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PagBank reaches 34 million customers and reports recurring profit of R$ 678 million, with an ROAE of 18.4% in 4Q25

(Moderate)
(Positive)
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PagBank (NYSE: PAGS) reported 4Q25 recurring net income of R$ 678 million and a recurring ROAE of 18.4%. Customer base reached 34 million; deposits were R$ 40.7 billion (+12.6% y/y). Expanded credit portfolio totaled R$ 49.7 billion, while the credit portfolio reached R$ 4.6 billion (+32.8% y/y).

Working capital loans grew 170.1% y/y. TPV accelerated ~10% sequentially. The company holds a national AAA rating and reiterates an ambition to reach a R$ 25 billion credit portfolio by end-2029.

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Positive

  • Recurring net income of R$ 678 million in 4Q25
  • Recurring ROAE improved to 18.4%
  • Deposits grew to R$ 40.7 billion (+12.6% y/y)
  • Expanded credit portfolio reached R$ 49.7 billion
  • Working capital loans up 170.1% year-over-year

Negative

  • High financial cost and lower economic activity remain headwinds
  • Core credit portfolio of R$ 4.6 billion remains well below R$ 25 billion 2029 ambition

News Market Reaction – PAGS

-4.54%
7 alerts
-4.54% Session close to close
+3.6% Peak Tracked
-3.3% Trough Tracked
$3.23B Market Cap
0.6x Rel. Volume

In the Mar 5 session, PAGS declined 4.54%, reflecting a moderate negative market reaction. Argus tracked a peak move of +3.6% during that session. Argus tracked a trough of -3.3% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlighted continued earnings momentum, with recurring net income of R$ 678 milli...
Analysis

This announcement highlighted continued earnings momentum, with recurring net income of R$ 678 million, net revenue of R$ 3.5 billion growing 12.4% y/y, and deposits of R$ 40.7 billion. The credit portfolio expanded to R$ 4.6 billion, while recurring ROAE reached 18.4%, underscoring profitability improvements. Investors may track future credit growth toward the R$ 25 billion 2029 ambition, deposit trends, and the balance between payments volumes and margins as key risk and performance indicators.

Key Figures

Recurring net income: R$ 678 million Net revenue: R$ 3.5 billion Net revenue growth: 12.4% y/y +5 more
8 metrics
Recurring net income R$ 678 million 4Q25 recurring net income
Net revenue R$ 3.5 billion 4Q25 net revenue, +12.4% y/y
Net revenue growth 12.4% y/y 4Q25 net revenue growth versus prior year
Deposits R$ 40.7 billion 4Q25 deposits, +12.6% y/y and +3.1% q/q
Expanded credit portfolio R$ 49.7 billion Expanded loan portfolio size in 4Q25
Credit portfolio R$ 4.6 billion 4Q25 credit portfolio, +32.8% y/y
Working capital loans growth 170.1% y/y Growth of working capital loans versus previous year
Recurring ROAE 18.4% 4Q25 recurring return on average equity

Historical Context

1 past event · Latest: Nov 13 (Positive)
Pattern 1 events
Date Event Sentiment 24h Move Catalyst
Nov 13 Quarterly results Positive -0.5% 3Q25 results with higher recurring profit, revenue, loans, and shareholder distributions.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows fundamentally positive quarterly updates followed by muted or slightly negative next-day reactions, suggesting conservative positioning into results.

Recent Company History

In 3Q25, PagBank reported recurring net income of BRL 571 million and net revenue of BRL 3.4 billion, with solid growth in deposits and SME credit. Despite this, the stock slipped 0.53% over the next 24 hours, indicating cautious sentiment. Today’s 4Q25 release continues the theme of recurring profitability, credit expansion, and deposit growth, but contrasts with the prior muted price response by showing a stronger upside move ahead of and into these results.

Key Terms

roae, tpv
2 terms
roae financial
"recurring profit of R$ 678 million, with an ROAE of 18.4% in 4Q25"
ROAE stands for Return on Average Equity, a profitability ratio that shows how much net income a company generates for its owners relative to the average amount of shareholder equity invested over a period. It’s like measuring the interest rate a business pays its owners on the capital they’ve left in the company, with the ‘average’ smoothing out swings in equity during the year. Investors use ROAE to compare how efficiently different companies turn owner capital into profits and to assess management’s ability to deliver returns over time.
tpv financial
"In payments, the TPV showed sequential acceleration of almost 10%"
Total payment volume (TPV) is the total dollar value of all transactions routed through a platform, payment processor, or marketplace over a specific period. It matters to investors because it shows how much economic activity the business supports—similar to counting cars on a toll road to estimate toll income—and helps indicate growth, revenue potential, user engagement, and shifts in demand that can affect future profits.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Digital bank reports R$ 40.7 billion in deposits and R$ 49.7 billion in its expanded loan portfolio.

SÃO PAULO, March 5, 2026 /PRNewswire/ -- PagBank (NYSE: PAGS), one of the largest digital banks in Brazil and an expert in Brazilians, reports its fourth-quarter 2025 (4Q25) results.

The results of the period demonstrate solid performance and operational acceleration, reflecting discipline in execution and in strengthening the business.

With the most challenging moment of the cycle overcome, even with the high financial cost and lower economic activity, the figures show a recovery that indicates a more favorable scenario for the next periods of PagBank.

"We started 2026 with confidence, while maintaining operational and financial discipline. The macro environment remains challenging, especially regarding the trajectory of interest rates and the level of economic activity. The expected reduction in the basic interest rate, currently at a very high level, can help alleviate the financial cost throughout the year, albeit gradually. We believe that the competition will remain strong, at the same time rational, based on value proposition, product quality, and customer relationship – and not just price," says Gustavo Sechin, CFO of PagBank.

In 4Q25, recurring net income reached R$ 678 million, while net revenue grew 12.4% y/y to R$ 3.5 billion, driven by strong banking growth, improvements in payments in the quarter, and the greater share of financial services revenues, which have higher margins.

Deposits totaled R$ 40.7 billion (+12.6 y/y and +3.1 % q/q), reflecting the continued expansion of the client base – currently 34 million – and the institutional solidity of PagBank. We have achieved the maximum rating, AAA, on a national scale from the three leading global risk rating agencies, increasing market confidence in our fundraising instruments.

The expanded credit portfolio reached R$ 49.7 billion, and the credit portfolio R$ 4.6 billion, representing an expansion of +32.8% y/y, with emphasis on working capital loans, which grew 170.1% compared to the previous year. This acceleration reinforces the strategy of expanding higher-engagement solutions to meet our customers' needs.

As previously disclosed, the digital bank has the ambition to reach a credit portfolio of R$ 25 billion by the end of 2029.

PagBank ended the period with consistent progress in executing its strategy, combining credit acceleration, a gradual resumption in payments, and strong cost discipline. The concession of working capital for entrepreneurs gained significant traction, reaching about R$ 190 million in the quarter.

In payments, the TPV showed sequential acceleration of almost 10%, above historical seasonality. Financial discipline and improved operational efficiency led to leverage gains and higher adjusted net profit. The recurring ROAE advanced to 18.4%, reinforcing the structural improvement in profitability.

For Carlos Mauad, CEO of PagBank, "the results of the quarter reflect a disciplined and consistent execution of our strategy. As the bank specialized in Brazilians, we advanced in accelerating credit with quality, gradually resumed the growth of payments, and maintained strict cost control, which resulted in a significant expansion of profitability."

PagBank continues to focus on its main audience – SMEs – by integrating payments, banking, and credit into a complete offer, offering an integrated portfolio of digital solutions that support the daily financial needs of people and businesses, making it simpler, safer, digital, and affordable. 

To access PagBank's financial statements at 4Q25, click here.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including, without limitation, those regarding the Company's expectations, intentions, beliefs, or strategies, are forward-looking statements. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "should," "may," "will," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements reflect the current views of the company's management and are subject to various risks and uncertainties. They are based on numerous assumptions and factors, including economic and market conditions, industry conditions, and operational factors. Any change in these assumptions or factors may cause actual results to differ materially from the company's current expectations.

About PagBank 

PagBank promotes innovative solutions in financial services and payment methods, automating the process of buying, selling, and transferring to promote the business of any person or company simply and securely. PagBank, a company of the UOL Group - Brazil's leading internet company - acts as an issuer and acquirer, offering digital accounts and complete solutions for online and in-person payments (via mobile and POS devices). PagBank also offers a wide variety of payment methods, including credit and prepaid cards, bank transfers, boleto payments, and account balances, among others. PagBank (PagSeguro Internet Instituição de Pagamento S.A.) is regulated by the Central Bank of Brazil as a payment institution, issuer of electronic money, issuer of post-paid instruments, and acquirer, with partnerships with the leading card brands. Its parent company, PagSeguro Digital Ltd., is publicly traded on the New York Stock Exchange (NYSE: PAGS) and regulated by the Securities and Exchange Commission (SEC). The distribution of mutual funds is carried out by BancoSeguro S.A., which is authorized by the Central Bank of Brazil and the Securities and Exchange Commission, and is affiliated with ANBIMA.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pagbank-reaches-34-million-customers-and-reports-recurring-profit-of-r-678-million-with-an-roae-of-18-4-in-4q25--302704542.html

SOURCE PagBank

FAQ

What were PagBank's key 4Q25 profitability metrics (PAGS)?

PagBank reported recurring net income of R$ 678 million and a recurring ROAE of 18.4% in 4Q25. According to the company, disciplined cost control and improved operational efficiency drove leverage gains that supported higher adjusted net profit and profitability.

How large is PagBank's customer base and deposits as of 4Q25 (PAGS)?

PagBank reached 34 million customers and deposits of R$ 40.7 billion in 4Q25. According to the company, deposit growth (+12.6% y/y) reflects continued client expansion and institutional confidence evidenced by a national AAA rating.

What growth did PagBank report in credit and working capital loans in 4Q25 (PAGS)?

The expanded credit portfolio reached R$ 49.7 billion and the credit portfolio R$ 4.6 billion, up 32.8% y/y; working capital loans rose 170.1% y/y. According to the company, this reflects acceleration of higher-engagement credit solutions for customers.

What is PagBank's stated credit target and timeline (PAGS)?

PagBank reiterated an ambition to reach a R$ 25 billion credit portfolio by the end of 2029. According to the company, current credit expansion and working capital traction are steps toward that multi-year objective, subject to macro and execution conditions.