StoneCo Reports Strong 2025 Financial Growth, Declares R$3.08B Extraordinary Dividend, and Completes Software Divestment
Summary
StoneCo Ltd. reported strong financial performance for 2025, including double-digit growth in revenue and net income, alongside significant capital returns to shareholders through a R$3.08 billion extraordinary dividend and substantial share repurchases. The company also completed the strategic divestment of its software businesses, while facing increased non-performing loans in its credit portfolio.
Key Events
-
Strong Financial Performance in 2025
Total revenue and income from continuing operations grew 17.5% to R$14,153.8 million, with net income from continuing operations increasing 17.6% to R$2,377.1 million. Adjusted net income also rose 17.5% to R$2,477.2 million.
-
Significant Capital Return to Shareholders
The Board approved an extraordinary cash dividend of US$2.53 per share, totaling approximately R$3.08 billion, following the sale of Linx. Additionally, the company repurchased R$2,987.0 million of its Class A common shares in 2025, reducing outstanding shares by 40.3 million, and approved a new R$2.0 billion repurchase program in December 2025.
-
Operational Growth and Strategic Divestment
Total Payment Volume (TPV) increased 8.7% to R$560.9 billion, and active payment clients grew 15.1% to 4.8 million. The company completed the divestment of its Software Businesses in February 2026 for R$3,272.2 million, streamlining its focus on financial services.
-
Rising Credit Risk in Expanding Portfolio
The credit portfolio expanded significantly by 134.9% to R$2,836.3 million. However, non-performing loans (NPL) 15-90 days increased to 4.43% (from 2.47% in 2024) and NPL over 90 days rose to 5.21% (from 3.61% in 2024), while the coverage ratio over NPL 90 days decreased to 264% (from 331% in 2024).
Analysis
StoneCo Ltd. delivered robust financial results for fiscal year 2025, marked by significant growth in revenue, net income, and key operational metrics. The company's strategic focus on financial services, following the divestment of its software businesses, appears to be yielding positive outcomes. A substantial extraordinary cash dividend and ongoing share repurchase programs underscore a commitment to returning capital to shareholders. However, investors should note the increase in non-performing loans (NPLs) and a decrease in the coverage ratio within the rapidly expanding credit portfolio, indicating a potential rise in credit risk that warrants close monitoring. The company also highlighted the impact of new Brazilian tax laws, which could increase its tax burden in future periods.
At the time of this filing, STNE was trading at $14.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $12.54 to $19.95. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.