PICS (NASDAQ:PICS) Issues Earnings Results, Misses Expectations By $0.07 EPS

PICS (NASDAQ:PICS) released its quarterly earnings results on Wednesday. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.07), Zacks reports.

Here are the key takeaways from PICS’s conference call:

• PicPay reported results above the top end of its IPO guidance, with Q4 net revenues of BRL 3.0 billion (+69% YoY) and full‑year revenues of BRL 10.3 billion (+85%), signaling strong execution as a newly public company.
• The credit business is the primary growth engine: total credit balances reached BRL 24.1 billion (up 128% YoY), driven by rapid private‑payroll and secured lending origination, which management says offers higher NIMs and long runway for monetization (but will raise provisioning needs as mix shifts).
• Unit economics and profitability are improving materially — ARPAC rose to BRL 71 in Q4 (+52%), cost‑to‑serve per active client grew only ~11%, the efficiency ratio fell below 50%, and quarterly ROE expanded to 24.4%, reflecting operating leverage.
• A one‑time ECL methodology update reclassified ~BRL 590 million from stage 2 to stage 3 (adding BRL 88 million of provisions), temporarily lifting stage‑3 formation to 7.1%; management expects normalization to ~3.7–4.0% in Q1‑2026 but the change increased near‑term credit costs.

PICS Price Performance

Shares of PICS stock opened at $14.93 on Thursday. PICS has a 52 week low of $12.80 and a 52 week high of $19.95.

Analysts Set New Price Targets

Several brokerages recently issued reports on PICS. Mizuho started coverage on shares of PICS in a research report on Monday, February 23rd. They set an “outperform” rating and a $30.00 price target on the stock. Wolfe Research raised PICS to a “strong-buy” rating in a research report on Monday, February 23rd. HSBC initiated coverage on PICS in a research report on Thursday, February 19th. They issued a “buy” rating and a $21.00 target price for the company. Wells Fargo & Company set a $27.00 price target on shares of PICS in a research note on Tuesday, February 24th. Finally, Royal Bank Of Canada assumed coverage on PICS in a research note on Monday, February 23rd. They issued an “outperform” rating and a $20.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $25.50.