XP Inc. Delivers 20% Profit Growth in Q1 2025, Announces R$1 Billion Share Buyback

XP Inc., Brazil’s leading tech-enabled platform providing low-fee financial products and services, reported strong financial results for the first quarter of 2025 on May 20.

The company achieved an adjusted net income of R$1.24 billion ($218 million), marking a 20% increase compared to the same period last year. Gross revenue reached R$4.56 billion ($800 million), up 7% year-over-year, despite a 4% decrease quarter-over-quarter.

Total client assets grew to R$1.33 trillion ($233 billion), representing a 13% increase year-over-year and a 3% rise quarter-over-quarter. This growth stemmed from R$119 billion ($21 billion) in net inflows and R$32 billion ($6 billion) in market appreciation.

The company reported R$24 billion ($4 billion) in net inflows during Q1 2025, with retail net inflows contributing R$20 billion ($4 billion). XP’s retail segment showed impressive performance with revenue increasing by 10% year-over-year to R$3.44 billion ($604 million).

Fixed income emerged as the largest revenue contributor within retail for the first time, growing 44% to R$1.02 billion ($179 million). Credit services also performed well with a 48% year-over-year increase.

The company maintained a strong active client base of nearly 4.7 million, up 2% from the previous year. XP’s advisor network remained stable at 18,100, showing a 2% increase year-over-year.

Profitability metrics demonstrated significant improvement. Earnings Before Taxes (EBT) reached R$1.26 billion ($221 million), up 16% year-over-year, with an EBT margin of 29.1%.

This represents a 220 basis point improvement compared to Q1 2024. The adjusted Return on Tangible Equity (ROTE) increased to 24.1% from 20.7% in the same period last year.

XP Strengthens Shareholder Value with Buyback Program

XP also announced a new share repurchase program worth R$1 billion ($175 million) as part of its capital return plan. The company’s BIS Ratio (Basel Index) stood at 19.0% in Q1 2025, showing strong capital adequacy.

The company demonstrated effective cost management with its last twelve months efficiency ratio reaching 34.1% in Q1 2025, the lowest level since its IPO. This highlights XP’s focus on operational efficiency while scaling its business.

Adjusted earnings per share (EPS) grew by 24% year-over-year to R$2.29 ($0.40), outpacing net income growth due to the impact of previous share buyback programs.

The company continues to focus on enhancing its platform through strategic investments in banking product offerings and internal advisor recruitment.

These results reflect XP’s ability to maintain growth momentum in Brazil’s competitive financial services market while delivering increasing value to shareholders through disciplined capital management and operational excellence.

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