PagSeguro Digital (NYSE:PAGS) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

PagSeguro Digital (NYSE:PAGS) issued its quarterly earnings data on Tuesday. The company reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01), FiscalAI reports. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%. The business had revenue of $642.01 million for the quarter, compared to analyst estimates of $952.64 million.

Here are the key takeaways from PagSeguro Digital’s conference call:

• TPV reaccelerated to BRL 128 billion, roughly flat year over year, with management saying it expects TPV growth to turn positive in Q2 and accelerate in the second half of 2026.
• Credit continued to scale quickly, with the expanded credit portfolio reaching BRL 51 billion, up 11% year over year, led by a 190% surge in working capital lending.
• Profitability improved despite higher rates, as net revenue excluding interchange fees rose 6.4% to BRL 3.3 billion and recurring non-GAAP net income increased 4% to BRL 575 million, though financial costs remained pressured by Brazil’s Selic rate.
• Operating leverage was a key strength, with operating expenses declining about 230 basis points as a share of revenue and management highlighting further efficiency gains from AI and process optimization.
• Capital returns remained strong, as PagBank returned more than BRL 2.4 billion over the last 12 months and announced another BRL 400 million dividend for June, while maintaining a managerial Basel ratio of 24.1% to support further growth and buybacks.

PagSeguro Digital Price Performance

Shares of NYSE PAGS traded up $0.05 during mid-day trading on Tuesday, hitting $9.79. The company’s stock had a trading volume of 2,997,488 shares, compared to its average volume of 3,901,376. PagSeguro Digital has a one year low of $7.74 and a one year high of $12.32. The company’s fifty day simple moving average is $10.25 and its 200-day simple moving average is $10.19. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of 7.65, a price-to-earnings-growth ratio of 0.41 and a beta of 1.37.

PagSeguro Digital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, April 22nd will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 10.6%. The ex-dividend date of this dividend is Wednesday, April 22nd. PagSeguro Digital’s payout ratio is currently 81.25%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on PAGS shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of PagSeguro Digital in a report on Friday. Autonomous Res downgraded PagSeguro Digital from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 30th. UBS Group upped their target price on shares of PagSeguro Digital from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Wednesday, January 28th. JPMorgan Chase & Co. lowered their price target on PagSeguro Digital from $13.00 to $12.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Finally, Wall Street Zen upgraded shares of PagSeguro Digital from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $12.00.

Insider Activity at PagSeguro Digital

In other PagSeguro Digital news, Director Luis Frias bought 498,500 shares of the company’s stock in a transaction on Friday, March 27th. The stock was bought at an average price of $9.96 per share, for a total transaction of $4,965,060.00. Following the transaction, the director owned 2,673,605 shares of the company’s stock, valued at approximately $26,629,105.80. The trade was a 22.92% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Alexandre Mr Magnani sold 200,000 shares of the company’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $11.26, for a total value of $2,252,000.00. Following the completion of the sale, the director directly owned 607,390 shares of the company’s stock, valued at approximately $6,839,211.40. This trade represents a 24.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Institutional Trading of PagSeguro Digital

A number of large investors have recently bought and sold shares of PAGS. Mariner LLC grew its stake in shares of PagSeguro Digital by 6.0% during the 4th quarter. Mariner LLC now owns 26,406 shares of the company’s stock worth $255,000 after acquiring an additional 1,488 shares in the last quarter. First Trust Advisors LP grew its stake in shares of PagSeguro Digital by 9.7% during the 2nd quarter. First Trust Advisors LP now owns 23,684 shares of the company’s stock worth $228,000 after acquiring an additional 2,098 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of PagSeguro Digital by 108.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company’s stock worth $48,000 after acquiring an additional 2,569 shares in the last quarter. Inceptionr LLC grew its holdings in shares of PagSeguro Digital by 11.8% in the 4th quarter. Inceptionr LLC now owns 24,846 shares of the company’s stock valued at $240,000 after acquiring an additional 2,613 shares in the last quarter. Finally, Vident Advisory LLC grew its holdings in shares of PagSeguro Digital by 29.1% in the 4th quarter. Vident Advisory LLC now owns 15,233 shares of the company’s stock valued at $147,000 after acquiring an additional 3,431 shares in the last quarter. 45.88% of the stock is owned by institutional investors.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company’s product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.