PagSeguro Digital Ltd. Class A Common Shares

Good evening, my name is Sofia and I will be your conference operator today. Welcome to PagSeguro Digital earnings call for the fourth quarter of 2025. The slide presentation for today's webcast is available on PagSeguro Digital's investor relations website at investors.pagbank.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 are announced, a request to activate your microphone will appear on your screen. Today's conference is being recorded and will be available on the company's IR website after the event is concluded. Now, I will turn the call over to Daniel Spencer-Pioner, Head of IR.

Good evening, everyone, and welcome to PACBank's earnings conference call for the fourth quarter of 2025. I'm Daniel Spencer-Pioner, PACBank's Head of Investor Relations, and I want to thank you for taking the time to join our webcast. I'm here with Ricardo Dutra, our principal executive officer, Carlos Mawat, our CEO, and Gustavo Sequin, our CFO. After the presentation, we'll have a live Q&A session. Please note that during Q&A, we'll take only one question per analyst to ensure the best use of our time. Now, I'd like to hand it over to Dutra. Please, Dutra.

Hello everyone, and thank you for joining our full year and fourth quarter 2025 earnings call. In Q4, we continue to expand our credit and banking businesses, along with the reacceleration of acquiring volumes. As a result, we are pleased to report a robust performance, demonstrating our resilience sustained by disciplined execution and value creation, focused on our long-term ambition. Going to slide four, we can see the key operational and financial highlights for the full year 2025. Compared to last year, our revenues reached 13.4 billion reais, 16% growth, driven by an impressive 51% growth in banking revenues and 9% in payments revenues. Net income was up 4% year over year. Later on the presentation, we will see the main impact on net income was due to the increase in financial expenses linked with the basic interest rate of Brazil, SELIC, which grew from an average of around 10.8% per year in 2024 to almost 14.5% per year in 2025. Going to the value creation for shareholder section, Our earnings per share reached 7.99 reais, growing 21% year-over-year. Buybacks and total dividends distributed in 2025 reached 2.1 billion reais, leading to a 15% total shareholder yield. On slide five, we can see the highlights of the fourth quarter. Our TPV grew 10% quarter-over-quarter, marking an inflection point with sequential improvement in volumes. Our expanded credit portfolio reached 50 billion reais. It is important to highlight the portion of the credit portfolio composed by loans, credit cards, and working capital grew 33% year-over-year, with NPL's 90 approximately half of the industry average. These trends reinforce the underlying strength of our ecosystem and our ongoing commitment to expanding access to financial services in a responsible and sustainable way. On the Funding Efficiency Initiative, our deposits reached R$40 billion, growing 13% year-over-year. Moving on to financial highlights, our total net revenue excluding interchange and card scheme fees increased 12% year-over-year, reaching R$3.5 billion. Our non-GAAP net income was R$678 million, 7.4% higher year-over-year, leading to analyzed return on average equity of 18.4%, improving 100 basis points year-over-year. On slide six, I'm pleased to announce we successfully delivered our 2025 guidance despite strong headwinds such as macrovolatility and sharp increase in Brazilian interest rates in 2025. Cross-profits grew 6.9% for the year within our expected range of 5% to 7%. Gap diluted EPS increased 18.2% in 2025, above the guided range of 13% to 15% using the same share count as of December 2024. When you consider the benefit of buyback execution reducing shares outstanding, EPS increased more than 20% year-over-year. Capital expenditures reached 2.3 billion in 2025, landing at the upper end of our 2.2 billion to 2.3 billion range. Overall, the full delivery of 2025 guidance makes us confident about 2026 perspectives and reinforces our strong track record as shown in the following slide. I'd like to briefly focus on our consistent track record in creating shareholder value. Since our IPO in 2018, GAAP diluted EPS has grown at a compounded annual rate of nearly 16% despite global disruptions in macro volatility during this timeframe. Throughout this journey, we have advanced in key strategic milestones, which broaden our addressable market, strengthened profitability, and built a solid foundation for sustainable earnings growth. These efforts have increased the visibility and recurrence of our results, enhancing predictability, and reinforces the resilience of our business model in generating long-term value. Now, I'll pass the word to Carlos Mawad.