XP Inc.'s Q1 2025 Earnings Call: Unpacking Key Contradictions on Take Rates, Growth Strategies, and Market Conditions

Take rate stability and expectations, expansion and growth strategy, private bank segment growth, inflows and revenue growth drivers, and equity revenues and market conditions are the key contradictions discussed in XP Inc.'s latest 2025Q1 earnings call.



Revenue Growth and Diversification:
- XP Inc. reported gross revenues of BRL4.6 billion for Q1 2025, marking a 7% year-over-year increase. Gross revenues include BRL1.3 billion from asset under management (AUM).
- Growth was driven by strong performance in fixed income, retail, and new verticals, supported by cross-selling initiatives and a robust financial planning strategy.

Client Assets and Market Expansion:
- The company's Client Assets plus AUM and AUA reached BRL1.8 trillion, posting a 13% year-over-year growth.
- This growth was driven by increasing adviser numbers, active clients, and international expansion, especially in the institutional sector.

Profitability and Shareholder Returns:
- XP achieved the all-time high quarterly net income of BRL1.2 billion, representing a 20% year-over-year increase.
- The company maintained a high 24.1% return on equity (ROE) and expanded its capital ratio, reflecting strong capital discipline and efficiency in operations.

Retail Strategy and Product Innovation:
- Retail revenues grew 10% year-over-year, with BRL24 billion in net new money, representing a 79% year-over-year increase.
- This growth was driven by an effective multichannel distribution strategy, product innovation, and quality improvement, supported by increased adoption of proprietary tools.