B3 (B3SA3), the operator of Brazil’s stock exchange and the largest exchange in Latin America, reported Q1 2026 recurring net income of R$1.5 billion ($297M), up 33 percent year-on-year, with record revenue of R$3.2 billion ($634M, +20%) and recurring EBITDA of R$2.1 billion ($416M, +23.9%) at a 71.6 percent margin (+2.1pp), according to the CVM filing released Thursday May 7.
The result was propelled by R$53.8 billion in net foreign inflows — exceeding the total foreign inflow for all of 2025 — that drove equity ADTV up 48 percent to R$34.8 billion, per the release. Derivatives trading set an all-time daily record in March at 16.6 million contracts, while the Tesouro Direto retail bond platform grew assets 45.5 percent to 3.4 million investors.
Safra raised its price target to R$23 with Outperform, citing “operating leverage and revenue diversification,” according to their research note.
Key Points
What B3 Did in Q1 2026
B3 S.A. (Brasil, Bolsa, Balcão) is the sole operator of Brazil’s securities exchange, clearinghouse, and central depository — a vertically integrated monopoly that earns revenue from trading (equities, derivatives, fixed income), post-trading (clearing, settlement, custody), data/analytics, and technology services. B3 is the largest exchange operator in Latin America and one of the 10 largest globally by market capitalisation. The exchange processes approximately 200 billion reais in daily trading value across its platforms and serves as the infrastructure backbone for Brazil’s R$10+ trillion capital market.
B3 stated that “the outlook for interest rate cuts, foreign flows into equities, and high volatility drove the pro-cyclical revenue group — derivatives and equities — which grew 23.7 percent, demonstrating the strength of B3’s business model and the potential of the Brazilian market in a favourable scenario,” per the earnings release. The R$53.8 billion in net foreign equity inflows exceeded the total for all of 2025 — a staggering acceleration that reflects international institutional investors repositioning into Brazilian equities ahead of the Copom easing cycle, per analyst commentary.
Expenses totalled R$918.7 million (+10.9% YoY), with adjusted expenses up 6.3 percent — the gap between 20 percent revenue growth and 6.3 percent adjusted cost growth created the 71.6 percent EBITDA margin, the highest in the company’s recent history. This operating leverage is the structural advantage of a monopoly exchange operator: incremental trading volume generates revenue with minimal incremental cost, as the infrastructure is already built and the marginal cost of processing an additional trade approaches zero, according to WarrenAI analysis.
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Why B3’s Q1 Matters
B3’s record quarter is a direct measure of international capital market confidence in Brazil. When R$53.8 billion of foreign capital flows into B3 in a single quarter, it confirms that global institutional investors are overweighting Brazilian equities — a signal that extends beyond any individual company’s earnings to the country’s macro credibility, fiscal trajectory, and relative valuation versus other emerging markets. The derivatives record (16.6 million contracts in March) reflects hedging demand from the same foreign investors plus domestic institutions managing Selic, FX, and equity risk.
The revenue diversification beyond trading is the longer-term structural story. ETF/BDR/Fund ADTV surging 57.5 percent to R$5.4 billion now represents 15.5 percent of total trading volume — up from approximately 10 percent two years ago. The Tesouro Direto platform’s 45.5 percent asset growth and 3.4 million investors demonstrates retail adoption of government bonds. The fixed income and credit segment (issuance +9.1%, stock +16.8%) benefits from the high-Selic environment that drives corporate bond issuance. This diversification reduces B3’s dependence on equity trading volumes, which are cyclical, and creates multiple revenue streams that compound independently, per Safra’s analysis.
B3 Q1 2026 Snapshot
| Indicator | Q1 2026 | Chg YoY |
|---|---|---|
| Recurring Net Income | R$1.5B ($297M) | +33% |
| Revenue (record) | R$3.2B ($634M) | +20% |
| EBITDA | Margin | R$2.1B | 71.6% | +23.9% | +2.1pp |
| Equity ADTV | R$34.8B | +48% |
| Derivatives ADV (Mar record) | 16.6M contracts | All-time high |
| Net Foreign Inflow | R$53.8B | >100% of all 2025 |
| Tesouro Direto Stock | 3.4M investors | +45.5% |
| Investor Accounts | 6.5M (+400K in 12M) | — |
What Happens Next for B3
IPO pipeline activation: The Compass offering (PASS3) and 50+ companies in B3’s IPO queue could generate significant primary issuance revenue. Each successful IPO/follow-on adds listing fees, trading fees, and custody revenue for B3.
Copom easing cycle: If rate cuts accelerate, the equities bull case strengthens — historically, equity ADTV rises 15–20 percent for every 200bp Selic cut, directly benefiting B3’s transaction revenue.
Product innovation: Digital options on Ibovespa, Bitcoin, and USD, plus extended trading hours, expand the addressable market for retail and institutional traders. The ETF/BDR segment’s 57.5 percent growth trajectory could make it a standalone revenue pillar.
Valuation: At ~15x P/E (Safra estimate), B3 has rerated 62 percent over 12 months. Further multiple expansion requires sustained volume growth, which depends on the durability of the foreign inflow cycle and the Copom easing trajectory.
Why did B3’s profit jump 33%?
Record foreign inflows of R$53.8 billion drove equity trading volumes up 48 percent and pushed derivatives to an all-time high of 16.6 million contracts in March. Revenue grew 20 percent to a record R$3.2 billion while costs grew only 6.3 percent adjusted, creating extreme operating leverage at the 71.6 percent EBITDA margin level.
What drove the foreign inflow surge?
International investors repositioned into Brazilian equities ahead of the Copom easing cycle, attracted by high real interest rates, a strengthening BRL, and attractive equity valuations after years of underperformance. The R$53.8 billion in Q1 exceeded the entire 2025 annual foreign inflow.
Is B3 a monopoly?
Yes. B3 is the sole operator of Brazil’s securities exchange, clearinghouse, and central depository — a vertically integrated natural monopoly. This structure means every equity trade, derivatives contract, and bond settlement in Brazil generates revenue for B3, creating a business with approximately 72 percent operating margins and extreme scalability.
Updated: 2026-05-08T14:00:00-03:00 by Rio Times Editorial Desk
B3 Q1 2026 | B3SA3 earnings | Brazil stock exchange derivatives foreign inflow | Latin American financial news | The Rio Times
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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