StoneCo (NASDAQ:STNE) Announces Earnings Results, Beats Estimates By $0.01 EPS

StoneCo (NASDAQ:STNE) issued its quarterly earnings data on Thursday. The company reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.01, Zacks reports. StoneCo had a return on equity of 21.05% and a net margin of 23.82%.The firm had revenue of $129.73 million during the quarter, compared to analyst estimates of $708.24 million.

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

• Positive Sentiment: TPV growth accelerated to 4% year over year as retention initiatives began to take effect, while retail deposits rose 22% and the credit portfolio more than doubled to BRL 3.8 billion.
• Negative Sentiment: Credit provisions increased to BRL 188 million, cost of risk remained elevated at 21.5%, and larger-ticket exposures in the dedicated lending desk experienced defaults amid increased bankruptcy filings.
• Negative Sentiment: Stone maintained its 2026 guidance but acknowledged a tougher-than-expected backdrop, with higher-for-longer interest rates creating an estimated BRL 300 million-plus pretax headwind and management now targeting the lower end of its ranges.
• Positive Sentiment: Government-backed credit programs, which guarantee roughly 75% of defaults under the FGI Pix program, are enabling more competitive pricing and should help reduce credit risk toward the high-teens range over time.
• Positive Sentiment: The company integrated Pagar.me into the Stone platform to combine online and physical commerce, expand digital transaction volumes, and support additional credit and cross-selling opportunities; it also returned BRL 4.3 billion to shareholders in the first half.

StoneCo Price Performance

Shares of NASDAQ STNE opened at $10.23 on Friday. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $2.55 billion, a price-to-earnings ratio of 4.09, a price-to-earnings-growth ratio of 0.29 and a beta of 1.74. StoneCo has a twelve month low of $9.45 and a twelve month high of $19.95. The business has a 50 day simple moving average of $10.91 and a 200-day simple moving average of $12.89.

Insider Transactions at StoneCo

In other StoneCo news, Director Silvio Jose Morais sold 9,000 shares of StoneCo stock in a transaction on Friday, June 12th. The shares were sold at an average price of $11.29, for a total value of $101,610.00. Following the completion of the transaction, the director owned 21,000 shares of the company’s stock, valued at $237,090. The trade was a 30.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. 11.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. AQR Capital Management LLC acquired a new stake in StoneCo during the first quarter worth about $902,000. Strs Ohio bought a new position in StoneCo in the first quarter worth about $70,000. Prudential Financial Inc. boosted its stake in StoneCo by 37.4% in the second quarter. Prudential Financial Inc. now owns 28,075 shares of the company’s stock valued at $450,000 after acquiring an additional 7,635 shares during the period. Invesco Ltd. boosted its stake in StoneCo by 8.3% in the second quarter. Invesco Ltd. now owns 256,142 shares of the company’s stock valued at $4,109,000 after acquiring an additional 19,723 shares during the period. Finally, First Trust Advisors LP grew its holdings in shares of StoneCo by 10.0% during the second quarter. First Trust Advisors LP now owns 13,995 shares of the company’s stock valued at $224,000 after purchasing an additional 1,273 shares during the last quarter. 73.19% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on STNE shares. Jefferies Financial Group assumed coverage on shares of StoneCo in a research report on Thursday, July 23rd. They set a “hold” rating and a $12.60 price target for the company. JPMorgan Chase & Co. cut their price target on shares of StoneCo from $20.00 to $16.50 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Bank of America downgraded shares of StoneCo from a “buy” rating to a “neutral” rating and set a $13.00 price objective on the stock. in a research note on Wednesday, July 15th. UBS Group decreased their price objective on shares of StoneCo from $17.00 to $15.00 and set a “buy” rating for the company in a report on Friday, July 17th. Finally, Citigroup lowered shares of StoneCo from a “buy” rating to a “neutral” rating and cut their target price for the company from $18.00 to $11.00 in a research note on Friday, May 15th. Four investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, StoneCo has a consensus rating of “Hold” and a consensus target price of $14.59.

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.