XP Inc.
- Open
- 18.11
- Day high
- 19.05
- Day low
- 18.11
- Prev close
- 18.23
- Volume
- 2.0M
- Mkt cap
- $9.5B
- P/E (TTM)
- 9.5
- EPS (TTM)
- $1.97
- P/B
- 2.0
- P/S
- 2.6
- Yield
- 1.06%
- Per share
- $0.20
XP Inc. (XP) is a Financial Services company listed on NASDAQ. The stock is up 3% over the past year. Drillr has 1 published research article covering XP.
XP Inc. (XP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
XP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 17, 2026 | $0.50 | $0.53 | +6.0% | $942M | +0.9% |
| May 18, 2026 | $0.48 | $0.47 | -1.9% | $910M | -0.8% |
| Feb 12, 2026 | $0.45 | $0.46 | +2.2% | $922M | -1.1% |
| Nov 17, 2025 | $0.46 | $0.45 | -1.3% | $847M | -2.5% |
| Aug 18, 2025 | $0.43 | $0.43 | +0.2% | $807M | -2.9% |
| May 20, 2025 | $0.40 | $0.39 | -2.3% | $740M | -5.7% |
| Nov 19, 2024 | $0.38 | $0.39 | +2.6% | $797M | -0.6% |
| Aug 13, 2024 | $1.98 | $0.39 | -80.3% | $834M | +13.3% |
| May 21, 2024 | $0.40 | $0.37 | -7.7% | $826M | +2.0% |
| Nov 13, 2023 | $0.44 | $0.43 | -2.3% | $852M | +446.1% |
| Aug 14, 2023 | $0.43 | $0.40 | -7.0% | $731M | +406.3% |
| May 15, 2023 | $0.36 | $0.29 | -19.4% | $610M | +385.5% |
XP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 27, 2023 | XPAC Sponsor LLC | Sell | 4,400,283 | — |
Source: XP SEC Form 4 filings, latest Jul 27, 2023. For informational purposes only — not investment advice.
See the full XP insider & 13F page →XP Inc. company profile
Overview
XP Inc. (NASDAQ:XP) is Brazil's leading independent financial services platform, founded in 2001 and headquartered in São Paulo. The company went public on NASDAQ in December 2019, establishing itself as the largest independent investment platform in Brazil. XP has evolved from a traditional securities brokerage into a comprehensive financial ecosystem, serving over 4.7 million active clients through a network of more than 18,000 financial advisors. The company has positioned itself as a disruptor in Brazil's traditionally bank-dominated financial services market by offering an open platform architecture that provides clients access to a wide range of investment products and financial services.
Business
XP operates as a comprehensive financial services platform in Brazil's capital markets, functioning primarily as an intermediary between individual and institutional investors and various financial products. The company's core business revolves around **securities brokerage** and **wealth management**, but has expanded into a full-service financial ecosystem. **Retail Investments** represents XP's largest business segment, accounting for approximately 77% of total revenues. This division provides individual investors access to equities, fixed-income securities, mutual funds, hedge funds, structured products, and alternative investments. The platform serves as a marketplace where clients can invest in products from multiple asset managers and financial institutions, rather than being limited to proprietary products like traditional banks. **Corporate and Issuer Services** generates roughly 12% of revenues and focuses on investment banking activities. This includes underwriting services for companies issuing stocks and bonds, advisory services for mergers and acquisitions, and structured product creation. The division serves both corporate clients seeking capital and institutional investors looking for investment opportunities. **New Verticals** contribute about 11% of revenues and represent XP's expansion beyond core investment services. This includes credit cards, personal loans, insurance brokerage, private pension plans, and banking services. These products leverage XP's existing client relationships to provide comprehensive financial solutions. The company also operates **XP Educação** (Xpeed), an online financial education platform that offers courses, seminars, and educational content to help individuals understand investing and financial planning. This serves both as a revenue generator and a client acquisition tool, building financial literacy among potential customers.
Revenue model
XP generates revenue through multiple streams, primarily operating on a **fee-based business model** rather than traditional banking's interest rate spreads. The company earns money through brokerage commissions, management fees, advisory fees, and transaction-based revenues. **Brokerage and Transaction Fees** form the foundation of XP's revenue model. The company charges commissions on stock trades, bond transactions, and other securities trades executed through its platform. Additionally, XP earns fees from mutual fund and ETF transactions, with different fee structures for various product categories. **Asset-Based Fees** represent a growing revenue stream, where XP charges annual management fees based on assets under custody. This creates a recurring revenue base that grows with client asset accumulation and market appreciation. The company also earns trailer fees from third-party asset managers whose products are distributed through the XP platform. **Banking and Credit Services** generate revenue through traditional banking margins - the spread between deposit rates paid to clients and lending rates charged on loans and credit cards. XP offers various banking products including checking accounts, savings accounts, and personal credit lines. **Advisory and Wealth Management Services** command premium fees, particularly for high-net-worth clients who receive personalized investment advice and portfolio management services. Several factors influence XP's profitability margins. **Rising interest rates** generally benefit the company as clients shift from low-yielding bank deposits to higher-yielding investment products offered through XP's platform. **Market volatility** increases trading activity and transaction volumes, boosting brokerage revenues. **Economic growth** in Brazil expands the addressable market of potential investors with disposable income. However, **increased competition** from traditional banks entering the investment platform space and **regulatory changes** affecting fee structures could pressure margins. **Technology investments** require significant upfront costs but improve operational efficiency over time.
Competitive moat
XP's competitive moat stems from several interconnected advantages, though the strength of these defenses varies across different aspects of the business. The company's **network effects** create its strongest moat - as more financial advisors join the platform, it becomes more attractive to asset managers and product providers, which in turn offers clients better product selection and pricing. This virtuous cycle is reinforced by XP's **scale advantages** in technology infrastructure and operational efficiency. **Brand recognition and trust** represent significant barriers to entry in Brazil's financial services market, where XP has established itself as the leading independent platform. The company's educational initiatives through XP Educação have built credibility and client loyalty, particularly among emerging affluent investors who value financial education and guidance. **Regulatory barriers** provide some protection, as financial services licensing requirements and compliance costs create hurdles for new entrants. XP's established relationships with regulators and deep compliance infrastructure offer advantages over potential competitors. However, XP faces meaningful competitive threats that limit the durability of its moat. **Large Brazilian banks** like Itaú, Bradesco, and Banco do Brasil possess significant advantages including larger balance sheets, extensive branch networks, and existing customer relationships. These banks have been investing heavily in digital platforms and wealth management services, directly competing with XP's core offerings. **International fintech companies** and **robo-advisors** present disruption risks, particularly in serving price-sensitive retail investors. **Regulatory changes** that favor traditional banks or reduce barriers for new entrants could erode XP's competitive position. Overall, XP maintains a **moderate but narrowing moat**. While the company benefits from network effects and first-mover advantages in Brazil's independent investment platform market, the competitive landscape is intensifying as traditional financial institutions and new technology-driven competitors invest in similar capabilities.
Risks & safety
XP demonstrates a **moderate margin of safety** with some areas of concern regarding financial leverage and market sensitivity. **Liquidity and Solvency:** - Cash and short-term investments: BRL 933 million as of Q4 2024 - Current ratio of 0.81 indicates potential short-term liquidity constraints - Strong operating cash flow of BRL 1.86 billion for full year 2024 - Free cash flow of BRL 1.80 billion demonstrates healthy cash generation **Debt and Leverage:** - High debt-to-equity ratio of 5.74, reflecting the leveraged nature of financial services business - Much of the "debt" consists of client deposits and securities lending, typical for brokerage operations - BIS ratio of 21.5% exceeds regulatory minimums, indicating adequate capital buffers **Valuation Metrics:** - P/E ratio of 8.9 suggests reasonable valuation relative to earnings - EV/EBITDA of 24.8 appears elevated but reflects growth expectations - Price-to-book ratio of 2.0 is moderate for a financial services company - Return on equity of 22.5% indicates efficient capital utilization **Other Considerations:** - Revenue concentration in Brazil creates geographic risk - Sensitivity to market volatility affects earnings predictability - Regulatory changes in Brazilian financial services could impact profitability
Recent development
Over the past few years, XP has executed a comprehensive transformation from a traditional securities broker into a diversified financial services ecosystem. The company's strategic evolution has focused on three main pillars: strengthening its core investment platform, expanding cross-selling opportunities through new verticals, and building wholesale banking capabilities. **Platform Modernization and Open Architecture:** XP has invested heavily in developing an open investment platform that allows clients to access products from multiple asset managers and financial institutions. The company launched sophisticated financial planning tools and centralized its Chief Investment Officer function to provide better investment guidance across client segments. This "open investments" initiative differentiates XP from traditional banks that primarily offer proprietary products. **New Verticals Expansion:** The company has aggressively expanded beyond core brokerage services, with new verticals now representing approximately 11% of total revenue. Key developments include launching segment-specific credit cards for unique and private banking clients, expanding insurance brokerage services, and developing comprehensive retirement planning solutions. Revenue from new verticals grew 35% year-over-year in 2024, demonstrating successful cross-selling execution. **Wholesale Banking Growth:** XP has built significant capabilities in corporate and issuer services, with this segment growing 45% year-over-year in 2024 to reach BRL 2.3 billion in revenue. The company has expanded its investment banking team, enhanced debt capital markets capabilities, and developed new corporate banking products. This diversification reduces dependence on retail investor activity and creates more stable revenue streams. **Distribution Channel Diversification:** XP has evolved from relying primarily on independent financial advisors (IFAs) to developing multiple distribution channels including internal advisors, registered investment advisors (RIAs), and digital platforms. The advisor network has grown to over 18,000 professionals, with continued focus on productivity improvements and training. **Technology and Digital Transformation:** The company has invested substantially in technology infrastructure, developing mobile applications, automated investment tools, and data analytics capabilities. XP launched digital asset platform capabilities and enhanced its robo-advisory services to serve different client segments more effectively.
XP company profile · for informational purposes only — not investment advice.
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