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.