In the third quarter, StoneCo reported a lower effective tax rate compared to the same period last year, contributing to positive results. Adjusted basic EPS reached BRL2.57 per share, growing 31% year over year, supported by continued execution in their share buyback program. Returns on equity continued to expand sequentially, with consolidated ROE at 24% and financial services ROE at 33%.
Total revenue and income grew by 16% year over year, reaching $1 billion, despite lower floating revenues due to deploying client deposits for funding operations. Adjusted gross profit from continuing operations was BRL1.6 billion, growing 12% year over year, aligned with total payment volume (TPV). Operating metrics showed MSNB active client base growing 17% year over year, reaching 4.7 million clients.
StoneCo’s banking operation reported continued growth with an active client base increasing by 22% year over year, reaching 3.5 million clients. Client deposits grew by 32% year over year, reaching BRL9 billion during the period. While there was a slight decline in the deposit base relative to MSNB TPV, it primarily reflected daily seasonality driven by cash-out obligations.
The credit portfolio accelerated by 27% sequentially, reaching BRL2.3 billion. BRL2 billion of this is attributable to merchant solutions, primarily working capital financing for MSNBs, which grew by 28% quarter over quarter. Credit quality remains strong, with NPLs fifteen to ninety days at 3.12% and NPLs over ninety days at 5.03%. Coverage ratio levels remain conservative at 265%.
StoneCo’s cost of services increased by 12% year over year, with efficiency gains in logistics, lower transaction and technology costs, and higher loan loss provisions offset by increased financial expenses due to higher CDI rates. Administrative and selling expenses also increased, driven by operating leverage across support functions. Financial expenses rose by 28% year over year, mostly due to higher CDI rates. Other expenses increased by 2%, and the effective tax rate was 15.3% in the quarter, down from 18.6% in 2024.
StoneCo is closely monitoring macroeconomic headwinds and softer same-store sales among clients while maintaining a focus on client needs and long-term value. They continue to execute their strategy with confidence, aligning risk and return to support sustainable growth. The company remains agile in responding to changes in interest rates and economic conditions to drive profitability and enhance shareholder value.
Read more at Yahoo Finance: StoneCo (STNE) Q3 2025 Earnings Call Transcript