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 second 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 a 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 Investor Relations.

Good evening, everyone, and thank you for joining Pac-Man's second quarter 2026 learnings conference call. We appreciate your time and interest in our company. Joining me tonight are Ricardo Dutra, our principal executive officer, Carlos Mauad, our CEO, and Gustavo Sechin, our CFO. After the presentation, we will open the call for questions, and to allow for broader participation, we ask that each analyst limit themselves to one question only. I now turn the call over to Ricardo Dutra for this quarter's highlights and key accomplishments. Dutra, please go ahead.

Good evening everyone, and thank you for joining our earnest call. Let's start on slide 4 with some key figures. Q2 was another solid quarter for our company. We continued to increase client engagement while expanding our multi-product ecosystem across payments, Banking and Credit, driving resilient profitability and reinforcing the strength of our business model. Total payment volume reached 133 billion reais, up 3% year-over-year, reinforcing the gradual reacceleration trend we have seen over the past quarters. Our expanded credit portfolio reached 52 billion reais, while total loans increased impressive and Ricardo Dutra da Silva, who are the co-founders of the program. mainly driven by acquiring volumes re-acceleration in our credit portfolio. Retrieving net income, non-GAAP, also grew 2%, reaching R$576 million, while diluted non-GAAP EPS increased 10%, supported by earnings resilience and capital optimization initiatives and within our guidance range for the year. Overall, we're seeing the strategy play out as expected. Stronger engagement, Brother Monetization and Resilient Profitability Despite a Challenging Micro-Environment Going to slide 5, before moving into the business highlights, it is worth stepping back and looking at the broader value creation journey. Over the last 12 months, Tag Bank returned approximately R$ 2 billion to shareholders through dividends and share buybacks, representing a last 12 months total yield of around 13.4%. Since our IPO, we have significantly expanded the platform. We started as a payment-led ecosystem and have gradually built a much broader financial services platform around our clients' needs, combining payments, banking, credit, investments, insurance, and new digital solutions. This evolution has increased the recurrence of our results, expanded our addressable market, and strengthened our ability to monetize client relationships Good evening everyone.