PagBank reports recurring net income of R$ 576 million in 2Q26, with continued progress across its ecosystem

PagBank (NYSE: PAGS) reported recurring net income of R$ 576 million in 2Q26, supported by operating leverage and advances in its digital banking platform.

Rhea-AI Summary

PagBank (NYSE: PAGS) reported recurring net income of R$ 576 million in 2Q26, supported by operating leverage and advances in its digital banking platform. Net revenue totaled R$ 3.4 billion, while the loan portfolio grew 31% year over year to R$ 5.1 billion, driven by working capital, credit cards and payroll loans.

The bank ended the quarter with 34.1 million customers, R$ 43 billion in deposits and R$ 97 billion in cash-in. Acquiring TPV reached R$ 133.4 billion, up 3% year over year and 4% quarter over quarter. In the first half of 2026, PagBank invested R$ 1.1 billion in technology, product development and security, and announced new offerings such as PagBank Private Pension, PagBank Premiado insurance and 100% IOF cashback on international card purchases.

Positive

• Recurring net income of R$ 576 million in 2Q26
• Net revenue of R$ 3.4 billion in 2Q26
• Loan portfolio up 31% YoY to R$ 5.1 billion
• Acquiring TPV of R$ 133.4 billion, +3% YoY and +4% QoQ
• Customer base reached 34.1 million with deposits of R$ 43 billion
• Technology and security investments of R$ 1.1 billion in 1H26

Negative

• None.

Argus Aug 12 session 4 alerts

-1.91% close to close 4.7x rel. volume Open Argus

Details

News Market Reaction – PAGS

$2.48B Market Cap

On Aug 12, the day this news came out, PAGS closed 1.91% below the previous close. Our momentum scanner recorded 4 alerts for this stock that day. Relative volume reached 4.7x the daily average during tracking.

Data tracked by StockTitan Argus for the Aug 12 session.

Key Figures

Recurring net income: R$ 576 million Net revenue: R$ 3.4 billion Loan portfolio growth: 31% +5 more

Recurring net income

R$ 576 million

2Q26

Net revenue

R$ 3.4 billion

2Q26

Loan portfolio growth

31%

year over year in 2Q26

Loan portfolio

R$ 5.1 billion

2Q26

Deposits

R$ 43 billion

end of 2Q26

Customers

34.1 million

end of 2Q26

TPV

R$ 133.4 billion

acquiring operation in 2Q26

Technology investment

R$ 1.1 billion

first half of 2026

Historical Context

3 past events · Latest: May 13

3 events

1. May 13

   1Q26 earnings report

   24h Move

   -11.8%

   Recurring income and revenue increased, but the share price fell 11.76%.

2. Apr 30

   Annual report filing

   24h Move

   +1.6%

   Annual report filing included audited financial statements for fiscal year ended December 31, 2025.

3. Mar 05

   4Q25 earnings report

   24h Move

   -4.5%

   Recurring income and customer growth were reported, while the share price declined 4.54%.

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

Key Terms

recurring net income, operating leverage, tpv, cash-in

4 terms

recurring net income financial

"closed the second quarter of 2026 (2Q26) with recurring net income"

Recurring net income is the portion of a company’s profit that comes from its normal, ongoing business activities after removing one-time items like asset sales, restructuring charges, or unusual tax events. For investors it matters because it shows the company’s sustainable earning power—think of it as the regular paycheck you can expect each period, rather than a one-off bonus that might not repeat—so it helps with valuation and forecasting future performance.

operating leverage financial

"with advances in its banking platform and operating leverage"

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

tpv financial

"the acquiring operation reached TPV of R$ 133.4 billion"

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.

cash-in financial

"reached 34.1 million customers, R$ 43 billion in deposits, and R$ 97 billion in cash-in"

Cash-in is an inflow of cash to a company or investor, coming from sources such as sales of assets, customer payments, loan proceeds, equity raises, or conversion/redemption of securities. It matters to investors because it changes liquidity and funding capacity—similar to topping up a wallet—affecting a firm’s ability to pay bills, invest in growth, cover shortfalls, and influence balance-sheet strength and potential dilution.

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During the period, the digital bank reached R$ 43 billion in deposits and more than R$ 52 billion in its expanded loan portfolio, with advances in its banking platform and operating leverage.

SÃO PAULO, Aug. 12, 2026 /PRNewswire/ -- PagBank (NYSE: PAGS), one of Brazil's largest digital banking platforms and a specialist in serving Brazilian entrepreneurs, closed the second quarter of 2026 (2Q26) with recurring net income of R$ 576 million, reflecting the resilience of its business model even in a challenging macroeconomic environment.

During the period, net revenue reached R$ 3.4 billion, maintaining its trajectory of sustainable growth. Meanwhile, the loan portfolio advanced 31% compared to the same quarter of the previous year, reaching R$ 5.1 billion, driven mainly by the expansion of products such as working capital, credit cards, and payroll loans.

"The acceleration of our loan portfolio reflects the advancement of our analytical capabilities and the discipline with which we conduct the business. We are expanding credit availability for customers with suitable profiles, scaling up new credit lines for small and medium-sized enterprises, and maintaining portfolio quality—always guided by the consistent generation of value for the company, shareholders, and our customers," says Gustavo Sechin, CFO of PagBank.

Despite a high-interest-rate environment, PagBank increased customer engagement, with growth in transaction activity indicators and by strengthening its financial ecosystem. At the end of the quarter, the digital bank reached 34.1 million customers, R$ 43 billion in deposits, and R$ 97 billion in cash-in. Those figures demonstrate the growing use of the financial platform by customers. During the quarter, the acquiring operation reached TPV of R$ 133.4 billion, with an increase of 3% compared to the previous year and 4% compared to the previous quarter.

With disciplined capital allocation during the period, PagBank invested R$ 1.1 billion in technology, product development and security in the first half of 2026, reinforcing the pillars that underpin the continued evolution of its business.

As part of its growth strategy, PagBank expects to maintain the pace of innovation and expansion of its financial ecosystem, with the launch of new solutions focused on financial protection, wealth planning, and expanded benefits offered to customers. Among the initiatives are Previdência Privada PagBank (PagBank Private Pension), developed to support long-term planning; PagBank Premiado (an insurance product) which combines coverage for unforeseen events with monthly draws; and 100% cashback of IOF on international purchases made with the PagBank credit card.

Acquiring will continue as a strategic area for PagBank, with a focus on strengthening its payments platform and its POS devices. The company intends to continue expanding its value proposition for merchants and entrepreneurs, contributing to simpler and more efficient financial management.

Taken together, these initiatives reinforce the company's strategy of consolidating a complete financial services platform, accompanying customers at different moments of their journey.

"We know firsthand the challenges faced by Brazilian entrepreneurs, who remain at the center of our decisions. Our commitment is to develop solutions that make their routine easier, support the growth of their businesses, and expand access to quality financial services, always with practicality, technology, and simplicity," says Carlos Mauad, CEO of PagBank.

To access PagBank's financial statements for 2Q26, click here.

Forward Looking Statements
This market communication contains forward-looking statements within the meaning attributed to the term by 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 Exchange Act. Statements regarding facts that are not historical, including those statements related to the company's expectations, are forward-looking statements. Words such as "expects," "anticipates," "should," "believes," "intends," variations of these terms or their negative form, as well as similar expressions, are intended to identify such forward-looking statements. Such statements reflect the company management's current perspectives and are subject to various risks and uncertainties. These statements are based on many assumptions and factors, including economic and market conditions, industry conditions and operational factors. Any change in these assumptions or factors may cause results to differ substantially 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.

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SOURCE PagBank

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was PagBank (PAGS) recurring net income in 2Q26?

PagBank reported recurring net income of R$ 576 million in 2Q26. According to PagBank, this result reflects the resilience of its business model and operating leverage, even amid a challenging macroeconomic and high-interest-rate environment in Brazil.

How much revenue did PagBank (PAGS) generate in the second quarter of 2026?

PagBank reported net revenue of R$ 3.4 billion in 2Q26. According to PagBank, this level of revenue maintained the company’s trajectory of sustainable growth while it expanded its loan portfolio and strengthened engagement across its digital financial ecosystem.

How did PagBank’s loan portfolio perform in 2Q26 and what drove growth?

PagBank’s loan portfolio grew 31% year over year, reaching R$ 5.1 billion in 2Q26. According to PagBank, growth was mainly driven by working capital, credit cards and payroll loans, supported by improved analytical capabilities and disciplined credit allocation.

What were PagBank (PAGS) total deposits and customer base at the end of 2Q26?

PagBank ended 2Q26 with 34.1 million customers and R$ 43 billion in deposits. According to PagBank, these figures, along with R$ 97 billion in cash-in, indicate increased usage and engagement with its digital banking platform and services.

What transaction volume (TPV) did PagBank’s acquiring business process in 2Q26?

PagBank’s acquiring operation processed TPV of R$ 133.4 billion in 2Q26. According to PagBank, this represented a 3% increase versus the prior year and a 4% increase versus the previous quarter, reinforcing acquiring as a strategic business area.

How much did PagBank (PAGS) invest in technology and security in 1H26?

PagBank invested R$ 1.1 billion in technology, product development and security in the first half of 2026. According to PagBank, this disciplined capital allocation underpins the continued evolution of its digital banking platform and supports innovation across its financial ecosystem.

What new products and benefits did PagBank launch as part of its 2Q26 strategy?

PagBank introduced PagBank Private Pension, PagBank Premiado insurance and 100% IOF cashback on international credit card purchases. According to PagBank, these offerings aim to expand financial protection, long-term planning solutions and customer benefits within its ecosystem.