StoneCo (NASDAQ:STNE) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

StoneCo (NASDAQ:STNE) released its earnings results on Monday. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.02, Zacks reports. StoneCo had a positive return on equity of 20.18% and a negative net margin of 7.28%.The firm had revenue of $675.42 million for the quarter, compared to analyst estimates of $704.26 million.

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

• Solid 2025 results: adjusted gross profit was BRL 6.319 billion (+13.5% YoY) and adjusted EPS showed double-digit growth, with ROE expanding to 26%, demonstrating stronger profitability and capital efficiency.
• Shareholder-friendly capital allocation: the company returned BRL 3 billion during 2025, executed significant buybacks (BRL ~1.8bn H2/BRL 1.3bn in Q4), approved BRL 2 billion of repurchases for 2026, and plans to distribute the ~BRL 3 billion Linx proceeds in 2026.
• Guidance and strategy for 2026–27 emphasize continued earnings expansion and a shift toward banking and credit (2026 adjusted gross profit BRL 6.6–7.0bn; adjusted basic EPS BRL 10.8–11.4), with mid-single-digit TPV growth assumed and AI/ cross-sell initiatives prioritized to deepen client relationships.
• Credit portfolio is scaling but showing higher short‑term credit costs: portfolio reached BRL 2.8 billion (up 23% QoQ) with Q4 credit revenues of BRL 238 million, while provisions (BRL 110 million), NPLs (15–90 days 4.43%; >90 days 5.21%) and a cost of risk of ~17% have increased, which pressures near-term profitability.

StoneCo Trading Up 1.4%

NASDAQ STNE opened at $17.03 on Tuesday. The firm’s 50 day moving average price is $15.89 and its two-hundred day moving average price is $16.64. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.43 and a current ratio of 1.43. StoneCo has a twelve month low of $8.64 and a twelve month high of $19.95. The stock has a market cap of $4.87 billion, a price-to-earnings ratio of -31.54, a PEG ratio of 0.30 and a beta of 1.77.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Kestra Advisory Services LLC acquired a new position in StoneCo during the fourth quarter valued at $28,000. Advisory Services Network LLC purchased a new position in StoneCo during the 3rd quarter valued at about $37,000. Ensign Peak Advisors Inc acquired a new position in shares of StoneCo in the 4th quarter valued at about $33,000. Quadrant Capital Group LLC acquired a new position in shares of StoneCo in the 3rd quarter valued at about $87,000. Finally, Strs Ohio purchased a new stake in shares of StoneCo in the first quarter worth approximately $70,000. Hedge funds and other institutional investors own 73.19% of the company’s stock.

StoneCo News Roundup

Here are the key news stories impacting StoneCo this week:

• Positive Sentiment: Modest EPS beat — StoneCo reported quarterly EPS roughly in line-to‑better than some estimates (Zacks and MarketBeat note an EPS beat vs. consensus). That helped limit downside versus a larger revenue miss. Zacks: StoneCo Tops Q4 Estimates
• Positive Sentiment: Institutional buying and bullish analyst coverage — large managers (notably BlackRock) increased positions in Q4 and recent analyst price targets/Buy ratings remain above the current price, providing potential support. QuiverQuant: Institutional Activity & Targets
• Neutral Sentiment: Company filings and materials posted — StoneCo released the official earnings press release, slide deck and call materials; transcripts and the investor presentation are available for deeper due diligence. Newsfile: StoneCo Reports Q4 & FY2025 Results
• Neutral Sentiment: Conference call and disclosures published — the full earnings call transcript and slide deck give management’s commentary on Pix, credit trends and Linx integration/impairment; these items will guide forward expectations. Seeking Alpha: Q4 2025 Call Transcript
• Negative Sentiment: Revenue missed/market confusion — reported Q4 revenue (~$675M) came in below some analyst expectations and appears materially lower than certain prior projections, prompting investor concern about revenue recognition and consolidation impacts. QuiverQuant: Q4 Revenue & Financials
• Negative Sentiment: Adjusted gross profit and Linx impairment weighed on results — reports highlight adjusted gross profit falling short of expectations and a Q4 impairment tied to the Linx business, which pressured operating profit and prompted the stock dip. Seeking Alpha: Adjusted Gross Profit & Linx Impairment
• Negative Sentiment: Profitability and cash-flow signals mixed — operating profit and net income declined YoY in some reported metrics, cash from operations fell, and total liabilities increased materially, raising balance-sheet and margin concerns for risk‑aware investors. QuiverQuant: Profitability & Balance Sheet Highlights

Analyst Ratings Changes

Several brokerages have recently issued reports on STNE. UBS Group lowered their price objective on shares of StoneCo from $20.00 to $19.50 and set a “buy” rating on the stock in a research note on Wednesday, January 28th. Weiss Ratings restated a “sell (d+)” rating on shares of StoneCo in a report on Thursday, January 22nd. The Goldman Sachs Group decreased their price target on shares of StoneCo from $22.00 to $19.00 and set a “buy” rating on the stock in a research report on Tuesday, January 27th. BTIG Research reiterated a “buy” rating and set a $22.00 price objective on shares of StoneCo in a research report on Tuesday. Finally, Zacks Research lowered StoneCo from a “hold” rating to a “strong sell” rating in a research note on Monday, February 2nd. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $17.50.

About StoneCo

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.