XP Inc.

Good evening, everyone. I'm Andrew Parisi, Investor Relations Officer at XP. Thank you for joining us. It's a pleasure to be here with you today. On behalf of the company, I'd like to welcome you to our four-quarter 25 earnings call. Today's presentation will be delivered by our CEO, Thiago Mafra, and our CFO, Victor Mansur. Both will be available for the Q&A session immediately afterwards. If you would like to ask a question during the Q&A, please use the raise hand feature on Zoom. All questions will be answered in the order they are received. Simultaneous translation into Portuguese is available during this conference call. If you would like to activate it, please click the button below. Before we begin, please see the legal disclaimer on page 2 of today's presentation for additional information on four local statements. The presentation is available for download on our investor relations website, and more information is also available in the SEC filing section of our IR website. To begin the presentation, I'll hand it over to Thiago Mafra. Good evening, Mafra.

Thank you, André. Good evening, everyone, and thank you all for joining us today for our fourth quarter 25 earnings call. Before delving into the numbers, I would like to comment on the recent shareholder change we have just announced in the 6K. As announced, myself and José Berenguer, CEO of XP's Wholesale Bank, will become holders of XP Control LLC, alongside Guilherme Benchimol, who is still the main controlling shareholder, and Fabrício Almeida and Guilherme Santana. This is part of the ongoing process of strengthening corporate governance, long-term alignment and the company's management model. Now, to the results. In 2025, we continue investing in key areas of our business. We enhanced our core processes, scaled financial planning, deepened our segmentation strategy, and launched new products. We also celebrate the fifth anniversary of our wholesale bank, an important milestone that demonstrates the strength and integration of the ecosystem we have built. This platform drives the evolution of service for our corporate and institutional clients, in addition to create cross-setting opportunities across our ecosystem. Despite its relative short history, we have established a top-tier franchise that keeps growing in a consistent manner and contributing to our results. Alongside these structural advancements, We continued our agenda of better serving our clients. We launched a new campaign focused on empowering clients through the power of choice. We are the first investment firm in Brazil to offer transactional, fee-based and RIA models. We believe there is no single ideal model. Rather, different models are best suited to different client profiles. By having these different models, complete product range, focus on excellence, and the most qualified team of advisors as our main advantage, we became the largest investment network in Brazil. Today, we oversee approximately 2.1 trillion across AUC, AUM and AUA, supported by a nationwide network of around 18,000 advisors serving approximately 5 million clients. Our presence spans almost 800 investment centers across 23 Brazilian states and the Federal District, combining scale with local reach. We rank number one in traded volume on B3 and process nearly 50,000 fixed income transactions per day. We had some challenges last year, but by strengthening our business fundamentals, we have positioned ourselves to capture future opportunities. With a robust platform, disciplined execution and a fully committed team, we are starting 2026 ready to grow, whatever the market scenario. On the next slide, we will explore how our ecosystem transformed over time and how that transformation brought us to where we are today. This slide captures where XP stands today. We are entering a more mature phase while retaining the disruptive DNA that has always defined our journey. Our evolution has happened in waves. The first wave was focused on democratizing access to financial products that until then were not largely offered by incumbent banks, like equities and third-party funds. The education of individual investors was an important pillar in the first wave. And through that, we fostered the development of the investment advisor industry in Brazil. In the second wave, we scaled, broadened our distribution and built a comprehensive ecosystem, consolidating XP as one stop shop financial platform. Now, we are advancing to a third wave, a move that democratizes the wealth services model. We are taking a holistic and agnostic approach to give clients true freedom of choice. We have always put clients' power of choice at the heart of our strategy. We remain committed to leading the market forward, guided by our long-standing belief that we play a key role in society by continuously improving the way people invest, manage and think about their money. our ultimate goal is to help clients achieve their dreams now moving on to the next slide our transformative track record has brought us to where we are today we have built a distinctive business that delivers profitability while maintaining a conservative capital structure giving us the option to operate in a broad range of scenarios We posted gross revenues of $19.5 billion in 2025, up 8% year-over-year. As I mentioned last quarter, we expected double-digit growth on the second half of 2025, and we managed to achieve that level. In the second half, we grew slightly more than 10% versus second half of 2024. showing that the initiatives we implemented during the year and earlier are responding positively. Year-over-year, EBT grew 10%, reaching R$ 5.5 billion. Adjusted net income in Q4-25 was R$ 1.3 billion and R$ 5.2 billion for the full year, representing a 15% expansion year-over-year. Regarding balance sheet and profitability, we achieved 23.9% ROE in 2025, representing a 94 base points expansion versus 2024. Our year-end BIS ratio was 20.4%, a very comfortable level even after the payment of $500 million in dividends and $1.9 billion in share buybacks executed in 2025. Finally, our adjusted diluted EPS increased by 18% during the year. now that we covered our platform our disruptive profile and the highlights of the financial results i would like to go in more detail on our business strategy we have spent the past two years developing our service excellence agenda at first we focus on building the foundations systems incentive models and sales force training In 2025, we took the next step and began to scale this model. At the same time, we refined our client segmentation, offering tailored service models and value propositions for each segment, supported by multiple pricing structures. It's worth mentioning that today, approximately 23% of our retail AUC is already under a fee-based model. We continue to adopt this approach, recognizing that there is no single best model, but rather the most appropriate model for each client. We have also developed different ways to objectively track adherence to this way of serving. one of the most important tools we have is the XP service model index it incorporates metrics such as financial and wealth planning quality of client relationships and adherence to recommended asset allocation initial results are tangible clients above the index target show meaningfully better financial outcomes, with 21% higher revenues and more than double the net assets inflows. As we roll out this agenda, different KPIs will move accordingly. Currently, clients above the index target make up 39% of our AUC, and we expect this number to continue expanding. We'll cover this topic in more detail on the next slide. Two important pillars of our foundation are financial and wealth planning and our expert allocation model. We support our clients with a holistic approach based on financial and wealth planning. We help clients navigate complex and highly personal decisions with clarity and confidence. Our work goes beyond investments. encompassing succession state and tax planning always tailored to each client's objectives family structure and long-term vision we offer financial planning for our clients with at least 300 000 reais in AUC and comprehensive wealth planning for clients with invested assets above 3 million reais We were truly pioneers on democratizing access to these services in Brazil, at a time when they were largely restricted to a small group of very wealthy individuals. additionally we develop in-house technology that allow us to go beyond and scale the offering of financial planning while maintaining governance and quality and this is something no other player in brazil can do our second pillar is the expert location model which is a proprietary tool based on algorithmic intelligence designed to propose a smart asset allocation The use of this technology goes hand in hand with our advisor capabilities and considers multiple variables such as available products, liquidity, client profile, the structure of the current portfolio, among others. Through it, we combine the best of both human and technological capabilities, data intelligence complemented by the depth of human knowledge and the strong client relationships built by our advisors. To track the development of our agenda, we measure how usage of these two tools evolves over time. Currently, 21 and 12% of targeted clients track their financial and wealth planning with an advisor. Additionally, adherence to the expert allocation tool has been rapidly growing across all segments, and December 2025 was a record month for allocation using this tool. Besides the fact that we are democratizing the service, we can also see on the right-hand side of the slide, we are delivering positive performance to clients. Looking at the number of advised clients' portfolios, 39% achieved returns of more than 110% of the SELIC rate, 23% had returns between 100 and 110, and 28% obtained returns between 80 and 100% of the SELIC rate. This means that 90% of the advised client base is registering returns of 90% and higher than the SELIC rate. given that technology is a key component of our business we will explore in a greater detail on the next slide technology is a core pillar of xp's growth strategy our proprietary platforms and ai driven capabilities enable scalable expansion while maintaining strong governance and improving advisor productivity we believe in what we call an augmented advisor which is an advisor whose capabilities are enhanced by ai this improvement can be seen in different aspects first relationships we are now able to monitor the frequency and quality of advisors' interactions with clients, providing us with data and intelligence that will ultimately be used to make the advisors better equipped to serve their clients. Second, asset allocation. Technology and AI play a central role in asset allocation, supporting portfolio reviews and personalized recommendations aligned with our expert allocation framework. Third, automation. By reducing the operational workload of advisors, automation allows them to focus on higher value client relationships. By augmenting advisors with AI across relationship management, operations and allocation, we can increase account load and advisor productivity while improving client satisfaction. By monitoring and scoring client interactions, we ensure strong governance, consistent service quality and scalable growth. to close this section of the presentation i would like to talk about a core part of xp or advisor network xp basically create the modern investment advisor role in brazil and that role has continued to evolve over time what began with education and access to equity products has grown into a highly professional scalable advisor model that supports increasingly complex client needs. While we offer a unique value proposition to clients, we also have a differentiated value proposition for our advisors. We equip them with proprietary tools, data and intelligence that enhance their productivity, improve advice quality and strengthen client relationships. This combination of technology, training and incentive alignment is something no other platform offers at scale in brazil by continuously investing in the development of more than 18 000 advisors we reinforce the strength of our distribution network enhance clients relationships and the quality of the service delivered while ensuring the long-term sustainability of our model Finally, this powerful combination of service excellence, strong client relationships and financial performance, together with a sales force that has aligned incentives and robust capabilities, corroborates our conviction that disciplined execution, backed by governance and technology, will drive the performance of all our segments towards our strategic objectives. now let's move on to the next slide to explore our retail investments strategy these slides summarize the results we are achieving across our core segments and shows how our strategic investments are producing concrete outcomes starting with retail this segment continues to represent a significant opportunity for us While we have faced market share pressure and margin compression over the last two years, we have taken decisive action to redesign the way we serve these clients, with the objective of improving efficiency. The current scenario already reflects early signs of progress, with a new value proposition grounded in goal-based investing and managed portfolios. We already see strong initial improvements, with a margin accretive dynamics. Our strategy now is to expand these initial tests to other client layers, using technology, process and governance as key enablers to scale in a profitable way. In high income, our core segment, fundamentals remain very strong. We have focused most of our investments here, and it's where our competitive advantages stand out the most. We continue to see solid growth supported by our multi-model service approach. As previously shown, financial planning, wealth planning and expert allocation remain at the center of the strategy, reinforcing client engagement and long-term value creation. private banking we are seeing the results of our recent investments the segment is transitioning into a full wealth management model covering both individuals and corporate clients needs supported by a robust product platform and a highly skilled team growth has resumed with market share gains and expansion in credit and cross-selling within the XP ecosystem. We are still investing in this segment and we expect to see further market share gains accompanied by margin expansion. On the next slide, we will share our consolidated client assets figure. In the last quarter of 2025, our total client assets, combined with AUM and AUA totaled 2.1 trillion reais, representing a 22% growth year over year. This was an important milestone for XP, crossing the 2 trillion reais threshold. On the right hand of the slide, we show how net new money related to coin assets evolved during the last quarter of the year. In 2025, one of the most frequently asked questions for XP was around net new money. To clarify some of the questions we received, we like to exceptionally give a little more color on this metric. This quarter, we once again achieved 20 billion in retail net new money and 12 billion in corporate and institutional, totaling 32 billion for the period. As we have been saying in the previous quarters, retail net new money has been impacted by the dynamics of SMBs. In the fourth quarter of 2025, small and medium enterprises withdrew 3 billion in investments from our platform. On the other hand, inflows from individual clients in all our segments totaled 23 billion reais. While we posted positive figures, this quarter, and met our soft guidance, we still face a challenging environment for 2026. We are investing in different initiatives to support our future growth, but for now, we remain expecting retail net new money reaching 20 billion per quarter. Retail Cross-Sell has been one of our focuses to diversify revenue streams over the last few years. in 2025 we achieved important milestones in this business vertical as a result we have observed higher engagement from our clients across different products across insurance cards consortium retirement plans and new launches are driving market share gains and record contributions For 2026, we will continue to innovate and expand our offering, improving the integration of these products in financial planning and enhance the customer journey through a better digital experience. For instance, in insurance, we will launch new products, travel, home and credit line insurance. And in life insurance, we will expand our product range with new coverage. Taking cards into consideration, the new launches we had during the year made it possible to increase the share of spending while increasing penetration among target clients. In 2026, we will also be launching new products to enhance our cross-sell offering. In the first half of 2026, we are rolling out a proprietary dollar-backed stablecoin. targeting clients who seek to diversify or hedge against FX volatility, while providing true 24x7 liquidity. This stablecoin launches clear proprietary digital currency strategy and will expand the portfolio over time. finally we will reintroduce crypto serves that are fully integrated into our platform with xp operating as a virtual asset brokerage this ensures a seamless and untrusted experience fully embedded within our broader investment ecosystem Overall, this stead evolution in cross-sell products strengthens client relationships, increases share of wallet and diversifies recurring revenue. Let's move ahead to the next slide and review some KPIs from our cross-sell products. Let's start with credit card, where TPV rose 11% year-over-year to 14.6 billion in Q4'25. in 2025 we launched new products offering unique value propositions for high income and private banking segments life insurance retained premium grew 25 year-over-year in fourth quarter after we enhanced our offering including new coverage In retirement plans, our client assets posted 17% growth year-over-year in fourth quarter, reaching $95 billion. Cross-channel campaigns and client initiatives led to positive inflows. In 2025, we had, for example, record inflows in the defined contribution pension plan, with 17% growth year-over-year. other new products which include effects global investments digital account and consortium collectively grew 21 year-over-year generating 258 million in revenue this quarter it's worth noting that these products were built from the scratch only a few years ago and i read account for more than a billion rising revenues per year On the next slide, we will cover the evolution of our wholesale bank. We are operating a complete ecosystem, where our wholesale bank has become a key pillar of our strategy. Just a few years after we started our wholesale banking activities, we have grown into one of Brazil's largest players. As our retail platform scaled, it generated increased flow and liquidity demand, enabling us to grow our wholesale bank by leveraging our global markets and market-making capabilities. What started as a client facilitation has evolved into a sophisticated wholesale banking franchisee, integrating investment banking, institutional access and other capabilities. Through the combination of strong retail distribution with wholesale and market-making capabilities, we have built a powerful ecosystem that improves execution quality and liquidity for clients. In fact, we are leaders in equities, futures, options and ETFs, representing roughly 50% of these markets. additionally we have created a complete investment banking offering a full range of capital market solutions to our corporate clients this robust structure benefits us in several ways as it not only diversifies our revenue streams but also generates multiple synergies with our investment business We have been gaining relevance in GCM, for example, and will continue to invest in strengthening our franchise in the coming years. Finally, in Credit Agribusiness Receivables, we are leader in distribution as well as in real estate funds. Our wholesale bank has posted strong results over the past few years, and there is much more to come as we keep investing in our franchise. now let's move on to the next slide and see more details on our progress agenda looking ahead over the coming years we'll continue working on different business opportunities at this stage we understand that xp is ready to address and capture share in new markets being credit and smbs the main prospects in the long-term agenda In SMBs, we'll leverage Brazil's largest advisor network to expand our reach and deepen relationships. Moreover, we'll broaden our product portfolio beyond investments and effects to generate more engagement and address SMBs' day-to-day financial needs more holistically. When it comes to credit, we see opportunities for both individuals and corporates. For individuals, credit acts as a catalyst for our investment business, helping us move toward greater primacy. Expanding our tailored solutions, particularly for high-income segments, will be central to our agenda. For corporate clients, we remain focused on structured solutions and expanding our corporate product offering to improve competitiveness, including receivables, government-sponsored funds and real estate solutions. Overall, our strategy is to expand our credit offering while maintaining the conservative, prudent approach that has long defined our business. These opportunities are, once again, medium to long term. I will now hand the presentation over to Victor, who will discuss the quarter and full year financial results. Thank you.

Thank you, Mafra, and good evening, everyone. Before I start, I would like to do a quick recap of some achievements and commitments for the past two years. First, corporate restructuring. We are now entering into the final phase of our corporate restructuring, in which we will further concentrate activities within XP Bank, materially improving our capital and funding costs. The new structure has increased our competitiveness, optimizing our warehouse strategy during the year. We already captured part of these benefits in 2025, with reduction in funding costs, plus the reduction in cost of wax due to the emission of subordinate notes. and we expect to have another positive impact in 2026 and the following years. As a result, we see the expansion of both of our financial margin and EBT margin for 2025 and we expect to keep this pace for 2026. Second, our balance sheet management. In 2025, both our EPS and net income grew faster than our total assets and total risk weight assets. Combined with our disciplined capital allocation and distributions, this drove our ROE expansion of approximately 90 basis points, even though our BIS ratio is higher than 20. Third, efficiency. Our continued technology investments are delivering operational leverage across many business fronts, allowing us to keep our investment pace while we keep a stable efficiency ratio year over year. So now, starting with total gross revenue. In our fourth quarter, total gross revenue reached 5.3 billion, representing a 12% increase year-over-year and 7% sequentially. For the full year of 2025, total gross revenue was 19.5 billion, growing 8% compared to 2024. The performance highlight was corporate and initial services. if I strung second half of 2025. When we compare to gross revenue breakdown on the high-end side of this slide, in 2025, retail maintained 75% of total revenues and corporate initial services gained space. Now let's move on to the next slide with more details on the different business. In the 4Q25, retail revenues totaled 3.9 billion, up 8% year-over-year and 4% sequentially. For the full year, retail gross revenue reached 14.6 billion, increased 8% versus last year. Retail revenue growth in 2025 was supported by float for both investments and checking accounts, New verticals if credit card, retirement plans and insurance are leading the way. And as a new initiative, international investments. Fixed income performance if you have a strong first half of 2025 and decent figures for the second half, supported by a raw housing strategy. So, now let's turn to corporate and issue services. In the fourth quarter, revenues reached 895 million, representing a 49% increase year-over-year, and a 23% increase sequentially. This was the strongest performance in our history for this business, both in corporate and issue services. The strong performance was driven by a robust activity in the DCM space, re-accelerating from a softer first half. In addition, our BD2 cross-salon delivered a broader set of solutions to our corporate clients, such as derivatives and credit, that continue to support revenues, leveraging on our strong distribution capabilities across the platform. For the full year of 2025, corporate and issue services revenue totaled 2.7 billion, up 19% compared to 2024, making a new level of corporate revenues and consolidating this segment as an important business line for XP. And now, let's move to our SG&A and efficiency ratios. SG&A in the fourth quarter amounted 1.7 billion, growing 10% year-over-year and 4% quarter-over-quarter. For the full year, SG&A totaled 6.3 billion, reflecting continuing investments in technology, such as AI and CRM, and also our expansion of our advisor network. As I mentioned earlier, it is the operational leverage captured from technology and innovation developments that allow us to keep our elevated investment pace in different areas of the business while keeping the same efficiency level. Additionally, the efficiency ratio in 2026 should remain broadly in line with 2025 levels, without any material change. As we can see on the right hand of the slide, our last 12 months efficiency ratio for the 4 quarter stood at 34.7, stable compared to 2024. Our adjusted EBT reached 1.5 billion in the fourth year of 25, increasing 20% year-over-year and 16% quarter-over-quarter. If an adjusted EBT margin of 31.3%, up 252 base points year-over-year and 271 base points quarter-over-quarter. That means that we have enriched the range of our guidance margin during this quarter. For the full year of 2025, adjusted EBT totaled 5.5 billion, growing 10% versus last year, with an EBT margin of 29.6%, expanding 52 base points year-over-year. In the next slide, we will see our adjusted net income. Adjusted net income for the quarter was 1.3 billion, up 10% year-over-year and stable sequentially. Our net margins were 26.9% in the 4Q25, 9 base points lower year-over-year and 166 base points lower sequentially. For the full year, adjusted net income reached 5.2 billion, growing 15% compared to 2024, with 28.3% net margin and 173 base points expansion in the period. Let's move on the next slide to talk about capital management. Starting with capital returns, in 2025, we returned 2.4 billion in capital to shareholders for dividends and buybacks. We also continue to have our 1 billion share buyback program currently open. On the right-hand side of this slide, you can see the evolution of our payout ratio over the years, including last year, we had a close to 15% payout, considering both buybacks and dividends. Now talking about earnings per share and ROE. Once again, we would like to highlight that our earnings per share continue to grow faster than net income, driven by our consistently buyback execution, just like we explored in the previous slide. Adjusted EPS in the fourth quarter was R$2.56, growing 15% year-over-year and 4% quarter-over-quarter. For the full year, adjusted EPS reached R$9.81, increasing 18% versus last year. Only in 2025, we have retired more than 24 million shares, approximately 4% of the total share outstanding. Now, looking at our profitability, ROE and ROTE. We see our adjusted return on equity for 2025 reached 23.9%. a 94 BPS expansion, while return on tangible equity was 29.5%, a 78 basis points expansion versus 2024. This reflects our capital disciplines that allow us to consistently return capital to shareholders, while simultaneously growing and investing in the business to further differentiate ourselves from our peers. Finally, on capital ratio and risk weight assets, we closed the quarter with a BIS ratio of 20.4%, with the C2O1 ratio at 17.3%. In 2026, we will operate the business with a high BIS ratio during the year, We are comfortable if getting our BIS ratio to our target range of 19 to 16 toward the end of the year for capital distributions while still maintaining a comfortable capital buffer. Additionally, we ended the year with a C1 ratio of 17.3 compared to our PE average of 12. If we were running the business at the same C1 of 12, ROE would have been above 30. Now, looking at the right-hand side of this slide, You can see our RWA breakdown by category. Risk weight assets totaled R$ 119 billion, growing 13% year-over-year and 11% quarter-over-quarter. As we expected and communicated on certain occasions, total RWA growth was lower than our net income and EPS for the year, even if a strong performance from the wholesale business. In parallel, our total assets, adjusted for assets under management from retirement plans, grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the warehousing of fixed income securities, mainly corporate credit, aligned with strong DCM activity, our growing capacity to originate corporate views, and market timing opportunities. Lastly, because of this increase in warehousing, our value at risk, from which important companies create risk spread, went to 39 million reais, or 17 base points of election, stable on a year-over-year perspective and 4 base points higher, sequentially, but still in a very conservative level. We expect to distribute a portion of these assets at the beginning of 2026. This level of our housing capability was only possible through the development of XP Bank and its funding structure, as previously highlighted. If that, I end my presentation and hand it over to Mafra, so he can make his final remarks, and then we go to the Q&A.

Thanks Victor. Before the Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar. Over the past years, we have invested heavily in scalable process, governance and technology. And in 2026, we begin to see these investments maturing and starting to translate into results. This is reinforced by a skilled and well-trained sales force, with aligned incentives ensuring consistent execution across the organization. We continue to invest in a highly disciplined manner, particularly focused on wholesale banking and the B2C channel, while refining our segmentation to ensure a clear and accurate value proposition for each client profile. This will enable us to grow with quality in a profitable and sustainable manner. On the capital front, our priority is to sustain strong and consistent returns, backed by a conservative capital structure. this discipline provides the flexibility to operate across different market scenarios maintaining resilience and readiness to capture opportunities together these foundations ensure that we enter 2026 with a solid business structure and disciplined capital allocation lastly before starting the q a i would like to address an ongoing topic within the financial system first of all We would like to express our deep concern regarding everything that has been revealed in recent months involving Banco Master and the extent of irregularities identified. We also want to acknowledge the important and diligent work carried out by the Central Bank. as well as the responsible media coverage that has helped Brazilian society better understand with greater transparency what has occurred. Through ABBC and FEBRABAN, we are actively supporting structural improvements aimed at preventing situations like this from happening again in our financial system. The central bank has been advancing in the right direction over the past years, although we understand some relevant adjustments are still necessary that said this change must be implemented responsibly so that brazil does not risk reversing the significant progress achieved in recent decades in terms of competition and a broader and more efficient access to financial products and service We should be careful not to adopt measures whose unintended consequence would be to re-establish excessive banking concentration, or to enable business models built on consumers' lack of information, or as Director Gallipolo rightly pointed out some months ago, products that function as a reversing Robin Hood. For more than a decade, the central bank has consistently pursued an agenda to increase competition and improve both quality and the cost of financial service through initiatives such as BC+. Digital banks and investment platforms have played a central role in this transformation. expanding access to banking services without fees and reducing long-standing asymmetries in traditional investment products, such as poupança , PIC and títulos de capitalização. 25 years ago, we helped transform the system by building the first open platform in Brazil, giving clients across all income levels access to financial education and high-quality investment products. Over time, we have contributed to reshaping the market by fostering competition, improving product quality, reducing costs, and ultimately delivering better outcomes for our clients. We do offer proprietary products, but we have always distributed third-party solutions, including from competitors. Choice, transparency, and alignment with the client always come first. We do not charge abusive or opaque fees, and clients pay nothing to open or maintain an account with us. Our mission is simple, to improve people's lives by helping them invest better. This principle guides every decision we make, and remains the foundation of our work as we continue to support Brazilians in managing their money, investing responsibly, and planning for their future. André Parisi will now start our Q&A session.

Thank you, Mafra. Now we're going to start the Q&A. The first question is from Eduardo Rosman from BTG. Rosman, you may proceed.

Hi, everyone. I have two questions for Mafra. The first one is regarding, you know, the ambition to become Brazil's leading investment platform by 2033. Can you provide a little bit more detail? Why 2033? What's the metric that you use to define that being a leading firm? Is that market share that you see revenue, client base, or something else? And do you believe that doing more of the same but better will be enough to reach this goal or would you require more powerful banking and credit capabilities that would be the first one and the second one regarding your entry into the controlling group practice practically speaking what does that change mean to you thanks

Good evening, everyone, again, and thank you for your questions, Rosman. The first question is when we say that we want to be leaders in investments in 2023, it's about market share. Okay, so that means that we have our internal plans here, our long-term view. is to become leaders in 2023 in market share. And it's 33 because our plans, every plan that we have, gives us that we can get there in seven years. Okay, so that's the number, the reasons when we look how much money, net new money we have to bring in the next years by different channels, by different segments, the plans, they point out that we can get there in 33. How we get there? First, with the third wave. Okay, so as we mentioned in the past earnings call, in all the conference, we have been investing a lot on the third wave on democratizing wealth planning for retail clients in Brazil. So democratizing the service that only private banking clients or even multifamily office clients have in Brazil. So that's the main point here. A lot of people don't get how big is the change here because most of the financial companies in brazil and banks they still have like the model of pushing products okay uh it can be a basket of products uh an investment portfolio but it's a product driven approach we have been changing that for the past two years we have changed incentives we have changed the way of serving clients we have received have done a new segmentation on the company, new value propositions, and we are seeing big improvements in all the numbers, churn, NPS, and a lot of other metrics here. So we are very excited with the next years when we look at everything that we have been doing on foundations and changing, almost changing the business model in the past years for the future. Of course, we have different strategies for different segments. We have been investing a lot on the private banking platform in the past three years we have been gaining market share in the past two years and last year 2025 it accelerated and we believe that we can grow faster here on private banking on the middle the affluent clients. It's more of the same with more intensity, with more technology, with more process, with the new value proposition of more service, more wealth planning. and when we go to the retail clients we have found a new way of serving more goal-based low human touch so a completely different value proposition that is becoming a reality i would say in the last in the last year and that we are very confident that we can accelerate in the next years So, different strategies for different segments, but all based on the third wave here. So, of course, as you mentioned, the full ecosystem, the banking part, insurance, all of that reinforce the value proposition for investor clients. And as you have seen the past quarters and past years, We are like every quarter, every year, like better on the cross-sell products, and we have a big roadmap for the next quarters here. But we are ready to accelerate in the future. About the second question, the control, being 100% honest with you, for us, Myself, nothing changed. I've been with the company for 11 years. I was a partner in a different way, but I was a partner. I have always acted as owner of the company, so nothing changed on that. on the way I behave or the way I see the company, but I believe it's even a stronger alignment between the executives that are running the company, Jose Berenguer and I, alongside Fabricio Almeida and Guilherme Santana, so four executives. that run the company on a daily basis and of course Guilherme. So I believe it's a stronger alignment for the long term but nothing changed the way we manage the company here. And besides that, Gabriel, Bruno, and Bernardo, they continue to be a shareholder in the company. They continue on the board. So it's a natural evolution here, a natural process. So there's no big change here on the company.

Great. Thanks a lot, Mario.

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

Can you hear me? Yes. Okay. I have one question regarding the recommendation that CVM released yesterday about the international internalization of orders. In my understanding, this should be a little bit positive for your RLP business. But do you have any view if this is really positive or not for XP? And the second question on the taxes. We normally complain when the taxes were low. Now we're complaining that the tax increased. But my question on the taxes is trying to understand if this hike in the taxes in this quarter is related to the change in the collateral structure. And also, if this is linked with the consumption of the tax on tax losses carried forth, you reduce it, or XP reduces by seven, 800 million reais of those tax threats, only in one quarter, if all those things are correlated. Thank you, Thiago.

It's Thiago here, so I will take the first question. It's a very positive news for us. Once you don't have the cap and you can include other assets, so it's very positive. You remember that we were the first company back in... in 2015 I remember was the one responsible for building our LP backing in 15 here for XP and until 2019 was I would say a big a big journey to make the product uh regulated so and today seeing the product like uh evolving uh not having cap uh going to other uh assets other type of instrument. So that's very positive because we are the largest market making in Brazil for retail clients. So it's positive for business, it's positive for the market, for the clients. And of course, we will generate more revenues and more results for our market making. So it's positive.

Hi, Thiago. This is Victor. First about taxes, I think we talked a lot about that in the past. Our base tax rate is something near 15. If the business is more toward the banking activity, investment banking, DCM, and broker-dealer, we're going to pay a bit more. And if the business is more towards market-making, we're going to pay a bit less. If you look at the revenue mix for the quarter, the main highlights was issue services and corporate banking. Both, of course, made in the... inside the bank and the broker dealer, and that's why we are paying more taxes. Also, those revenues are less heavy in terms of commission. Those assets were not distributed to retail clients, so the EBT margin associated to those revenues are also higher. Talking about the Coliseo structure, This change will only happen in 2026. It did not happen yet in 2025, so it has nothing to do with the taxes. The taxes are an effect of the revenue mix. I'm sorry, what was the other question?

Was if this was the higher taxes, was the cause of the reduction in the tax losses carried forward?

It's not because of that. It's the revenue mix that explain both revenue, tax, and EBT. Okay, very clear. Thank you very much.

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

Hello guys, thanks for the question. I'm going to do two questions as well. So, the first one is regarding the reimbursements by the FTC to the depositors of Banco Master. So, estimated in 40 billion reais. So, how has XPE been performing? So, I believe that the company has designed a strategy to capture these volumes, a part of these volumes. Any call on that would be great. You should expect any positive impact in the first quarter of 26 regarding it. And my second question is regarding the NPS. We saw a decline in NPS to 65 points from plus 70 points baseline. So could you elaborate on this, what's behind this decline, and how the company is addressing this decline in NPS? Thank you.

okay thank you for the question i will start with the nps question uh it's the drop is related to two events that we had on the the fourth quarter we had the ambipar structure notes and we had the a lot of news and noise about banco master back especially in december so there is a selection bias for clients who were impacted by these two events, they are more propensely to respond the NAPS than clients that were not impacted by the events that happened. So, when we look at margin, we see the NAPS improving again. So we believe it's going to be temporarily affected by the two events that I just mentioned. And to give a color that the impact is not that material, usually when we have big maturing of fixed income, for example, inflation, government bonds or like big corporate maturing bonds in Brazil usually we retain 70-75% of the amount because usually people take the liquidity to pay bills or to do something outside of XP so give or take is 70 the rotation rate okay and when we look uh banco master today is above 85 okay so it's higher than a regular maturing event so i'm not sure how we are going to disclosure the net new money for q1 but somehow we'll have like to show uh these numbers so there's a Huge inflow of money from Banco Master as we are keeping more than 85%. But not sure yet how we are going to disclosure, but we will disclosure between net new money and the retention. Okay.

Okay. Great, Marcia. Thank you.

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

Hi, good evening. Thank you for the call. My question is just on the outlook for 2026 in this environment that we are seeing. Fourth quarter still shows similar trends, right? Insurance service is very strong. Corporate solution is very strong. Fixed income a little bit weaker. Equity is recovering a little bit but still timid. But my question is more going forward, like question maybe one, do you think this performance of corporate solutions and issuer services is sustainable in the beginning of this year? And question number two, if this environment that we are seeing here to date It's a good performance of risk assets, but it's mostly led by foreigners, right? We don't see a huge change on the local dynamics. If you believe you're benefiting much from this environment or no, you don't benefit as much because it's mostly foreigner driven is this good performance. Thank you so much.

Hi, Guilherme. Thank you for our question. Victor here. First, talking about corporate, I think our corporate business is in another pattern. We are involved a lot in terms of product, cross-sell clients, and do so, I think we are able to keep this pace over 2026. Talking about the performance of the other risk assets, as you said, It's still too soon to say that this will reflect in take rate. If you see volumes both in fixed income and equities from interior clients, they are not going up. The movement is mainly driven by foreign clients. I think if the performance keeps this way over the year, we may see a bit of trading activity coming from individuals, and, of course, that will reflect in equity revenues, but it's still too soon to talk about that. Also, in terms of fixed income, I think we need to see the central bank delivering the cuts that we have in the interest rate curve. If that happens, we may see a decompression of the duration in fixed income, something that we talked a lot about over the last two quarters. But, again, we need to see the marketing going in this direction, both in equities and fixed rates, to be able to see something reflecting your revenues. That's clear. Thank you.

Great. Next question is from Marcelo Mizahi from BBI Bradesco. Mizahi, you may proceed.

Hello, everyone. Thanks for the opportunity. Congratulations for the results. Two questions. First is regarding the guidance. So if you guys plan to update the guidance to 2026 with the environment that we are talking now, first. Second, the guidance of revenues and the guidance of margins. Second question is regarding the perspective to have...

I think it's better just to talk about the guidance, please. Thank you.

Yes, the guidance holds. We have no reason today to change the guidance. We believe 2026 is going to be a stronger year than 2025. As we have been talking in the past quarters, we are... projecting to get very close to the guidance. Margin is there already, okay? And when we look revenues, if you project, we are very close, so there's no reason to change the guidance right now.

I remember my question. So my question is regarding the RWA. So we saw an increase of this, the leverage, so definitely because of the offers. So looking forward, how much this leverage, so the RWA could increase? So you guys have some cap on that or some targets that you can share with us? Thank you.

Thank you for your questions, Zaheer. First, as usual, we bought assets for our house book in the fourth quarter to have assets to sell to our clients in the first. That is exactly what is happening. I think what we can say about RWA is the same we said last year. We are very confident that net income will grow faster than the risk, and that will be the case for 2026.

Any perspective of adjustments on the payout policy to increase payouts or to reduce the payouts with that? Thank you.

We have our BIS racial guidance for the end of the year. As we said during the presentation, we're going to pass the year of more strong capital base, but we are confident that we're going to be inside the guidance by the end of 2026.

Okay, thank you, guys.

Okay, next question is from Chido Labarda from Goldman Sachs. Chido, you may proceed.

Good evening. Thanks for the call and taking my question. Following up on his questions on the guidance, just so I'm clear and make sure I didn't miss anything, The guidance you had given was back at the investor day where you guided for gross revenues of 22.8 to 26.8. I mean, even at the low end, that would imply almost 20% revenue growth year over year, just to make sure that's the guidance we're talking about. And that would be a big acceleration from the 8% growth that we're seeing here this year. And you also mentioned

net inflows you expect to remain around 20 billion so we don't see an acceleration there just to make sure that i'm understanding the guidance on the revenues that we should be thinking about thank you thank you yes we are talking about the same guidance so uh the number to get at the bottom of the guidance this year is 17 percent uh the the growth for revenues for 2026 so as we have been talking It's not going to be easy, but if we miss, it's going to be by a small percentage, so there's no reason to change our guidance for three years if we miss by a very small amount. Again, we believe it is possible to get there. About that new money, we don't see any reason today. change the it's not a guidance but we have been talking about the 20 billion level it's what happened in the past three quarters so there's no reason to change for the next quarters but again for the Our ambition to get to 2033 as a leader in investments, it will have to accelerate at some point in the future, but we don't see that happening on Q1 or Q2 for all the reasons and numbers we are seeing here.

Okay. No, thanks for clarifying, Mafra. That's good. Good to hear as well. And I guess the driver of that acceleration, I mean, you're saying first Q2Q, maybe you don't see it. So second half of 2026, as interest rates come down, I think, I mean, equity and fixed income are still like the biggest portion of your revenues. You think that should accelerate, I guess, as rates come down? Is that the right way to think about that?

No, we're not considering, like, a better take rate here or, like, a marketing improvement to get there. They're, like, all levers that we control. So we are confident that we can grow this year at a higher pace than 2025.

Okay, but it is back-end loaded, right, more second half of the year, if I understood the comment earlier? Yeah.

We always have seasonality. This year was lower than the past years, but usually we do 45 and 55 of our results on the first. It was a little bit more flattish in 2025. But, yes, usually we accelerate more on second half of the year.

Okay, perfect. Great. Thank you so much, Mafra.

Okay, next question is from Pedro Leduc from Itaú. Leduc, you may proceed.

Okay, guys. Thank you so much. First question on SG&A. Here you rule for the full year about 8%. I understand you're going through an investment cycle. So here I would like to hear your thoughts on what the priorities will be in 2026. What are the pains that you're trying to solve with investments? And You mentioned in the call, I believe, stable efficiency for 2026. Now we're talking about high teens revenue growth. So help us reconcile that SG&A, really understand what priorities you are doing and where we should look for signs of success of these investments. Thank you.

Hi, Eduki. Thank you for your question. I think our main investments will be, as always, in our car business. So we're going to be investing in advisor expansion over the year, the same as the last years. We're going to be investing in technology. So we have a lot of technology investments in AI. Those technologies will be used to customer relationship management and advisor productive. Both focus on having more account load, more quality, and more NPS. And I think that's the way that we're going to measure that. And also we have some investments in our international platform and our PME platform, cash account, bank account, every product around the companies, the companies that we're going to provide over 2026 and 2027. And I think that mostly those are the big chunks of investments that we're going to do in 2026, the same as we did in 2025. okay and the efficiency level you mentioned a flattish that that talks with the mid-teens revenues as mafra as mafra said we are confident that we are going to pursue our guidance level and that implies the efficiency ratio and the expenses we're going to grow and of course we have some kind some kind of maneuverability here in the number if the revenue doesn't come if they are faster than what we expect but the number is around that

Okay, and sorry just to be picky on this part on the revenues. We understand you're going to go through some structured changes that will change also income tax and revenues. So when we talk about, you know, mid-teens, high-teens revenues, that's excluding any accounting changes that will happen as you transfer these operations, correct? So be comparable.

If you look at 2025, we did a lot of restructuring over the group. When we sent some companies to the bank and we started changing the way we look at the indebtedness in the company, we lost something around 500 million reais in revenues over 2025 that went to the net interest margin. And we said nothing about that, so... I think the growth of the revenues in the year, we're going to have a lot of mixes. The same as we have in 2025, if other companies go into the bank, we're paying some corporate debt and changing for banking debt, and therefore we're going to reduce the revenues, and we're going to have some positive effects also. And I think in the net, we're going to be delivering the numbers that Mafra said.

Okay. No, that's very clear. The overall message is very clear. Thank you so much.

Okay, next question is from Antonio Hodge from Bank of America. Antonio, you may proceed.

Hey, thank you for your time. I have two questions on my side. The first one is a follow-up on taxes. I understood that you should have an average tax rate of close to 15 and higher than that if revenues are more skewed to banking. But now if I'm looking here in your tax withholding in funds line, I see a very sharp decline Q and Q and this line very below your historical average and it does not look related to the revenue mix. So if you could please explain what's the related for. And also a second one, AI. I think it's an important topic, particularly when you are shifting between business models. So you are looking towards migrating towards the B2C model. I understand that this is an opportunity to grow in the B2C with lower expenses, lower investments. but also it's a threat, right, because it's a model without in-person interaction that could be mimicked by AI, by another player. So how do you see your strategic shift right now considering AI? Thank you.

Hi, Antonio. I'm going to take the first question here. First, it's very hard to talk about the results of individual entries in the group. And as we said before, you cannot explain the performance of one business or another looking at the Gladius or the Coliseo performance. And also, after 2026, if the restructuring of the group, we're not going to have info to have tax anymore, and we're not going to disclose this number. So... I think the important thing here is to look at the mix. If you look at the accounting levels, you're going to see the same things we are looking at the managerial levels. You're going to see the banking revenues, banking fees, credit fees, fees from the same offerings, and that was the strong part of the quarter, and that's why we are paying higher taxes than before.

The second one. So... not sure if it was clear on the presentation but we do not believe in uh taking the financial advisor the human out of the equation here okay so it's always using technology using ai to improve to make the advisor better okay so we have different um AI agents here to help the advisor to have more relationship with the clients, to take the operational workload out from the advisor. We have a lot of tools that we have been creating in the past two years to help the advisors to perform better, to increase the account load, to increase productivity, to increase the level of service that we deliver to customers, but it's always how to improve the human. Of course, when we talk about the, remember that I said we have three big segments here, of course we have some other in-between segments, but three big ones. Of course, for the 0 to 100K segment, here we can do 100% digital, okay? But we don't believe or we don't... We don't like the idea of having like a million real client or 10 million real clients going only through like an AI. It doesn't help. It doesn't happen because... It's a trust business, okay? So people like to talk to people when they are talking about their lives, their dreams. So they want to talk to someone. So the whole idea here is how we use AI to improve the performance, to improve the service that we deliver to our customers. So, we have been developing a lot of initiatives here. Some of them are very promising. For example, today we listen, we read, so we have governance over all the interactions that our B2C internal advisors have with customers. We classify 100% of them, so we know everything that's happening. We give advice for the customers. the internal advisors about what they are doing right or wrong we give product advice we give advice of interactions with customers so we are very excited with the results that we are getting from AI on the company. But again, it's not about replacing the human or the human advisor. It's about enhancing the advisor. Okay, so that's the idea. Thank you.

Okay, next question is from Daniel Vaz from Safra. Vaz, you may proceed.

Thank you, Parisi. Sorry, guys. Yeah, thank you. Thank you, Parisi. And good night, Mafra. Good night, Mansur. I want to try to understand the aftermath of Banco Master, right, episode, both for XP internally and for your client base. So I'm trying to break this down in two parts. First, for you, any changes in the way... you filter your products to distribute. I mean, how did that episode was discussed in your board of directors? So is it got to the point that you discussed, like, are we going to distribute these types of products again? So how is the filter that you want to do after it, or if there is any that you want to put additionally? And to your client's behavior, such as the ones that were involved probably You mentioned, I think it was in the past presentation about clients going to more risk-averse CDs. kind of 50% of your marginal allocation in fixed income was a little more to high liquidity products and less yields. So I want to try to understand what has changed to the third quarter so far, to the fourth quarter so far in terms of investment decisions by your clients and mainly on the aftermath of the episode of Punko Master. Thank you.

It's important to remember that our clients, 99.9% of them, they are like under the FGC, the FGIC, Brazilian FGIC coverage. So our clients, they didn't lose any money. On the opposite, they made an investment that had a good return. Okay. so our clients didn't lose any money we don't recommend BancoMaster over FGC as we don't recommend for any bank below a certain threshold of our internal rating okay so of course every time that something like that happen, we look for our internal controls or credit analysis to see what we can improve and we are improving. It's part of the journey. But remember that we have more than 50% of market share of all middle-sized and small-sized banks in Brazil. So because remember that the... traditional incumbent banks, they don't distribute third-party CGs, so it's basically only the independent investment platforms, and we are the largest one in the market. And remember that in some other cases, de casa, BRK, we didn't distribute the PortoCred, we didn't have the products on our platform, okay? So our credit analysis was good in some events in the past. When you have frauds or the kind of events that everyone is reading on the news right now, it's almost impossible. Otherwise, no... no one would lose money on credit. No one would have lost money on Lojas Americanas or Ike Batista companies or other frauds. So when you have this type of problems, it's hard to get. But of course, we have to look inside, see what we have to improve in our controls. But again, we have only distributed products that we believe they are suitable for our clients on the right risks for the right customer profile. We have internal controls today that we cannot allocate more of any type of fixed income products with credit risk above the threshold for that rating for that type of client. So we are very strict on controlling that. And again, our clients, they didn't lose any money here on master. So that's important. about the changing mix after the event we don't see any big change okay to be honest we don't see of course you have one or other name that were involved on the same problem for those names they are not even on our platform for a few months or even years okay But besides that, we don't see big chains for other type of small or mid-sized banks. Okay.

No, pretty clear. Thank you.

Okay, our end call is coming to an end. Thank you for your time. We see that there are more people who want to make questions. So our team will be more than happy to attend you. Just contact us and see you soon. Thank you very much.