PagSeguro Digital Ltd. Class A Common Shares

Good evening, my name is Ogir and I'll be your Conference Operator today. Welcome to Pegasiguru Digital's earnings call for the third quarter of 2025. This live presentation for today's webcast is available on Pegasiguru Digital's investor relations website at investors.pegbank.com. Please refer to the forward-looking statements and reconciliation disclosure in this presentation and in the company's earnings release appendix. All participants will be in listen-only mode. To ask a live question after the presentation, please use the raise-hand button to join the queue. Once you're announced, a request to activate your microphone will appear on your screen. Please ask all your questions at once. Today's conference is being recorded and will be available at the company's IR website after the event is concluded. Now, I'll turn the call over to Gustavo Sequin, IR Director. Please, go ahead, sir.

Hello, everyone, and welcome to the Park Bank Earnings Conference call for the third quarter of 2025. I am Gustavo Sequin, Park Bank's Investor Relations Director. Thank you for taking the time to join us today. Tonight, I am joined by Ricardo Dutra, our Principal Executive Officer, Alexandre Maiani, our CEO, Carlos Mawad, our COO, and Arthur Schunk, our CFO. we will begin by sharing the highlights for the quarter followed by our live q a session now i would like to turn it over to dutra please dutra hello everyone and thank you for joining our third quarter 2025 earnings call i will begin with slide four which summarizes our key operational and financial highlights this quarter

We continue to execute our strategy with discipline, navigating a more challenging macroeconomic environment while maintaining our focus on long-term value creation. We end the quarter with 33.7 million clients, growing 1.6 million clients year over year. In Q3 2025, we continue to demonstrate resilience and protect profitability, navigating a challenging macroeconomic environment while facing tougher year-over-year comparisons from Q3 2024. On our acquiring business, total payment volume remained stable sequentially and reached R$130 billion. This performance reflects our ability to sustain momentum even amid broader market pressures. Our credit portfolio and funding base continue to expand at a double-digit pace compared to the same period last year with NPLs that are half of the industry. During the quarter, we once more accelerated our unsecured lending portfolio with a particular focus on working capital loans. Meanwhile, we advanced our funding efficiency initiatives, further reducing deposits API. these efforts reinforce the strength of our ecosystem in our commitment to democratize access to financial services in a responsible and sustainable way moving on to financial highlights our total net revenue excluding interchange and card scheme fees increased 14 percent year-over-year reaching 3.4 billion reais Our non-GAAP net income was 571 million reais flat year-over-year, while diluted EPS on a GAAP basis reached 1.88 reais, 14% higher year-over-year, supported by consistent cost discipline and capital efficiency. On capital efficiency, we have returned 2 billion to shareholders through dividends and share repurchase. We repurchased 3.3 million shares year-to-date and distributed more than 600 million reais in dividends following our May 2025 announcement, reinforcing our balanced approach to capital allocation. In conclusion, our performance this quarter reflects the strength, profitability, and resilience of our business model. We have delivered positive earnings every single quarter since IPO, a track record we are committed to uphold through discipline, execution, operational efficiency, and a clear strategy focus. Moving on to slide five, despite a more cautious economic backdrop, our track record continued to reflect the resilience and consistency of our business model and generate long-term value. Once again, we showcase the evolution of our gap diluted EPS since going public in 2018. Over the past years, EPS has grown approximately 2.3 times, translating into a compound annual growth rate of 15%, even in a scenario where we navigate global disruptions and ongoing macroeconomic volatility. Throughout this journey, we have reached key strategic milestones that expanded our addressable market and reinforced profitability. These efforts have laid a solid foundation for sustained EPS growth, driven by operational leverage and disciplinary execution. Our performance reflects a clear focus on building strong earnings visibility with a high share of recurring revenues, which enhances profitability and supports long-term value creation. It also stems from a thoughtful capital allocation strategy, balanced share repurchase and dividend distributions, with a total yield of approximately 15.5%. Combined with our robust capital position, we remain well equipped to pursue value-added creative opportunities with flexibility and confidence. As we move to slide seven, We highlight how our long-term vision continues to shape the way we build and evolve the company. Our fully integrated ecosystem, which integrates payments and banking, creates powerful synergies that allow each side of the business to leverage the other. By delivering a diverse and complementary range of products, we have deepened client engagement, enhanced monetization, and expanded our share of wallet. This approach position us not just as a service provider, but also as the primary financial partner for our clients, supporting their needs across every stage of their journey. Moving to the next slide. As we have emphasized in the recent orders, there is still meaningful room to grow across our platform. In several areas of our banking business, our market share remains below 1%. which reinforces our conviction that we are only scratching the surface of what we are capable of building. As we continue to scale our banking operations, we are opening a new path for growth, whether to deeper cross-sell, a stronger and more efficient deposit base, or a broader and more diversified credit portfolio, all handled with discipline. With that, I'll hand it over to Alex, who will walk through the operational highlights for the quarter.