StoneCo reported second quarter 2026 revenue of R$ 3.59 billion, missing the analyst consensus of R$ 3.78 billion. Profitability was significantly impacted by a sharp rise in the cost of services and a substantial increase in credit loss provisions as the company continues to expand its credit portfolio.
Key Highlights
- Total revenue grew 2.5% YoY to R$ 3.59 billion, primarily supported by financial income which contributed R$ 2.67 billion.
- Cost of services jumped 35% YoY to R$ 1.15 billion, driven by operational expansion and credit-related expenses.
- The company reported a significant increase in allowances for expected credit losses, which reached R$ 660.3 million for the first half of 2026 compared to R$ 147.2 million in the prior-year period.
- StoneCo generated R$ 3.1 billion in net cash proceeds from the sale of a subsidiary during the first half of 2026, strengthening its balance sheet despite lower quarterly net income.