XP 2025 Q3 Earnings Strong Performance with 12.1% Net Income Growth

XP (XP) reported its fiscal 2025 Q3 earnings on Nov 17th, 2025, delivering results that exceeded expectations. The company demonstrated robust financial performance, with net income rising 12.1% year-over-year and revenue growing 7.9%. XP’s guidance for Q4 2025 reflects confidence in sustaining momentum, with revenue projected to grow 33.5%–42.8% compared to the prior year.

Revenue

XP’s total revenue climbed 7.9% to $4.66 billion in Q3 2025, driven by strong contributions across its business segments. Corporate & Issuer Services led the charge with a 32% year-over-year revenue jump, while the expanded loan portfolio surged 33% to $67 billion. Insurance operations also showed resilience, with gross written premiums increasing 25% to $451 million. These gains underscore XP’s diversified revenue streams and ability to capitalize on market opportunities.

Earnings/Net Income

The company’s earnings per share (EPS) rose 13.5% to $2.51, while net income hit $1.33 billion—12.1% higher than the prior year. These metrics highlight XP’s consistent profitability and operational efficiency, with a Return on Tangible Equity (ROTE) of 28.0%. The sustained earnings growth over seven years reflects disciplined cost management and strategic expansion.

Price Action

XP’s stock has shown mixed short-term performance, with a 1.47% drop in the latest trading day and a 4.33% weekly decline. However, the month-to-date gain of 10.30% indicates resilience amid volatility.

Post-Earnings Price Action Review

The strategy of buying XP shares after its quarterly revenue growth and holding for 30 days has historically delivered strong returns. Over three years, this approach yielded a cumulative profit of 109.77%, averaging 35.98% annually.

CEO Commentary

He Xiaopeng, CEO, emphasized XP’s Q3 achievements, including 149% year-over-year vehicle deliveries and a >20% gross margin. The company aims to achieve Q4 breakeven while advancing physical AI R&D, VLA 2.0 development, and commercializing Robotaxi and humanoid robots by 2026. Strategic partnerships with Volkswagen and Amap further position XP for growth.

Guidance

XP expects Q4 2025 deliveries of 125,000–132,000 units and revenue of RMB 21.5 billion–23 billion. The company plans to launch three super extended-range models in Q1 2026 and accelerate R&D for VLA 2.0 deployment.

Additional News

XP announced a $0.18 per share dividend, payable Dec 18, 2025, and a $1 billion share repurchase program. The board also approved retiring 2.1% of shares, reducing the total share count to 519.8 million. These capital allocation moves reflect confidence in the company’s undervalued stock, trading at a P/E of 10.59 and PEG of 0.59. The dividend yield of 3.48% marks a significant increase from its 3-year average of 0.01%.

CEO Commentary

He Xiaopeng, Co-founder, Chairman & CEO, highlighted XPeng’s Q3 2025 record performance, including 149% YoY vehicle deliveries (116,007 units), a >20% gross margin, and cash reserves growth, with a goal to achieve Q4 breakeven. Strategic priorities include advancing physical AI R&D, accelerating VLA 2.0 (10x more parameters) for intelligent driving, and mass-producing Robotaxi and humanoid robots by 2026. He emphasized the “one vehicle, dual energy” product strategy to expand market share via extended-range EVs (e.g., X9 Super EREV) and AI-powered vehicles. The CEO expressed optimism about XPeng’s leadership in physical AI, open-sourcing technologies to foster ecosystems, and scaling Robotaxi and humanoid robots for commercialization, including partnerships with Volkswagen and Amap.

Guidance

XPeng guided Q4 2025 deliveries of 125,000–132,000 units (36.6%–44.3% YoY growth) and revenue of RMB 21.5 billion–23 billion (33.5%–42.8% YoY growth). The CEO outlined plans to launch 3 super extended-range models in Q1 2026, 3 overseas models, and 4 one-vehicle, dual-energy models, targeting expanded TAM and sales growth. Forward-looking R&D investments include VLA 2.0 deployment across Ultra models by early 2026 and Robotaxi pilot operations in China, with SDK partnerships to scale adoption.