StoneCo’s Q1 2025 Results Show Revenue Growth Amid High-Interest Challenges

The latest announcement is out from Stoneco ( (STNE) ).

StoneCo Ltd. reported its first quarter 2025 financial results, highlighting a 19% year-over-year increase in total revenue and income, reaching R$3,669.9 million. Despite a challenging high-interest rate environment in Brazil, the company achieved significant growth in its financial services segment, driven by improved client monetization and an expanding active client base. Adjusted gross profit rose by 18.7% year-over-year, although it saw a sequential decline due to higher costs associated with the Brazilian CDI rate. The company’s adjusted net income increased by 23.1% compared to the previous year, with an adjusted net margin of 15.1%. StoneCo’s active client base grew by 17%, and the company executed significant share buybacks, reducing its outstanding shares by 39.2 million. The results underscore StoneCo’s strategic efforts in navigating economic challenges and expanding its market presence.

Spark’s Take on STNE Stock

According to Spark, TipRanks’ AI Analyst, STNE is a Neutral.

Stoneco’s stock benefits from strong revenue growth and recent earnings performance but is weighed down by profitability challenges and valuation concerns. Positive technical indicators suggest potential momentum, while strategic growth initiatives are promising.

To see Spark’s full report on STNE stock, click here.

More about Stoneco

StoneCo Ltd. operates in the financial technology industry, providing financial services and payment solutions primarily in Brazil. The company focuses on offering services such as payment processing, banking, and financial management to micro, small, and medium-sized businesses (MSMBs).

Average Trading Volume: 6,808,040

Technical Sentiment Signal: Buy

Current Market Cap: $3.61B

See more insights into STNE stock on TipRanks’ Stock Analysis page.