PICS (NASDAQ:PICS) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

PICS (NASDAQ:PICS) issued its quarterly earnings results on Wednesday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.07), Zacks reports.

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

• PicPay reported results above the top end of its IPO guidance, with Q4 net revenues of BRL 3.0 billion (+69% YoY) and full‑year revenues of BRL 10.3 billion (+85%), signaling strong execution as a newly public company.
• The credit business is the primary growth engine: total credit balances reached BRL 24.1 billion (up 128% YoY), driven by rapid private‑payroll and secured lending origination, which management says offers higher NIMs and long runway for monetization (but will raise provisioning needs as mix shifts).
• Unit economics and profitability are improving materially — ARPAC rose to BRL 71 in Q4 (+52%), cost‑to‑serve per active client grew only ~11%, the efficiency ratio fell below 50%, and quarterly ROE expanded to 24.4%, reflecting operating leverage.
• A one‑time ECL methodology update reclassified ~BRL 590 million from stage 2 to stage 3 (adding BRL 88 million of provisions), temporarily lifting stage‑3 formation to 7.1%; management expects normalization to ~3.7–4.0% in Q1‑2026 but the change increased near‑term credit costs.

PICS Stock Performance

Shares of PICS stock opened at $14.93 on Thursday. PICS has a 12 month low of $12.80 and a 12 month high of $19.95.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on PICS shares. Wall Street Zen lowered shares of PICS from a “buy” rating to a “hold” rating in a research note on Tuesday, February 17th. HSBC initiated coverage on shares of PICS in a report on Thursday, February 19th. They set a “buy” rating and a $21.00 price objective for the company. Zacks Research raised shares of PICS to a “hold” rating in a report on Wednesday, February 25th. Bank of America assumed coverage on shares of PICS in a report on Tuesday, February 24th. They set a “buy” rating and a $27.00 target price on the stock. Finally, Wolfe Research upgraded shares of PICS to a “strong-buy” rating in a research report on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $25.50.