STNE · StoneCo Ltd.

StoneCo Ltd.'s Q1 2026 unaudited interim condensed consolidated financial statements show robust profitability growth, with net income from continuing operations surging to R$1.78 billion from R$512 million in the prior-year quarter, primarily fueled by financial income of R$2.58 billion and a significant R$1.40 billion deferred tax benefit. Total revenue and income from continuing operations reached R$3.58 billion, up from R$3.36 billion, supported by net revenue from transaction activities (R$481 million) and subscription services (R$252 million), alongside other financial income of R$263 million. Expenses increased modestly, with cost of services at R$989 million and selling expenses at R$543 million, while net financial expenses remained stable at R$1.10 billion. Profit before taxes from continuing operations was steady at R$627 million. A loss from discontinued operations of R$69 million offset some gains, resulting in total net income of R$1.71 billion and basic EPS of R$7.17. Balance sheet strength improved, with cash and equivalents rising to R$6.09 billion and total equity expanding to R$12.28 billion, reflecting retained earnings growth to R$3.68 billion. Equity changes included share repurchases (R$532 million), cancellations, and share-based payments. The 2025 comparative statements were restated due to classification of certain subsidiaries as discontinued operations in Q2 2025 per IFRS 5, as noted in Note 20. Ernst & Young's review concluded no material issues, prepared under IAS 34.