XP Inc. Posts Q2 Net Income of R$1.32B, Revenue Rises to R$4.67B

XP Inc. reported Q2 net income of R$1.32B, up from R$1.12B last year. Revenue was R$4.67B, compared to R$4.50B last year. Client Assets reached R$1.4 trillion, a 14% YoY increase, driven by a R$96 billion net inflow and R$72 billion of market appreciation. Active clients grew 2% YoY and 1% QoQ, totaling 4.7 million in 2Q25.

XP Inc. (NASDAQ: XP), a leading tech-enabled financial services provider in Brazil, reported its second-quarter 2025 financial results, showcasing robust performance and significant growth across various metrics. The company reported a record net income of BRL1.321 billion, up 18% year over year (YoY) and 7% quarter over quarter (QoQ), reaching BRL1.3 billion. This impressive performance was driven by a 14% YoY increase in client assets, reaching R$1.4 trillion, and a 2% YoY growth in active clients to 4.7 million.

Revenue for the quarter was R$4.67 billion, a 4% YoY increase from R$4.50 billion in the same period last year. The company's net margin expanded to 29.7%, a significant improvement from the previous quarter and year-over-year (YoY) growth of 320 basis points. This expansion was achieved despite a challenging economic environment, highlighting the resilience and scalability of XP’s diversified business model.

XP’s strong capital management strategies played a pivotal role in driving these results. The company maintained a BRL1 billion share buyback program and committed to distributing over 50% of net income in both 2025 and 2026. This disciplined capital deployment supported robust shareholder returns while preserving a strong regulatory buffer for future growth or macroeconomic uncertainty. The company’s Common Equity Tier 1 (CET1) capital ratio rose to 18.5%, well above the Brazilian sector average of 12%, indicating significant capital flexibility.

Channel diversification also contributed to XP’s growth. The company increased active clients by 2% YoY, with more than half of new asset inflows now coming from internal advisers and the Registered Investment Adviser (RIA) model. This shift from exclusive reliance on the B2B Independent Financial Adviser (IFA) channel underscores the company’s commitment to enhancing its distribution channels and supporting its market leadership ambitions.

Looking ahead, XP Inc. reaffirmed its target of approximately 10% full-year revenue growth for 2025 and aims for an average of BRL20 billion in retail net new money per quarter, subject to macroeconomic conditions. The company expects to complete its remaining BRL1 billion share buyback and continue distributing over 50% of net income through dividends and repurchases in 2025 and 2026. Management anticipates higher revenue acceleration in the second half of 2025 compared to the first half.

References:
[1] https://www.nasdaq.com/articles/xp-inc-reports-record-q2-profit
[2] https://www.ainvest.com/news/xp-q2-2025-unraveling-contradictions-capital-generation-dividends-growth-guidance-2508/
[3] https://www.businesswire.com/news/home/20250818037397/en/XP-Inc.-Reports-Second-Quarter-2025-Results