Key Highlights

  • Second-quarter revenue was about BRL 3.6 billion.
  • Adjusted gross profit was about BRL 1.6 billion, roughly flat.
  • Adjusted EPS rose about 9% on a lower share count.
  • Dividends and buybacks totalled BRL 4.3 billion in the half.

StoneCo Ltd. (NASDAQ:STNE) is a Brazilian provider of payments and financial services to small and mid-sized businesses. Its latest quarterly report suggested a company growing credit and returning capital while flat in adjusted gross profit, and management has said it is aiming for the lower end of its 2026 targets because interest rates have stayed higher than it expected.

Latest Company Context

StoneCo announced second-quarter 2026 results on August 13, 2026. According to a secondary report on the call, revenue was about BRL 3.6 billion, supported by growth in the credit business, while adjusted gross profit was about BRL 1.6 billion, roughly flat year over year. Adjusted net income declined slightly, but adjusted EPS rose about 9%, helped by a lower share count after repurchases. Another summary described revenue of BRL 3,587.4 million, up 2.5%. Because secondary summaries differ on some metrics such as payment volume growth, those figures are not relied on here and should be checked against the company's earnings release.

For the first half, adjusted gross profit was reported at BRL 3.1 billion and adjusted basic EPS at BRL 4.58. Dividends and buybacks together totalled BRL 4.3 billion in the half, and the capital ratio was cited at 26% following an extraordinary dividend paid in May from proceeds of the Linx sale.

Key Business Drivers

Per the same report, management maintained 2026 guidance of adjusted gross profit of BRL 6.6 billion to BRL 7.0 billion and adjusted basic EPS of BRL 10.80 to BRL 11.40, while saying it is aiming for the lower end of both ranges. These are management expectations, not results.

Interest rates are a major driver. Management reportedly expects the Selic rate to end 2026 near 14%, against the 12.5% it had assumed, and cited a pre-tax effect of roughly BRL 200 million to BRL 250 million for each 100 basis points of change. A rising credit book, funded in part by deposits, adds revenue but also credit-quality exposure. Share repurchases lift per-share metrics while reducing the capital available for other uses.

What Investors Should Watch

Investors may watch the trajectory of the Brazilian interest-rate cycle, since it directly affects funding costs and the company's own guidance. Credit quality is another focus, including how cost of risk evolves as the portfolio expands.

The third-quarter report, expected after quarter-end, may show whether adjusted gross profit returns to growth and whether EPS keeps rising on a smaller share base. Investors may also monitor capital allocation, including the pace of repurchases after the large first-half distributions, and trends in client numbers and pricing in a competitive payments market.

Credit Growth and Capital Returns Under High Rates

StoneCo is growing credit and returning capital while adjusted gross profit is flat. Different summaries disagree on some metrics, so the company's earnings release is the cleaner reference for those figures.