Xp Incorporation ( (XP) ) has released its Q1 earnings. Here is a breakdown of the information Xp Incorporation presented to its investors.
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XP Inc., a prominent tech-enabled financial services platform in Brazil, specializes in offering low-fee financial products and services. The company recently released its financial results for the first quarter of 2025, showcasing notable growth and strategic advancements.
In the first quarter of 2025, XP Inc. reported a 7% year-over-year increase in gross revenue, reaching R$4.6 billion. The company also saw a 20% rise in net income, amounting to R$1.2 billion. Key drivers of this growth included a significant 44% increase in fixed income revenue and a 40% rise in gross written premiums in the insurance segment. Additionally, total client assets grew by 13% year-over-year, totaling R$1.3 trillion.
The company’s retail segment experienced a 10% year-over-year revenue increase, despite a 15% decline in equities revenue. Institutional revenue saw a slight decrease of 3% year-over-year, while corporate and issuer services revenue grew by 11%. The company maintained a strong focus on cost discipline, with SG&A expenses remaining flat year-over-year and decreasing by 10% quarter-over-quarter.
Looking ahead, XP Inc. remains committed to enhancing its platform and expanding its market presence. The company announced a new share buyback program as part of its capital distribution strategy. Management continues to focus on cost efficiency and operational leverage, aiming to sustain growth and profitability in the coming quarters.