PICS (NASDAQ:PICS) reported second-quarter 2026 results that exceeded its guidance across major operating, revenue and profitability measures, while management highlighted growth in secured lending, deposits, insurance and small-business services.
Chief Executive Officer Eduardo Chedid said the company’s credit portfolio reached BRL 31.9 billion, 3% above the high end of its guidance range. Managerial revenue, excluding derivatives and hedge accounting, totaled BRL 3.7 billion, while total reported revenue was BRL 4.1 billion. Net interest income reached BRL 2 billion, gross profit was BRL 1.25 billion, and adjusted net income was BRL 283 million.
Customer activity and revenue mix
Total accounts reached 70.4 million, up 10% year over year, while quarterly active clients rose to 45.4 million. Consolidated total payment volume rose 27% year over year to BRL 167.6 billion. Wallet and banking TPV totaled BRL 142.6 billion, and total cash-in reached BRL 136.4 billion.
Deposits grew 45% from the prior year to BRL 35.8 billion. Active insurance policies climbed 63% to 11.1 million. Revenue per active client reached BRL 92, a 52% year-over-year increase, while cost to serve was BRL 21.30 per active client. The company said cost to serve included BRL 0.70 per client tied to marketing investments that were brought forward from the third quarter.
Management emphasized an ongoing shift toward lower-risk and non-credit revenue streams. Unsecured credit represented 29% of total revenue, while secured and partially secured products accounted for 24%, fees and commissions represented 24%, and float and hedge accounting contributed 23%. Chedid said 71% of revenue now comes from no- or lower-credit-risk streams, compared with 63% a year earlier.
- Secured credit revenue rose 158% year over year to BRL 1 billion.
- Unsecured credit revenue increased 40% to BRL 1.2 billion.
- Non-credit revenue grew 57% to BRL 1.9 billion.
Credit growth and asset quality
PicPay Card TPV rose 40% year over year to BRL 19.5 billion, while consumer loan originations increased 78% to BRL 4.8 billion. The consumer book represented 93% of the total credit portfolio.
Private payroll loans reached a BRL 7.2 billion portfolio with more than 3.6 million contracts. Vice President of Consumer Banking Danilo Caffaro said 86% of quarterly portfolio growth came from lower-risk loans and mature credit cards. He said the company has resumed expanding originations in selected growth clusters within private payroll loans after improving the product’s operational maturity and introducing new features since late 2025.
Management said it expects later-stage delinquency measures to rise as the rapidly growing portfolio matures. Early delinquency, defined as loans 15 to 90 days past due, improved to 7.5% from 8.4% in the first quarter. However, nonperforming loans more than 90 days past due rose to 9.8%, and Stage 3 loans reached 12.9%.
Chief Financial and Investor Relations Officer André Cazotto attributed the increase principally to portfolio aging, seasonality and deliberate risk-taking in selected private payroll loan segments, rather than deterioration within the same risk groups. He said Stage 3 loans were 74.1% covered by provisions, while total portfolio coverage remained unchanged sequentially at 13.9%.
Quarterly cost of risk was 3.9%, within the company’s guidance range. The Desenrola debt-renegotiation program provided a BRL 59 million benefit to cost of credit and reduced the 90-plus-day NPL ratio by about 117 basis points, according to Cazotto. He said PicPay expects a more limited positive impact from the program in the third quarter.
Efficiency, funding and AI initiatives
Adjusted operating expenses rose to BRL 955 million, while the adjusted efficiency ratio improved to 44.8% from 46.9% in the first quarter. Management said artificial intelligence-related productivity gains have kept headcount flat since October 2025, eliminating a previously anticipated 10% headcount increase for 2026.
Caffaro said the company is expanding customer-facing AI agents that can perform tasks including bill payments, PicPay transfers, savings management and renegotiations with user confirmation. The company also launched an AI marketing agent for small and medium-sized businesses. In its first week, the tool recorded 10,000 opt-ins, generated 1,500 campaigns and reached 1.7 million people, according to management.
Funding grew 10% sequentially to BRL 35.8 billion. The cost of funding rose to 96.2% of CDI from 94%, which Cazotto attributed largely to a BRL 1.2 billion securitized FGTS funding transaction completed in May. He said PicPay expects funding costs to be in a 94% to 95% of CDI range in the third quarter.
Insurance acquisition and third-quarter outlook
PicPay completed its acquisition of Kovr on Aug. 3 after receiving regulatory approvals. The business has been renamed KEV Seguros. Chedid said the acquired insurtech platform offers more than 100 products and provides product-development, underwriting and distribution capabilities. He said KEV Seguros is expected to contribute between BRL 80 million and BRL 100 million in net income from August through December, although third-quarter guidance excludes the acquisition.
For the third quarter, PicPay forecast a credit portfolio of about BRL 34.7 billion, managerial revenue of approximately BRL 4 billion, net interest income of BRL 2.1 billion and gross profit of BRL 1.3 billion. It projected cost of risk between 3.9% and 4.1%.
The company guided for IFRS earnings before taxes of about BRL 360 million and adjusted earnings before taxes of BRL 378 million. It expects IFRS net income of approximately BRL 255 million and adjusted net income of BRL 265 million, sequential declines management said reflect the normalization of the effective tax rate after the second-quarter concentration of Lei do Bem benefits.
About PICS (NASDAQ:PICS)
PicS N.V. operates as a digital financial services company which provides digital wallet and application for individuals and businesses principally in Brazil. It offers a range of transactional products for its consumers, including Pix, an instant payment system, peer-to-peer between PicPay accounts, bill payments, payroll portability, global account and a payment assistant. PicS N.V., formerly known as Picpay Holdings Netherlands B.V., is based in S?o Paulo, Brazil.
