PicPay executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight results that management said came in above the top end of the guidance included in its IPO prospectus, while also outlining product launches and priorities for 2026. The call marked the company’s first earnings discussion as a public company.
According to management, PICS (NASDAQ:PICS) delivered adjusted pre-tax earnings of BRL 241 million in the fourth quarter, which the company said was 12.1% above the top end of its quarterly guidance, and BRL 592 million for the full year, 11.5% above the top end of guidance. Adjusted net income was BRL 180 million in the quarter (31.5% above the top end of guidance) and BRL 502 million for the year (14.1% above the top end of guidance). The company noted the adjusted metrics mainly exclude stock-based compensation and the recognition of deferred tax assets.
Operating trends: accounts, payments, deposits, and insurance
Wallet and banking TPV reached BRL 141.6 billion in Q4 (up 27%) and BRL 497 billion for 2025 (up 30%). Total cash-in was BRL 139.4 billion in Q4 (up 27%) and BRL 483.4 billion for the year (up 29%). Chedid said customers cashed in almost BRL 47 billion per month during the quarter, which he characterized as a sign of deepening engagement.
Management also highlighted deposits and insurance as indicators of expanding customer relationships. Deposits grew 44% year-over-year to BRL 28.7 billion. Active insurance policies grew 76% to 9 million policies, which the company attributed to cross-selling traction.
Credit growth and mix shift toward private payroll
Credit was a central theme of the call, with executives describing it as a key monetization lever. PicPay Card TPV reached BRL 17.6 billion in Q4, up 42% year-over-year, and BRL 58.7 billion for the full year, up 50%. Personal loans origination rose to BRL 4.4 billion in Q4, up 116% year-over-year, and BRL 11.4 billion for the year, up 67%.
Total outstanding credit balances reached BRL 24.1 billion, up 128% from BRL 10.6 billion a year earlier. Vice President of Consumer Banking Danilo Caffaro said PicPay’s credit share of wallet is around 6%, implying “94% of our own customers’ credit wallet is held elsewhere,” and pointed to market share gains across multiple products. He said private payroll loans grew from 0% market share in Q4 2024 to 3.7% in one year, while personal loan market share increased from 0.9% to 1.78% and credit card portfolio share rose from 0.67% to 0.98%.
Caffaro said portfolio growth in the quarter was driven mainly by secured products and longer-tenured customers, with “low-risk loans and mature credit cards clients representing 85% of the total growth.” He also described a mix shift away from FGTS advances due to regulatory constraints on FGTS prepayment rules, with the company investing in private payroll loans as a replacement growth engine. He said the shift is positive for net interest margin (NIM) but should lead to higher provision formation because FGTS products carry “almost no credit losses.”
On private payroll, Caffaro said origination increased 40% quarter-over-quarter, to more than BRL 600 million per month, with interest rates stable at 4.3% per month and average term roughly doubling versus early cohorts. He added that first payment defaults improved from low double digits to high single digits, and a 90-day unemployment metric improved by 30%.
Revenue growth, unit economics, and efficiency
PicPay reported net revenues of BRL 3.0 billion in Q4, up 69% year-over-year, and BRL 10.3 billion for 2025, up 85%. Average Revenue Per Active Client (ARPAC) rose to BRL 71 in Q4 (up 52%) and BRL 62.9 for the year (up 66%). The company said cost to serve per active client increased 11% to BRL 20.4 in Q4 and BRL 19.1 for the year.
Chedid said earnings before taxes reached BRL 241 million in Q4 and BRL 592 million for the year, while adjusted net income grew 136% in Q4 and 99% for the full year. He also cited a shift in revenue mix over two years, with float, fees, and commissions moving from 97% of revenues in Q4 2023 to 48% in Q4 2025, while secure credit represented 19% and unsecured credit 33%.
CFO Rodrigo Couto emphasized operating leverage, saying revenues grew 69% year-over-year in Q4 while operating expenses grew 15%. He said the efficiency ratio fell below 50% for the first time in Q4, improving by 10 percentage points versus Q4 2024, and reiterated a quarterly ROE of 24.4%.
Risk metrics, funding, and 2026 outlook
On credit quality, Couto discussed stage two and stage three portfolio formation. He said stage two formation has been falling steadily. Stage three formation increased to 7.1% in Q4 due to a one-time methodology change that reclassified about BRL 590 million of credits from stage two to stage three, increasing expected credit loss provisions by BRL 88 million. Couto said stage three formation reverted to “normal levels” in early 2026 and the company expects stage three formation in Q1 2026 to be between 3.7% and 4%.
The company reported stage two plus stage three coverage of 62%, which Couto described as strong relative to peers. He said cost of credit has been trending slightly down, and the company expects it to be nearly flat in Q1 2026 and around 3.5% to 4% for the remainder of 2026.
PicPay also discussed funding and capital. Deposits grew 44% year-over-year and the cost of deposit funding remained around 94% of CDI, according to management. Couto said the company issued BRL 500 million in subordinated debt in Q4 after issuing BRL 200 million in senior unsecured debt in Q3 2025, and is pursuing additional funding sources through securitization or bond issuance. Capital ratios were projected at roughly 14% CET1 and 16% total capital at the end of Q1 2026, with targets of 11% to 11.5% CET1 and 14% to 14.5% total capital over time.
For Q1 2026, management guided to GAAP net income of around BRL 140 million and adjusted net income of around BRL 155 million, primarily adjusted for stock-based compensation. Executives described the first quarter as seasonally weaker than Q4, citing stronger year-end credit card TPV in Q4, but said Q1 was trending stronger than their expectations.
In the Q&A, management said revenues from third-party credit cards represent “roughly low teens%” of total net revenues, and said PicPay’s own card has become more relevant in wallet transactions. The company added that for Pix transactions backed by credit cards on its platform, PicPay Card represents more than 50% of those transactions, compared with around 14% two years ago, and management expects third-party card revenues to lose momentum over time.
Executives also discussed artificial intelligence initiatives, including migrating first-level customer service to a ChatGPT-based model roughly two years ago, which they said helped avoid hiring almost 3,000 customer service representatives. On the revenue side, management said it made more than 50 billion AI-driven recommendations to customers last year and is testing its own foundation model for credit.
Looking ahead, management reiterated priorities centered on growing credit penetration, scaling SMB banking, and expanding “beyond banking” engagement. The company also pointed to its new affluent offering, Epic, which it said targets roughly 2 million customers in its base earning more than BRL 15,000 per month, as well as a new Global Account with multi-currency balances in U.S. dollars and euros.
About PICS (NASDAQ:PICS)
