PagSeguro Digital Ltd. Class A Common Shares

Good evening, my name is Sofia and I'll be your conference operator today. Welcome to PagSeguro Digital Earnings Call for the first quarter of 2026. 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 turn the call over to Danielle Spencer-Pioner, Head of Investor Relations.

Good evening, everyone, and welcome to PACBank's earnings conference call for the first quarter of 2026. I want to thank you for taking the time to join our webcast. Here with me tonight are our principal executive officer, Ricardo Dutra, our CEO, Carlos Mawad, and our CFO, Gustavo Sequin. After the presentation, you'll have a live Q&A session. Please note that during Q&A, we'll take only one question per analyst. Now, I'll turn the call over to Ricardo Dutra for the highlights of the quarter.

Please, Dutra. Good evening, everyone, and thank you for joining our first quarter of 2026 earnings call. Starting on slide four, we summarize the main highlights of the quarter. This first quarter marks continued progress in the execution of our strategy with banking and credit acceleration and operating leverage translated into earnings expansion. even in a challenging microeconomic and a high interest rate environment. Total payment volume reached R$128 billion flat year-over-year, confirming a gradual reacceleration versus prior quarters. Our credit portfolio expanded to R$51 billion, up 11% year-over-year, driven mainly by a 36% increase in total loans. Growth was broad-based across all products with particular strength in working capital, which rose 190% year-over-year. Supporting this expansion, deposits reached R$42 billion in Q1, a 22% year-over-year increase. On the financial highlights, net revenue excluding interchange fees reached R$3.3 billion, 6.4% growth year-over-year, reflecting mainly credit acceleration and the overall banking performance. Recruiting at income, non-GAAP, reached R$ 575 million, a 4% increase, mainly impacted by the increase in financial expenses, linked with the base interest rate of Brazil, but with positive impact from the operating leverage we delivered, which we'll see later on the presentation. Most importantly, diluted non-GAAP EPS increased 12% over the year, boosted by the capital optimization initiatives deployed. On the next slide, we highlight our long-term track record of consistent shareholder value creation, supported by a focus on profitability, disciplinary growth, and capital efficiency. Over the last 12 months, The company returned approximately R$ 2.4 billion to shareholders through dividends and share buybacks, translated into the last 12 months total yields of around 16%. Since our IPO in 2018, we have delivered GAAP diluted EPS growth of nearly 16% CAGR, underscoring a strong and consistent execution track record through multiple cycles, including periods of significant global disruption and macro volatility. Over this period, we have accomplished key strategic milestones that expanded our addressable market, improved profitability, and established a robust platform for sustainable earnings growth. With that, I will now turn it over to Carlos Mawad.