XP Inc. (NASDAQ:XP) Surpasses EPS Estimates but Misses on Revenue in Q2 2025
By Tredu.com • 2025-08-18 22:00:02
Tredu
XP Inc. (NASDAQ:XP) reported an earnings per share (EPS) of $0.45, surpassing the consensus estimate of $0.43, demonstrating robust profitability. However, the company's revenue was $822.3 million, significantly missing the estimated $855 million, highlighting potential areas for improvement in revenue generation. Despite a 70% year-over-year decline in total net inflow, amounting to 10 billion Brazilian Reais, XP achieved a 14% year-over-year increase in total client assets, reaching 1.372 trillion Brazilian Reais. This growth underscores the company's ability to attract and retain clients.
XP Inc. (NASDAQ:XP), a leading tech-enabled financial services platform in Brazil, is recognized for its innovative approach, serving a diverse client base. The company competes with other financial service providers in Brazil, leveraging technology to enhance customer experience and expand its market presence. On August 18, 2025, XP reported an EPS of $0.45, exceeding the estimated $0.43, reinforcing its strong profitability despite revenue challenges. The company's actual revenue was approximately $822.3 million, falling short of the expected $855 million. This shortfall suggests opportunities for growth in revenue streams.
XP's financial results for the second quarter of 2025 reflect a 14% year-over-year increase in total client assets, reaching 1.372 trillion Brazilian Reais. However, the 70% decline in total net inflow compared to the same period last year indicates challenges in sustaining client investment inflows. The company's annualized retail take rate remained stable at 1.25%, with a slight decrease of 4 basis points from the previous year, indicating consistent revenue generation from retail clients.
XP's price-to-earnings (P/E) ratio is approximately 10.88, reflecting the market's valuation of its earnings. The price-to-sales ratio is about 2.73, indicating the company's market value relative to its revenue. XP's enterprise value to sales ratio is approximately 3.39, suggesting the market's valuation of the company's total worth compared to its sales. The enterprise value to operating cash flow ratio is around 8.39, indicating the company's valuation relative to its operating cash flow. XP has an earnings yield of about 9.19%, providing insight into the return on investment. The debt-to-equity ratio is 2.75, highlighting the company's financial leverage. Lastly, the current ratio is approximately 1.57, indicating XP's ability to cover its short-term liabilities with its short-term assets.