PagBank reports recurring net income of R$ 575 million in 1Q26, driven by revenue growth and efficiency gains

Rhea-AI Summary

PagBank (NYSE:PAGS) reported 1Q26 recurring net income of R$ 575 million, up 4% year over year, supported by revenue growth and efficiency gains.

Net revenue reached R$ 3.3 billion (+6% YoY), banking revenue grew 41%, ROAE reached 15.8%, deposits R$ 42 billion, and the loan portfolio R$ 5 billion.

Positive

• Recurring net income R$ 575 million, up 4% year over year
• Net revenue R$ 3.3 billion, 6% year-over-year increase
• Banking revenue up 41% year over year
• ROAE at 15.8%, rising 80 basis points year over year
• Deposits R$ 42 billion, growing 23% year over year
• Loan portfolio R$ 5 billion, up 36% year over year

Negative

• None.

News Market Reaction – PAGS

-11.76% 3.0x vol

51 alerts

-11.76% Session close to close

-7.3% Trough in 6 hr 24 min

$2.59B Market Cap

3.0x Rel. Volume

In the May 13 session, PAGS declined 11.76%, reflecting a significant negative market reaction. Argus tracked a trough of -7.3% from its starting point during tracking. Our momentum scanner triggered 51 alerts that day, indicating high trading interest and price volatility. Trading volume was very high at 3.0x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -11.8% in the session following this news. A negative reaction despite recurring n...

Analysis

The stock dropped -11.8% in the session following this news. A negative reaction despite recurring net income of R$ 575 million, net revenue of R$ 3.3 billion, and stronger ROAE of 15.8% would have resembled prior instances where positive quarterly updates were followed by price declines. Investors would have needed to weigh continued growth in deposits and the R$ 5 billion loan portfolio against macro conditions and any concerns about credit quality or profitability trends.

Key Figures

Recurring net income: R$ 575 million Net revenue: R$ 3.3 billion Banking revenue growth: 41% year over year +5 more

8 metrics

Recurring net income R$ 575 million 1Q26, up 4% year over year

Net revenue R$ 3.3 billion 1Q26, 6% growth year over year

Banking revenue growth 41% year over year Banking revenue expansion in 1Q26

ROAE 15.8% 1Q26, up 80 basis points year over year

Deposits R$ 42 billion 1Q26, 23% increase year over year

Loan portfolio R$ 5 billion 1Q26, 36% expansion year over year

Working capital loans growth 191% year over year Working capital loans within loan portfolio

Customer base 34 million customers End of 1Q26, up 6% year over year

Historical Context

3 past events · Latest: Apr 30 (Neutral)

Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	Annual report filing	Neutral	+1.6%	Filed Form 20-F with audited 2025 financial statements and disclosures.
Mar 05	Quarterly results	Positive	-4.5%	Reported 4Q25 recurring net income, higher ROAE, and expanding deposits and credit.
Nov 13	Quarterly results	Positive	-0.5%	Announced 3Q25 recurring profit, double-digit revenue and loan portfolio growth.

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

Pattern Detected

Recent positive operating updates have twice been followed by negative next-day moves, while a routine annual report filing saw a small gain, suggesting some history of selling into good news.

Recent Company History

Over the past few quarters, PagBank has reported recurring profits and steady balance sheet expansion. In 3Q25 and 4Q25, it highlighted strong revenue, credit and deposit growth, but shares fell 0.53% and 4.54% the next day. A 20-F annual report filed on Apr 30, 2026 coincided with a 1.62% gain. Today’s 1Q26 release continues the theme of growing deposits and credit with improving profitability.

Key Terms

roae, operating leverage, forward-looking statements

3 terms

roae financial

"As a result, ROAE increased to 15.8%, up 80 basis points from the previous year"

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.

operating leverage financial

"supported by the expansion of its banking platform and operating leverage during the period"

Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.

View in glossary

forward-looking statements regulatory

"This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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

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Digital banking platform surpasses R$ 42 billion in deposits and R$ 5 billion in loan portfolio, supported by the expansion of its banking platform and operating leverage during the period

SÃO PAULO, May 13, 2026 /PRNewswire/ -- PagBank (NYSE: PAGS), one of Brazil's largest digital banking platforms and a specialist in serving Brazilian entrepreneurs, announces its results for the first quarter of 2026 (1Q26).

During the quarter, recurring net income totaled R$ 575 million, up 4% year over year.

"We started the year with consistent results, even amid a more challenging macroeconomic environment, reinforcing the strength of our strategy and execution discipline. The period was marked by revenue expansion, the continued advancement of our banking platform, as well as efficiency gains and operating leverage," says Gustavo Sechin, CFO of PagBank.

Net revenue reached R$ 3.3 billion in the quarter, representing 6% growth compared to the same period last year, mainly driven by accelerated growth in the banking platform.

The highlight remained the strong growth in banking revenue, which expanded by 41% year over year. As a result, ROAE increased to 15.8%, up 80 basis points from the previous year, reinforcing the Company's improving profitability profile.

Deposits totaled R$42 billion, an increase of 23% year over year, reflecting customer confidence and the strength of the Company's capital structure, which is also supported by AAA ratings from the three largest global credit rating agencies. The loan portfolio reached R$ 5 billion, expanding 36% year over year, with highlights including working capital loans, which grew 191% year over year, as well as credit cards and payroll loans.

PagBank ended the quarter with 34 million customers, up 6% year over year, and a base of 6.3 million merchants and entrepreneurs. As a result, cash-in volume — which includes inflows into our PagBank accounts— totaled R$ 81 billion during the period, an increase of 11% year over year.

"We are a fully integrated banking platform specializing in Brazilian entrepreneurs. We continue to invest in products and services that help our customers thrive through their businesses. Our growth journey will continue to be driven by the simplicity, solidity, and innovation of one of the country's largest financial institutions," says Carlos Maud, CEO of PagBank.

Focused on small- and medium-sized entrepreneurs, PagBank continues to offer a comprehensive, unique platform that integrates payments, banking services, and credit solutions. Aligned with its purpose of simplifying the financial lives of people and businesses, the Company operates through an integrated digital ecosystem that supports financial management with greater efficiency, security, digitalization, and access to financial solutions.

To access PagBank's 1Q26 financial statements, 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. The institution's solidity is recognized with top-rated certifications (AAA / triple A) awarded by three leading global evaluators, attesting to one of the highest levels of reliability in the market — a differentiating factor that reinforces its security, robust governance, and consistent ability to meet financial obligations. 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 is 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.

PRESS CONTACTS
XCOM by Atrevia - PagBank's communications agency: pagbank@xcombyatrevia.com  

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SOURCE PagBank

FAQ

What were PagBank (PAGS) 1Q26 earnings results announced on May 13, 2026?

PagBank reported 1Q26 recurring net income of R$ 575 million, a 4% year-over-year increase. According to PagBank, this result was driven by net revenue of R$ 3.3 billion and efficiency gains across its expanding digital banking platform.

How did PagBank (PAGS) revenue perform in 1Q26?

PagBank’s net revenue reached R$ 3.3 billion in 1Q26, growing 6% year over year. According to PagBank, revenue expansion was mainly driven by accelerated banking platform growth and higher banking revenue, which increased 41% compared to the same period last year.

What were PagBank (PAGS) deposits and loan portfolio levels in 1Q26?

PagBank ended 1Q26 with deposits of R$ 42 billion and a R$ 5 billion loan portfolio. According to PagBank, deposits rose 23% year over year, while loans expanded 36%, with strong growth in working capital, credit card, and payroll loans.

How did PagBank (PAGS) profitability and ROAE evolve in 1Q26?

PagBank’s ROAE reached 15.8% in 1Q26, increasing 80 basis points year over year. According to PagBank, higher banking revenue and operating leverage supported this profitability profile, alongside recurring net income of R$ 575 million in a challenging macroeconomic environment.

How many customers and merchants did PagBank (PAGS) serve in 1Q26?

PagBank closed 1Q26 with 34 million customers and 6.3 million merchants and entrepreneurs. According to PagBank, the customer base grew 6% year over year, supporting cash-in volume of R$ 81 billion, up 11% over the same quarter last year.

How fast did PagBank’s working capital loans grow in 1Q26?

PagBank’s working capital loan portfolio grew 191% year over year in 1Q26. According to PagBank, this segment was a highlight within the R$ 5 billion total loan portfolio, alongside increases in credit card and payroll lending to Brazilian entrepreneurs.