StoneCo (NASDAQ:STNE) Issues Earnings Results, Beats Expectations By $0.01 EPS

StoneCo (NASDAQ:STNE) issued its earnings results on Thursday. The company reported $0.47 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.01, Zacks reports. StoneCo had a return on equity of 21.25% and a net margin of 22.92%.The business had revenue of $129.73 million during the quarter, compared to analyst estimates of $708.24 million.

Here are the key takeaways from StoneCo’s conference call:

• Positive Sentiment: TPV growth accelerated to 4% year over year as retention initiatives began to take effect, while retail deposits rose 22% and the credit portfolio more than doubled to BRL 3.8 billion.
• Negative Sentiment: Credit provisions increased to BRL 188 million, cost of risk remained elevated at 21.5%, and larger-ticket exposures in the dedicated lending desk experienced defaults amid increased bankruptcy filings.
• Negative Sentiment: Stone maintained its 2026 guidance but acknowledged a tougher-than-expected backdrop, with higher-for-longer interest rates creating an estimated BRL 300 million-plus pretax headwind and management now targeting the lower end of its ranges.
• Positive Sentiment: Government-backed credit programs, which guarantee roughly 75% of defaults under the FGI Pix program, are enabling more competitive pricing and should help reduce credit risk toward the high-teens range over time.
• Positive Sentiment: The company integrated Pagar.me into the Stone platform to combine online and physical commerce, expand digital transaction volumes, and support additional credit and cross-selling opportunities; it also returned BRL 4.3 billion to shareholders in the first half.

StoneCo Price Performance

Shares of NASDAQ STNE opened at $9.55 on Friday. StoneCo has a fifty-two week low of $9.38 and a fifty-two week high of $19.95. The stock has a fifty day moving average of $10.89 and a 200-day moving average of $12.87. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.33 and a current ratio of 1.33. The stock has a market cap of $2.38 billion, a PE ratio of 3.85, a price-to-earnings-growth ratio of 0.30 and a beta of 1.74.

Key StoneCo News

Here are the key news stories impacting StoneCo this week:

• Positive Sentiment: StoneCo reported second-quarter adjusted earnings of $0.47 per share, narrowly exceeding the $0.46 consensus estimate. The company also reported a 21.05% return on equity and a 23.82% net margin. StoneCo Ltd. Q2 Earnings Beat Estimates
• Neutral Sentiment: StoneCo filed reviewed interim financial statements for the first half of 2026 and released its quarterly presentation and earnings-call materials, giving investors additional detail on its financial performance and outlook. StoneCo Files Reviewed Interim Financial Statements
• Negative Sentiment: Quarterly revenue of $129.73 million was dramatically below the $708.24 million analyst consensus cited in the report, raising concerns about growth and the quality or comparability of the reported results. StoneCo Stock Dips as Q2 Adjusted Income Declines
• Negative Sentiment: StoneCo’s adjusted income declined year over year, offsetting the modest EPS beat and making the quarter less attractive to investors focused on earnings growth. Nu Holdings Jumps While StoneCo Drops
• Negative Sentiment: StoneCo underperformed Brazilian fintech peer Nu Holdings, suggesting investors are differentiating between the companies’ growth prospects rather than broadly buying the sector.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. BTIG Research lowered their price objective on shares of StoneCo from $22.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, May 15th. Bank of America cut shares of StoneCo from a “buy” rating to a “neutral” rating and set a $13.00 price objective for the company. in a report on Wednesday, July 15th. Jefferies Financial Group initiated coverage on shares of StoneCo in a report on Thursday, July 23rd. They issued a “hold” rating and a $12.60 target price on the stock. Citigroup cut shares of StoneCo from a “buy” rating to a “neutral” rating and dropped their price target for the company from $18.00 to $11.00 in a research report on Friday, May 15th. Finally, UBS Group decreased their price objective on StoneCo from $17.00 to $15.00 and set a “buy” rating for the company in a report on Friday, July 17th. Four analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, StoneCo currently has a consensus rating of “Hold” and an average target price of $14.59.

Insider Activity at StoneCo

In related news, Director Silvio Jose Morais sold 9,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.29, for a total transaction of $101,610.00. Following the completion of the transaction, the director owned 21,000 shares of the company’s stock, valued at approximately $237,090. The trade was a 30.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 11.25% of the company’s stock.

Institutional Investors Weigh In On StoneCo

Large investors have recently added to or reduced their stakes in the business. SPX Gestao de Recursos Ltda increased its position in shares of StoneCo by 1,054.8% in the fourth quarter. SPX Gestao de Recursos Ltda now owns 5,236,620 shares of the company’s stock worth $77,450,000 after purchasing an additional 4,783,158 shares during the last quarter. Qube Research & Technologies Ltd purchased a new stake in shares of StoneCo during the 3rd quarter valued at $58,017,000. Balyasny Asset Management L.P. lifted its holdings in shares of StoneCo by 1,004.5% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,934,964 shares of the company’s stock worth $28,618,000 after acquiring an additional 1,759,782 shares during the last quarter. State Street Corp lifted its holdings in shares of StoneCo by 23.0% during the 4th quarter. State Street Corp now owns 7,714,651 shares of the company’s stock worth $114,101,000 after acquiring an additional 1,440,760 shares during the last quarter. Finally, Deutsche Bank AG grew its position in StoneCo by 543.7% in the fourth quarter. Deutsche Bank AG now owns 1,482,999 shares of the company’s stock worth $21,934,000 after acquiring an additional 1,252,609 shares in the last quarter. Institutional investors own 73.19% of the company’s stock.

StoneCo Company Profile

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.