XP (NASDAQ:XP) reported second-quarter 2026 gross revenue of BRL 5.1 billion, up 8% from a year earlier, as growth in equities, fund-platform fees and corporate banking partly offset pressure from credit-market volatility and weaker primary debt offerings.
Adjusted earnings before taxes rose 15% year over year to BRL 1.6 billion, while adjusted net income increased 5% to BRL 1.4 billion. Adjusted diluted earnings per share grew about 9%, aided by the company’s share repurchase program. Return on equity rose 80 basis points sequentially to 22.5%, and XP ended the quarter with a Basel capital ratio of 20.3%.
“Despite the market volatility we faced in the first half of the year, our core businesses continued to perform well with resilient underlying momentum,” Maffra said. He added that the company began to see market normalization toward the end of the quarter and a gradual recovery in its fixed-income pipeline.
Client assets reach BRL 2.2 trillion
Combined client assets, including assets under management and assets under administration, reached approximately BRL 2.2 trillion, rising 17% year over year. Retail net new money totaled BRL 20 billion in the quarter, meeting XP’s internal target, while corporate and institutional net inflows were BRL 8 billion. Total net new money was BRL 28 billion.
The company ended the quarter with 4.8 million active clients, up 1% from a year earlier, and 184,000 advisors, also up 1%. Its net promoter score was 66 points, which Maffra said reflected a continuing recovery from one-time events that affected client satisfaction in prior quarters.
XP said it is expanding beyond product distribution toward a broader wealth-planning model that includes financial, tax and succession planning. More than 26% of client assets are now under fee-based arrangements, according to Maffra. The company is also broadening offshore investment capabilities and launching products including ETFs and managed portfolios.
Retail revenue supported by equities and funds
Retail revenue totaled BRL 3.9 billion, up 8% year over year and 3% sequentially. CFO Gustavo Alejo said that excluding mark-to-market effects tied to fixed-income corporate credit, retail revenue would have grown 15% in the first half of 2026 compared with the same period a year earlier.
Equities revenue rose 11% year over year to nearly BRL 1.1 billion, despite lower average daily trading volume in equities and futures. Sequentially, equities revenue fell 2%, while average daily trading volume declined about 8%.
Fund-platform revenue increased 23% year over year and 7% from the prior quarter, aided by the booking of management and performance fees. New verticals and other retail revenue streams, including float, the international platform and foreign exchange, also contributed to growth.
During the question-and-answer session, Maffra said fixed-income revenue was affected by a sharp shift in client demand toward short-duration, daily-liquidity products. He said roughly 70% of fixed-income platform sales were in daily-liquidity products, compared with about 30% three or four quarters earlier. Such products generate lower daily accrual revenue than longer-duration corporate bonds, he said.
Maffra also said the company faced roughly BRL 420 million of mark-to-market impact during the first half, including less than BRL 300 million in the first quarter and approximately BRL 100 million to BRL 160 million in the second quarter. XP reduced the size of its relevant trading books during the first half, though Maffra said the company would remain exposed to some mark-to-market movements because maintaining such books is part of its business.
Wholesale growth led by corporate business
Wholesale banking revenue, including corporate issuer services and institutional revenue, increased 32% year over year and 3% sequentially. The corporate segment posted revenue growth of 117% from a year earlier and 22% from the first quarter, supported by cross-selling of derivatives, foreign exchange and credit solutions.
However, issuer services were pressured by a reduced number of fixed-income offerings, particularly tax-exempt instruments, amid lower investor risk appetite. Maffra said debt capital markets activity in the third quarter was improving from the second quarter but remained softer than recent periods and below the record volumes seen in 2025.
The company said it expects corporate revenue to remain strong in the third quarter. Maffra characterized current corporate-business activity as a level XP expects to be sustainable over time, while emphasizing that the company would maintain conservative credit standards.
XP is also preparing to expand its offering for small and medium-sized businesses. Maffra said a platform for small businesses, including cards, payment acquiring and collateralized credit products, is scheduled to go live Sept. 1. The company recently announced a partnership for a point-of-sale device and a credit card aimed at the segment.
For small-business lending, Maffra said XP intends to focus primarily on collateralized credit, including credit backed by card receivables and other receivables, as well as certain government-related programs. “We are going to go step by step,” he said.
Capital returns and expense outlook
XP’s selling, general and administrative expenses were BRL 1.6 billion, rising 5% year over year and 2% sequentially. Its trailing-12-month efficiency ratio was 34.3%, up 30 basis points from a year earlier but down roughly 30 basis points sequentially.
Alejo said XP continues to target a broadly flat efficiency ratio for the full year, although expenses are expected to rise in nominal terms in the second half due to seasonal items such as bonus provisions and the company’s EXPERT event. Maffra said technology spending is increasing, particularly on artificial intelligence, servers and cloud infrastructure.
The company expects to launch an AI advisor for digital retail clients around late August or early September. Maffra said XP expects client growth in that segment to accelerate in 2027 as its product offering becomes more comprehensive.
On capital management, XP had completed BRL 1 billion under a prior repurchase authorization as of the end of June and still had another BRL 1 billion buyback program open. Including approximately BRL 500 million in dividends paid in June, XP had announced nearly BRL 2.5 billion in capital distributions during 2026. The company also plans to cancel approximately 11.8 million treasury shares, representing about 2.3% of shares outstanding.
Maffra said XP is comfortable reducing its Basel ratio toward its 16% to 19% target range and expects capital distributions for the year to exceed 50% of earnings, with the mix between dividends and repurchases depending in part on the share price.
About XP (NASDAQ:XP)
XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.
