NASDAQ$XP

XP Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

XP Inc. reported strong revenue growth and increased adjusted net income in Q4 2024.

XP Inc. delivered solid financial results in Q4 2024, with a 10% year-over-year increase in gross revenue, reaching R$4.725 billion. Adjusted net income rose 16% to R$1.21 billion, driven by a record efficiency ratio of 34.7%. Retail revenue grew 13% year-over-year, supported by strength in fixed income and cards. Operating efficiency and strategic expansion contributed to profitability improvements.

  • Gross revenue increased by 10% YoY to R$4.725 billion.
  • Adjusted net income rose 16% YoY to R$1.21 billion.
  • Retail revenue saw 13% growth YoY, led by fixed income and cards.
  • Efficiency ratio reached a record low of 34.7%, reflecting cost discipline.

Headline financials

Total Revenue

$764M

Previous: $831M-8.0%
EPS (adj)

$0.36

Previous: $0.38-5.3%
Annualized Retail Take Rate

1.3%

No prior period
Gross Written Premiums

$401M

No prior period
Expanded Loan Portfolio

$61.5B

No prior period
Total Client Assets

$1.29T

No prior period
Capital Expenditures

-$12.5M

Previous: $11.6M-208.3%
Net Income

$191M

Previous: $210M-9.2%
Operating Income

$208M

No prior period
Gross Profit

$503M

No prior period

Revenue & EPS history

XP · Revenue · Quarterly

$764M

Q4 2024-8%vs Q4 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

XP Inc. expects continued revenue growth and EPS expansion in 2025, driven by retail investment demand, fixed income momentum, and strategic market expansion.

Tailwinds

  • Higher interest rate environment expected to support client asset growth.
  • Continued strong performance in fixed income and wealth management.
  • Strategic expansion into wholesale banking to drive diversification.
  • Ongoing cost discipline expected to improve efficiency metrics further.
  • Share repurchase program to enhance EPS growth.

Headwinds

  • Macroeconomic volatility remains a key risk factor.
  • Competitive pressure from traditional and digital financial institutions.
  • Potential regulatory changes affecting investment platforms.
  • Execution risks in expanding wholesale banking initiatives.
  • Global market uncertainties impacting investor sentiment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.2%

Avg return

30 days after

48%

13 / 27 earnings

Positive

+10.1%

Q1 2020

Best reaction

-20.3%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.6%-2.9%-11.6%
Q4 2025+0.5%+2.0%-7.9%
Q3 2025+1.9%-4.0%-12.3%
Q2 2025-8.7%-5.9%+14.9%
Q1 2025+1.1%+1.2%+2.3%
Q4 2024-1.3%-3.1%+0.7%
Q3 2024-7.1%-5.8%-28.2%
Q2 2024+8.6%+10.6%+3.1%
Q1 2024-16.7%-13.5%-16.7%
Q4 2023-1.6%-0.8%+6.4%
Q3 2023+0.0%+4.9%+5.6%
Q2 2023-2.3%-1.7%+2.1%
Q1 2023+3.8%+12.3%+37.5%
Q4 2022-20.3%-17.8%-26.4%
Q3 2022+6.7%+4.1%-13.9%
Q2 2022-16.7%-20.2%-21.4%
Q1 2022-9.6%-16.6%-3.8%
Q4 2021+7.1%+5.1%-3.1%
Q3 2021-1.5%+3.8%-11.7%
Q2 2021+9.3%+15.2%+22.7%
Q1 2021+9.3%+14.5%+1.0%
Q4 2020+3.6%-4.2%-18.2%
Q3 2020-6.7%-8.5%-10.0%
Q2 2020-3.0%-8.0%-5.3%
Q1 2020+10.1%+4.6%+53.9%
Q4 2019-5.1%-3.2%+37.3%
Q3 2019+3.3%+10.0%+8.5%
Q2 2019
Q1 2019
Q4 2018

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