to keep in touch. Thank you.