PicPay (NASDAQ: PICS) beats 1Q26 guidance with rapid credit growth
Rhea-AI Filing Summary
PicPay (PicS N.V.) delivered a very strong first quarter of 2026, beating its own guidance and showing rapid, profitable growth. Total revenue and financial income reached R$3.5 billion, up 70% year-over-year, while adjusted net income rose 92% to R$169 million and IFRS net income reached R$152 million.
The total credit portfolio grew 116% year-over-year to R$28 billion, with cost of risk stable at 3.7% and 54% of balances in secured products. Digital wallet TPV increased 24% to R$134 billion, ARPAC climbed 55% to R$80.7, and the adjusted efficiency ratio improved to 46.9%. For 2Q26, management projects a credit portfolio of about R$31.0 billion, managerial revenues near R$3.6 billion and adjusted net income around R$245 million.
Positive
- PicPay significantly outperformed guidance, with 1Q26 total revenue and financial income 11.5% above target, IFRS net income 8.4% above guidance, and adjusted net income 9.3% above guidance, while growing its credit portfolio 116% year-over-year and keeping cost of risk stable at 3.7%.
Negative
- None.
Insights
PicPay is growing fast, beating guidance and improving profitability.
PicPay reported 1Q26 total revenue and financial income of R$3.5 billion, up 70% year-over-year, with adjusted net income of R$169 million, up 92%. Net interest income grew 76% to R$1.7 billion, while the adjusted efficiency ratio improved to 46.9% from 61.5%.
The total credit portfolio reached R$28 billion, up 116% year-over-year, with cost of risk steady at 3.7% and 54% of balances in secured products like payroll-deducted and FGTS-backed loans. Digital wallet TPV rose 24% to R$134 billion, and quarterly ARPAC increased 55% to R$80.7, four times the cost to serve.
Management guides for 2Q26 total credit of about R$31.0 billion, managerial revenues around R$3.6 billion and adjusted net income near R$245 million, implying continued earnings growth if portfolio expansion and cost of risk stay within the indicated ranges.
Key Figures
Key Terms
cost of risk financial
Stage 3 formation financial
adjusted net income financial
net interest margin financial
expected credit losses financial
Common Equity Tier 1 Ratio financial
Earnings Snapshot
For 2Q26, PicPay expects a total credit portfolio of approximately R$31.0 billion, managerial revenues of about R$3.6 billion, net interest income near R$1.9 billion, gross profit around R$1.15 billion, IFRS net income of roughly R$235 million and adjusted net income of about R$245 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or
15d-16 of the Securities Exchange Act of 1934
For
the month of June
Commission File Number:
(Exact Name as Specified in its Charter)
N/A
(Translation of registrant’s name into English)
Avenida Manuel Bandeira, 291
Block A, 2nd floor
São Paulo — SP, 05317-020, Brazil
(Address of principal executive offices)
(Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F: ☒ Form 40-F: ☐
EXHIBIT INDEX
| Exhibit Number | Description of Document | |
| 99.1 | Press Release | |
| 99.2 | Earnings Release | |
| 99.3 | Earnings Presentation | |
| 99.4 | Unaudited Interim Condensed Consolidated Financial Statements as of March 31, 2026 and for the three-month periods ended March 31, 2026 and 2025 | |
| 101.INS | Inline XBRL Instance Document. The instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Linkbase Document. | |
| 104 | Cover page interactive data (formatted as Inline XBRL and contained in Exhibit 101). |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: June 2, 2026
| PicS N.V. | ||
| By: | /s/ Eduardo Chedid Simões | |
| Name: | Eduardo Chedid Simões | |
| Title: | Executive Director and Chief Executive Officer | |
| By: | /s/ Rodrigo Luís Rosa Couto | |
| Name: | Rodrigo Luís Rosa Couto | |
| Title: | Chief Financial Officer | |
2
Exhibit 99.1
PicPay Announces First Quarter 2026 Results
Reports adjusted net income of R$ 169 million in 1Q26, up 92% year-over-year, and revenue growth of 70% year-over-year to R$ 3.5 billion
Company exceeds guidance and reinforces growth model with profitability and diversification
São Paulo, June 2, 2026 – PicPay (NASDAQ: PICS) (the “Company”) today announced its financial results for the first quarter ended March 31, 2026, delivering robust results, exceeding guidance, and reinforcing consistency of its business model.
“We exceeded guidance across key indicators, reflecting the consistent execution of our strategy focused on profitable growth, based on scale, financial discipline, and deepening customer relationships,” said Eduardo Chedid, PicPay Chief Executive Officer. “We are confident in our ability to build on our strong start to the year and deliver another quarter of profitable growth in the second quarter, supported by continued portfolio expansion, disciplined risk management and the scalability of our operating model.”
First Quarter 2026 Financial Highlights
| ● | Net revenue reached R$ 3.5 billion, a 70% increase year-over-year, while adjusted net income totaled R$ 169 million, up 92% compared to the first quarter of 2025. |
| ● | Gross profit totaled R$ 1.1 billion, a 44% year-over-year increase, and net interest income (NII) reached R$ 1.7 billion, a 76% growth in the same period, reflecting gains in scale, operational efficiency, and greater monetization of the customer base. |
| ● | Average revenue per active customer (ARPAC) reached R$ 80.7, up 55% YoY and nearly 4x the cost to serve of R$ 20.3, demonstrating robust operational efficiency and monetization. |
| ● | Digital wallet total payment volume (TPV) rose 24% YoY to R$ 134 billion, driven by greater PicPay Card penetration and growth in on-us transactions; the wallet remains the primary engine for acquisition, engagement, and data generation. | |
| ● | ROE reached 15.5% in the period, primarily reflecting the increase in the capital base resulting from the IPO completed in the first quarter. This capital injection created a temporary mathematical dilution effect on the metric, with no deterioration in business fundamentals. As the growth strategy continues — particularly in the credit portfolio — ROE is expected to gradually recover to its previous level of 20%. |
Operational, Revenue Expansion & Innovation Highlights
Revenue diversification and base monetization. In the quarter, revenue diversification strengthened, with no-risk and low-risk products representing 69% of the indicator. Collateralized credit revenues grew 272% YoY, a key highlight for the quarter. Non-credit revenues (wallet, acquiring, float, and insurance) increased 47% YoY to R$ 1.6 billion, reflecting stronger engagement and recurring ecosystem usage. Total user base reached 68.6 million (+11% YoY); active accounts totaled 44.3 million (+10% YoY), with 1.5 million net new active customers versus the prior quarter.
Credit with disciplined growth and a resilient portfolio. Credit remained an important growth avenue in the quarter, supported by a disciplined origination policy, risk management, and a resilient portfolio. The portfolio totaled R$ 28 billion at the end of the first quarter, a 116% year-over-year increase, with cost of risk maintained at 3.7% over the last two quarters, even as originations advanced. Currently, credit represents 54% of the Company’s total revenue, with 54% of the portfolio composed of secured products such as public and private payroll-deducted loans, FGTS anticipation, and secured-limit cards. The strategy favors a balanced mix between collateralized and non-collateralized products, with progressive limit increases based on customer behavior and risk profile. Private payroll-deducted credit was one of the fastest-growing products, with monthly originations averaging R$ 700 million and approximately a 5% share of sector originations, placing PicPay among Brazil’s top five players. In the first quarter, total volume originated was approximately R$ 2 billion.
Innovation and Platform Growth. PicPay continues to expand its presence among entrepreneurs, focusing on broadening its portfolio and solutions that simplify business financial management, such as unified Business and Personal Account management, cashback cards, and card machines with competitive terms. The Company is also advancing in the Audiences and Ecosystem vertical, with integrated offerings in travel, delivery, entertainment, and shopping, boosting engagement — especially around major events such as the World Cup. In technology, PicPay continues to invest in artificial intelligence to scale operations and improve the user experience. Currently, 100% of customer service chat interactions begin with AI, while the WhatsApp-integrated assistant already enables Pix payments, bill payments, and due date reminders. Internally, the proprietary HubAI platform supports more than four thousand employees across various activities.
“The depth of the relationship with our more than 68 million users, combined with the continuous expansion of everyday services, supports the scalability of the model and increasingly efficient monetization,” said André Cazotto, Investor Relations, Strategy and M&A Officer at PicPay. “We saw meaningful progress in collateralized products and have focused on more mature customers in unsecured lines. This strategy supports more stable asset quality metrics at a controlled cost of risk, even as the portfolio expands. The strategy is not to optimize isolated indicators, but to maximize returns by pricing risk appropriately.”
Q2 2026 Outlook
Looking ahead to the second quarter of 2026, management expects PicPay’s total credit portfolio to reach approximately R$31.0 billion, representing sequential growth of 11%, while quarterly cost of risk is expected to remain within the Company’s targeted range of 3.7% to 3.9%. Managerial revenues are projected to increase to approximately R$3.6 billion, driving net interest income of approximately R$1.9 billion and gross profit of approximately R$1.15 billion. The Company expects IFRS EBT of approximately R$265 million and adjusted EBT of approximately R$285 million, supporting IFRS net income of approximately R$235 million and adjusted net income of approximately R$245 million. The outlook reflects continued portfolio expansion, stable credit performance and increasing operating leverage, positioning the Company to deliver meaningful earnings growth while maintaining disciplined risk management.
Conference Call Details
Additional details, including a letter to shareholders, can be found on the company’s Investor Relations website at investor.picpay.com. PicPay will host a conference call and earnings webcast at 5:00 p.m. Eastern Time / 6:00 p.m. Brasilia time today to discuss these results.
To participate in the conference call, please visit the Events & Presentations section of PicPay’s Investor Relations website.
About PicPay
PicPay is one of the largest digital banks in Brazil by number of customers. The company operates a two-sided ecosystem, creating a bridge between consumers and businesses. PicPay offers a wide range of financial products and services — including digital wallet, credit cards, loans, investments, and insurance — for both individuals and businesses.
2
For more information, visit: https://investor.picpay.com/
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s future financial and operating performance, business strategy, growth initiatives, market opportunities, product development, customer adoption, and management’s expectations and beliefs.
These statements are based on current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ include, among others, economic and market conditions, competitive developments, regulatory changes, credit performance, technology and cybersecurity risks, and other factors described in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).
Forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Contacts
Investors
IR@PicPay.com
Media
Buchanan-PicPay@bursonbuchanan.com
###
3
Exhibit 99.2
1Q26 Earnings Release
 |  |
PicPay reports
1Q26 results: R$169 million Adjusted Net Income, a more resilient credit portfolio, and stable cost of risk
PicPay Reports 1Q26 Operating and Financial Results
| investor.picpay.com | 2 |
| |
Message From the Management
We begin 2026 as a publicly listed company on Nasdaq — and the first quarter of the year reflects exactly the trajectory we set out to deliver: accelerated top-line growth, improving unit economics, disciplined cost management, and a credit portfolio that is maturing into an increasingly diversified and resilient mix.
In 1Q26, total revenue and financial income reached R$3.5 billion, a 70% increase year-over-year, while adjusted net income reached R$169 million, growing 92% compared to the same period last year. Our ARPAC reached R$80.7 per active client in the quarter — a 55% year-over-year increase — four times our cost to serve, which remained flat at R$20.3 in the period. Today, 69% of our revenues carry no or low credit risk, a meaningful shift that speaks directly to the quality and sustainability of our earnings.
Turning to the revenue growth drivers, the acceleration is being led by two key pillars. Secured Credit Revenues reached R$820 million in 1Q26, up 272% year-over-year, driven by the strong ramp-up of our private payroll loan. Non-Credit Revenues – comprising fees, commissions, other services, float, and hedge accounting – reached R$1.6 billion, growing 47% year-over-year, reinforcing the strength of our platform beyond lending.
Unsecured credit revenues also grew, up 44% year-over-year to R$1.1 billion, with growth increasingly focused on credit cards for more mature and engaged digital wallet customers. This approach allows us to capture real-time transaction data from our customers’ day-to-day payments, combined with at least 12 months of credit behavior built within PicPay – giving us a significant information advantage in underwriting and a more predictable risk profile within this segment.
Taken together, these trends reflect a business that is not only growing but growing in the right direction – with a more diversified, more resilient, and more predictable revenue base.
Our adjusted efficiency ratio improved to 46.9% in 1Q26, from 61.5% in 1Q25, a reduction of more than 14 percentage points year-over-year and a continued improvement from the 49.9% posted in 4Q25. This consistent trajectory confirms our ability to scale revenues while maintaining strong operating leverage. Additionally, AI is already having an impact: our headcount has been flat since October/25, and the projected 10% increase for 2026 will not materialize. We expect AI to be a major booster of our operating leverage, which should be even more powerful going forward.
On the credit side, our total portfolio reached R$28 billion, representing 116% year-over-year growth and 17% sequentially. Our credit growth continues to shift toward a more balanced and resilient mix: secured products now represent 54% of total balances, up from 42% in 1Q25.
Additionally, 91% of our incremental credit growth came from lower-risk loans and mature credit cards. The two largest contributors were Private Payroll Loans, which added R$2.1 billion and accounted for 60% of the quarterly growth, and Mature Credit Cards – cards held by customers with 12 or more months of credit behavior built within PicPay – which contributed an additional R$1.1 billion, or 30% of the growth.
This reflects our disciplined approach to credit origination, prioritizing segments where we have deeper customer knowledge and stronger collateral structures.
The result is a portfolio that is growing faster while becoming structurally safer — a combination that underpins both our cost-of-risk stability and the long-term quality of our earnings.
Net interest income grew 76% year-over-year to R$1.7 billion, with a quarterly annualized NIM of 20.7% — broadly stable over the last twelve months, demonstrating consistent pricing discipline and portfolio quality.
| investor.picpay.com | 3 |
| |
Our asset quality metrics reflect the natural seasoning of a fast-growing credit book, consistent with the guidance we provided for the period. Stage 3 formation reached 3.9% in 1Q26, squarely within the 3.7%–4.0% range we indicated at year-end, and the quarterly cost-of-risk remained flat at 3.7%.
It is important to highlight that at PicPay, we do not manage the business with the objective of simply minimizing NPLs at any cost. Our approach has always been centered around risk-adjusted profitability, supported by a very disciplined underwriting framework and a structurally low cost-to-serve model.
Our operating model allows us to selectively participate in higher-risk segments, as long as those products remain within our risk-return matrix, particularly with Loss Absorption between 40-60% and a minimum 30% ROE threshold. In practice, our playbook is very consistent: the riskier the product, the higher the spread, the shorter the duration, and the lower the leverage relative to income.
What gives us confidence is that the current stability we are seeing across asset quality metrics is fully consistent with the portfolio mix strategy we intentionally designed over the past quarters — a more diversified credit portfolio that combines secured products, mature unsecured cohorts, and transaction-led underwriting.
And this is where the strength of our ecosystem becomes a key differentiator. Because our digital wallet is deeply transactional, we can leverage proprietary behavioral data and real-time engagement signals that, in our view, provide a much more accurate understanding of customer risk than traditional market benchmarks alone.
Our market-beating performance in private payroll loans, as reflected in lower FPD metrics, demonstrates our product velocity, our agility in learning and adapting, the strength of our underwriting model, our digital distribution model, and our operational excellence.
Although some market credit indicators suggest some deterioration, a closer look at PicPay’s portfolio—which is more resilient by design—reassures us about our risk-adjusted return policy and our ability to meet projections for 2026 unchanged.
Our consumer banking platform continues to deepen engagement. Quarterly active clients reached 44.3 million, up 10% year-over-year, and our digital wallet volumes grew 24% year-over-year to R$134 billion. On the SMB side, our TPV reached R$11.3 billion, growing 36% year-over-year, reflecting the continued rollout of our integrated business and personal account experience.
We also made progress on strategic priorities announced alongside our IPO. The acquisition of Kovr, one of our main insurance distribution partners, was approved by CADE without restrictions and continues to represent a meaningful near-term catalyst for our insurance business, which already serves more than 10 million active policies. The acquisition of Kovr is still subject to regulatory approval from SUSEP (Superintendence of Private Insurance) and the Brazilian Central Bank. Additionally, we continue to deploy IPO proceeds into our banking subsidiary, with Common Equity Tier 1 Ratio tracking on plan.
We remain focused on the same priorities that defined our trajectory in 2025: growing principality, deepening cross-sell, scaling credit responsibly, and reinforcing PicPay’s position as one of the leading digital financial platforms in Brazil.
Eduardo Chedid
Chief Executive Officer
| investor.picpay.com | 4 |
| |
Performance in the Period
1Q26 Guidance
Reflecting on the first quarter of 2026, we are pleased to report that PicPay delivered results above guidance across every profitability layer, with broad-based outperformance in both top-line and bottom-line metrics. Before walking through the numbers, it is worth noting that the figures discussed below refer exclusively to PicPay's standalone operations and do not include any contribution from Kovr.
For 1Q26, our Total Credit Portfolio reached R$28.0 billion, 5.8% above the ~R$26.5 billion guidance, driven by accelerated origination across secured products and more mature credit card cohorts. Quarterly Cost of Risk landed at 3.7%, fully aligned with guidance, reflecting stable asset-quality dynamics and confirming that portfolio growth has not come at the expense of underwriting discipline.
On the revenue side, Total Revenue and Financial Income reached R$3,512 million, 11.5% above the ~R$3,150 million guidance. Managerial Revenues, which exclude hedge accounting and derivative revenues, totaled R$3,190 million, 1.3% above guidance, confirming that the underlying revenue trajectory remained on track on a like-for-like basis. Net Interest Income came in at R$1,704 million, 3.3% above the ~R$1,650 million guidance, supported by NIM expansion and disciplined funding cost management. Gross Profit closed at R$1,096 million, 0.6% above the R$1,090 million guidance.
At the bottom line, profitability outperformed across all reference lines. IFRS Earnings Before Taxes reached R$222 million (+3.1% vs. ~R$215 million guidance), and Adjusted Earnings Before Taxes, excluding stock-based compensation expenses, totaled R$248 million (+5.7% vs. ~R$235 million guidance). On a net income basis, IFRS Net Income reached R$152 million (+8.4% vs. ~R$140 million guidance), and Adjusted Net Income totaled R$169 million (+9.3% vs. ~R$155 million guidance).
Note: (1) Considers the total revenue and financial income for the 1Q26 excluding derivatives and hedge accounting revenues in the amount of R$322 million.
| investor.picpay.com | 5 |
| |
Operating Performance
1. Wallet & Banking
1.1 Clients
PicPay reached 68.6 million total accounts as of March 2026, an increase of 11% year-over-year — consistent with the pace we have maintained over the past four quarters. Net additions continue at approximately 1.5 to 2 million accounts per quarter. Quarterly active clients reached 44.3 million in 1Q26, representing 10% year-over-year growth. The activation rate remained stable at approximately 64%.
Total Accounts & Quarterly Active Clients(1)
in millions
Note: (1) Quarterly active clients consider the number of consumers and businesses that opened the app/or made at least one financial transaction, and/or generated revenues in the quarter.
1.2 Cash-in and Consumer Deposits
Total cash-in reached R$125.4 billion in 1Q26, an increase of 22% compared to 1Q25. On a monthly average basis, customers brought approximately R$41.8 billion to our platform each month in the quarter, slightly lower than the R$46.5 billion monthly average in 4Q25, which is typical for the first quarter given seasonal patterns in consumer spending and cash management behavior.
Consumer deposits totaled R$30.8 billion as of March 2026, an increase of 46% year-over-year and 7% quarter-over-quarter. The continued growth in deposits reflects the increasing adoption of PicPay’s savings products — including our piggy banks, which yield 102% of CDI — as well as the expanded distribution of PicPay CDs through third-party channels. Our cost of funding closed at 94% of CDI, flat compared to the previous quarter.
| Total Cash-in | Consumer Deposits |
| R$ billion | R$ billion |
 | |
| investor.picpay.com | 6 |
| |
Note: (1) Total Cash-in represents the amount of money that our customers deposit/receive in their digital accounts. (2) Consumer deposits include the balance at the end of the period from user payment accounts as well as daily liquidity and fixed-term PicPay CDs (including third-party distribution).
1.3 Cross-sell and Principality
We continue to increase cross-selling of products and services, with new cohorts starting with 2.4 products and reaching almost 3 in only 2 quarters. We have also seen older cohorts rapidly increase engagement and adopt additional products.
Consumers with their primary banking relationship within PicPay accounted for 35% of the total active consumer base, flat compared to the previous quarter. We consider ourselves to be the primary financial services provider relationship for those of our quarterly active consumers who have: (1) deposited at least 50% of their post-tax monthly income into their PicPay digital wallet; (2) utilized at least 50% of their drawdown credit card limit or loans in the market on our platform; or (3) invested at least three times their post-tax monthly income in any of our investment products.
As we continue to expand our credit operations and increase our cross-sell, we should expect more customers to view PicPay as their primary bank.
| Cross-selling Index | Principality per Monthly Cohort from the Overall Customer Base |
 | |
1.4 Transactional Activities
Total payment volume (TPV) reached R$156.0 billion in 1Q26, up 31% year-over-year and down 1% sequentially. TPV is usually softer in the first quarter due to seasonal effects. Most of the payment volume was driven by our digital wallet, which closed the quarter with R$134.0 billion in TPV, an increase of 24% year-over-year and down 5% quarter-over-quarter.
Pix Finance plays an important role in increasing engagement and monetization on our platform. Considering volumes using our own credit cards as the source of funds for Pix transactions, we reached R$2.8 billion in payment volume in 1Q26, an increase of 54% compared to 1Q25 and 7% sequentially, despite seasonality.
In the first three months of the year, 41% of Pix Finance TPV was originated through our PicPay Card, up from 31% in 1Q25 – a 10 percentage point expansion year-over-year. This shift reflects the deepening engagement of our credit card base within the PicPay ecosystem, as more customers choose PicPay Card as their primary payment method for everyday transactions, reinforcing the virtuous cycle between our digital wallet and our credit products.
| investor.picpay.com | 7 |
| |
| Total TPV | Wallet & Banking TPV | Pix Finance TPV |
| R$ billion | R$ billion | R$ billion |
 | ||
Note: (1) Wallet & Banking TPV is composed of instant payments and bill payments funded through customer account balance and/or credit cards registered on file (including our PicPay Card), as well as other transaction activities related to banking features such as cash withdrawal. (2) Pix Finance includes only Pix transactions conducted by our customers with the PicPay card as a source of funds.
2. Credit
2.1 Loans
We originated R$4.5 billion in loans in 1Q26, representing a 119% increase compared to the same quarter in 2025 and flat sequentially. Of the total volume for that quarter, 86% comprised secured loan products, boosted by private payroll loans.
Loan Origination
R$ billion
2.2 Credit Cards
Our PicPay Card TPV reached R$17.4 billion, a 41% year-over-year increase and practically flat sequentially. Of this total, 64% were credit card transactions. The growth in Card TPV indicates increasing adoption of PicPay credit cards as the primary payment method on our platform. Credit cards continue to be a major driver of customer engagement and principality.
| investor.picpay.com | 8 |
| |
PicPay Card TPV
R$ billion
Note: (1) Credit includes both on and off-us transactions.
Below, we present the interest-earning portfolio from our credit card receivables, which reached 38% as of March 2026, stable sequentially and 4 percentage points higher than 1Q25. The increase in interest-earning balances is mainly due to greater use of our Pix Finance product and higher penetration of our PicPay Cards in the ecosystem.
Interest-earning Portfolio
% of credit card receivables
2.3 Consolidated Credit Portfolio
We closed 1Q26 with a total credit portfolio of R$28.0 billion, an increase of 116% year-over-year and 17% quarter-over-quarter. The portfolio continues to shift toward a more balanced and resilient mix: secured products now represent 54% of total balances, up from 42% in 1Q25 and 51% in 4Q25. As mentioned above, the private payroll loan product has been the main driver of this accelerated shift towards more secured credit balances over the past two quarters. We delivered a net addition of R$4.0 billion to outstanding credit balances compared with the prior quarter, and 69% of this amount was attributable to secured products.
| investor.picpay.com | 9 |
| |
Total Credit Portfolio
R$ million
The consumer credit portfolio showed accelerated and well-balanced growth in 1Q26, driven by higher origination in secured products and a stronger focus on seasoned customers in unsecured lending.
This evolution reflects a structural shift toward a more resilient and defensive portfolio, anchored by secured lending — particularly private payroll loans — while, in unsecured products such as credit cards, growth is increasingly focused on customers with at least 12 months of established credit behavior:
| · | Private Payroll Loans contributed R$ 2.1 billion (60% of incremental growth), reinforcing its position as the main growth driver; |
| · | Mature credit cards (12+ months) added R$ 1.1 billion (30%), reflecting the continued seasoning of prior cohorts and improved credit quality. |
Consumer Credit Portfolio Evolution
R$ billion
Note: (1) Portfolio sale for the purpose of funding diversification and optimization of unit economics.
We continue to believe in the massive opportunity in private payroll loans, and we have seen strong growth since the product’s April 2025 launch.
From the very beginning, we have been operating this product very tightly, following our prudent underwriting strategy. Early on, as operational issues affected first-payment defaults in the initial cohorts, we decided to slow origination in the following months.
| investor.picpay.com | 10 |
| |
As the product matured, and we gained more confidence in its performance, we increased origination quarter over quarter. This shows our ability to respond quickly to changing market conditions.
As you can see below, first-payment defaults have improved significantly from the first cohorts and are now stable at around 9% across recent cohorts. January FPDs are currently tracking broadly flat quarter-over-quarter, although we still do not have the quarter fully closed, given the product’s 30-day grace period plus an additional 30 days for payroll processing.
Delinquency rates, represented here by the Over 30-day metric, have also improved month after month. Important to mention that Origination, FPDs, and Over-30 for 3Q25 cohorts are reflecting a more conservative underwriting strategy.
| Origination | $FPD30(1) | Delinquency Rate |
| (% 30 days past due) | ||
 | ||
Note: (1) First payment default over 30 days. (2) Expected results based on current performance and lifetime projections.
We continue to see very healthy unit economics in private payroll loans, with lifetime NIMALs around 30%, lifetime marginal ROEs consistently above 100%, and FPDs stable at high single-digit levels.
While FPDs remain stable and within a controllable range, our strategy is not centered on minimizing this metric at any cost, but rather on optimizing risk-adjusted returns. We are comfortable and already expanding into new customer segments with a higher cost of risk, provided they are properly priced and structured to deliver returns and loss-absorption levels in line with or above what we achieve today. In practice, the riskier the segment, the higher the spread, the shorter the duration, and the tighter the leverage-to-income criteria.
Importantly, our current pricing model does not yet incorporate the potential upside from collateral enhancements, such as FGTS balances and severance package proceeds, which should become effective throughout the year and help reduce the cost of risk, particularly in higher-risk segments.
Note: (1) NIMAL, marginal ROE, and Loss Absorption (LA) are lifetime projections based on current performance. (2) First payment default over 30 days of 1Q26. (3) ROE: estimated, does not consider fixed expenses.
| investor.picpay.com | 11 |
| |
2.4 Financial Margin
Our net interest income (NII) reached R$1.7 billion in the first quarter of the year, an increase of 76% compared with 1Q25 and 19% up sequentially. The increase was mainly due to accelerated revenue growth from our credit activities. Credit revenues, including both secured and unsecured credit lines, reached R$1.9 billion (54% of our consolidated net revenue) in 1Q26, up 96% year-over-year and 22% sequentially.
Additionally, our annualized net interest margin (NIM) reached 20.7% on average interest-earning assets in 1Q26, slightly up from 19.9% in the previous quarter and 12 months earlier. These margin levels, which are significantly above Brazil’s basic interest rate, demonstrate that we remain successful and consistent with our credit underwriting fundamentals, pursuing a smart and efficient combination of pricing and profitability, while maintaining efficiency in our funding activities, with aggregate funding costs still below CDI.
Considering the risk-adjusted NII, we closed 1Q26 totaling R$730 million, an increase of 50% year-over-year and 16% against 4Q25. Net interest margin after losses (NIMAL) reached 8.9% in the first quarter, 1.1p.p decline compared to 1Q25, primarily driven by mix effects, reflecting the strong acceleration in private payroll loans — a product that carries materially higher upfront provisioning dynamics compared to products such as FGTS-backed loans, which had a higher share of representations within the credit portfolio in 1Q25. It is worth highlighting, however, that despite the higher upfront provisioning requirements, private payroll loans deliver a meaningfully better risk-adjusted net interest margin, making them a more attractive product from a long-term profitability standpoint and a key driver of our NII expansion going forward.
Compared to 4Q25, our NIMAL expanded by 10bps quarter-over-quarter despite seasonal headwinds.
| Net Interest Income (NII)(1) & Net Interest Margin (NIM)(2) | Risk-Adjusted NII(3) & NIMAL(4) | |
| R$ million & % | R$ million; % | |
 |
 |
Note: (1) Net interest income is calculated as the difference between the financial income and the interest and other financial expenses presented in the consolidated income statement. (2) The quarterly annualized net interest margin is calculated as the NII divided by the average interest-earning financial assets at the beginning and end of period, including: (i) cash and cash equivalents; (ii) financial assets at fair value through profit or loss; (iii) financial assets at fair value through other comprehensive income; (iv) interest-earning portfolio; (v) other receivables; and (vi) other financial assets at amortized cost. (3) Net interest margin after losses is calculated as the difference between the net interest income and the credit loss allowance expenses presented in the consolidated income statement.
| investor.picpay.com | 12 |
| |
In addition, we present the total margin performance from credit products before and after credit loss expenses for 1Q26. This metric better reflects a complete understanding of the profitability from our credit activities considering the entire operation, since our loss absorption targets (the most important metric that drives our credit underwriting decisions) also consider fees and commission revenues linked to credit products, such as interchange fees from card transactions and loan insurance protection, in order to analyze the potential revenue generation from each customer cohort during its lifetime.
In 1Q26, the margin from credit products totaled R$1.8 billion, an increase of 80% compared to the same period of the last year and 19% up from 4Q25. Considering those margins adjusted to losses, we totaled R$798 million in 1Q26, up 58% from 1Q25 and 17% sequentially.
These margins led to a loss absorption ratio of 55% in 1Q26, which is aligned with the range that we aim to operate within under our credit underwriting strategy, between 40% and 60%.
| Margin from Credit Products(1) | Margin from Credit Products After Losses(2) & LA | |
| R$ million | R$ million; % | |
 |
 |
Note: (1) We calculate margin from credit products as the sum of total net revenue from transaction activities and other services and financial income from our credit operations (cards and loans) minus cost of funding from these products. (2) We calculate margin from credit products after losses as margin from credit products minus credit loss allowance expenses.
2.5 Asset Quality
Stage 2 Formation has shown a consistent declining trend over the past 12 months, improving from 6.9% in 1Q25 to 5.8% in 1Q26 — a reduction of approximately 110 basis points year-over-year. The modest 30 bps sequential increase observed in 1Q26 is in line with typical seasonal patterns and does not reflect any deterioration in underlying asset quality. This trajectory reflects the increasing share of secured products in our credit mix, more selective underwriting in unsecured cohorts, and the maturing of risk models calibrated over the past four quarters.
As anticipated in our previous earnings report, we delivered a 3.9% stage 3 formation in 1Q26. This percentage aligns with the guidance range (3.7%-4.0%) provided by our management. It is worth noting that in the previous quarter, we reviewed our expected credit loss provision methodology, which led to refinements to the Stage 3 classification and to accelerating the classification of renegotiated non-performing exposures from Stage 2 to Stage 3. Over the coming quarters, we expect the stage 3 formation to stabilize near current levels.
| investor.picpay.com | 13 |
| |
Stage 2 Formation(1) % |
Stage 3 Formation(2) % |
Note: (1) The stage 2 formation rate is calculated considering the stage 2 credit balance at the end of the period minus the stage 2 credit balance in the previous period, plus write-offs in the current period, divided by the total credit portfolio in the previous period. (2) Stage 3 formation is calculated considering the stage 3 balance in each period minus the stage 3 balance in the previous period plus write-off migration divided by the stage 3 balance in the previous period.
Regarding our quarterly cost of risk, we closed the first quarter at 3.7% of the average credit portfolio over the period, flat when compared to the previous quarter, and 100% aligned with the guidance provided by our management in the previous earnings call. Although our unsecured credit portfolio has naturally required higher credit loss provisioning, our total credit portfolio continued to grow at an accelerated pace, particularly as the balance mix shifted toward secured credit lines. We expect our quarterly cost of risk to be between 3.7 to 3.9% for 2Q26.
Quarterly Cost of Risk
(1)
%
Note: (1) Quarterly Cost of risk is calculated as the total credit loss allowance expenses in the quarter divided by the average total credit portfolio, considering the beginning and end of the period.
Regarding our NPLs, the early delinquency in our credit portfolio (balances 15 to 90 days overdue) reached 8.4%. In turn, non-performing loans over 90 days past due reached 8.9% in 1Q26.
At PicPay's current stage of growth, the increase in NPL levels requires careful interpretation and should not be read as a sign of asset quality deterioration. The rise is a natural consequence of the timing mismatch inherent to a rapidly expanding portfolio: new originations enter the book as performing balances, while credit losses from prior vintages only surface with a lag — causing the NPL numerator to grow faster than it would in a stable, mature portfolio. At the same time, the accelerated pace of originations means that the denominator is also expanding quickly, but not always fast enough to offset the seasoning of earlier cohorts in the short term. In other words, NPL growth at this stage is largely a mathematical reflection of portfolio velocity and vintage maturation — not necessarily a deterioration in the credit quality of what we are originating today. Our stage formation trends, which have been consistently improving over the past 12 months, provide a cleaner and more forward-looking view of the health of our book.
For this reason, we believe stage formation is a more informative lens for assessing the health of our portfolio, as it provides real-time visibility into credit quality trends — independent of write-off timing or provisioning methodology. As highlighted earlier, Stage 2 formation has been on a consistent downward trajectory over the past 12 months, and Stage 3 formation has reached 3.9%, down quarter-over-quarter.
It is also worth flagging that NPL comparisons across players can be misleading, given that institutions adopt materially different write-off policies. At PicPay, our methodology has remained unchanged — we maintain a consistent 360-day write-off policy for both credit cards and personal loans — ensuring full comparability of our metrics over time.
| investor.picpay.com | 14 |
| |
| NPL
15-90 days % |
NPL
over 90 days % |
Below, we present our coverage by stages. The coverage for stages 2 and 3 combined continues to increase across both comparison periods, reaching 63.9% as of March 2026, 1.9 percentage points higher quarter-over-quarter and 7.1 percentage points up year-over-year.
Total coverage reached 13.9% in 1Q26, 0.8 percentage points up when compared to the previous quarter, and 3.7 percentage points higher than 1Q25.
3. Insurance activities
In 1Q26, we reached 10.2 million active insurance policies distributed through our platform, up 78% from 1Q25 and more than 35 times since the last quarter of 2022. We remain one of the largest digital distributors in the country, supported by strong adoption of insurance products, including wallet protection, credit card protection, and loan protection, among our customers.
We intend to continue to use our differentiated operating scale to embed and distribute insurance through contextual sales experiences (around 91% of our sales originate from embedded or contextual customer journeys). Our goal is to turn a traditionally expensive and complex product into a simple insurance offering, targeting small-ticket and microinsurance to unlock high returns in Brazil’s underpenetrated market.
| investor.picpay.com | 15 |
| |
Active Insurance Policies
In million
In addition to that, on May 28, 2026, the Brazilian Antitrust Authority (CADE) approved, without restrictions, PicPay’s acquisition of Kovr Participações S.A., a Brazilian company operating in the insurance, capitalization, and private pension segments. The closing of the transaction remains subject to customary conditions precedent, including approval from SUSEP and the Brazilian Central Bank.
Upon closing, we will fully consolidate Kovr’s operations, expanding its insurance distribution capabilities. We intend to use a portion of the net proceeds from our recent IPO to fund part of the transaction, in line with our capital allocation strategy.
4. Small and Medium-Sized Businesses (SMBs)
Our SMB TPV, which considers payment volume from QR Code and e-wallet transactions, Pix transactions received and made by businesses in our app, as well as all payment volume transacted with third-party credit cards on the PicPay app (mainly P2P, Pix, and bill payments), which are processed by our merchant acquiring platform, such as QR Code, e-wallet, and Pix, totaled R$11.3 billion in 1Q26, up 36% from 1Q25 and 4% up sequentially.
Additionally, the average number of new SMB accounts opened increased from ~60,000 in 4Q25 to ~80,000 in 1Q26.
SMB TPV
R$ million
Consolidated Financial Results for the period
1. Net revenues
In 1Q26, our total net revenues, excluding hedge accounting and derivatives, reached R$3.2 billion, an increase of 60% compared with 1Q25 and 9% sequentially. The increase is mainly due to the following reasons:
| (i) | Increased penetration of credit revenues in the mix, which represented 54% of our total net revenues in the first quarter of the year, led by higher exposure to interest revenues originating from the secured credit portfolio (from 11% in 1Q25 to 23% of total revenues in 1Q26), specially due to the acceleration of the private payroll loan offer (higher average interest rates compared to other existing products in the mix). |
| investor.picpay.com | 16 |
| |
| (ii) | Our positioning as one of the largest digital insurance distributors
in the country, as demonstrated by the annual growth of the active insurance policies in our platform, has enabled us to continuously
increase commission revenues for this product in both periods of comparison. |
| (iii) | Higher engagement levels from our customer base as they are increasingly adopting more products and services offered on our platform (cross-selling) while pulling more funds from other bank accounts to PicPay, as expressed by the robust growth of total cash-in in all periods of comparison, which is one of the growth drivers for our deposits. |
Below, we present the evolution of our revenue mix for both comparison periods. It is important to highlight that, even with the increased penetration of net revenues coming from our lending activities, revenues with no credit risk, such as float and fees, commissions, and other services (which include the financial income originated from third-party credit card transactions conducted by our customers in the digital wallet) still represents almost half of our total net revenues in 4Q25 and for the full year of 2025 (around 49% over the total). This ability to continue generating diversified revenue streams is one of our main advantages, as we have a more defensive mix than our peers in the market that also operate on credit.
Total Revenue and Financial Income
R$ million
Note: (1) “Unsecured credit products” includes interest revenues from the unsecured credit portfolio (personal loans and credit cards). (2) “Secured credit products” include interest revenues from the secured credit portfolio (private and public payroll loans and FGTS loans). (3) “Fees, commissions, and other services” includes total net revenue from transaction activities and other services presented in our consolidated income statement, plus the financial income originating from third-party credit card transactions conducted by our customers in the ecosystem. (4) “Float” is calculated as the difference between total revenue and the sum of secured credit products, unsecured credit products, fees, commissions, and other services.
Secured Credit Revenues — encompassing Private Payroll, Public Payroll, and FGTS loans — reached R$ 820 million in 1Q26, representing 272% year-over-year growth and 41% quarter-over-quarter. This trajectory reflects the rapid scaling of our Private Payroll loans operations and continued expansion in other secured products — all aligned with our strategy of increasing the weight of products with structurally favorable risk profiles.
Unsecured Credit Revenues — comprising personal loans and credit cards — reached R$ 1,089 million in 1Q26, growing 44% compared to 1Q25 and 10% sequentially. The moderation in quarter-over-quarter pace relative to secured reflects our selective origination posture for non-collateralized products, consistent with our stated underwriting discipline in the current macro environment.
Non-Credit Revenues — including fees, commissions, other services, float, and hedge accounting — reached R$ 1,604 million in 1Q26, an increase of 47% versus 1Q25 and 11% versus 4Q25. This performance underscores the strength of our broader platform monetization, beyond credit-related revenue streams.
| investor.picpay.com | 17 |
| |
| Secured Credit Revenues | Unsecured Credit Revenues(1) | Non-Credit Revenues |
| R$ million | R$ million | R$ million |
 |
 |
 |
1.2 ARPAC
Our quarterly average revenue per active client (ARPAC) totaled R$80.7, an increase of 55% from 1Q25 and 14% sequentially. ARPAC, excluding hedge accounting and derivatives, reached R$73.3 in 1Q26, up 46% from 1Q25 and 6% quarter-over-quarter.
Quarterly Average Revenue per Active Client
R$ / active client
Note: (1) The quarterly average revenue per active client is equal to the total net revenue and financial income in the quarter divided by the average number of quarterly active clients, considering the beginning and the end of each period.
2. Expenses & Operating Efficiency
2.1. Transactional and financial expenses
Total transaction and financial expenses reached R$1.4 billion in the first quarter of 2026, up 75% from 1Q25 and 20% compared to 4Q25. Such an annual increase can mainly be explained by a 96% increase in interest and other financial expenses over the last 12 months. This increase was mainly due to higher funding costs, higher interest rates in Brazil over the last 12 months, and the increased volume of fixed-term PicPay CDs offered through third-party channels. Additionally, the increase was attributed to higher expenses related to derivative financial instruments, which rose by R$256 million in the period.
Credit loss allowance expenses totaled R$974 million in 1Q26, up 103% year-over-year. Such an increase is mainly due to the accelerated growth of our credit portfolio during the last twelve months.
| investor.picpay.com | 18 |
| |
2.2. Gross Profit
As a result of the factors mentioned above, we recorded gross profit of R$1.1 billion in 1Q26, an increase of 44% compared to 1Q25 and 8% sequentially.
Gross Profit
R$ million
Note: (1) Gross Profit for the quarter and the full year is calculated as the total net revenues and financial income minus total transaction and financial expenses, less credit loss allowance provisions.
2.3. Operating expenses
In 1Q26, our adjusted operating expenses, excluding expenses related to the share-based long-term incentive plan, totaled R$848 million, representing an increase of R$164.8 million, or 24% year-over-year, and of R$75.3 million, or 10% sequentially.
The annual growth of expenses previously mentioned can be mainly explained by the following items:
| (i) | a growth of R$50.6 million, or 19% year-over-year, in personnel expenses excluding share-based long-term incentive plan (LTIP) expenses in the amount of R$26.8 million in 1Q26, from R$260.3 million in 1Q25 to R$310.8 million in 1Q26. The increase was mainly due to higher employee benefits expenses, which grew by R$40.7 million, or 67% year-over-year, from R$60.7 million in 1Q25 to R$101.4 million in 1Q26, driven by profit-sharing payments to employees related to prior-year performance. |
| (ii) | a growth of R$49.6 million, or 44% year-over-year, in technology expenses from R$112.9 million in 1Q25 to R$162.5 million in 1Q26, mainly due to higher software expenses, which grew R$42.0 million, or 47% year-over-year, in the period as a result of our continued investments in platform scalability and AI infrastructure. |
| (iii) | a growth of R$48.0 million, or 76% year-over-year, in administrative expenses from R$63.1 million in 1Q25 to R$111.1 million in 1Q26, explained by higher provisions for contingencies and other administrative expenses during the last twelve months. |
Additionally, we present the quarterly evolution of our adjusted efficiency ratio. In 1Q26, our adjusted efficiency ratio reached 46.9%, compared with 61.5% in 1Q25 and 49.9% in the previous quarter. We expect to continue delivering strong reductions in revenue consumption as we accelerate top-line growth while maintaining extremely disciplined cost and expense control, as reflected in our current quarterly average cost-to-serve.
AI is already having an impact, as our headcount has been flat since October/25 and the projected 10% increase during 2026 will not materialize. We expect AI to be a major booster of our operating leverage, which should be even more powerful going forward.
| investor.picpay.com | 19 |
| |
Adjusted Efficiency Ratio
%
Note: (1) Efficiency ratio is calculated as the sum of transaction expenses, technology expenses, marketing expenses, personnel expenses, administrative expenses, depreciation and amortization, and other expenses divided by the sum of net revenue from transaction activities and other services, financial income minus interest and other financial expenses, plus other income. (2) The efficiency ratio in 4Q25 was adjusted by non-recurring operating expenses in the period.
2.4. Cost to serve
In 1Q26, our quarterly average cost to serve reached R$20.3 per active client, up 9% from 1Q25 and flat sequentially. Our quarterly average cost to serve was adjusted to exclude the impact of LTIP on personnel expenses, as explained above. Additionally, the ARPAC to CTS ratio closed at 4x, driven by our continued efforts to scale our business with an efficient cost structure and fast-growing revenue quarter after quarter.
Cost to Serve
R$ / active client
Note: (1) The quarterly cost to serve is calculated by the sum of transaction expenses, technology expenses, marketing expenses (excluding CAC expenses), personnel expenses (excluding LTIP), and administrative expenses in the quarter divided by the average number of quarterly active clients in the period.
3. Profitability
As a result of the previously mentioned factors, our IFRS earnings before income taxes (EBT) reached R$222 million, an increase of 189% compared to R$77 million in 1Q25. Adjusted earnings before income taxes, which exclude share-based LTIP, increased 224% to R$248 million in 1Q26, up from R$77 million in 1Q25.
| IFRS EBT | Adjusted EBT | |
| R$ million | R$ million | |
 |
 |
| investor.picpay.com | 20 |
| |
Regarding our IFRS net income, it reached R$152 million in 1Q26, up 72% from 1Q25 and down 82% sequentially, due to the recognition of previously unrecognized deferred tax assets of R$890 million in 4Q25.
Adjusted net income for the period, which excludes share-based LTIP, totaled R$169 million in 1Q26, an increase of 92% against the first quarter of the previous year. Additionally, our quarterly annualized return on equity (ROE) reached 15.5% in 1Q26. The sequential compression is fully explained by the expanded equity base from our R$2 billion IPO capital raise. As we deploy these proceeds into our high-returning credit portfolio, we expect ROE to trend back above 20% within the next couple of quarters.
| IFRS Net Income | Adjusted Net Income & Annualized ROE(1) | |
| R$ million | R$ million; % | |
 |
 |
Note: (1) The quarterly annualized return on equity (ROE) is calculated by multiplying the adjusted net income in the quarter by four and then dividing it by the average adjusted shareholders’ equity (including the aforementioned adjustments in the accumulated net income for the year) in the beginning and end of the period
5. Capital Ratio
We ended the first quarter of the year with a total CET1 of 16.7%. The increase is mainly attributable to the R$2 billion capital increase resulting from our initial public offering in early 2026, of which R$1.5 billion was contributed to PicPay Bank to meet regulatory capital requirements and support the expansion of our credit operations, with the remaining R$0.5 billion held at our holding company in the Netherlands.
Capitalization
Post IPO
R$ billion; % of RWA
Note: (1) The required regulatory capital includes the minimum CET1 ratio (4.5%), the capital conservation buffer (2.5%) as well as the portion of the minimum Tier 1 ratio (1.5%) that can be met with Additional Tier 1 capital instruments (e.g. perpetual subordinated debt), as Picpay is currently fulfilling the entire required Tier 1 ratio, including the conservation buffer, with common equity capital. Once Picpay issues Additional Tier 1 capital instruments sufficient to fulfill the 1.5% requirement, the required CET1 ratio will be 7%.
6. 2Q26 Guidance
Looking ahead, we are providing the following guidance for the second quarter of 2026. Before walking through the numbers, it is important to note that this guidance reflects PicPay’s standalone operations only and does not include any contribution from Kovr, which will be reported separately as that integration progresses.
| investor.picpay.com | 21 |
| |
For 2Q26, we expect our Total Credit Portfolio to reach approximately R$31.0 billion, representing 11% growth from the R$28.0 billion reported in 1Q26, continuing to be driven by the expansion of our secured credit products and more mature credit card cohorts. Quarterly Cost of Risk is expected to remain in the 3.7%–3.9% range, reflecting stable asset-quality dynamics consistent with what we have delivered over the past several quarters.
On the revenue side, Managerial Revenues, which excludes hedge accounting and derivative revenues, are expected to reach approximately R$3,600 million, up 13% quarter-over-quarter, and Net Interest Income is guided at approximately R$1,900 million, a 12% sequential increase. Gross Profit is expected to grow 5%, reaching approximately R$1,150 million.
At the bottom line, we expect continued profitability expansion. IFRS Earnings Before Taxes is guided at approximately R$265 million (+19% QoQ), and Adjusted Earnings Before Taxes, excluding stock-based compensation expenses, is at approximately R$285 million (+15% QoQ). On a net income basis, IFRS Net Income is expected to reach approximately R$235 million (+55% QoQ), and Adjusted Net Income approximately R$245 million (+45% QoQ).
| investor.picpay.com | 22 |
| |
Financials
| investor.picpay.com | 23 |
| |
Consolidated statements of profit or loss
(in thousands of Reais)
| Income Statement (In thousands of Brazilian Reais) | 1Q26 | 4Q25 | 1Q25 | ΔQoQ | ΔYoY | |||||||||||||||
| Net revenue from transaction activities and other services | 552,741 | 596,062 | 455,999 | (7 | %) | 21 | % | |||||||||||||
| Financial income | 2,959,687 | 2,417,995 | 1,607,931 | 22 | % | 84 | % | |||||||||||||
| Total revenue and financial income | 3,512,428 | 3,014,057 | 2,063,930 | 17 | % | 70 | % | |||||||||||||
| Transaction expenses | (186,440 | ) | (212,994 | ) | (184,516 | ) | (12 | %) | 1 | % | ||||||||||
| Interest and other financial expenses | (1,255,936 | ) | (987,364 | ) | (639,920 | ) | 27 | % | 96 | % | ||||||||||
| Total transaction and financial expenses | (1,442,376 | ) | (1,200,358 | ) | (824,436 | ) | 20 | % | 75 | % | ||||||||||
| Credit loss allowance expenses | (974,020 | ) | (800,260 | ) | (480,136 | ) | 22 | % | 103 | % | ||||||||||
| Gross profit | 1,096,032 | 1,013,439 | 759,358 | 8 | % | 44 | % | |||||||||||||
| Technology expenses | (162,462 | ) | (134,921 | ) | (112,901 | ) | 20 | % | 44 | % | ||||||||||
| Marketing expenses | (179,367 | ) | (147,650 | ) | (154,237 | ) | 21 | % | 16 | % | ||||||||||
| Personnel expenses | (337,634 | ) | (540,766 | ) | (260,323 | ) | (38 | %) | 30 | % | ||||||||||
| Administrative expenses | (111,090 | ) | (151,429 | ) | (63,114 | ) | (27 | %) | 76 | % | ||||||||||
| Depreciation and amortization | (118,378 | ) | (116,982 | ) | (103,692 | ) | 1 | % | 14 | % | ||||||||||
| Other expenses | (9,873 | ) | (7,031 | ) | (11,225 | ) | 40 | % | (12 | %) | ||||||||||
| Other income | 44,487 | 52,094 | 22,751 | (15 | %) | 96 | % | |||||||||||||
| Profit before income taxes | 221,714 | (33,246 | ) | 76,617 | n.m. | 189 | % | |||||||||||||
| Current income tax | (199,917 | ) | 131,403 | (187,545 | ) | n.m. | 7 | % | ||||||||||||
| Deferred income tax | 129,940 | 729,680 | 199,024 | (82 | %) | (35 | %) | |||||||||||||
| Total Income Tax and Social Contribution Expense | (69,977 | ) | 861,083 | 11,479 | n.m. | n.m. | ||||||||||||||
| Profit for the period | 151,737 | 827,837 | 88,096 | (82 | %) | 72 | % | |||||||||||||
Adjusted Profit Before Income Taxes Reconciliation
(in thousands of Reais)
| 1Q26 | 4Q25 | 1Q25 | ΔQoQ | ΔYoY | ||||||||||||||||
| (in R$ M) | % | |||||||||||||||||||
Profit before income taxes | 221.7 | (33.2 | ) | 76.6 | n.m. | 189 | % | |||||||||||||
| Adjustments: | ||||||||||||||||||||
| Expenses related to share-based long-term incentive plan(2) | 26.8 | 210.1 | - | - | - | |||||||||||||||
| Expenses related to provision for contingencies(3) | - | 64.3 | - | - | - | |||||||||||||||
| Adjusted Profit Before Income Taxes | 248.5 | 241.2 | 76.6 | 3 | % | 224 | % | |||||||||||||
Adjusted Profit Reconciliation
(in thousands of Reais)
| 1Q26 | 4Q25 | 1Q25 | ΔQoQ | ΔYoY | ||||||||||||||||
| (in R$ M) | % | |||||||||||||||||||
| Profit for the period | 151.7 | 827.8 | 88.1 | (82 | %) | 72 | % | |||||||||||||
| Adjustments: | ||||||||||||||||||||
| Expenses related to share-based long-term incentive plan(2) | 17.6 | 196.1 | - | - | - | |||||||||||||||
| Expenses related to provision for contingencies(3) | - | 54.2 | - | - | - | |||||||||||||||
| Recognition of deferred tax assets(4) | - | (889.9 | ) | - | - | - | ||||||||||||||
| Adjusted Profit | 169.4 | 188.2 | 88.1 | (10 | %) | 92 | % | |||||||||||||
| investor.picpay.com | 24 |
| |
Consolidated Statements of Financial Position
(in thousands of Reais)
| ASSETS | March 31, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | 5,478,020 | 3,863,395 | ||||||
| Financial assets | 36,031,913 | 33,226,869 | ||||||
| Financial assets measured at fair value through profit or loss | 73,069 | 71,451 | ||||||
| Financial Investments | 43,903 | 42,435 | ||||||
| Derivative financial instruments | 29,166 | 29,016 | ||||||
| Financial assets measured at fair value through other comprehensive income | 2,873,043 | 3,000,551 | ||||||
| Financial Investments | 2,873,043 | 3,000,551 | ||||||
| Financial assets measured at amortized cost | 33,085,800 | 30,154,867 | ||||||
| Financial investments | 2,813,277 | 2,891,089 | ||||||
| Trade receivables | 3,903,868 | 4,146,321 | ||||||
| Consumer Loans | 24,110,990 | 20,913,519 | ||||||
| Other receivables | 2,257,666 | 1,911,010 | ||||||
| Prepaid expenses | 233,013 | 273,755 | ||||||
| Other assets | 184,394 | 19,174 | ||||||
| Tax assets | 3,484,546 | 3,609,417 | ||||||
| Current income tax assets | 1,263,934 | 1,533,487 | ||||||
| Deferred tax assets | 2,220,612 | 2,075,930 | ||||||
| Legal deposits | 1,884 | 1,370 | ||||||
| Property, plant and equipment | 108,832 | 110,784 | ||||||
| Right of use assets – leases | 33,098 | 35,462 | ||||||
| Intangible assets | 1,187,678 | 1,138,811 | ||||||
| TOTAL ASSETS | 46,743,377 | 41,986,108 | ||||||
| LIABILITIES | March 31, 2026 | December 31, 2025 | ||||||
| Financial liabilities measured at fair value through profit or loss | 35,989 | 15,751 | ||||||
| Derivative financial instruments | 35,989 | 15,751 | ||||||
| Financial liabilities measured at amortized cost | 39,054,396 | 36,287,500 | ||||||
| Third-party funds | 32,518,418 | 29,974,830 | ||||||
| Trade payables | 5,813,723 | 5,497,113 | ||||||
| Obligations to FIDC FGTS quota holders | 722,255 | 815,557 | ||||||
| Labor obligations | 650,900 | 594,918 | ||||||
| Taxes payable | 511,084 | 826,498 | ||||||
| Deferred tax liabilities | 52,804 | 37,791 | ||||||
| Lease liability | 42,590 | 45,171 | ||||||
| Provision for legal and administrative claims | 271,025 | 254,723 | ||||||
| Other liabilities | 42,075 | 33,842 | ||||||
| Total Liabilities | 40,660,863 | 38,096,194 | ||||||
| Equity | 6,082,514 | 3,889,914 | ||||||
| Share premium reserve | 4,622,647 | 2,589,934 | ||||||
| Treasury shares | (260 | ) | ||||||
| Capital reserve | 136,151 | 131,325 | ||||||
| Fair value reserve | 3,820 | 3,507 | ||||||
| Retained earnings | 1,301,206 | 1,148,018 | ||||||
| Non-Controlling interests | 18,950 | 17,130 | ||||||
| TOTAL EQUITY AND LIABILITIES | 46,743,377 | 41,986,108 | ||||||
| investor.picpay.com | 25 |
| |
Consolidated Statements of Cash Flows
(in thousands of Reais)
| March 31, 2026 | March 31, 2025 | |||||||
| Profit for the period | 151,737 | 88,096 | ||||||
| Adjustments for | ||||||||
| Income tax and social contribution expenses (benefit) | (129,940 | ) | (11,479 | ) | ||||
| Labor provisions | (30,187 | ) | 18,606 | |||||
| Share based long term incentive plan (LTIP) | 26,760 | - | ||||||
| Depreciation/amortization | 118,378 | 103,692 | ||||||
| Provision for legal and administrative claims | 23,150 | 5,275 | ||||||
| Chargeback provision | 2,127 | (5,989 | ) | |||||
| Credit loss allowance | 977,709 | 480,136 | ||||||
| Interest accrued on third party funds | 479,046 | 338,466 | ||||||
| Interest accrued on consumer loans | (384,998 | ) | (580,548 | ) | ||||
| Interest accrued on FIDC FGTS senior quotas | (31,030 | ) | (23,604 | ) | ||||
| Interest accrued on financial assets | (103,334 | ) | (124,416 | ) | ||||
| Variations in operating assets and liabilities | ||||||||
| Financial assets | 307,187 | (1,691,111 | ) | |||||
| Derivative financial instruments | 20,088 | 20,576 | ||||||
| Trade receivables and other receivables | (104,202 | ) | (551,392 | ) | ||||
| Consumer loans | (3,790,182 | ) | (2,215,376 | ) | ||||
| Prepaid expenses | 40,742 | (50,909 | ) | |||||
| Other assets | 89,076 | (265,610 | ) | |||||
| Third-party funds | 2,094,123 | 775,920 | ||||||
| Labor obligations and taxes payable | (256,005 | ) | 110,484 | |||||
| Trade payables and other obligations | 1,221,079 | 816,770 | ||||||
| Obligations to FIDC FGTS quota holders | (62,271 | ) | 3,893 | |||||
| Legal and administrative claims | (6,848 | ) | - | |||||
| Interest received | 754,646 | 329,825 | ||||||
| Interest paid | (784,226 | ) | (110,263 | ) | ||||
| Income tax and social contribution paid | (883,349 | ) | (122,615 | ) | ||||
| Net cash (used in) from operating activities | (260,725 | ) | (2,661,575 | ) | ||||
| Cash flows from investing activities | ||||||||
| Acquisition of property, plant and equipment | (8,161 | ) | (1,849 | ) | ||||
| Acquisition of intangible assets | (154,771 | ) | (173,677 | ) | ||||
| Net cash (used in) investing activities | (162,932 | ) | (175,526 | ) | ||||
| Cash flows from financing activities | ||||||||
| Share Capital Increase | 2,040,863 | 370,191 | ||||||
| Payment of leases | (2,581 | ) | (2,291 | ) | ||||
| Net cash from financing activities | 2,038,282 | 367,900 | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,614,625 | (2,469,201 | ) | |||||
| Cash and cash equivalents at the beginning of the period | 3,863,395 | 7,471,673 | ||||||
| Cash and cash equivalents at the end of the period | 5,478,020 | 5,002,473 | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,614,625 | (2,469,201 | ) | |||||
| investor.picpay.com | 26 |
| |
Exhibit 99.3
1Q26 Earnings Presentation June 02, 2026
2 Disclaimer Forward -Looking Statements This presentation contains forward -looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "forward -looking statements") . All statements other than statements of historical fact contained in this presentation may be forward -looking statements and include, but are not limited to, statements regarding the Company's intent, belief or current expectations . These forward -looking statements are subject to risks and uncertainties, and may include, among others, financial forecasts and estimates based on assumptions or statements regarding plans, objectives and expectations . Although the Company believes that these estimates and forward -looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available, and actual results may differ materially from those expressed or implied in the forward -looking statements due to various factors, including those described in the Company's filings with the SEC . The Company, its advisers and each of their respective directors, officers and employees disclaim any obligation to update the Company's view of such risks and uncertainties or to publicly announce the result of any revision to the forward -looking statements made herein, except where it would be required to do so under applicable law. The forward -looking statements can be identified, in certain cases, through the use of words such as "believe," "may," "might," "can," "could," "is designed to," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "forecast," "plan," "predict," "potential," "aspiration," "should," "purpose," "belief," and similar, or variations of, or the negative of such words and expressions . Forward -looking statements speak only as of the date they were made and the Company cannot guarantee future results, levels of activity, performance or achievements . The Company does not undertake any obligation to update these forward -looking statements in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events . This presentation includes financial information prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (the "IFRS financial information"). This presentation also includes non-IFRS financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with IFRS . There are a number of limitations related to the use of these non-IFRS financial measures and their nearest IFRS equivalents . For example, the Company's definitions of non-IFRS financial measures may differ from non-IFRS financial measures used by other companies . This presentation includes market and industry data and forecasts that the Company has derived from independent consultant reports, publicly available information, various industry publications, other published industry sources, and its internal data and estimates . Independent consultant reports, industry publications and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable . Although the Company believes that these third-party sources are reliable, it does not guarantee the accuracy or completeness of this information, and the Company has not independently verified this information . The Company's internal data and estimates are based upon information obtained from trade and business organizations and other contacts in the markets in which the Company operates and management's understanding of industry conditions . Although the Company believes that such information is reliable, it has not had this information verified by any independent sources . In addition, the information contained in this presentation is as of the date hereof (except where otherwise indicated), and the Company has no obligation to update such information, including in the event that such information becomes inaccurate or if estimates change . Subsequent materials may be provided by or on behalf of the Company in its discretion and such information may supplement, modify or supersede the information in these materials . Neither the Company, nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials . This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners . Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM ©or® symbols, but the Company will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights .
4 André Cazotto Investor Relations, Strategy and M&A Officer Opening Remarks
Strong Execution Leading to Guidance Beat 5 METRIC 1Q26 GUIDANCE 1Q26 ACTUAL GUIDANCE BEAT Total Credit Portfolio ~R$26.5B R$28.0B +5.8% Quarterly Cost of Risk ~3.7% 3.7% Aligned Managerial Revenues (1) ~R$3,150M R$3,190M +1.3% Net Interest Income ~R$1,650M R$1,704M +3.3% Gross Profit R$1,090M R$1,096M +0.6% IFRS EBT ~R$215M R$222M +3.1% IFRS Net Income ~R$140M R$152M +8.4% Adjusted EBT ~R$235M R$248M +5.7% Adjusted Net Income ~R$155M R$169M +9.3% Note: (1) Considers the total revenue and financial income for the 1Q26 excluding derivate and hedge accounting revenues in the amount of R$322 million. Total Revenue and Financial Income ~R$3,150M R$3,512M +11.5%
6 Eduardo Chedid Chief Executive Officer Performance Overview
Wallet & BanTPV 40.2 1Q25 42.7 4Q25 44.3 1Q26 62.1 67.0 68.6 +11% +2% Total Accounts 1Q25 4Q25 1Q26 119.2 157.5 156.0 +31% -1% 7 1Q26 Results Highlights Solid results in operational metrics / Scaling with Consistency Deposits 1Q25 4Q25 1Q26 21.1 28.7 30.8 +46% +7% 1Q25 4Q25 1Q26 103.1 139.4 125.4 +22% -10% 1Q25 4Q25 1Q26 107.9 141.6 134.0 +24% -5% 1Q25 4Q25 1Q26 5.7 9.0 10.2 +78% +13% Quarterly Active Clients Total Accounts in million Consolidated TPV R$ billion Wallet & Banking TPV (2) R$ billion Total Cash -in(3) R$ billion Consumer Deposits R$ billion Active Insurance Policies in million Seasonal effect Seasonal effect Seasonal effect YoY QoQ YoY QoQ YoY QoQ YoY QoQ YoY QoQ YoY QoQ Note: (1) Quarterly Active Clients considers consumers who have opened our app at least once and/or made a financial transaction and/or generated revenues during the preceding three-month period . (2) Wallet & Banking TPV includes the total payment volume generated from our wallet and banking products (P2P, Pix, bill payments, mone y withdrawal, wire transfers, and international remittance and exchange) . (3) Total cash -in includes total funds added to the customers' account balance through Pix, bank slips, payroll portability, P2P payments, and other means . (1)
1,996 68 1Q25 2,930 84 4Q25 3,190 322 1Q26 2,064 3,014 3,512 +70% +17% 8 1Q26 Results Highlights Solid results in financial metrics / Monetizing at Scale Note: (1) Managerial Revenues is the total net revenue and financial income excluding revenues from derivative and hedge accounting . (2) ARPAC means average revenue per active client. ARPAC is calculated as the total net revenues divided by the average number of active clients in the beginning and end of the period . (3) Gross Profit is equal to the total revenue and financial income minus transaction and financial expenses minus credit loss allowance expenses in the period . 50.4 1.7 1Q25 69.0 2.0 4Q25 73.3 7.4 1Q26 52.1 71.0 80.7 +55% +14% Total Revenue and Financial Income (1) R$ million ARPAC (2) R$ / active client Managerial Revenues Derivative & Hedge Accounting Gross Profit (3) R$ million 1Q25 4Q25 1Q26 759 1,013 1,096 +44% +8% YoY QoQ YoY QoQ YoY QoQ +60% +9% +46% +6%
9 1Q26 Results Highlights Solid results in financial metrics / Efficiency Compounding Note: (1) We define the average cost to serve per quarterly active client as the sum of transaction expenses, technology expenses, marketing expenses (excluding customer acquisition expenses), personnel expenses (excluding provision expenses from the share - based long -term incentive plan) , and administrative expenses divided by the average number of quarterly active clients during the period . (2) EBT and Net Income for the 1Q26 were adjusted by the expenses of the share -based long -term incentive plan . Cost to Serve (1) R$ / active client Adjusted EBT (2) R$ million Adjusted Net Income (2) R$ million 1Q25 4Q25 1Q26 18.6 20.4 20.3 +9% -1% 1Q25 4Q25 1Q26 77 241 248 +224% +3% 1Q25 4Q25 1Q26 88 188 169 +92% -10% YoY QoQ YoY QoQ YoY QoQ
10 20% 52% 4% 24% 1Q24 17% 35% 11% 37% 1Q25 21% 25% 23% 31% 1Q26 Float and hedge accounting Fees, commissions, and other services Secured credit products Unsecured credit products 1,137 2,064 3,512 Solid track record with a more resilient and diversified model Total Revenue and Financial Income (R$ MM) 69% Revenues with no or low credit risk (1) (2) (3) (4) Note: (1) "Unsecured credit products" includes interest revenues from the personal loans and credit cards portfolio. (2) "Secured credit products" includes interest revenues from the private payroll loan, public payroll loan, and FGTS portfolios . (3) "Fees, commissions, and other services" includes total net revenue from transaction activities and other services, as well as financial income originating from the prepayment of third-party credit card transactions conducted by our consumers in the ecosystem . (4) "Float and hedge accounting" is calculated as the difference between total revenue and the sum of unsecured credit products, secured credit products, and fees, commissions, and other services .
11 Strong revenue growth, boosted by secured and non -credit revenues 1Q25 2Q25 3Q25 4Q25 1Q26 220 391 465 581 820 +272% +41% Note: (1) "Secured" includes interest revenues from the private payroll loan, public payroll loan, and FGTS portfolios . (2) "Unsecured" includes interest revenues from the personal loans and credit cards portfolio. (3) Non-Credit revenues include "Fees, commissions, and other services" and "Float and hedge accounting" revenues . Secured Credit Revenues (1) in million Unsecured Credit Revenues (2) in million Non -Credit Revenues (3) in million 1Q25 2Q25 3Q25 4Q25 1Q26 754 860 903 988 1,089 +44% +10% 1Q25 2Q25 3Q25 4Q25 1Q26 1,090 1,218 1,363 1,445 1,604 +47% +11%
12 Despite seasonality and capital increase, ROEs are reaching 15.5% Adjusted Net Income (1) (R$ MM) 1Q25 4Q25 1Q26 88 188 169 +92% -10% Quarterly Annualized Adjusted ROE (2) (%) 17.7% 1Q25 24.4% 4Q25 15.5% 1Q26 IPO capital increase Note: (1) Adjusted by the expenses of share -based long -term incentive plan expenses . (2) Quarterly Annualized Adjusted ROE is calculated as the adjusted net income for the quarter multiplier by four and then divided by the average adjusted average equity, which is the average considering the beginning and the end of the period .
13 1Q26 Results Highlights Credit origination and portfolio delivering relevant growth trends 1Q25 4Q25 1Q26 12.4 17.6 17.4 +41% -1% 1Q25 4Q25 1Q26 2.0 4.4 4.5 +119% +2% 12.9 (99% ) 0.1 (1%) 1Q25 22.5 (93% ) 1.6 (7% ) 4Q25 26.1 (93% ) 2.0 (7% ) 1Q26 13.0 24.1 28.0 +116% +17% PicPay Card TPV R$ billion Consumer Loans Origination R$ billion Total Credit Portfolio R$ billion Consumers SMBs and others YoY QoQ YoY QoQ YoY QoQ Flat despite seasonality
PicPay Card Skip purchases Recent Releases and Partnerships Kovr Acquisition SUSEP (insurance regulator) and Central Bank CADE (Antitrust Agency) Strategic Partnership PicPay + TIM Lower CAC Higher Engagement Two -way distribution agreement • PicPay will offer TIM ´s telecom plans in app Partnership is expected to reduce PicPay's CAC by activating new users through TIM's existing infrastructure • TIM will offer the PicPay account and credit products to its large base of customers Transaction approved on May 28 th, without restrictions Approval still pending 14 SMBs Supply Chain Finance Allow businesses to anticipate receivables and improve their cash cycle. R$693M 1Q26 origination New accounts / month ✓ (telecom operator) 4Q25 1Q26 +60k +80k
brand favorability achieved versus 44% average in the financial services category 81% "Your Next Bank" marks PicPay's evolution from a payment platform to a full -service bank — building trust and daily relevance while preserving the simplicity and innovation that set us apart. Your Next Bank New Brand Positioning : "Your Next Bank " +1.2 B impressions + 75M views
16 Danilo Caffaro Executive Vice President of Consumer Banking Credit Overview
Significant room to increase credit market share Private Payroll Loans Portfolio¹ Personal Loans Portfolio¹² Cards TPV³ Credit Cards Portfolio¹ 0.20% 4.93% 2.00% 2.76% 1.18% 1.53% 0.77% 1.08% Market Share (1) – 1Q26 (%) Note: (1) Market data from the Central Bank of Brazil, as of March 2026 and March 2025. (2) Market data from the Central Bank of Br azi l as of March 2026 and March 2025, includes personal loans, FGTS, BNPL and renegotiaton . (3) Total card TPV in 1Q26 and 1Q25. Market data from ABECS. 17 1Q25 1Q26
18 Credit growth driven by secured products and mature credit cards Consumer Credit Portfolio Evolution R$ Bn 22.5 4Q25 Public Payroll Loans 60% Private Payroll Loans Mature Cards (12+ mo) New Cards (< 12mo) Unsecured Personal Loans 26.1 1Q26 FGTS 2% 8% (9)% 30% 6% 4% Less risk More risk +R$ 3.6 Bn + 16% QoQ 91% on lower -risk loans and mature credit cards +0.1 (0.1) +2.1 +1.1 +0.2 +0.1 Portfolio sale (1) Note: (1) Portfolio sale for the purpose of funding diversification and optimization of unit economics.
19 Private Payroll Loans | A more mature product and deeper risk knowledge supported growth acceleration Origination 12.6% $FPD30 (1) Note: (1) First payment default over 30 days. (2) Expected results based on current performance and lifetime projections. Delinquency Rate (% 30 days past due) (maturing) (ex-Apr'25) Operational challenges in the broader private payroll loan market – a new product category for the entire industry, where payroll data integration, employer verification process, and the early ecosystem infrastructure were still maturing. 2Q25 4Q25 1Q26 3Q25 R$1bn 2Q25 3Q25 4Q25 17.6% (ex-Apr'25) Operational issues from the beginning of credit operations 4.2% 8.4% 12.6% Product Launch: Operational issues Stop & Learn Relaunch after gaining confidence Acceleration after consistent performance 1 2 3 4 5 6 7 8 9 10 11 Apr -25 Feb -26 Operational issues from the beginning of credit operations
20 Private Payroll Loans | Higher -risk expansion has been intentional and driven by strong unit economics, with rapid response to changing risk dynamics Note: (1) NIMAL, ROE, and Loss Absorption (LA) are lifetime projections based on current performance. (2) First payment default ove r 30 days of 1Q26. (3) ROE: estimated, does not consider fixed expenses. 29% 30% 28% 4.2% 6.0% 13.7% NIMAL (1) (%) $FPD30 (2) (%) Cumulative Indicators Marginal ROE (1)(3) (%; yearly) LA (1) (%) 90 -100% <50% 100-110% 50 -55% 110-120% 55 -60% Less risk More risk
21 Rodrigo Couto Chief Financial Officer Financial Results
Managerial Revenue (1) & Adj. Operating Expenses (2) R$ MM; % Adj. Efficiency Ratio (3)(4) & Adj. Quarterly Annualized ROE (5) Evolution % 22 Increasing Profitability Driven by Fast Revenue Growth and Scale Gains 683 739 773 772 848 1,996 1Q25 2,364 2Q25 2,601 3Q25 2,930 4Q25 3,190 1Q26 17.7% 1Q25 20.3% 2Q25 15.5% 3Q25 24.4% 4Q25 15.5% 1Q26 61.5% 56.2% 53.8% 49.9% 46.9% Adj. Efficiency Ratio Adjusted ROE +60% Growth +24% Growth Managerial Revenue Adj. Operating Expenses Notes : (1) Managerial revenue is the total net revenue and financial income adjusted by the hedge accounting positive impact for each quarter. (2) Expenses are the sum of technology expenses, marketing expenses, personnel expenses, administrative expenses, depreciation and amortization expenses, and other expenses (income) for the period . (2) Adjusted by the recognition of non-cash expenses related to one-time initial expenses of the share -based long -term incentive plan and the recognition of expenses related to the establishment of provisions for contingencies (expenses related to labor taxes payable on bonuses awarded for employee performance in 2023 and 2024 for which our assessment of the expected outcome has been updated and expenses related to Contribution for Intervention in the Economic Domain ("CIDE") dispute for which our assessment of the expected outcome has been updated .) (3) The Efficiency Ratio considers the sum of transactional expenses, technology expenses, marketing expenses, personnel expenses, administrative expenses, and other expenses divided by total revenue and financial income minus interest and other financial expenses, and other income . (4) Adjusted by the aforementioned non-recurring effects plus the recognition of previously unrecognized deferred tax assets based on expectations that PicPay Payment Institution will generate sufficient taxable profit in the future against which the asset can be realized . (5) Quarterly Annualized ROE is calculated as the net income for the quarter multiplied by 4 and then divided by the average equity for the period . IPO capital increase
23 Financial Margin Expansion Net Interest Income (NII) (1) & Net Interest Income Margin (NIM) (2) R$ MM & % Notes: (1) NII is calculated as financial income less interest and other financial expenses. (2) NIM is calculated as NII mul tiplied by 4 and then divided by the average of the following balance sheet metrics: (i) cash and cash equivalents; (ii) financial assets at fair value through profit or loss; (iii) financial assets at fair value through other comprehensive incom e, or OCI; (iv) interest -earning portfolio; (v) other receivables; and (vi) other financial assets at amortized cost. (3) We calculate margin from credit products as the sum of total net revenue from transaction activities and other services and fina ncial income from our credit operations (cards and loans) minus cost of funding from these products. (4) We calculate margin from credit products after losses as margin from credit products minus credit loss allowance expenses. Margin from Credit products (3) R$ MM 986 1Q25 2Q25 3Q25 4Q25 1Q26 1,153 1,258 1,483 1,771 +80% +19% 968 19.9% 1Q25 21.9% 2Q25 19.5% 3Q25 19.9% 4Q25 20.7% 1Q26 1,212 1,277 1,431 1,704 +76% +19% NII NIM Margin from Credit Products After Losses (4) R$ MM 506 539 626 682 798 1Q25 2Q25 3Q25 4Q25 1Q26 +58% +17%
24 Strong Credit Growth Increasingly Focused on Secured Products Total Credit Portfolio R$ MM 42% 58% 1Q25 45% 55% 2Q25 44% 56% 3Q25 51% 49% 4Q25 54% 46% 1Q26 12,986 16,084 18,662 24,068 28,043 +3,975 +116% +17% Secured Unsecured 69% 31% 1Q26 Secured Unsecured 3,975 Portfolio growth driven by secured products Private Payroll Loan Public Payroll Loan FGTS Prepayment Secured Cards Credit Card Personal Loan Buy Now Pay Later +3 p.p. QoQ +12 p.p. YoY
25 Portfolio Classification by Stages and Coverage Total Credit Portfolio R$ MM Coverage by Stage % Stage 1 Stage 2 Stage 3 Stage 1 83.8% 84.1% 83.5% 76.4% 77.0% 56.8% 1Q25 56.6% 2Q25 59.1% 3Q25 62.0% 4Q25 63.9% 1Q26 Stage 3 1.0% 1.5% 1.1% 1.4% 1.3% Stage 2 + 3 Revision of S3 criteria in 4Q25 resulted in reclassification of credits from stage 2 to 3 while maintaining strong coverage of S2+3 Stage 2 40.1% 39.2% 40.5% 38.8% 41.3% 81% 7% 12% 4Q25 80% 7% 13% 1Q26 24,068 28,043 +17%
Evolution of Stage 2 and 3 Formation 26 Stage 3 Formation (2) Notes : (1) The stage 2 formation rate is calculated considering stage 2 credit balance in the end of the period minus the stage 2 credit balance in the previous period plus write-off in the current period divided by the total credit portfolio in the previous period . (2) The stage 3 formation rate is calculated considering the stage 3 balance in the end of each period minus the stage 3 balance in the previous period plus write-off in the current period divided by the total credit portfolio the previous period . 2.9% 1Q25 3.1% 2Q25 3.8% 3Q25 7.1% 4Q25 3.9% 1Q26 Stage 2 Formation (1) 6.9% 1Q25 6.8% 2Q25 6.2% 3Q25 5.5% 4Q25 5.8% 1Q26 S2 formation rate rose slightly, which is normal in Q1 due to seasonality, but was 110bps lower than on 1Q25 S3 formation rate came in at 3.9% in 1Q26, confirming the normalization after the methodology adjustment made in 4Q25
27 Performance in line with Loss Absorption guidelines, Stable Cost of Credit, and Higher Portfolio Coverage Quarterly Cost of Risk (2) % Loss Absorption Ratio (1) % Note: (1) Represents all the expected losses over all the lifetime credit -related revenues of a given credit concession . (2) Quarterly cost of risk is calculated as the credit loss allowance expenses in the quarter divided by the average total credit portfolio at the beginning and end of the period for each quarter presented . (3) Total coverage is calculated as the total credit loss provision divided by the total credit portfolio. Credit Loss Allowance Expenses & Total Coverage (3) R$ mm; % 480 615 633 800 974 10.2% 1Q25 11.7% 2Q25 12.8% 3Q25 13.1% 4Q25 13.9% 1Q26 Total Coverage CLA expenses 4.1% 1Q25 4.2% 2Q25 3.6% 3Q25 3.7% 4Q25 3.7% 1Q26 48.7% 1Q25 53.3% 2Q25 50.2% 3Q25 54.0% 4Q25 54.9% 1Q26 At the portfolio level, loss absorption has been running within its expected range For the 2Q26, we expect cost of risk of 3.7-3.9% Increasing portfolio coverage
Increasing Funding Base with Stable Cost 95.7% 1Q25 96.4% 2Q25 94.2% 3Q25 93.6% 4Q25 94.0% 1Q26 21.2 24.8 27.8 30.0 32.5 +53% +8% Cost of Funding Third-party funds Third -party funds (1) and Cost of Funding (2) (R$ Bn & % of CDI) 28 Note: (1) Third -party funds include the following : (i) user CDBs and payment accounts ; (ii) deposits from corporate customers ; (iii) other obligations under financial instruments – such as non-convertible subordinated Financial Letters namely : a fixed-rate senior Financial Letter (R$ 254 million) and a CDI -indexed subordinated Financial Letter (R$ 532 million), maturing on December 22, 2027 and December 28, 2039 , respectively ; (iv) balance of commercial establishments – corporates ; (v) financial liabilities under repurchase agreements – LFT . Multiple sources of Funding Growth... ▪ Digital On platform ▪ Third-party platforms ▪ FIDCs ▪ Financial Letter of Credit (LC) ... and actively seeking other efficient sources of funding in the market In May 2026, we issued PicPay FIDC FGTS II, raising R$1.25 billion
Stronger capital base, boosted by IPO Proceeds CET1 ratio (R$ billion; % of RWA) 29 2.0 (8.5%) 1.5 (6.2%) 0.5 (2.0%) 1Q26 16.7% Excess Capital Held at PicS N.V. Excess Capital Held at PicPay Bank Required Regulatory Capital (1) Including Conservation Buffer Note: (1) The required regulatory capital includes the minimum CET 1 ratio (4.5% ), the capital conservation buffer (2.5% ) as well as the portion of the minimum Tier 1 ratio (1.5% ) that can be met with Additional Tier 1 capital instruments (e.g. perpetual subordinated debt), as PicPay is currently fulfilling the entire required Tier 1 ratio, including the conservation buffer, with common equity capital . Once PicPay issues Additional Tier 1 capital instruments sufficient to fulfill the 1.5% requirement, the required CET 1 ratio will be 7%
30 Eduardo Chedid Chief Executive Officer Final Remarks
2Q26 Guidance (ex -Kovr ) 31 Total Credit Portfolio Quarterly Cost of Risk Managerial Revenues (1) Net Interest Income Gross Profit IFRS Net Income Adjusted EBT Adjusted Net Income IFRS EBT 1Q26 RESULTS R$ 28.0 B 3.7% R$ 3,190 M R$ 1,704 M R$ 1,096 M R$ 152 M R$ 248 M R$ 169 M R$ 222 M QoQ GROWTH +11% Within Range +13% +12% +5% +55% +15% +45% +19% ~R$ 31.0 B 3.7 – 3.9% ~R$ 3,600 M ~R$ 1,900 M ~R$ 1,150 M ~R$ 235 M ~R$ 285 M ~R$ 245 M ~R$ 265 M Note: (1) Considers net revenues excluding derivative and hedge accounting revenues for each quarter . 2Q26 EXPECTATION
32 Resilient Portfolio, Confident Outlook Although some market credit indicators suggest some deterioration, a closer look at PicPay's portfolio - which is more resilient by design - reassures us about our risk -adjusted return policy and our ability to continue growing profitably. Focus on Risk Adjusted Returns Our strategy is driven by risk-adjusted returns, not by optimizing for the lowest NPLs. 01 More Resilient Portfolio More diversified and resilient credit portfolio, combining secured products, mature unsecured cohorts, and transactional -led underwriting 02 The Power of our Transactional Ecosystem Through our digital wallet and Open Banking, we are able to leverage proprietary behavioral data and real time engagement signals 03 Market - Beating performance in private payroll Reflected in lower FPD metrics demonstrates our better product velocity, digital distribution and operational excellence 04 We remain confident in our ability to meet our projections in 2026
3 3 Q&A
3 4 Non-IFRS Measures Reconciliation
35 Adjusted Profit Before Income Taxes Reconciliation 1Q26 4Q25 1Q25 ΔQoQ ΔYoY (in R$ M) % Profit before income taxes 221.7 (33.2) 76.6 n.a. 189.4% Adjustments : Expenses related to share -based long -term incentive plan 26.8 210.1 - (87.3)% n.a. Expenses related to provision for contingencies - 64.3 - n.a. n.a. Adjusted Profit Before Income Taxes 248.5 241.2 76.6 3.0% 224.3%
36 Adjusted Profit Reconciliation 1Q26 4Q25 1Q25 ΔQoQ ΔYoY (in R$ M) % Profit for the period 151.7 827.8 88.1 (81.7%) 72.2% Adjustments : Expenses related to share -based long -term incentive plan 17.6 196.1 - (87.3)% n.a. Expenses related to provision for contingencies - 54.2 - n.a. n.a. Recognition of deferred tax assets - (889.9) - n.a. n.a. Adjusted Profit Before Income Taxes 169.4 188.2 88.1 (10.0)% 92.3%
Glossary
Glossary • Adjusted Efficiency Ratio : Efficiency Ratio considers the sum of transactional expenses , technology expenses , marketing expenses , personnel expenses , administrative expenses , and other expenses divided by total revenue and financial income minus interest and other financial expenses , and other income . Adjusted by the aforementioned non-recurring effects plus the recognition of previously unrecognized deferred tax assets based on expectations that PicPay Payment Institution will generate sufficient taxable profit in the future against which the asset can be realized . • Adjusted Net Income : We calculate Adjusted Net Income as our profit for the period /year , adjusted to include or exclude certain non-recurring and/ or non-cash items of income and expense , such as : (i) initial recognition of share -based long -term incentive plan expenses ; (ii) expenses related to one -time provision for contingencies ; and (iii) initial recognition of certain tax assets . • Adjusted Operating Expenses : Expenses are the sum of technology expenses , marketing expenses , personnel expenses , administrative expenses , depreciation and amortization expenses , and other expenses (income) for the period . Adjusted by the recognition of non-cash expenses related to one -time initial expenses of the share - based long -term incentive plan and the recognition of expenses related to the establishment of provisions for contingencies (expenses related to labor taxes payable on bonuses awarded for employee performance in 2023 and 2024 for which our assessment of the expected outcome has been updated and expenses related to Contribution for Intervention in the Economic Domain ("CIDE") dispute for which our assessment of the expected outcome has been updated .) • Adjusted Profit Before Income Taxes (Adjusted EBT) : We calculate Adjusted Profit Before Income Taxes as our profit before income taxes, adjusted to include or exclude certain non-recurring and /or non-cash items of income and expense , such as : (i) initial recognition of share -based long -term incentive plan expenses ; and (ii) expenses related to one -time provision for contingencies . • Consolidated TPV : We define total payment volume, or "TPV," as the aggregate amount of payments , outbound transfers (sending money ) and cash -out, net of reversals , successfully completed on our platform . TPV represents the total amount of payments that pass through our ecosystem , and we generate revenue from certain payment transactions as a percentage of TPV . • Cost of Funding (% do CDI) : The cost of funding is mainly related to the interest expenses paid to customers who deposit funds in CDB, which are used to lend money to other customers in the form of loans . CDI is the brazilian interbank deposit rate. • Deposits : We define deposits as the balance of the payment account , CDBs below and above 30 days of maturity, fixed-term CDBs offered by our PicPay Invest platform, and piggy banks (cofrinhos) held by consumers on our platform . Additionally , deposits also include CDBs distributed through third-party platforms . • Gross Profit : We calculate Adjusted Gross Profit as our Profit before income taxes, adjusted to exclude the following items of income and expense which are not variable expenses that fluctuate with payment and lending volume levels and with the sale of our products and services : (i) technology expenses ; (ii) marketing expenses ; (iii) personnel expenses ; (iv) administrative expenses ; (v) depreciation and amortization ; (vi) other expenses ; and (vii) other income . 38
Glossary • Margin from credit products : We calculate margin from credit products as the sum of total net revenue from transaction activities and other services and financial income from our credit operations (cards and loans ) minus cost of funding from these products . • Margin from credit products after losses : We calculate margin from credit products after losses as margin from credit products minus credit loss allowance expenses . • Net Interest Income (NII): We calculate Net Interest Income (NII) as financial income less interest and other financial expenses . • Net Interest Margin (NIM): NIM is calculated as NII multiplied by 4 and then divided by the average of the following balance sheet metrics : (i) cash and cash equivalents ; (ii) financial assets at fair value through profit or loss ; (iii) financial assets at fair value through other comprehensive income, or OCI ; (iv) interest-earning portfolio; (v) other receivables ; and (vi) other financial assets at amortized cost . • NIMAL (Net Interest Margin Adjusted for Losses ): Net interest income after credit losses as a percentage of average loan portfolio • PicPay Card TPV : means the total payment volume generated from transactions made with our PicPay Card . • Quarterly Active Clients : means a consumer who has opened our app at least once and/ or made a financial transaction and/ or generated revenues during the preceding three-month period . Accounts that were voluntarily closed during the preceding three- month period are included in the calculation of total active consumers . • Quarterly Annualized ROE : is calculated as the net income for the quarter multiplied by 4 and then divided by the average equity for the period . • Quarterly Average Cost to Serve per Quarterly Active Client (CTS) : We define quarterly average cost to serve per quarterly active client, or "CTS," as the sum of transaction expenses , technology expenses , marketing expenses (excluding customer acquisition expenses ), personnel expenses and administrative expenses during the applicable three-month period divided by the average number of quarterly active clients during the applicable three-month period . The average number of quarterly active clients is defined as the average of the number of quarterly active clients on the end date of the immediately prior three-month period and the number of quarterly active clients on the end date of the current three-month period . • Quarterly Average Revenue per Quarterly Active Client (ARPAC) : We define quarterly average revenue per quarterly active client, or "ARPAC," as the total quarterly revenue and financial income of consumers divided by the average number of quarterly active clients during this period . The average number of quarterly active clients is defined as the average of the number of quarterly active clients on the end date of the immediately prior three-month period and the number of quarterly active clients on the end date of the current three-month period . • Stage 2 Formation : Stage 2 Formation represents the net inflow of Stage 2 exposures during the period . The indicator is calculated by the variation in the Stage 2 balance compared to the previous period , adjusted for operations that migrated from Stage 2 to Stage 3, divided by the total balance of operations in Stage 1 and Stage 2 at the beginning of the period . • Stage 3 Formation : The stage 3 formation rate is calculated considering the stage 3 balance in the end of each period minus the stage 3 balance in the previous period plus 39
Glossary • Total Accounts : We define total accounts as the number of PicPay accounts opened by individuals , excluding accounts that have been charged -off, blocked or voluntarily closed by our consumers . Our management uses total accounts data to measure the growth of our brand and to evaluate our market positioning as a financial institution among our main competitors . • Total Cash -in: We define total cash -in as total cash inflows into our digital wallet. To "cash in" means to add funds to the balance of a digital wallet account from outside our platform via transfers from other financial institutions (wire transfers ), including via the Brazilian Central Bank's instant payment system (Pix), via boleto (bank slip), through the receipt of funds via P2P payments , payroll portability , contracting loans or pulling funds from other banks in app through Open Finance (PicPay operating as a payment initiator). • Total Credit Portfolio : We define Total Credit Portfolio as the outstanding end -of-period balance of our credit product receivables , including secured and unsecured consumer loans (such as FGTS loans , payroll loans , and personal loans ), and secured and unsecured credit cards (gross of credit loss allowance ). • Wallet & Banking TPV : means the total payment volume generated from our wallet and banking product (P2P, cash -out Pix, bill payment , money withdrawal , wire transfers and international remittance & exchange ). 40
Thank you
Exhibit 99.4
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of PicS N.V. (formerly known as PicPay Holdings Netherlands B.V)
Results of review of interim financial statements
We have reviewed the interim condensed consolidated statement of financial position of PicS N.V., formerly known as PicPay Holdings Netherlands B.V. (the Company), as of March 31, 2026, the related interim condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2026 and 2025, and the related notes (collectively, the interim condensed consolidated financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB).
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2025, and the related consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended (not presented herein); and in our report dated April 30, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2025, is fairly stated, in all material respects, in relation to the statement of financial position from which it has been derived.
Basis for Review Results
These condensed consolidated interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ KPMG Auditores Independentes Ltda.
São Paulo, Brazil
June 02, 2026
2
|
PicS N.V. Unaudited Interim Condensed Consolidated Statements of Financial Position As of March 31, 2026 and December 31, 2025 (Thousands of Reais) |
 |
| ASSETS | Note | March 31, 2026 | December 31, 2025 | |||||||
| Cash and cash equivalents | 6 | |||||||||
| Financial assets | ||||||||||
| Financial assets measured at fair value through profit or loss | ||||||||||
| Financial Investments | 7.1 | |||||||||
| Derivative financial instruments | 7.2 | |||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||||
| Financial Investments | 7.1 | |||||||||
| Financial assets measured at amortized cost | ||||||||||
| Financial investments | 7.1 | |||||||||
| Trade receivables | 8.1 | |||||||||
| Consumer Loans | 8.2 | |||||||||
| Other receivables | 8.4 | |||||||||
| Prepaid expenses | ||||||||||
| Other assets | ||||||||||
| Tax assets | ||||||||||
| Current income tax assets | ||||||||||
| Deferred tax assets | 9.1 | |||||||||
| Legal deposits | ||||||||||
| Property, plant and equipment | ||||||||||
| Right of use assets – leases | ||||||||||
| Intangible assets | 10 | |||||||||
| TOTAL ASSETS | ||||||||||
| LIABILITIES | Note | March 31, 2026 | December 31, 2025 | |||||||
| Financial liabilities measured at fair value through profit or loss | ||||||||||
| Derivative financial instruments | 7.2 | |||||||||
| Financial liabilities measured at amortized cost | ||||||||||
| Third-party funds | 11 | |||||||||
| Trade payables | 12 | |||||||||
| Obligations to FIDC FGTS quota holders | 13 | |||||||||
| Labor obligations | 14 | |||||||||
| Taxes payable | 15.1 | |||||||||
| Deferred tax liabilities | 9.2 | |||||||||
| Lease liability | ||||||||||
| Provision for legal and administrative claims | 16 | |||||||||
| Other liabilities | ||||||||||
| Total Liabilities | ||||||||||
| Equity | 17 | |||||||||
| Share premium reserve | ||||||||||
| Treasury shares | ( | ) | ||||||||
| Capital reserve | ||||||||||
| Fair value reserve | ||||||||||
| Retained earnings | ||||||||||
| Non-Controlling interests | ||||||||||
| TOTAL EQUITY AND LIABILITIES | ||||||||||
The notes are an integral part of unaudited interim condensed consolidated financial statements.
3
|
PicS N.V. Unaudited Interim Condensed Consolidated Statements of Profit or Loss For the three-month period ended March 31, 2026 and 2025 (Thousands of Reais) |
|
| Note | March 31, 2026 | March 31, 2025 | ||||||||||
| Net revenue from transaction activities and other services | ||||||||||||
| Financial income | 19 | |||||||||||
| Total revenue and financial income | ||||||||||||
| Transaction expenses | 20 | ( | ) | ( | ) | |||||||
| Interest and other financial expenses | 21 | ( | ) | ( | ) | |||||||
| Total transaction and financial expenses | ( | ) | ( | ) | ||||||||
| Credit loss allowance expenses | 22 | ( | ) | ( | ) | |||||||
| Technology expenses | 23 | ( | ) | ( | ) | |||||||
| Marketing expenses | 24 | ( | ) | ( | ) | |||||||
| Personnel expenses | 25 | ( | ) | ( | ) | |||||||
| Administrative expenses | 26 | ( | ) | ( | ) | |||||||
| Depreciation and amortization | ( | ) | ( | ) | ||||||||
| Other expenses | ( | ) | ( | ) | ||||||||
| Other income | ||||||||||||
| Profit before income taxes | ||||||||||||
| Current income tax and social contribution | 15.2 | ( | ) | ( | ) | |||||||
| Deferred income tax and social contribution | 15.2 | |||||||||||
| Total income tax and social contribution (expense) benefit | ( | ) | ||||||||||
| Profit for the period | ||||||||||||
| Profit attributable to the Company’s shareholders | ||||||||||||
| Profit attributable to non-controlling interests | ||||||||||||
| Earnings per share – basic and diluted | ||||||||||||
The notes are an integral part of unaudited interim condensed consolidated financial statements.
4
|
PicS N.V. Unaudited interim condensed consolidated statements of comprehensive income For the three-month period ended March 31, 2026 and 2025 (Thousands of Reais) |
|
| March 31, 2026 | March 31, 2025 | |||||||
| Profit for the period | ||||||||
| Other comprehensive income/(loss) (OCI) | ||||||||
| - Items that are or may be reclassified subsequently to profit or loss | ||||||||
| Fair value of financial assets at fair value through other comprehensive income | ||||||||
| Deferred income tax | ( | ) | ( | ) | ||||
| Reclassification of fair value adjustments to profit or loss | ( | ) | ||||||
| Total comprehensive income | ||||||||
| Comprehensive income attributable to the Company’s shareholders | ||||||||
| Comprehensive income attributable to non-controlling interests | ||||||||
The notes are an integral part of unaudited interim condensed consolidated financial statement.
5
|
PicS N.V. Unaudited interim condensed consolidated statements of changes in equity For the three-month period ended March 31, 2026 and 2025 (Thousands of Reais) |
|
| Note | Share premium reserve | Treasury shares | Capital reserve | Fair value reserve | Retained earnings | Non-Controlling Interest | Total | |||||||||||||||||||||||
| Balances as of December 31, 2025- PicS N.V | ||||||||||||||||||||||||||||||
| Share capital increase | ||||||||||||||||||||||||||||||
| Repurchase of treasury shares | ( | ) | ||||||||||||||||||||||||||||
| IPO cost | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Share-based long-term incentive plan - (LTIP) | ||||||||||||||||||||||||||||||
| Other comprehensive income for the period (OCI) | ||||||||||||||||||||||||||||||
| Fair value of financial assets at fair value through other comprehensive income | ||||||||||||||||||||||||||||||
| Deferred income tax | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Reclassification of fair value adjustments to profit or loss | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Profit for the period | ||||||||||||||||||||||||||||||
| Balances as of March 31, 2026 - PicS N.V | ( | ) | ||||||||||||||||||||||||||||
| Note | Share premium reserve | Treasury shares | Capital reserve | Fair value reserve | Retained earnings | Non-Controlling Interest | Total | |||||||||||||||||||||||
| Balances as of December 31, 2024 -PicS N.V | ||||||||||||||||||||||||||||||
| Share capital increase | ||||||||||||||||||||||||||||||
| Corporate reorganization | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Share-based long-term incentive plan - (LTIP) | ||||||||||||||||||||||||||||||
| Other comprehensive income for the period (OCI) | ||||||||||||||||||||||||||||||
| Fair value of financial assets at fair value through other comprehensive income | ||||||||||||||||||||||||||||||
| Deferred income tax | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Reclassification of fair value adjustments to profit or loss | ||||||||||||||||||||||||||||||
| Profit for the year | ||||||||||||||||||||||||||||||
| Balances as of December 31, 2025- PicS N.V | ||||||||||||||||||||||||||||||
The notes are an integral part of unaudited interim condensed consolidated financial statements.
6
| PicS N.V. Unaudited interim condensed consolidated statements of cash flows Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| Note | March 31, 2026 | March 31, 2025 | |||||||||
| Profit for the period | |||||||||||
| Adjustments for | |||||||||||
| Income tax and social contribution expenses (benefit) | ( | ) | ( | ) | |||||||
| Labor provisions | ( | ) | |||||||||
| Share based long term incentive plan (LTIP) | |||||||||||
| Depreciation/amortization | |||||||||||
| Provision for legal and administrative claims | |||||||||||
| Chargeback provision | ( | ) | |||||||||
| Credit loss allowance | 22 | ||||||||||
| Interest accrued on third party funds | |||||||||||
| Interest accrued on consumer loans | ( | ) | ( | ) | |||||||
| Interest accrued on FIDC FGTS senior quotas | ( | ) | ( | ) | |||||||
| Interest accrued on financial assets | ( | ) | ( | ) | |||||||
| Variations in operating assets and liabilities | |||||||||||
| Financial assets | ( | ) | |||||||||
| Derivative financial instruments | |||||||||||
| Trade receivables and other receivables | ( | ) | ( | ) | |||||||
| Consumer loans | ( | ) | ( | ) | |||||||
| Prepaid expenses | ( | ) | |||||||||
| Other assets | ( | ) | |||||||||
| Third-party funds | |||||||||||
| Labor obligations and taxes payable | ( | ) | |||||||||
| Trade payables and other obligations | |||||||||||
| Obligations to FIDC FGTS quota holders | ( | ) | |||||||||
| Legal and administrative claims | ( | ) | - | ||||||||
| Interest received | |||||||||||
| Interest paid | ( | ) | ( | ) | |||||||
| Income tax and social contribution paid | ( | ) | ( | ) | |||||||
| Net cash (used in) from operating activities | ( | ) | ( | ) | |||||||
| Cash flows from investing activities | |||||||||||
| Acquisition of property, plant and equipment | ( | ) | ( | ) | |||||||
| Acquisition of intangible assets | ( | ) | ( | ) | |||||||
| Net cash (used in) investing activities | ( | ) | ( | ) | |||||||
| Cash flows from financing activities | |||||||||||
| Share Capital Increase | |||||||||||
| Payment of leases | ( | ) | ( | ) | |||||||
| Net cash from financing activities | |||||||||||
| Net increase (decrease) in cash and cash equivalents | ( | ) | |||||||||
| Cash and cash equivalents at the beginning of the period | |||||||||||
| Cash and cash equivalents at the end of the period | |||||||||||
| Net increase (decrease) in cash and cash equivalents | ( | ) | |||||||||
The notes are an integral part of unaudited interim condensed consolidated financial statements.
7
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
1. Operating context
PicS N.V. (formerly known as PicPay Holdings Netherlands B.V.- change effective January 29, 2026). (“PicPay Netherlands” or “Company”, along with its subsidiaries, “PicPay Group” or “Group”), a public limited liability company under Dutch law, resulted from the conversion of PicPay Netherlands B.V., which was a private limited liability company, to a public limited liability company, both under Dutch law. On January 29, 2026, PicS N.V. finalized its initial public offering (“IPO”) and trading of its shares began on the National Association of Securities Dealers Automated Quotation (“NASDAQ”) under the symbol “PICS”.
The PicPay Group is a Brazilian digital financial services platform operating through a set of regulated subsidiaries authorized by the Brazilian Central Bank (“BACEN”). The Group’s principal activities encompass digital payments and money transfers, credit products — including personal loans, payroll-deductible loans and FGTS-collateralized advances — credit card issuance and acquiring, financial investments, securities brokerage and P2P lending. As of March 31, 2026, the Group’s main operating subsidiaries and their respective regulatory authorizations are as follows:
PicPay Instituição de Pagamento S.A. (“PicPay”) is authorized by the Brazilian Central Bank to operate as a payment institution in the capacities of:
(1) issuer of electronic currency;
(2) issuer of postpaid payment instruments;
(3) acquirer;
PicPay Bank – Banco Múltiplo S.A. (“PicPay Bank”) is authorized by the Brazilian Central Bank to operate as a multi-purpose bank, with authorization to perform both commercial and credit, financing and investment activities;
PicPay Invest Distribuidora de Títulos e Valores Mobiliários Ltda. (“PicPay Invest”) is authorized by the Brazilian Central Bank to operate as a securities broker. In addition, PicPay Invest is authorized by the CVM to perform custodian securities services and fiduciary administration and trustee activities;
Guiabolso Finanças Correspondente Bancário e Serviços Ltda. (“Guiabolso”) is a non-regulated entity that operates as a banking correspondent linked to the PicPay application, intermediating financial products and services between the application’s users and commercial partners. Guiabolso’s activities include banking correspondent services, commercialization of advertising spaces, and the provision of debt collection and receivables strategy services on behalf of third parties; and
Crednovo Sociedade de Empréstimo Entre Pessoas S.A. (“Crednovo”) is authorized by the Brazilian Central Bank to operate as a P2P (“Peer-to-peer”) lending fintech company intermediating credit operations between lenders and borrowers.
In addition, its subsidiaries substantially include the following companies: Guiabolso Pagamentos Ltda, BX Negócios Inteligentes Ltda, Fundo de Investimentos em Direitos Creditórios Não-Padronizados PicPay I, Fundo de Investimentos em Direitos Creditórios PicPay FGTS, PicPay Participações e Investimentos Ltda, Nosso Time Igaming, PicPay Holding Ltda and Zem Collection Ltda.
As of March 31, 2026, the controlling shareholder of PicS N.V is J&F International, which holds % of the total issued and outstanding capital stock of PicS N.V. J&F International is a wholly owned subsidiary of J&F Participações.
1.1. Seasonality of operations
The Group´s quarterly financial results are likely to fluctuate as a result of a variety of factors, some of which are outside of the Group’s control, although they do not demonstrate significant seasonality or cyclicality. As a consequence of these factors, an interim period may not be indicative of the annual expected result.
8
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
2. Presentation and preparation of the consolidated financial statements
2.1 Basis of preparation of the unaudited condensed consolidated financial statements
Unaudited condensed interim financial statements of the Company have been prepared in accordance with IAS 34 - Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”).
Unaudited condensed interim financial statements were approved by the Board of Directors at the meeting held on June 02, 2026.
The consolidated interim financial statements were prepared on a historical cost basis, unless otherwise stated.
2.2 Basis of consolidation
These consolidated interim financial statements include PicS N.V and all entities over which it has control (subsidiaries). Control is when the Group is exposed or has rights to variable returns from its involvement with the investee, has existing rights that give it the ability to direct the relevant activities and has the ability to affect those returns through its power over the investee.
The Group reassesses whether it controls a subsidiary if facts and circumstances indicate there are changes to one or more of the elements of control. Consolidation of a subsidiary begins when the Group obtains control over the entity and ceases when the Group loses control. Assets, liabilities, income and expenses of a subsidiary are included in the consolidated financial statements from the date the Group obtains control until the date the Group loses control. Intragroup transactions between parent company and its subsidiaries are eliminated in full on consolidation.
On September 19, 2025, PicPay Participações e Investimentos Ltda entered into an Equity Purchase Agreement for the acquisition (the “Acquisition”) of two separate entities:
(i) shares representing
(ii) quotas representing
Kovr Participações S.A. is a full-service digital insurance company that offers services for multiple partners with products such as affinity, surety, life, financial lines, among others. Estrutural is responsible for brokerage services for Kovr Seguradora S.A.
The purchase price for the acquisition of KOVR
Participações S.A. is approximately R$
The closing of the Acquisition is subject to the precedent conditions for this type of transaction, including approvals from the Central Bank of Brazil (Banco Central do Brasil - BACEN) and the Brazilian federal insurance regulator (Superintendência de Seguros Privados - SUSEP). The precedent conditions have not been fulfilled as of the issuance date of Unaudited condensed financial statements.
9
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
The consolidated financial statements include PicS N.V and the following subsidiaries:
| Entity | Country | Principal activities | March 31, 2026 | December 31, 2025 | Control | |||||||||
| PicS Ltd. | % | % | ||||||||||||
| PicS Holding Ltda | % | % | ||||||||||||
| PicPay Instituição de Pagamento S.A. | % | % | ||||||||||||
| PicPay Bank - Banco Múltiplo S.A. | % | % | ||||||||||||
| Crednovo Sociedade de Empréstimo Entre Pessoas S.A. | % | % | ||||||||||||
| PicPay Invest Distribuidora de Títulos e Valores Mobiliários Ltda | % | % | ||||||||||||
| Guiabolso Correspondente Bancário e Serviços Ltda | % | % | ||||||||||||
| Guiabolso Pagamentos Ltda | % | % | ||||||||||||
| BX Negócios Inteligentes Ltda | % | % | ||||||||||||
| Fundo de Investimentos em Direitos Creditórios Não- Padronizados PicPay I (2) | % | % | ||||||||||||
| Fundo de Investimentos em Direitos Creditórios PicPay FGTS (2) | % | % | ||||||||||||
| PicPay Participações e Investimentos Ltda (3) | % | % | ||||||||||||
| Nosso Time Igaming S.A. (3) | % | % | ||||||||||||
| PicPay Holding Ltda (3) | % | % | ||||||||||||
| Zem Collection Ltda (3) | % | % | ||||||||||||
| (1) | |
| (2) | |
| (3) |
Accounting policies have been applied uniformly to all consolidated entities.
3. Material accounting policies
The accounting policies used in the preparation of these condensed consolidated interim financial statements are the same as those applied in the consolidated financial statements of PicS N.V. for the year ended December 31, 2025, as described in Note 3 to those financial statements, and should be read in conjunction with them.
4. Critical accounting judgments and key estimates and assumptions
In applying the Group’s accounting policies, management must exercise judgment and make estimates which impact the carrying amounts of certain assets and liabilities. Estimates and related assumptions are based on historical experience and other factors considered relevant. Actual results may differ from these estimates.
The underlying estimates and assumptions are reviewed at each reporting period. The effects resulting from revisions made to accounting estimates are recognized in the period in which they are revised.
The critical accounting judgments and key estimates and assumptions used in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2025, as described in Note 3 of those financial statements. No changes in the methods used to determine these judgments and estimates have occurred during the three-month period ended March 31, 2026, except as described below.
10
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
IPO completion and LTIP settlement
On January 30, 2026, the Company completed its initial public offering on the NASDAQ. The IPO represented the occurrence of the qualifying liquidity event under the Long-Term Incentive Plan (LTIP), which constituted the non-market performance condition for vesting of awards granted to employees. Management had assessed the occurrence of this event as probable as of December 31, 2025. Upon completion of the IPO, the liquidity condition was fully met and the vested portion of outstanding LTIP awards became eligible for settlement. Refer to Note 20d for further details.
Recognition of deferred tax assets
The
Group carries deferred tax assets of R$
Expected credit losses
The Group’s consumer loan portfolio
grew from R$
5. Adoption of new accounting standards and interpretations not yet effective
5.1 New standards and amendments effective for annual periods beginning on January 1, 2025
| ● | Lack of exchangeability (Amendments to IAS 21) |
The above-mentioned standards do not have any impact on Unaudited condensed financial statements.
| 5.2 | Other new standards and amendments issued but not yet effective |
| ● | Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) |
| ● | Amendments from ‘Annual Improvements to IFRS Accounting Standards – Volume 11: |
| ● | Presentation and Disclosure in Financial Statements (IFRS 18): The new standard replaces IAS 1 - Presentation of Financial Statements and determines a new structure for the income statement by categorizing it into predefined sections: operating, investing, financing, discontinued operations, and income tax. This standard will take effect on January 1, 2027. The Group expects impacts on disclosures, presentation and classification on financial statements. |
Management did not early adopt any amendments. Also, Management does not expect the adoption of the amendments described above to have a significant impact, other than additional disclosures to the Group’s consolidated interim financial statement.
6. Cash and Cash Equivalents
| March 31, 2026 | December 31, 2025 | |||||||
| Bank balances | ||||||||
| Voluntary deposits at Central Bank (1) | ||||||||
| Reverse repurchase agreements (2) | ||||||||
| Cash and Cash Equivalents | ||||||||
| (1) | |
| (2) |
11
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
7. Financial investments and derivatives
7.1 Financial investments - securities
As of March 31, 2026
| Up to
30 days | From
61 to 90 days | From
91 to 180 days | From
181 to 365 days | Over
365 days | Cost Value | Adjustment to fair value | Fair Value | |||||||||||||||||||||||||
| Financial assets measured at fair value through profit or loss | ||||||||||||||||||||||||||||||||
| Government Bonds - LFT (1) (3) | ||||||||||||||||||||||||||||||||
| Investment Fund Quotas | ||||||||||||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||||||||||||||||||||||||||
| Government Bonds - LFT (1) (3) | ||||||||||||||||||||||||||||||||
| Government Bonds – NTN-B (4) | ||||||||||||||||||||||||||||||||
| Financial assets measured at amortized cost | ( | ) | ||||||||||||||||||||||||||||||
| Government Bonds - LTN (2) | ||||||||||||||||||||||||||||||||
| Government Bonds - NTN-F (6) | ( | ) | ||||||||||||||||||||||||||||||
| Investment Fund Quotas | ||||||||||||||||||||||||||||||||
| Other investments | - | - | - | - | - | |||||||||||||||||||||||||||
| Total | ( | ) | ||||||||||||||||||||||||||||||
As of December 31, 2025
| Up to
30 days | From
61 to 90 days | From
91 to 180 days | From
181 to 365 days | Over
365 days | Cost Value | Adjustment to fair value | Fair Value | |||||||||||||||||||||||||
| Financial assets measured at fair value through profit or loss | ||||||||||||||||||||||||||||||||
| Government Bonds - LFT (1) | ||||||||||||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||||||||||||||||||||||||||
| Government Bonds - LFT (1) (3) | ||||||||||||||||||||||||||||||||
| Government Bonds – NTN-B (4) | ||||||||||||||||||||||||||||||||
| Financial assets measured at amortized cost | ||||||||||||||||||||||||||||||||
| Government Bonds - LTN (2) (5) | ||||||||||||||||||||||||||||||||
| Government Bonds - NTN-F (6) | ( | ) | ||||||||||||||||||||||||||||||
| Investment Fund Quotas | ||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||
| (1) |
| (2) |
| (3) |
| (4) |
12
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| (5) |
| (6) |
7.2 Derivative Financial instruments
Fair Value and Notional values by risk factor and maturity as of March 31, 2026
| Fair Value | Notional value | Up to 30 days | From 31 to 365 days | Over 365 days | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Derivative hedging instrument of portfolio hedge accounting | ||||||||||||||||||||
| Derivatives financial instruments (Swap) | ||||||||||||||||||||
| DI1 – futures contracts (1) (2) | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Derivatives measured at fair value through profit and loss | ||||||||||||||||||||
| DI1 and DDI - futures contracts (1) (2) | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Total Assets | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Derivatives measured at fair value through profit and loss | ||||||||||||||||||||
| DI1 - futures contracts (1) (2) | ||||||||||||||||||||
| Derivative financial instrument (Swap) | ||||||||||||||||||||
| Total liabilities | ||||||||||||||||||||
Fair Value and Notional values by risk factor and maturity as of December 31, 2025
| Fair Value | Notional value | Up to 30 days | From 31 to 365 days | Over 365 days | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Derivative hedging instrument of portfolio hedge accounting | ||||||||||||||||||||
| Derivatives financial instruments (Swap) | ||||||||||||||||||||
| DI1 – futures contracts (1) (2) | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Derivatives measured at fair value through profit and loss | ||||||||||||||||||||
| DI1 and DDI - futures contracts (1) (2) | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Total assets | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Derivatives measured at fair value through profit and loss | ||||||||||||||||||||
| DI1 – futures contracts (1) (2) | ||||||||||||||||||||
| Derivative financial instrument (Swap) | ||||||||||||||||||||
| Total liabilities | ||||||||||||||||||||
| (1) |
| (2) |
13
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8. Financial assets measured at amortized cost
8.1
| March 31, 2026 | December 31, 2025 | |||||||
| Financial transactions processed by acquirers (1) (3) | ||||||||
| Financial transactions processed by card issuers (2) (3) | ||||||||
| Other trade receivables | ||||||||
| Total | ||||||||
| (1) |
| (2) |
| (3) |
8.1.1 Breakdown by maturity – Trade receivables
As of March 31, 2026
| Receivables falling due: | Receivables overdue: | Total | ||||||||||
| Up to 30 days | ||||||||||||
| From 31 to 60 days | ||||||||||||
| From 61 to 90 days | ||||||||||||
| From 91 to 180 days | ||||||||||||
| From 181 to 365 days | ||||||||||||
| Over 365 days | ||||||||||||
| Total | ||||||||||||
As of December 31, 2025
| Receivables falling due: | Receivables overdue: | Total | ||||||||||
| Up to 30 days | ||||||||||||
| From 31 to 60 days | ||||||||||||
| From 61 to 90 days | ||||||||||||
| From 91 to 180 days | ||||||||||||
| From 181 to 365 days | ||||||||||||
| Over 365 days | ||||||||||||
| Total | ||||||||||||
8.2
| March 31, 2026 | December 31, 2025 | |||||||
| Gross amount - Consumer Loans (a) | ||||||||
| Credit loss allowance – on balance (b) | ( | ) | ( | ) | ||||
| Credit loss allowance – off balance (1) | ( | ) | ( | ) | ||||
| Total credit loss allowance | ( | ) | ( | ) | ||||
| Total consumer loans - amortized cost (a +b)(2) | ||||||||
| Fair Value Adjustment – Portfolio Hedge (Note 28.2 - c) | ( | ) | ( | ) | ||||
| Consumer loans | ||||||||
| (1) | |
| (2) | |
14
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8.2.1 Credit loss allowance breakdown
As of March 31, 2026
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 1 | % | ( | ) | % | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 2 | % | ( | ) | % | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 3 | % | ( | ) | % | ||||||||||||||||
| Total consumer loans | % | ( | ) | % | ||||||||||||||||
As of December 31, 2025
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 1 | % | ( | ) | % | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 2 | % | ( | ) | % | ||||||||||||||||
| Credit card | % | ( | ) | % | % | |||||||||||||||
| Loans to customers (1) | % | ( | ) | % | % | |||||||||||||||
| Prepayment of receivables (2) | % | ( | ) | % | % | |||||||||||||||
| Total consumer loans stage 3 | % | ( | ) | % | ||||||||||||||||
| Total consumer loans | % | ( | ) | % | ||||||||||||||||
| (1) | |
| (2) |
15
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8.2.2 Breakdown by maturity
Credit card:
| Not Overdue | Overdue | Not Overdue | Overdue | |||||||||||||||||||||||||||||
| March 31, 2026 | % | March 31, 2026 | % | December 31, 2025 | % | December 31, 2025 | % | |||||||||||||||||||||||||
| Up to 30 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 31 to 60 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 61 to 90 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 91 to 180 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 181 to 365 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 1 to 3 years | % | % | % | % | ||||||||||||||||||||||||||||
| From 3 to 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Over 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Total | % | % | % | % | ||||||||||||||||||||||||||||
| Total overdue and not overdue | % | % | ||||||||||||||||||||||||||||||
Loans to customers:
| Not Overdue | Overdue | Not Overdue | Overdue | |||||||||||||||||||||||||||||
| March 31, 2026 | % | March 31, 2026 | % | December 31, 2025 | % | December 31, 2025 | % | |||||||||||||||||||||||||
| Up to 30 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 31 to 60 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 61 to 90 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 91 to 180 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 181 to 365 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 1 to 3 years | % | % | % | % | ||||||||||||||||||||||||||||
| From 3 to 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Over 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Total | % | % | % | % | ||||||||||||||||||||||||||||
| Total overdue and not overdue | % | % | ||||||||||||||||||||||||||||||
Prepayment of receivables:
| Not Overdue | Overdue | Not Overdue | Overdue | |||||||||||||||||||||||||||||
| March 31, 2026 | % | March 31, 2026 | % | December 31, 2025 | % | December 31, 2025 | % | |||||||||||||||||||||||||
| Up to 30 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 31 to 60 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 61 to 90 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 91 to 180 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 181 to 365 days | % | % | % | % | ||||||||||||||||||||||||||||
| From 1 to 3 years | % | % | % | % | ||||||||||||||||||||||||||||
| From 3 to 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Over 5 years | % | % | % | % | ||||||||||||||||||||||||||||
| Total | % | % | % | % | ||||||||||||||||||||||||||||
| Total overdue and not overdue | % | % | ||||||||||||||||||||||||||||||
16
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8.3 Expected credit losses - by credit quality vs. stages
As of March 31, 2026, the ECL allowance totaled
R$
The table below shows the credit card portfolio segmented by ranges of PD and stages as of March 31, 2026 and December 31, 2025.
Credit card
As of March 31, 2026
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| 5% <= PD <= 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
Loans to customers
As of March 31, 2026
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| 5% <= PD <= 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
Prepayment of receivables
As of March 31, 2026
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
17
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Credit Card
As of December 31, 2025
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| 5% <= PD <= 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
Loans to consumer
As of December 31, 2025
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| 5% <= PD <= 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
Prepayment of receivables
As of December 31, 2025
| Gross Exposure | % | Credit Loss Allowance | % | Coverage Ratio (%) | ||||||||||||||||
| PD < 5% | % | ( | ) | % | % | |||||||||||||||
| Stage 1 | % | ( | ) | % | % | |||||||||||||||
| Stage 2 | % | ( | ) | % | % | |||||||||||||||
| PD > 20% | % | ( | ) | % | % | |||||||||||||||
| Stage 3 | % | ( | ) | % | % | |||||||||||||||
| Total | % | ( | ) | % | % | |||||||||||||||
18
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8.3.1 Changes in credit loss allowance
As of March 31, 2026
Credit card
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
| Transfer from stage 1 to stage 2 | ( | ) | ||||||||||||||
| Transfer from stage 1 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 2 | ( | ) | ||||||||||||||
| Newly originated financial assets (1) | ||||||||||||||||
| Changes in exposures and risk migration (2) | ||||||||||||||||
| Write-offs | ( | ) | ( | ) | ||||||||||||
| Credit loss allowance as of March 31, 2026 | ||||||||||||||||
Loans to customers
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
| Transfer from stage 1 to stage 2 | ( | ) | ||||||||||||||
| Transfer from stage 1 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 2 | ( | ) | ||||||||||||||
| Newly originated financial assets (1) | ||||||||||||||||
| Changes in exposures and risk migration (2) | ( | ) | ||||||||||||||
| Write-offs | ( | ) | ( | ) | ||||||||||||
| Credit loss allowance as of March 31, 2026 | ||||||||||||||||
Prepayment of receivables
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
| Newly originated financial assets | ||||||||||||||||
| Changes in exposures and risk migration (2) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Credit loss allowance as of March 31, 2026 | ||||||||||||||||
| (1) |
| (2) |
As of December 31, 2025
Credit card
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2024 | ||||||||||||||||
| Transfer from stage 1 to stage 2 | ( | ) | ||||||||||||||
| Transfer from stage 1 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 2 | ( | ) | ||||||||||||||
| Newly originated financial assets (1) | ||||||||||||||||
| Changes in exposures and risk migration (2) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Write-offs | ( | ) | ( | ) | ||||||||||||
| Changes to ECL calculation methods | ( | ) | ( | ) | ( | ) | ||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
19
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Loans to customers
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2024 | ||||||||||||||||
| Transfer from stage 1 to stage 2 | ( | ) | ||||||||||||||
| Transfer from stage 1 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 3 | ( | ) | ||||||||||||||
| Transfer from stage 2 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 1 | ( | ) | ||||||||||||||
| Transfer from stage 3 to stage 2 | ( | ) | ||||||||||||||
| Newly originated financial assets (1) | ||||||||||||||||
| Changes in exposures and risk migration (2) | ( | ) | ||||||||||||||
| Write-offs | ( | ) | ( | ) | ||||||||||||
| Changes to ECL calculation methods | ( | ) | ||||||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
Prepayment of receivables
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||
| Credit loss allowance as of December 31, 2024 | ||||||||||||||||
| Newly originated financial assets | ||||||||||||||||
| Credit loss allowance as of December 31, 2025 | ||||||||||||||||
8.4
| March 31, 2026 | December 31, 2025 | |||||||
| Receivables - related parties (1) | ||||||||
| Compulsory deposits in Central Bank (2) | ||||||||
| Sundry receivables (3) | ||||||||
| Total | ||||||||
| (1) | |
| (2) | |
| (3) |
20
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
8.4.1 Breakdown by maturity – Other receivables
As of March 31, 2026
| Receivables falling due: | Receivables overdue: | Total | ||||||||||
| Up to 30 days | ||||||||||||
| Total | ||||||||||||
As of December 31, 2025
| Receivables falling due: | Receivables overdue: | Total | ||||||||||
| Up to 30 days | ||||||||||||
| From 31 to 60 days | ||||||||||||
| From 61 to 90 days | ||||||||||||
| Total | ||||||||||||
9. Tax assets
| March 31, 2026 | December 31, 2025 | |||||||
| Income tax and social contribution to offset (1) | ||||||||
| Deferred tax assets | ||||||||
| Total | ||||||||
| (1) |
9.1
| December 31, 2025 | Realization | Additions | March 31, 2026 | |||||||||||||
| Temporary differences | ( | ) | ||||||||||||||
| Provisions for credit losses | ||||||||||||||||
| Fair value adjustment - Financial assets measured at fair value through profit or loss | ||||||||||||||||
| Others | ( | )(1) | (3) | |||||||||||||
| Tax loss and social contribution negative basis | ( | )(2) | ||||||||||||||
| Total | ( | ) | ||||||||||||||
| (1) |
| (2) |
| (3) |
9.2 Deferred tax liability
The PicPay Bank recognized a
| December 31, 2025 | Realization | Additions | March 31, 2026 | |||||||||||||
| Fair value adjustment – future contract (DI and DDI) | ( | ) | ||||||||||||||
| Total | ( | ) | ||||||||||||||
21
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
10. Intangible assets
| March 31, 2026 | ||||||||||||
| Value at cost | Accumulated Amortization | Total | ||||||||||
| Internally/Externally developed software (1) | ( | ) | ||||||||||
| Software licenses | ( | ) | ||||||||||
| Purchased software | ( | ) | ||||||||||
| Software acquired through business combination (2) | ( | ) | ||||||||||
| Other intangible assets | ||||||||||||
| Goodwill (2) | ||||||||||||
| Total | ( | ) | ||||||||||
| December 31, 2025 | ||||||||||||||||
| Value at cost | Accumulated Amortization | Accumulated Impairment | Total | |||||||||||||
| Internally/Externally developed software (1) | ( | ) | ||||||||||||||
| Software licenses | ( | ) | ( | ) | ||||||||||||
| Purchased software | ( | ) | ( | ) | ||||||||||||
| Software acquired through business combination (2) | ( | ) | ||||||||||||||
| Goodwill (2) | ||||||||||||||||
| Total | ( | ) | ( | ) | ||||||||||||
The table below demonstrates the changes during the years presented:
As of March 31, 2026
| December 31, 2025 | Additions | Amortization for the period | March 31, 2026 | |||||||||||||
| Internally/Externally developed software (1) | ( | ) | ||||||||||||||
| Software licenses | ( | ) | ||||||||||||||
| Purchased software | ( | ) | ||||||||||||||
| Software acquired through business combination (2) | ( | ) | ||||||||||||||
| Other intangible assets | ||||||||||||||||
| Goodwill (2) | ||||||||||||||||
| Total | ( | ) | ||||||||||||||
As of March 31, 2025
| December 31, 2024 | Additions | Amortization for the period | March 31, 2025 | |||||||||||||
| Internally/Externally developed software (1) | ( | ) | ||||||||||||||
| Software licenses | ( | ) | ||||||||||||||
| Purchased software | ( | ) | ||||||||||||||
| Software acquired through business combination (2) | ( | ) | ||||||||||||||
| Goodwill (2) | ||||||||||||||||
| Total | ( | ) | ||||||||||||||
| (1) |
| (2) |
22
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
11. Third-party funds
| March 31, 2026 | December 31, 2025 | |||||||
| User balance - CDBs (1) | ||||||||
| User balance - Payment accounts (2) | ||||||||
| Other obligations under financial Instruments(3) | ||||||||
| Balance of commercial establishments – corporates (4) | ||||||||
| Deposits – corporate customers | ||||||||
| Financial Liabilities under repurchase agreements - LFT (5) | ||||||||
| Total | ||||||||
| (1) |
| (2) |
| (3) |
| (4) |
| (5) |
12. Trade payables
| March 31, 2026 | December 31, 2025 | |||||||
| Service providers and consumables | ||||||||
| Related parties | ||||||||
| Operational suppliers | ||||||||
| Credit card transactions | ||||||||
| Other suppliers | ||||||||
| Total | ||||||||
In Brazil, payments to the credit card network (for further details, see Note 12.1) follow a similar settlement schedules. However, as receipts from cardholders and payments to the credit card network are aligned, the Group is exposed to cardholder credit risk, since it remains obligated to settle amounts due to the credit card network even in cases where cardholders fall behind on their payments. These amounts include credit card balances not paid in full by customers and subsequently converted into fixed-rate installment plans, as well as installment purchases, which comprise credit card transactions that allow payment to be made in more than one installment.
12.1 Credit card transactions
Corresponds to the amount payable to acquirers related to credit and debit card transactions. The amounts to be transferred to the card network are settled according to the transaction installments, substantially within up to 27 days for non-installment domestic transactions; 1 business day for international transactions, and, in the case of installment transactions, the amounts are mostly settled over a period of up to 36 months through monthly payments.
The table below provides a detailed breakdown of credit card transactions categorized by maturity, as of March 31, 2026 and December 31, 2025:
12.1.1 Breakdown by maturity – Credit card transactions
| March 31, 2026 | December 31, 2025 | |||||||
| Up to 30 days | ||||||||
| From 31 to 60 days | ||||||||
| From 61 to 90 days | ||||||||
| From 91 to 180 days | ||||||||
| From 181 to 365 days | ||||||||
| Over 365 days | ||||||||
| Total | ||||||||
23
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
12.1.2 Collateral for credit card transactions
As of
March 31, 2026, the Company held R$
13. Obligation to FIDC FGTS quota holders
| March 31, 2026 | December 31, 2025 | |||||||
| Senior quotas | ||||||||
| Total | ||||||||
The obligations to FIDC FGTS quota holders relate to amounts due on senior quotas issued with the securitization of receivables from FGTS consumer advances in PicPay Bank. This account includes the outstanding amount due to senior quotas (unpaid original contribution plus unpaid accrued interest expense).
Although the fund has an indefinite duration,
the senior quotas have
14. Labor obligations
| March 31, 2026 | December 31, 2025 | |||||||
| Personnel expenses payable | ||||||||
| Social security charges payable (1) (2) | ||||||||
| Total | ||||||||
| (1) |
| (2) |
15. Tax
15.1 Taxes payable
| March 31, 2026 | December 31, 2025 | |||||||
| Withholding taxes | ||||||||
| Payroll Taxes | ||||||||
| Social security contribution on revenues (1) | ||||||||
| Income tax and social contribution | ||||||||
| Other taxes | ||||||||
| Total | ||||||||
| (1) |
24
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
15.2 Income tax and social contribution
| March 31, 2026 | March 31, 2025 | |||||||
| Profit before income tax | ||||||||
| Income tax and social contribution (1) | ( | ) | ( | ) | ||||
| Permanent additions/exclusions | ||||||||
| Effect of different tax rates – subsidiaries | ||||||||
| Compensation of previously unrecognized deductible temporary differences | ||||||||
| Compensation of previously unrecognized tax losses | ||||||||
| Others | ||||||||
| Total income tax and social contribution | ( | ) | ||||||
| Current taxes | ( | ) | ( | ) | ||||
| Deferred taxes | ||||||||
| Total income tax and social contribution | ( | ) | ||||||
| Effective rate (%) | ( | )% | % | |||||
| (1) |
15.3 Unrecognized deferred tax assets
The Group has unrecognized deferred tax assets
in its subsidiaries for which it is not expected that future taxable profits will be sufficient to consume the deferred tax assets in
an appropriate period of time. The Group’s unrecognized deferred tax assets, shown on the table below, without expiration date,
were calculated on income tax losses and temporary differences at a rate of
The reduction in the amount of unrecognized deferred tax assets was due to the recognition of PicPay deferred tax assets presented on Note 9 above.
| March 31, 2026 | December 31, 2025 | |||||||||||||||
| Gross amount | Tax effect | Gross amount | Tax effect | |||||||||||||
| Deductible temporary differences | ||||||||||||||||
| Tax losses | ||||||||||||||||
| Total | ||||||||||||||||
16. Provision for legal and administrative claims
| March 31, 2026 | ||||||||||||||||
| Civil Claims | Labor Claims | Tax Claims | Total Claims | |||||||||||||
| Opening balance | ||||||||||||||||
| Constitution | ||||||||||||||||
| Reversal | ( | ) | ( | ) | ( | ) | ||||||||||
| Reversal due to payment | ( | ) | ( | ) | ||||||||||||
| Closing balance | ||||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Civil Claims | Labor Claims | Tax Claims | Total Claims | |||||||||||||
| Opening balance | ||||||||||||||||
| Constitution | ||||||||||||||||
| Reversal | ( | ) | ( | ) | ( | ) | ||||||||||
| Reversal due to payment | ( | ) | ( | ) | ( | ) | ||||||||||
| Closing balance | ||||||||||||||||
25
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| a) | Civil claims |
As of March 31, 2026, the Group recognized provisions
of R$
In connection with the acquisition of KOVR, Brazil’s antitrust authority (Conselho Administrativo de Defesa Econômica — “CADE”) has established a Procedimento Administrativo para Apuração de Ato de Concentração (APAC) n. 08700.004240/2026- 45 and therefore, a potential administrative fine may be imposed by CADE under Law n. 12,529/2011. The referred administrative proceeding is still at a very early stage, and the Company currently has limited information to assess how it may evolve or to predict its outcome with any reasonable degree of certainty.
Given the early stage of the proceedings and the limited elements currently
available, the Company, supported by its external legal advisors, classifies this risk as possible. Accordingly, no provision has been
recognized in these financial statements and the Company will continue to monitor the proceedings and reassess its classification as further
developments occur. Should the proceeding advance, and based on a legal opinion issued by our external legal advisors applying the parameters
established by CADE for the calculation of administrative fines, any potential fine would be estimated at approximately BRL
| b) | Labor claims |
As of March 31, 2026, the Group recognized a labor
provision of R$
| c) | Tax claims |
As of March 31, 2026, the Group recognized provisions
of R$
17. Equity
| a) | Share capital |
On February 26, 2025, J&F International invested
R$
On March 25, 2025, J&F International invested
R$
On April 28, 2025, J&F International invested
R$
On May 27, 2025, J&F International invested
R$
On June 19, 2025, J&F International transferred
26
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
On July 21, 2025, J&F International invested
R$
On September 23, 2025, J&F International
invested R$
On November 25, 2025, J&F International invested
R$
On November 26, 2025, a non-disproportional partial spin-off of PicS
Holding was approved, which involved the transfer of a portion of its equity, totaling R$
Following the completion of this transaction, PicS Ltd. became the holder of
On December 24, 2025, J&F International invested
R$
As of December 31, 2025, the total share capital
incorporated under Dutch law is EUR
On December 31, 2025, by virtue of a Sale and
Purchase Agreement, J&F International transferred
On January 12, 2026, a corporate act of Pics N.V. (Netherlands) refers to the money sent by J&F International to Pics NV (Netherlands) in dollars – same rationale as the paragraph above. This money was subsequently transferred by Pics NV (Netherlands) to PicPay Participações (resulting in the 5th ACS that is in the folder).
On January 13, 2026, PicS N.V. invested R$
On January 14, 2026, the controlling company Nosso Time Igaming Ltda. fully paid up its share capital without issuing new shares.
On January 30, 2026, PicS N.V. (formerly PicPay Holdings Netherlands B.V.) went public on the NASDAQ stock exchange (NY). This change modified the company’s legal nature, transforming it from a limited liability company (“B.V.” in Dutch) to a public limited company (“N.V.” in Dutch). Even with the opening of J&F International B.V.’s capital.
On February 13, 2026, a corporate act of Pics
Ltd (Cayman) – resolved the transfer of money raised in the IPO by Pics NV (Netherlands) to Pics Ltd (Cayman). In this act, we reported
the value in dollars and not in reais. The final destination of this money was PicPay Bank through a corporate act from February where
we resolved on the capital increase in the amount of R$
On February 18, 2026, PicS N.V. raised R$
27
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| b) | Composition of share capital |
| March 31, 2026 | December 31, 2025 | |||||||||||||||
Number of shares | Total shares % | Number of shares | Total shares % | |||||||||||||
| Shareholder | ||||||||||||||||
| J&F International B.V. | % | % | ||||||||||||||
| Banco Original S.A. | % | % | ||||||||||||||
| Stichting JAB | % | % | ||||||||||||||
| Stichting ACC Family | % | % | ||||||||||||||
| Stichting AGR | % | % | ||||||||||||||
| Stichting ECS | % | % | ||||||||||||||
| Albino Andrade de Pinho | % | % | ||||||||||||||
| Other Investors (Free Float) | % | % | ||||||||||||||
| Total | % | % | ||||||||||||||
| c) | Earnings per share |
| March 31, 2026 | March 31, 2025 | |||||||
| Earnings attributable to shareholders of the parent company | ||||||||
| Weighted average outstanding shares - ordinary shares - basic (thousands) | ||||||||
| Earnings per share - basic and diluted | ||||||||
The difference between the basic and diluted earnings per share calculation is mainly due to the existence of share-based payments.
| d) | Share-based long-term incentive plan (LTIP) |
PicPay operates a Long-Term Incentive Plan (“LTIP”) for employees from junior to executive levels. The LTIP was established by PicS Ltd on July 1, 2021 and was adopted by the Company and its subsidiaries. The LTIP is designed to support the Group’s long-term success by retaining key talents and aligning employees’ interests with those of the Group.
Under the LTIP, eligible employees may be granted awards that are either equity-settled or cash-settled, depending on the terms of each individual grant and the employee’s role. Awards granted under the LTIP are generally subject to both a service condition, requiring participants to remain actively employed by PicPay throughout the relevant vesting periods; and a non-market performance condition, requiring the occurrence of a qualifying liquidity event, defined as either (a) an initial public offering (“IPO”) of PicPay’s shares, or (b) a private placement of PicPay’s shares to third parties, as specified in the plan rules.
The overall vesting period is
An award is considered vested only when both the service condition and the liquidity condition have been satisfied. Once an award has been vested, settlement (either in shares for equity-settled awards or in cash for cash-settled awards) is made within 30 days following the occurrence of the liquidity event. If the liquidity event occurs after the end of the original five-year vesting period, vested awards remain outstanding and the beneficiaries retain their entitlement, subject to the other terms of the plan.
On January 30, 2026, the completion of the IPO satisfied the non-market performance (liquidity) condition of the LTIP, and, to the extent that the service condition had been met by the beneficiaries at the IPO date, a portion of the outstanding LTIP awards vested and became eligible for settlement in cash or shares, as applicable.
18. Transactions with related parties
18.1 Agreements with Banco Original
18.1.1
- As of March 31, 2026, the interbank deposit (“DI”) position related to the fiduciary assignment of financial assets in
the amount of R$
18.1.2 - On May 16, 2025, the Group and Banco Original entered into a Cost Sharing Agreement (Contrato de Compartilhamento de Despesas) to establish the criteria for cost rates, common expenses, deadlines, and conditions observed for sharing Information Security activities between the Group and Banco Original. The reimbursements from Banco Original are recognized in the statement of profit or loss as “administrative expenses”.
28
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
18.1.3 - On January 21, 2025, the Group
entered into an Operational Agreement with Banco Original to provide administrative services, including human resources, systems sharing
and materials used. The term of this agreement is indefinite. This agreement may be terminated by either party upon
18.1.4 - On July 4, 2024, the Group and Banco Original entered into a Derivatives Master Agreement (Contrato Global de Derivativos), with the purpose of establishing a standardized template for over the counter (OTC) transactions between the parties, streamlining the negotiation process and facilitating efficient and secure OTC derivatives trading. Such agreement establishes daily mark-to-market checks with bilateral margin exchange between the parties with the purpose of mitigating credit risk. As of September 30, 2025, under such agreement, there are only Payer OIS (Overnight Index Swaps) with notional fully collateralized by deposits from Banco Original.
18.1.5 - On April 10, 2024, Banco Original entered into an Endorsement Contract of Bank Credit Notes without co-obligation (Contrato de Endosso de Cédulas de Crédito Bancário sem Coobrigação) with the Group, through which Banco Original committed to endorse and transfer to the Group of the credit notes issued by Banco Original in its loan operations collateralized by credit rights arising from the FGTS Loans. This agreement will remain valid for an indefinite period and may be terminated by either party with a 30-days prior notice.
18.1.6 - On January 18, 2024, the Group
entered into a Credit Recovery Services Agreement (Contrato de Prestação de Serviços de Cobrança de Crédito)
with Banco Original, pursuant to which PicPay Bank agreed to provide certain services to Banco Original relating to collection
and recovery of amounts owed to Banco Original by customers who defaulted on their debts. Such agreement has a twenty-four (
18.1.7 - On January 10, 2024, the Group
entered into a Cost Sharing Agreement (Contrato de Compartilhamento de Despesas) with Banco Original to establish the terms
and conditions governing the sharing of support areas between the Group and Banco Original, as well as the reimbursement by Banco Original
of certain costs incurred by the Group in the contracting of suppliers who provide products and/or services that are also shared between
the Group and Banco Original. This agreement will remain valid for an indefinite period. Either party may terminate this agreement for
any reason and without penalty at any time with
18.1.8 - On November 16, 2023, the Group and Banco Original entered into a Cost Sharing Agreement (Contrato de Compartilhamento de Despesas) to regulate the terms and conditions related to the cost sharing of back-office areas, as well as the reimbursement by Banco Original of certain costs incurred in the contracting certain suppliers, such as technology and administrative expenses. This agreement will remain valid for an indefinite period. The reimbursements are recognized in the statement of profit or loss as “administrative reimbursement”.
18.1.9 - On May 5, 2022, the Group entered into an application programming interface agreement (Acordo Operacional para Licença de Uso de API’s, Acesso a Produtos e Serviços Bancários e Prestação de Serviços de Suporte Técnico) with Original Hub, granting a license for the use of APIs to offer its customers payment services for bills, taxes, and utility bills from Banco Original (“API PAG”), as well as account registration for automatic debit. On November 29, 2022, an amendment to the Operational Agreement was executed, assigning the agreement from Original Hub to Banco Original. On December 21, 2022, new APIs were contracted including access to cash withdrawal and processing services using QR Codes at ATMs of the 24Horas network. In 2024, PicPay completed the development of these solutions, and on March 21, 2025, the agreement was terminated. The revenues were recognized in the statement of profit or loss as “commission – banking correspondent and marketplace”.
18.1.10 - On September 11, 2018, the Group and Banco Original entered into a Correspondent Banking Agreement (Contrato de Correspondente Bancário). However, since the Group has developed its own solutions for processing bill payments for its customers and Banco Original is no longer a card issuer, the agreement was terminated on March 21, 2025. The revenues were recognized in the statement of profit or loss as “commission – banking correspondent and marketplace”.
18.1.11- On July 26, 2022, Banco Original
and the Group entered into a Correspondent Banking Agreement (Contrato de Correspondente Bancário). This agreement is valid
for an indefinite period and may be terminated by either party with
18.2.2 - As of March 31, 2026, guarantees
provided by J&F S.A. amounted to R$
29
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
18.2 Agreements with J&F
18.2.1 - PicPay Bank entered into a Receivables Assignment Agreement with Âmbar Energia S.A. (J&F Participações subsidiary), of one installment in connection with the Reserve Energy Contract (CER) of Brazilian Electric Energy Trading Chamber (CCEE). On December 10, 2025, and December 19, 2025, PicPay Bank entered into the following non-recourse credit rights assignment agreements with J&F for the acquisition of credit rights held against certain electric power distributors arising from the sale of electric power by J&F subsidiaries:
| ● | on December 10, 2025, Mauá III (J&F Participações
subsidiary) assigned receivables in the total amount of R$ |
| ● | On December 19, 2025, Âmbar Energia assigned receivables
in the total amount of R$ |
18.3 Agreements with JBS
18.3.1 - In November 2025, PicPay Bank entered into supplier finance arrangements involving the assignment of trade receivables and the advance of payments to suppliers, on a non-recourse basis (reverse factoring / supplier finance arrangements). The participating suppliers include: Seara Alimentos Ltda., JBS Aves Ltda., Seara Comércio de Alimentos Ltda., Excelsior Alimentos S.A., Agro Alfa Indústria e Comércio Ltda., JBS S.A., JBS Confinamento Ltda., Via Rovigo Indústria, Comércio e Distribuição de Produtos Alimentícios S.A., and JBS Terminais Ltda. The revenues are recognized in the statement of profit or loss as “Financial income” and in the balance sheet as “Consumer Loans”.
| J&F Participações | Banco Original | Key Personnel (a) | Others (b) | Total | ||||||||||||||||
| As of March 31, 2026 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||
| Trade receivables | ||||||||||||||||||||
| Financial investments | ||||||||||||||||||||
| Derivatives instruments | ||||||||||||||||||||
| Consumer loans | ||||||||||||||||||||
| Other receivables | (4) | |||||||||||||||||||
| Total | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Trade payables | ||||||||||||||||||||
| Third-party funds | ||||||||||||||||||||
| Labor obligations | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| For the three-month period ended March 31, 2026 | ||||||||||||||||||||
| Revenues and expenses | ||||||||||||||||||||
| Commission – banking correspondent and marketplace | (1) | |||||||||||||||||||
| Income from purchased receivables | ||||||||||||||||||||
| Revenue from financial investments | ||||||||||||||||||||
| Interest and other financial expenses | ( | )(2) | ( | ) | ||||||||||||||||
| Financial income | ||||||||||||||||||||
| Selling expenses | ( | ) | ( | ) | ||||||||||||||||
| Net revenue from transaction activities and other services | ||||||||||||||||||||
| Administrative expenses | ( | ) | ( | ) | ( | )(3) | ( | ) | ||||||||||||
| Total | ( | ) | ||||||||||||||||||
30
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| J&F Participações | Banco Original | Key Personnel (a) | Others (a) | Total | ||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||
| Trade receivables | ||||||||||||||||||||
| Financial investments | ||||||||||||||||||||
| Derivative instruments | ||||||||||||||||||||
| Consumer loans | ||||||||||||||||||||
| Other receivables | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Trade payables | ||||||||||||||||||||
| Third-party funds | ||||||||||||||||||||
| Labor obligations | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| For the three-month period ended March 31, 2025 | ||||||||||||||||||||
| Revenues and expenses | ||||||||||||||||||||
| Commission – banking correspondent and marketplace | (1) | |||||||||||||||||||
| Interest and other financial expenses | ( | )(2) | ( | ) | ||||||||||||||||
| Administrative expenses | ( | ) | ( | ) | ( | )(3) | ( | ) | ||||||||||||
| Total | ( | ) | ( | ) | ( | ) | ||||||||||||||
| (a) |
| (b |
| (1) |
| (2) |
| (3) |
| (4) |
31
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Assets and liabilities with related parties
Cash and cash equivalents and financial investments: The amount refers to the current account balance and financial investments at Banco Original, mainly short-term investments and reverse repurchase agreements.
Trade receivables: primarily refers to amounts receivable for financial transactions processed by Banco Original in the role of acquirer referring to the PicPay.
Financial investments: The linked balances are related to the value of investments in interbank deposits with Banco Original.
Derivative instruments: Refers to the Derivatives Master Agreement for more details see the agreement description above.
Consumer loans:refers to the credit portfolio (credit card and loans to customers) of related parties. Additionally, prepayment of receivables with related parties subject to future settlement.
Other receivables: amounts receivable from J&F Participações due to a reimbursement agreement of marketing expenses of the PicPay brand incurred by PicPay until September 20, 2021.
Trade payables: the amount payable to Banco Original is related to the cost of issuing, processing and settling the bank slips, the cost of producing the PicPay Card, the withdrawal cost.
Third -party funds: refers to the balance in the pre-paid accounts of related parties.
19. Financial Income
Classification and subsequent measurement
| March 31, 2026 | March 31, 2025 | |||||||
| Financial investments measured at fair value through profit or loss | ||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||
| Financial assets measured at amortized cost | ||||||||
| Total | ||||||||
32
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
20. Transaction Expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Processing fees | ( | ) | ( | ) | ||||
| Third-party fraud prevention services (1) | ( | ) | ( | ) | ||||
| PicPay card issuance expenses | ( | ) | ( | ) | ||||
| Chargeback | ( | ) | ( | ) | ||||
| Operating losses (2) | ( | ) | ( | ) | ||||
| Total | ( | ) | ( | ) | ||||
| (1) |
| (2) |
21. Interest and Other Financial Expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Bank fees | ( | ) | ( | ) | ||||
| Cost of Funding (1) | ( | ) | ( | ) | ||||
| Derivative financial instruments | ( | ) | ( | ) | ||||
| Others | ( | ) | ( | ) | ||||
| Total | ( | ) | ( | ) | ||||
| (1) |
22. Credit loss allowance expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Provision for expected losses - credit risk | ( | ) | ( | ) | ||||
| Recovery of loans written off as losses | ||||||||
| Total | ( | ) | ( | ) | ||||
33
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
23. Technology expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Software expenses | ( | ) | ( | ) | ||||
| IT Services | ( | ) | ( | ) | ||||
| Total | ( | ) | ( | ) | ||||
24. Marketing expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Advertising | ( | ) | ( | ) | ||||
| Cashback | ( | ) | ( | ) | ||||
| Digital Marketing | ( | ) | ( | ) | ||||
| Customer Acquisition expenses (1) | ( | ) | ( | ) | ||||
| Commission expenses | ( | ) | ||||||
| Total | ( | ) | ( | ) | ||||
| (1) |
25. Personnel expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Salaries | ( | ) | ( | ) | ||||
| Benefits (1) | ( | ) | ( | ) | ||||
| Social security charges (2) | ( | ) | ( | ) | ||||
| Others | ( | ) | ( | ) | ||||
| Total | ( | ) | ( | ) | ||||
| (1) |
| (2) |
34
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
26. Administrative expenses
| March 31, 2026 | March 31, 2025 | |||||||
| Third party services and financial system services | ( | ) | ( | ) | ||||
| Rent, condominium fee and property services | ( | ) | ( | ) | ||||
| Taxes | ( | ) | ( | ) | ||||
| Provisions for contingencies | ( | ) | ( | ) | ||||
| Others | ( | ) | ( | ) | ||||
| Total | ( | ) | ( | ) | ||||
27. Share-based payments
| RSUs Share based payment transaction with an equity component | Fair Value R$ | |||
| Equity-settled: | ||||
| Outstanding on December 31, 2025 | ||||
| Granted during the period | ||||
| Forfeited/cancelled during the period | ( | ) | ||
| Vested during the period | ||||
| Outstanding on March 31, 2026 | ||||
| Cash-settled: | ||||
| Outstanding on December 31, 2025 | ||||
| Granted during the period | ||||
| Forfeited/cancelled during the | ( | ) | ||
| Vested during the period | ( | ) | ||
| Outstanding on March 31, 2026 | ||||
For the three-month period ended March 31, 2026,
the total expense recognized in profit or loss related to share-based payment arrangements amounted to R$
Three-month period ended March 31, 2026 | R$ | |||
| Expense related to share based payment transaction with an equity component | ( | ) | ||
| Expense related to cash-settled awards | ( | ) | ||
| Payroll taxes and social charges related to share-based payment arrangements | ||||
| Total share-based payment expense recognized in profit or loss | ( | ) | ||
35
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
28. Risk management
The Group has a specific structure for risk management, including policies and procedures, covering the evaluation and monitoring of operational, credit, market and liquidity risks (including cash flow and investments of funds held in payment accounts) incurred by the institution.
The Group’s approach to risk management requires that its risk taking be consistent with its risk appetite. Risk appetite is the aggregate level of risk that the Group is willing to tolerate to achieve its strategic objectives and business plan. PicPay’s risks are generally categorized and summarized as follows:
| ● | Credit risk: Refers to the risk of loss resulting from the failure of a borrower, counterparty, third party or issuer to honor its financial or contractual obligations. PicS N.V. manages and controls credit risk by setting limits on the amount of risk it is willing to accept for each customer and counterparty as well as limits on the ratio of expected losses to revenues for each segment of the portfolio and on the composition of the portfolio between secured and unsecured credits. Exposures are monitored relative to these limits and adjusted as needed to ensure compliance with the limits. |
| ● | Market risk: Refers to potential losses arising from changes in the value of the Group assets and liabilities as well as adverse impact on net interest income resulting from changes in market variables, such as interest rates, equity, foreign exchange rates or credit spreads. |
| ● | Liquidity risk: Refers to the risk that the Group will not be able to efficiently meet both expected and unexpected current and future cash flow and collateral needs without adversely affecting either daily operations or financial conditions. |
| ● | Operational risk: Refers to the risk of loss resulting from systems failure, human error, fraud or external events. When controls fail to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications as well as lead to financial loss. |
28.1 Credit risk
The Group’s credit risk arises from its cash, cash equivalents, financial investments, OTC derivatives, acquirer and card issuer receivables, other receivables and loans to its users.
Concentrations of credit risk for similar financial instruments are already being shown in accordance with Note 8.2.1 Credit loss allowance breakdown.
| ● | Cash and cash equivalents |
The Risk and Treasury departments manage credit risk associated with bank account balances and investments in financial institutions, prioritizing those with a “AAA” rating from agencies like Moody’s, S&P or Fitch. Because the Group’s accounts receivable mostly consist of high liquidity investments and operational accounts approved by major financial institutions with low-risk ratings, the expected credit loss is not material. Furthermore, these financial institutions are legally responsible for the accounts receivable.
| ● | Financial investments |
The Group’s available resources are mostly invested in bonds issued by the Brazilian government and reverse repos collateralized by bonds issued by the Brazilian government. There is no significant expected credit loss recognized for these assets.
36
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| ● | Acquirer and card issuers receivables |
The Group recognizes amounts receivable from acquirers related to its activity as a sub-acquirer and from card issuers related to its activities as an acquirer and also when its users use its app to settle bank slips or make other payments using an on-boarded credit card. These receivables are due in up to twelve monthly installments. As a result, the Group is exposed to the risk of default by the acquirers and card issuers.
In its role as a sub-acquirer, the Group uses acquirers of national reach while seeking to avoid concentration in any single acquirer as well as to increase financial efficiency. When acting as sub-acquirer, PicPay processes all credit card transactions with the acquirers Cielo and Getnet and card issuers.
The Group uses only acquirers authorized to operate by BACEN, which are supervised and monitored by BACEN, including with respect to the minimum capitalization required, and which have a national “AAA” rating by the rating agencies (S&P or Fitch). The acquirers may default on their financial obligations due to lack of liquidity, operational failure or other reasons, situations in which the Group can be held responsible for making the payment due to commercial establishments without having received the corresponding funds from the acquirer.
Until now, the Group has not suffered losses on receivables from acquirers and management does not expect any significant losses from non-performance by these counterparties in addition to the amounts already recognized as chargebacks.
Credit card issuers are supervised by BACEN. The payment arrangements (Visa, Mastercard, Elo and others) have their own risk models and collateral requirements to evaluate and mitigate the default risk of the issuers, which mitigate the risk of the acquirers and the systemic risk of Brazilian payment arrangements. Additionally, the acquirers and issuers have other risk mitigators such as:
| ● | Amounts due within 27 days of the original transaction, including those that fall due with the first installment of installment receivables, are guaranteed by the payment arrangement if the legal obligors do not make payment. |
| ● | Processes for mitigating operational failures, such as fraud prevention, limitations on advances on future payments, among others. |
As of March 31, 2026, the Group had an amount
receivable totaling R$
| ● | Consumer Loans |
Consumer loans include: (i) public and private payroll loans, personal loans and FGTS advances; and (ii) credit cards that are transactions in one-payment, installment with interest and installments without interest. Consumers must meet certain credit risk criteria to be eligible for a credit offering.
“Payroll loans” are loans for which the payments of principal and interest are deducted either directly from the consumer’s salary from the payroll of a government-related entity or private company or from their government-sponsored pension or other benefit payments. The ability to collect the payments directly from the payroll significantly enhances the credit quality of these secured loans.
“FGTS advances” are advances taken by customers ofup to seven annual installments of their FGTS. After making the advance,he group receives the payment of these installments directly from the FGTS. FGTS advances are collateralized by the deposits held in the FGTS fund.
As of March 31, 2026, the Group had a provision
for expected credit losses in the amount of R$
37
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| ● | Other receivables |
Other receivables relate mainly to transactions involving related parties that are based on conditions negotiated between Group and related companies. In March 31, 2026 and December 31, 2025, the Group did not record any impairment loss on accounts receivable related to the amounts due from related parties as it understands that there is no significant credit risk on outstanding balances.
Due to the nature of PicPay’s financial services, and the actual counterparty related to its receivables and investments, no significant credit risk increase was observed. Additionally, the Group does not have any credit-impaired financial assets.
The Group’s credit exposure from financial assets, pre-approved credit card limits and derivative financial instruments is presented in the table below:
| March 31, 2026 | December 31, 2025 | |||||||
| Cash and cash equivalents | ||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||
| Financial Investments | ||||||||
| Financial assets measured at fair value through profit or loss | ||||||||
| Financial Investments | ||||||||
| Derivative financial instruments | ||||||||
| Financial assets measured at amortized cost | ||||||||
| Financial Investments | ||||||||
| Trade receivables | ||||||||
| Consumer loans | ||||||||
| Other receivables | ||||||||
| Pre-approved credit card limits (off-balance) (1) | ||||||||
| Total | ||||||||
| (1) |
28.2 Market risk
The Group may face financial losses due to market fluctuations that affect the value of its financial position. These changes can arise from a variety of factors, the most relevant of which in PicPay’s case is fluctuations in interest rates.
As of March 31, 2026 and December 31, 2025, the Group had derivative financial instruments for accounting and economic hedge purposes. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken.
The risks are identified, quantified, managed and reported as per the Group’s risk management policy. Moreover, these limits are continuously monitored by the Risk function, independently from the treasury.
To monitor and control such market risks, the Group employs various methods, including stress scenarios, sensitivity - delta variation (DV), exposure mismatches (GAP), and measurement and monitoring of interest rate risk in the banking book (IRRBB).
38
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| a) | Interest rate risk |
Interest rate risk is the risk that potential changes in interest rates affect the value of a Group’s assets, liabilities, or future cash flows in a way that is detrimental to the Group’s financial position
DV01 or interest rate sensitivity refers to the
effect on market valuations of cash flows when there is an increase of one basis point in current benchmark interest rates or in the index.
Mathematically, the DV01 measures the change in the value of a portfolio of financial instruments for every 1 basis point (1 basis point
is equal to
The analysis below demonstrates the sensitivity of the fair value of the group’s financial instruments to an increase of 1 basis point (DV01) in the Brazilian interest rates.
| DV01 – March 31, 2026 | ||||||||||||||||
| Asset | Liability | Derivative | Net | |||||||||||||
| Fixed interest rate financial instruments | ( | ) | ( | ) | ||||||||||||
| DV01 - December 31, 2025 | ||||||||||||||||
| Asset | Liability | Derivative | Net | |||||||||||||
| Fixed interest rate financial instruments | ( | ) | ||||||||||||||
| b) | Exchange rate risk |
Foreign exchange risk is the potential financial loss that can occur due to fluctuations in the exchange rates between different currencies.
The Group’s exposure to foreign exchange risk arises mainly from the accounts payable corresponding to US Dollar denominated expenses as well as from balances held in dollars in the Group’s USD denominated current accounts.
| c) | Hedge Accounting |
The Group maintains portfolios of consumer loans and FGTS advances which are exposed to interest rate risk. In order to hedge that risk The Group entered into future DI contracts and Pre x DI swaps.
Starting in February 2024, PicPay assigned the hedging strategy to an eligible hedge accounting structure aiming to eliminate differences between the accounting measurement of its derivatives and hedged items, which are adjusted to reflect changes in CDI. In accordance with its hedging strategy, the Group adopts the “portfolio layer” method.
This method allows the Group to use part of the portfolio of financial assets as a fair value hedge during the hedging period in the event of events such as prepayment, default or sale of operations. The interest rate risk arising from the portfolio layers is mitigated by purchasing DIV01 futures contracts as a hedging instrument. The number of contracts per net maturity needed to cover exposure is assessed based on DV01.
The Group holds fixed rate Government Bonds (LTNs) and fixed-rate financial liabilities which are exposed to interest rate risk. In order to hedge that risk, the Group entered into DI futures contracts. Starting in December 2024, PicPay assigned the hedging strategy to an eligible hedge accounting structure in order to eliminate differences between the accounting measurement of its derivatives and hedged items. In accordance with the hedging strategy, the Group designates the hedge items on an individual basis.
Starting in November 2025, PicPay also designated hedging strategies for NTN-F federal government bonds and for the issuance of subordinated financial letters. Both are exposed to the fixed rate and suffer the risk of variation in the risk-free rate (Pre x DI curve). In order to mitigate this risk, the Group uses DI1 futures contracts as hedging instruments.
39
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
In December 2025, the Group acquired energy receivables that were contracted at a fixed rate, generating exposure to the risk of variation in the risk-free rate (Pre x DI curve). In order to mitigate this risk, the Group uses DI1 futures contracts as a hedging instrument. Considering the nature of the receivables acquisition product, events such as prepayment, default or sale of transactions for this portion of the portfolio are not expected.Additionally, the existence of receivables in amounts equal to or greater than the designated amounts is continuously proven
The Group calculates the DV01 (delta value of
a basis point) of the hedged items and futures contracts to identify the optimal hedging ratio. The hedge relationship is monitored periodically
and the hedge is rebalanced as needed to ensure hedge effectiveness within the
The effectiveness test of the hedge is performed
prospectively and retrospectively. In the prospective test, the Group compares the impact of a 1 basis point parallel shift on the interest
rate curve (DV01) on the hedged item and on the hedge instrument market value. For the retrospective test, the market-to-market value
change since the inception of the hedged item is compared with that of the hedge instrument. In both cases, the hedge is considered effective
if the change in value of the hedge instruments is between
For designated and qualifying fair value hedges, the cumulative change in the fair value of the hedging derivative and of the hedged item is recognized in the consolidated financial statements of profit or loss in “interest income and gains (losses) on financial instruments – Financial assets at fair value through other comprehensive income”.
| March 31, 2026 | ||||||||||||||||||||
| Total amount of | Fair value adjustment to the hedge object | Fair value adjustment to the Hedging | Hedge | |||||||||||||||||
| hedged item | Asset | Liability | instrument | effectiveness | ||||||||||||||||
| Interest rate risk | ||||||||||||||||||||
| Interest Rate Contracts - Future and Swap - Public Payroll loans (1) | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future and Swap - Private Payroll loans | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future and Swap – FGTS Advances (2) | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - Liabilities Pre | ( | ) | ( | ) | % | |||||||||||||||
| Interest Rate Contracts - Future - LTN Bonds | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - Titles NTNF | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - LF Sub(3) | ( | ) | ( | ) | % | |||||||||||||||
| Interest Rate Contracts - Future - Advances on energy receivables | ( | ) | % | |||||||||||||||||
| Total | ( | ) | % | |||||||||||||||||
40
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| December 31, 2025 | ||||||||||||||||||||
| Total amount of hedged | Fair value adjustment to the hedge object | Fair value adjustment to the Hedging | Hedge | |||||||||||||||||
| item | Asset | Liability | instrument | effectiveness | ||||||||||||||||
| Interest rate risk | ||||||||||||||||||||
| Interest Rate Contracts - Future and Swap - Payroll loans (1) | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future and Swap – FGTS Advances (2) | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - Liabilities Fixed-Rate | ( | ) | ( | ) | % | |||||||||||||||
| Interest Rate Contracts - Future - LTN Bonds | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - NTN-FBonds | ( | ) | % | |||||||||||||||||
| Interest Rate Contracts - Future - LF Sub(3) | ( | ) | ( | ) | % | |||||||||||||||
| Interest Rate Contracts - Future - Advances on energy receivables | ( | ) | % | |||||||||||||||||
| Total | ( | ) | % | |||||||||||||||||
| (1) |
| (2) |
| (3) |
28.3 Liquidity risk
Liquidity risk is the possibility that the Group will not have sufficient liquid resources to honor its financial commitments.
PicPay’s liquidity management processes include:
| ● | Cash liquidity monitoring: daily update of the cash flow, detailing the inflows and outflows, including the cash projection and stress scenario. |
| ● | Minimum cash limits: which trigger preemptive actions to be taken to ensure sufficient resources are available to meet financial commitments. |
41
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
The Group’s projected cash flow is generated and monitored daily by the Treasury to ensure that the Group has the necessary resources to meet financial commitments and operational needs. For the projection of cash, growth assumptions and stress factors are used, which include increased losses and expenses.
The information on financial liabilities is essential for the projection and management of cash flow, ensuring that the Group has the necessary resources to settle its obligations.
As a cash management procedure, the treasury invests surplus funds in highly quality liquid and unencumbered assets.
The objective of the Group’s liquidity risk management activities is to ensure its ability to meet both expected and unexpected obligations without disrupting daily operations or incurring significant losses.
In order to ensure a sound basis of funding for growth, management has adopted a diversified approach to financing, complementing its main base of deposits, which is predominately made up of retail liabilities. A liquidity risk management policy has been implemented, involving the use of various tools and activities, such as daily cash flow forecasts, liquidity profile monitoring, and maintenance of adequate cash reserves. Any new initiative or product is preliminarily assessed by the market and risk liquidity department.
The treasury department, acting as a first line of defense, is in charge of the implementation of the liquidity management strategy. This approach is coordinated with other functions, such as risk management, to ensure a sound second line of defense.
The table below shows the expected maturity of the Group’s liabilities. For the deposits that are redeemable immediately, the expected maturity was estimated based on historical data, which was used to estimate, for each vintage of deposits, the probability of the balance remaining for 1 more monthgiven how long it has been in the portfolio.
Considering the earliest date in which customers
may exercise their redemption rights, the cash outflows are presented as follows up to 365 days: R$
Liabilities
Up to 30 days | From 31 to 60 days | From 61 to 90 days | From 91 to 180 days | From 181 to 365 days | Over 365 days | Total | ||||||||||||||||||||||
| As of March 31, 2026 | ||||||||||||||||||||||||||||
| Third-party funds - payment accounts | ||||||||||||||||||||||||||||
| Third-party funds – CDB’s | ||||||||||||||||||||||||||||
| Third party funds - financial instruments | ||||||||||||||||||||||||||||
| Third-party funds – Others | ||||||||||||||||||||||||||||
| Obligations to FIDC FGTS quota holders | ||||||||||||||||||||||||||||
| Trade payables | ||||||||||||||||||||||||||||
| Derivative financial instrument | ||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||||||||||||||
| Third-party funds - payment accounts | ||||||||||||||||||||||||||||
| Third-party funds – CDB’s | ||||||||||||||||||||||||||||
| Third party funds - financial instruments | ||||||||||||||||||||||||||||
| Third-party funds – Others | ||||||||||||||||||||||||||||
| Obligations to FIDC FGTS quota holders | ||||||||||||||||||||||||||||
| Trade payables | ||||||||||||||||||||||||||||
| Derivative financial instrument | ||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||
42
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
28.4 Fraud risk
The Group is exposed to several operational risks, one of which is the risk of fraud, which is an undue, illegal or criminal activity that causes a financial loss for one of the parties involved in a financial transaction within the PicPay arrangement. Credit card fraud includes unauthorized use of lost, stolen, fraudulent, counterfeit, or altered cards, as well as misuse of the PicPay user payment account. Within this scenario, the Group is exposed to losses due to transaction chargebacks (cancellations).
The chargeback process starts when a user makes a transaction via credit card in the PicPay application and, for reasons unrelated to PicPay, decides to contest the transaction with the card issuer who forwards it to the acquirer who performs the transaction cancellation, reducing the amount of payables it has outstanding with PicPay.
The Group has dedicated fraud-prevention team strategies and processes which include real-time monitoring of transactions using payment account balances or credit cards for bank slips, withdrawals or transfers between users, analyzing and then approving or declining transactions.
28.5 Capital management
The Group’s capital management objectives are to ensure ongoing compliance with minimum capital requirements set by regulatory authorities, maintain a capital structure appropriate to the risks assumed and support the Group’s operational continuity and stakeholder confidence.
The Group’s subject to the prudential framework defined by the Central Bank of Brazil, in accordance with BACEN Resolution No. 200/22 and BACEN Resolution No. 436/24, which establish capital requirements based on factors such as size, operational complexity, and risk profile. The lead entity of the prudential conglomerate is PicPay Payments Institution.
The Group’s available regulatory capital is composed of the following tiers, which are the numerators of its capital indices:
| ● | Common Equity Tier I Capital: Includes share capital, capital reserves and retained earnings minus regulatory deductions from capital such as intangible assets and deferred tax assets; |
| ● | Tier I Capital(1): Includes Common Equity Tier I Capital plus Additional Tier I Capital such as perpetual subordinated debt |
| ● | Total Capital: Includes Tier I Capital plus Tier II capital such as fixed-maturity subordinated debt. |
The group is Risk-Weighted Assets (RWA), which are the denominator of its capital indices, reflect a bank’s exposure to credit, market, payment services and operational risks. RWA’s are calculated, for credit risk for example, by applying different risk weights to different assets depending on their level of risk, resulting in the Risk-Weighted Assets.
43
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
The following table presents the Group’s capital ratios as of March 31, 2026 and December 31, 2025, calculated according to BACEN’s regulation on capital requirements and accounting, which differs from IFRS in some respects, notably in the scope of consolidation and in the calculation of expected losses.
| March 31, 2026 | December 31, 2025 | |||||||
| Common Equity Tier I | ||||||||
| Tier I | ||||||||
| Tier II | ||||||||
| Total Capital (Tier I + Tier II) | ||||||||
| Risk-Weighted Assets (RWA) | ||||||||
| Credit Risk (RWA CPAD) | ||||||||
| Market Risk (RWA MPAD) | ||||||||
| Operational Risk (RWA OPAD) | ||||||||
| Payment Service Risk (RWA SP) | ||||||||
| Common Equity Tier I Ratio | % | % | ||||||
| Tier I Ratio | % | % | ||||||
| CAR (Total Capital Ratio) | % | % | ||||||
On March 31, 2026, the total capital ratio was
The tier I ratio(1) was
The common equity tier I ratio was % (compared
to
The Company monitors and forecasts its capital needs to maintain compliance with regulatory requirements and internal target capital ratios.
(1) The Group has not yet issued Additional Tier I capital instruments, so its Common Equity Tier I capital and Tier I capital are identical.
28.6 Fair Value Measurement
Determination of fair value and fair value hierarchy
For assets and liabilities measured at fair value, PicPay measures fair value using the procedures set out below. The objective of the valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.
Level 1: When available, the Bank uses quoted market prices from active markets to determine fair value and classifies such items as Level 1.
Level 2: quoted prices in an active market for similar assets or liabilities or based on another valuation method in which all significant inputs are based on observable market data.
44
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Level 3: when quoted market prices are not available, fair value is based on internally developed valuation techniques that use, whenever possible, current market-based parameters such as interest rates, exchange rates and option volatilities. Financial instruments valued using such internally generated valuation techniques are classified according to the lowest-level input factor that is significant to the valuation. Therefore, an item may be classified as Level 3, even though there may be some significant inputs into its valuation that are easily observable.
The pricing models used to measure fair value are governed by an independent control structure. Fair value estimates from internal valuation techniques are checked, whenever possible, against prices obtained from independent suppliers or brokers. Vendor and broker valuations can be based on a variety of data ranging from observed prices to proprietary valuation models, and the Bank assesses the quality and relevance of this information to determine the fair value estimate.
Financial instruments recorded at fair value
The following is a description of the method for determining the fair value of financial instruments. The valuation techniques incorporate estimates of the assumptions that a market participant would use to value the instruments.
| March 31, 2026 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial assets | ||||||||||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||||||||||
| Government Bonds – LFT | ||||||||||||||||
| Government Bonds – NTN | ||||||||||||||||
| Total | ||||||||||||||||
| Financial assets measured at amortized cost | ||||||||||||||||
| Government Bonds – LTN | ||||||||||||||||
| Investment Fund Quotas | ||||||||||||||||
| Government Bonds – NTN | ||||||||||||||||
| Total | ||||||||||||||||
| Derivative financial instruments - Interest rate derivatives measured at fair value through profit or loss | ||||||||||||||||
| Swaps contracts (1) | ||||||||||||||||
| DI1 and DDI - future contract | ||||||||||||||||
| Total | ||||||||||||||||
| Other financial assets measured at fair value through profit or loss | ||||||||||||||||
| Government Bonds – LFT | ||||||||||||||||
| Other Investments | ||||||||||||||||
| Total | ||||||||||||||||
| Total Financial assets | ||||||||||||||||
| Financial liabilities | ||||||||||||||||
| Derivative measured at fair value through profit or loss | ||||||||||||||||
| Swaps contracts (1) | ||||||||||||||||
| Total Financial Liabilities | ||||||||||||||||
| (1) |
45
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial assets | ||||||||||||||||
| Financial assets measured at fair value through other comprehensive income | ||||||||||||||||
| Government Bonds – LFT | ||||||||||||||||
| Government Bonds – NTN | ||||||||||||||||
| Total | ||||||||||||||||
| Financial assets measured at amortized cost | ||||||||||||||||
| Government Bonds – LTN | ||||||||||||||||
| Investment Fund Quotas | ||||||||||||||||
| Government Bonds – NTN | ||||||||||||||||
| Total | ||||||||||||||||
| Derivative financial instruments - Interest rate derivatives measured at fair value through profit or loss | ||||||||||||||||
| Swaps contracts (1) | ||||||||||||||||
| DI1 - future contract | ||||||||||||||||
| DI1 e DDI - future contract | ||||||||||||||||
| Total | ||||||||||||||||
| Other financial assets measured at fair value through profit or loss | ||||||||||||||||
| Government Bonds – LFT | ||||||||||||||||
| Other Investments | ||||||||||||||||
| Total | ||||||||||||||||
| Total Financial assets | ||||||||||||||||
| Financial liabilities | ||||||||||||||||
| Derivative measured at fair value through profit or loss | ||||||||||||||||
| DI1 - future contract | ||||||||||||||||
| Swaps contracts (1) | ||||||||||||||||
| Total Financial Liabilities | ||||||||||||||||
As of March 31, 2026 and December 31, 2025, there were no transfers between the fair value measurements of Level I and Level II or between Level II and Level III.
46
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Derivative financial instruments
The fair value of the swaps is calculated considering the projected cash flows of each of their ends, discounted to present value according to their respective yield curves, which are representative of market conditions. The yield curve calculations use models audited and approved internally by PicPay’s risk management department.
Interest rate futures contracts are commitments to buy or sell a financial instrument on a future date, at a contracted price or yield, which can be financially settled. The nominal value represents the face value of the related instrument. This instrument is settled daily in line with changes in market prices.
The main interest rates used in the composition of the yield curves are taken from futures and swaps traded on the B3 exchange. Adjustments are made to these curves whenever certain points are considered to lack sufficient liquidity to be representative, or, for atypical reasons, do not reasonably represent market conditions.
Credit Risk Adjustment (CVA)
The current standard requires the allocation of Credit Value Adjustment (CVA) and Debit Value Adjustment (DVA) for derivative financial instruments. These adjustments are intended to reflect the counterparty’s credit risk and the entity’s own credit risk in the valuations of these instruments.
However, PicPay does not carry out the allocation as there is no derivative exposure with clients. All current derivatives are contracted exclusively with companies in the same economic group. This factor considerably reduces credit risk, since the relationship between the parties involved is one of common control, mitigating potential losses associated with non-compliance with obligations.
Therefore, considering the absence of exposure to external customers and the low materiality of credit risk in intra-group transactions, we believe that there is no need to allocate CVA and DVA to these derivative financial instruments. This approach is based on the Company’s operational reality and the effective assessment of the risk involved.
47
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Financial assets
| March 31, 2026 | ||||||||
Carrying amount | Fair Value | |||||||
| Fair Value of financial instruments measured at fair value through profit or loss | ||||||||
| Derivative financial instruments | ||||||||
| Fair Value of financial instruments measured at amortized cost | ||||||||
| Cash and cash equivalents | ||||||||
| Financial Investments | ||||||||
| Amounts receivable from card issuers | ||||||||
| Consumer loans | ||||||||
| Other receivables (1) | ||||||||
| Total | ||||||||
| (1) |
Financial liabilities
| March 31, 2026 | ||||||||
Carrying amount | Fair Value | |||||||
| Fair Value of financial instruments measured at fair value through profit or loss | ||||||||
| Derivative financial instruments | ||||||||
| Fair Value of financial instruments measured at amortized cost | ||||||||
| Third-party funds - payment account | ||||||||
| Third-party funds - CDBs | ||||||||
| Third-party funds - financial instruments | ||||||||
| Third-party funds - Others | ||||||||
| Trade payables | ||||||||
| Obligations to FIDC FGTS quota holders | ||||||||
| Total | ||||||||
48
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
Financial assets
| December 31, 2025 | ||||||||
| Carrying amount | Fair Value | |||||||
| Fair Value of financial instruments measured at fair value through profit or loss | ||||||||
| Derivative financial instruments | ||||||||
| Fair Value of financial instruments measured at amortized cost | ||||||||
| Cash and cash equivalents | ||||||||
| Financial Investments | ||||||||
| Amounts receivable from card issuers | ||||||||
| Consumer loans | ||||||||
| Other receivables (1) | ||||||||
| Total | ||||||||
| (1) | Balance composed of: Receivables from purchasers, Receivables from customers, Receivables - related parties, Compulsory deposits in Central Bank and Sundry receivables. |
Financial liabilities
| December 31, 2025 | ||||||||
| Carrying amount | Fair Value | |||||||
| Fair Value of financial instruments measured at fair value through profit or loss | ||||||||
| Derivative financial instruments | ||||||||
| Fair Value of financial instruments measured at amortized cost | ||||||||
| Third-party funds - payment account | ||||||||
| Third-party funds - CDBs | ||||||||
| Third-party funds - financial instruments | ||||||||
| Third-party funds - Others | ||||||||
| Trade payables | ||||||||
| Obligations to FIDC FGTS quota holders | ||||||||
| Total | ||||||||
28.6.1 Offsetting of financial instruments
The balances of financial assets and liabilities can be offset ( i.e. recognized by the net amount) if there is a legally enforceable agreement in which the parties agree to offset the recognized amounts and intend to settle on a net basis, or to realize the asset and settle the liability simultaneously. As of March 31, 2026 and December 31, 2025, the Group does not have financial instruments that meet the conditions for offsetting.
49
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
29. Reconciliation of changes in equity and liabilities with cash flows from financing activities
| Equity | ||||||||
| Liability Lease | Share premium reserve | |||||||
| Balances as of December 31, 2025 | ||||||||
| Variations with effect on cash | ( | ) | ||||||
| Payment of leases | ( | ) | ||||||
| Share capital increase | ||||||||
| Balances as of March 31, 2026 | ||||||||
30. Segment information
Operating segments are determined based on information reviewed by the board of directors, the Chief Operating Decision Maker (CODM), which is responsible for allocating resources and assessing business performance.
The CODM monitors the operating results of each segment separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on Adjusted Gross Profit, which is defined as ‘Total revenue and financial income’ less ‘transaction expenses’, ‘interest and other financial expenses’ and ‘credit loss allowance expenses’, all of which are consistent with the same lines in the consolidated statements of profit or loss except for amounts that are not allocated to segments and inter-segment amounts.
The Group’s organizational structure has
| a) | Consumer Banking: generates revenue from various transaction activities occurring in the digital wallet, such as Pix, peer-to-peer transfers, and bill payments, including when customers use credit cards as a funding source for payments or money transfers, either in one or multiple installments. It also encompasses interest income from financial investments backed by customers’ account balances. In addition, the segment includes interest revenues from credit activities managed by PicPay Bank, fee revenues from distributing third-party credit products in the financial marketplace, interchange fees from prepaid and credit card transactions, and commissions from distributing insurance and investment products from third-party partners on the platform. |
| b) | Small and Medium-Sized Businesses: generates revenues from MDR (merchant-discount rates) charged to merchants accepting PicPay as a payment network,interchange fees from corporate benefit card transactions, and settlement scheduled floating relating to corporate benefits solutions. Additionally, the segment generates financial income from acquired credit rights and advances to suppliers of corporate clients. |
| c) | Audiences and Ecosystem Integration: This segment provides services to all of the Group’s customers, which include consumers and businesses, with the goal of increasing engagement and monetization of both sides of the ecosystem. This segment generates monetization of the audiences by leveraging PicPay’s customer base of consumers and merchants by offering products and solutions such as PicPay Ads, allowing brands and companies to benefit from PicPay’s audience in app and promote its products and services, as well as many others non-financial products. Ecosystem engagement is achieved, for example, through PicPay Shop, which is a platform that allows online merchants to sell their products and services to consumers. |
50
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
| d) | Institutional: This segment encompasses revenues, costs and expenses from financial investments and funding activities executed at the Corporate level. The Institutional unit has the role of managing funding and liquidity at the Group level as well as the allocation of liquidity and capital to each segment. |
The Group does not disclose total assets and liabilities by segment since this information is not presented to its CODM.
As of March 31, 2026
| a) | Segment information |
| Consumer Banking | Small and Medium-Sized Businesses | Audiences and Ecosystem Integration | Institutional | Total reportable segments | ||||||||||||||||
| Net revenue from transaction activities and other services | ||||||||||||||||||||
| Financial income | ||||||||||||||||||||
| Total revenue and financial income | ||||||||||||||||||||
| Transaction expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| Interest and Other financial expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| Credit loss allowance expenses | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Adjusted gross profit | ||||||||||||||||||||
| b) | Revenue and financial income reconciliation |
| March 31, 2026 | ||||
| Net revenue from transaction activities and other services | ||||
| Financial income | ||||
| Total reportable segments | ||||
| Inter-segment revenues, adjustments or reclassifications (1) | ( | ) | ||
| Total revenue and financial income | ||||
| (1) |
| c) | Reconciliation from segment adjusted gross profit to profit before income taxes |
| March 31, 2026 | ||||
| Adjusted gross profit - Total reportable segments | ||||
| Expenses and income that are not part of adjusted gross profit: | ||||
| Technology expenses | ( | ) | ||
| Marketing expenses | ( | ) | ||
| Personnel expenses | ( | ) | ||
| Administrative expenses | ( | ) | ||
| Depreciation and amortization | ( | ) | ||
| Other expenses | ( | ) | ||
| Other income | ||||
| Profit before income taxes | ||||
51
| PicS N.V. Unaudited interim condensed consolidated statements Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2026. (Thousands of Reais) | |
As of March 31, 2025
| Consumer Banking | Small and Medium-Sized Businesses | Audiences and Ecosystem Integration | Institutional | Total reportable segments | ||||||||||||||||
| Net revenue from transaction activities and other services | ||||||||||||||||||||
| Financial income | ( | ) | ||||||||||||||||||
| Total revenue and financial income | ||||||||||||||||||||
| Transaction expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Interest and Other financial expenses | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Credit loss allowance expenses | ( | ) | ( | ) | ||||||||||||||||
| Adjusted gross profit | ||||||||||||||||||||
| March 31, 2025 | ||||
| Net revenue from transaction activities and other services | ||||
| Financial income | ||||
| Total reportable segments | ||||
| Inter-segment revenues, adjustments or reclassifications (1) | ( | ) | ||
| Total revenue and financial income | ||||
| (1) |
| March 31, 2025 | ||||
| Adjusted gross profit - Total reportable segments | ||||
| Expenses and income that are not part of adjusted gross profit: | ||||
| Technology expenses | ( | ) | ||
| Marketing expenses | ( | ) | ||
| Personnel expenses | ( | ) | ||
| Administrative expenses | ( | ) | ||
| Depreciation and amortization | ( | ) | ||
| Other expenses | ( | ) | ||
| Other income | ||||
| Profit before income taxes | ||||
| 31. | Subsequent event |
On May 13, 2026, PicS Ltd. initiated the dissolution process of its wholly-owned subsidiary incorporated in the Cayman Islands. The entity is expected to be struck from the Companies Register on September 30, 2026, upon which it will be formally dissolved. The entity had no operating activities at the time of initiation of the dissolution process.
On May 21, 2026, the Company structured the “PICPAY
FGTS II Credit Rights Investment Fund” (FIDC FGTS II), a Credit Rights Investment Fund (Fundo de Investimento em Direitos Creditórios)
domiciled in the city of São Paulo, Brazil. The fund comprises a total of
On May 27, 2026, the Brazilian Administrative Council for Economic Defense (CADE) approved the acquisition of Kovr Seguradora S.A. by the Group. As of the date of issuance of these financial statements, the transaction has not yet been completed, as it remains subject to customary closing conditions precedent, including approval by the Superintendency of Private Insurance (SUSEP) and the Brazilian Central Bank (BACEN).
52