PicS NV (PICS) Q1 2026 Earnings Call Highlights: Surpassing Guidance with Robust Growth

This article first appeared on GuruFocus .

• Total Credit Portfolio:BRL28 billion, 5.8% above guidance.

• Cost of Risk:3.7%, aligned with guidance.

• Managerial Revenues:BRL3.2 billion, excluding derivatives and hedge accounting.

• Net Interest Income:BRL1.7 billion, with a net interest margin surpassing 20%.

• Gross Profit:BRL1.1 billion, slightly above guidance.

• IFRS Earnings Before Taxes:BRL222 million, 3.1% above guidance.

• IFRS Net Income:BRL152 million, 8.4% above guidance.

• Adjusted Earnings Before Taxes:BRL248 million, 5.7% above guidance.

• Adjusted Net Income:BRL169 million, 9.3% above guidance.

• Total Accounts:BRL68.6 million, up 11% year over year.

• Consolidated TPV:BRL156 billion, 31% above the prior year.

• Consumer Deposits:BRL30.8 billion, up 46% year over year.

• Net Revenues:BRL3.5 billion, a 70% increase year over year.

• Average Revenue Per Active Client (ARPAC):BRL80.7, 55% above the previous year.

• Adjusted ROE:15.5%, compared to 24.4% last quarter.

• PicPay Card TPV:BRL17.4 billion, 41% higher year over year.

• Consumer Loans Origination:BRL4.5 billion, 119% growth year over year.

• Funding Base Growth:8% quarter on quarter.

• Common Equity Tier 1 Ratio:16.7%.

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Release Date: June 02, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• PicS NV ( NASDAQ:PICS ) delivered results above guidance across all key metrics for Q1 2026, showcasing strong execution.

• Total credit portfolio reached BRL28 billion, 5.8% above guidance, driven by private payroll loans.

• Net interest income surpassed 20% net interest margin, with gross profit slightly above guidance.

• Consumer deposits grew to BRL30.8 billion, up 46% year over year, indicating strong customer trust.

• Revenue diversification improved, with 69% of revenues now from low or no credit risk streams.

Negative Points

• NPLs (Non-Performing Loans) increased to 8.9%, with expectations to reach low teens as the portfolio matures.

• Sequential decline in TPV (Total Payment Volume) and cash inflow due to typical Q1 seasonality.

• Cost to serve per active client increased by 9% year over year, though slightly down from Q4.

• Adjusted ROE (Return on Equity) decreased to 15.5% from 24.4% last quarter due to expanded equity base.

• Guidance for Q2 2026 indicates a conservative approach with expected slower loan book growth.

Q & A Highlights

Q: Can you clarify the increase in 90 days NPLs despite strong credit growth? A: Rodrigo Couto, CFO: The NPL ratios are influenced by our write-off policy and are expected to grow as our portfolio matures, reaching the low teens. We manage credit performance through cost of risk and coverage of each stage, rather than NPLs alone.