SAO PAULO, May 18, 2026, 20:05 BRT
XP Inc. (XP) shares dropped after the bell Monday as the company reported Q1 profit growth, but net inflows came in softer and the retail take rate declined. The stock ended regular Nasdaq hours at $17.34, a loss of 0.74%, then moved lower to $16.69 in late trading, off 3.78%.
Timing is key. The earnings report dropped after the regular U.S. trading session, not on a holiday, and hit in the lighter after-hours market, where Nasdaq notes liquidity drops and prices can swing more. Nasdaq’s main hours close at 4 p.m. ET, with after-hours through 8 p.m. ET. The next planned U.S. market holiday is Memorial Day, May 25, according to the 2026 schedule.
Tech stocks pulled the Nasdaq Composite lower on Monday, with the index down 0.51%. U.S. indexes slipped as traders also tracked moves in oil prices and Treasury yields.
XP posted gross revenue of 4.92 billion reais, up 8% from last year. Net revenue was also up 8%, coming in at 4.73 billion reais. Adjusted net income increased 7% to 1.32 billion reais. Adjusted diluted EPS jumped 9% to 2.49 reais. Total client assets grew 15% to 1.53 trillion reais.
Money coming in was weaker. Total net inflow dropped to 14 billion reais, down from 24 billion reais a year ago and 32 billion reais the previous quarter. The annualized retail take rate was 1.18%, compared with 1.25% before—a decrease of 7 basis points, or 0.07 percentage point.
Retail revenue climbed 10% from a year ago, lifted by equities trading. Fixed income revenue dropped 25%. Wholesale banking was up 26% as corporate activity jumped 78%. XP continues to rely on a wide mix of business lines as its basic brokerage profit stays choppy.
XP is making capital returns a priority. The board announced a $0.20 per Class A share cash dividend, with payout set for June 18 to holders on June 10. The company also cleared a share buyback program for up to 1.0 billion reais, starting May 19. Buybacks let firms repurchase shares to distribute cash and help earnings per share.
Chief Executive Thiago Maffra told investors XP expects “business growing double digits this year.” When Goldman Sachs analyst Tito Labarta asked if XP should now be seen as a bank, Maffra replied there’s “no change on the strategy.” Chief Financial Officer Victor Mansur said over 75% of capital distribution is now in buybacks, calling this “the best mix.” StockAnalysis
XP is making a CFO switch. Gustavo Alejo Viviani, who worked at Santander Brasil and has both wholesale and retail banking experience, will take over as CFO on Aug. 3. Mansur steps down on May 31. Maffra will cover the role until Alejo starts.
The report paints a different picture than other U.S.-listed Brazilian finance names like Nu Holdings and Inter & Co. Nu focuses on digital banking products—spending, saving, investing, borrowing and protection. Inter’s model is a digital multi-service bank. XP has more direct exposure to brokerage, advisory, investment products, and corporate-market business.
Lingering weak spots are a risk. Wider credit spreads hit parts of the quarter, with investors asking for more return to hold bonds. That pressures bond prices and cuts into issuance. Management said April stayed tough before they saw some stabilization in May. If rate cuts take longer, if clients keep holding back, or if fixed-income issuance stays weak, the buyback might not cover softer flows when trading picks back up on Tuesday.
