XP (NASDAQ:XP) Issues Earnings Results

XP (NASDAQ:XP) released its quarterly earnings data on Monday, August 17th. The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.03, Zacks reports. The firm had revenue of $943.55 million for the quarter, compared to analysts’ expectations of $935.15 million. XP had a net margin of 27.20% and a return on equity of 22.19%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.46 earnings per share.

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

• Client assets reached BRL 2.2 trillion, up 17% year over year, while net new money totaled BRL 28 billion and retail inflows met the company’s BRL 20 billion quarterly target.
• Second-quarter gross revenue rose 8% to BRL 5.1 billion, adjusted EBT increased 15% to BRL 1.6 billion, and ROE improved to 22.5%; management reiterated its target for double-digit revenue growth in 2026.
• Market volatility, wider credit spreads, and a sharp decline in primary debt-capital-markets activity weighed on results. Management said third-quarter DCM activity is recovering but remains below 2025 levels, while roughly 70% of fixed-income platform sales are now daily-liquidity products with lower take rates.
• XP has already distributed nearly BRL 2.5 billion in 2026 through buybacks and dividends, including BRL 1 billion in completed repurchases, and plans to cancel 11.8 million treasury shares, or about 2.3% of outstanding shares.
• The company is expanding beyond investments into banking, insurance, wealth planning, and SME services, including cards, acquiring, and collateralized credit. Management emphasized that growth will remain gradual and conservative, with a Basel ratio of 20.3% and a target range of 16%–19%.

XP Stock Down 1.0%

Shares of NASDAQ:XP traded down $0.19 during trading on Thursday, hitting $17.62. The stock had a trading volume of 1,719,622 shares, compared to its average volume of 5,869,538. The company has a quick ratio of 4.80, a current ratio of 4.80 and a debt-to-equity ratio of 0.07. XP has a 12 month low of $14.80 and a 12 month high of $23.13. The company has a market capitalization of $9.47 billion, a PE ratio of 9.24, a PEG ratio of 0.51 and a beta of 1.10. The firm’s fifty day moving average is $16.41 and its 200 day moving average is $17.98.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in XP. AQR Capital Management LLC boosted its position in shares of XP by 692.8% during the first quarter. AQR Capital Management LLC now owns 217,557 shares of the company’s stock worth $2,991,000 after acquiring an additional 190,115 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of XP by 174.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,923 shares of the company’s stock valued at $100,000 after purchasing an additional 4,400 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of XP by 65.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock worth $33,000 after purchasing an additional 646 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of XP in the second quarter worth about $857,000. Finally, California Public Employees Retirement System boosted its stake in XP by 7.2% during the second quarter. California Public Employees Retirement System now owns 723,423 shares of the company’s stock valued at $14,613,000 after buying an additional 48,765 shares during the last quarter. 59.15% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

XP has been the topic of a number of research analyst reports. UBS Group reduced their price target on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Wednesday, June 3rd. Zacks Research cut XP from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 1st. Finally, Weiss Ratings downgraded XP from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, August 18th. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $23.33.

XP declared that its board has authorized a share repurchase program on Tuesday, May 19th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board believes its shares are undervalued.

About XP

XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.