XP Inc. (NASDAQ:XP) is a major financial technology platform in Brazil. The company provides a wide range of financial services to a large customer base. As highlighted by Business Wire, XP's total client assets grew by 15% year-over-year to R$1.53 trillion, while its active client base increased by 2% to 4.79 million.
On May 18, 2026, XP reported its first-quarter financial results. The company posted an earnings per share (EPS) of $0.47, which was slightly below the market's expectation of $0.48. EPS represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of profitability.
The company's revenue for the quarter was $911.68 million, also falling short of the analyst projection of $925.72 million. Despite missing the target, this revenue figure shows a significant increase from the $740.99 million reported in the same quarter a year ago. According to Zacks, this marks a trend where XP has surpassed estimates only once in the last four quarters.
Despite revenue growth, the company faces challenges in attracting new capital. Total net inflow, which is the difference between money coming in and money going out, dropped to R$14 billion. This represents a 39% decrease from the previous year. The annualized retail take rate, a measure of revenue generated from client assets, also saw a slight decrease to 1.18%.
From a valuation standpoint, XP has a trailing price-to-earnings (P/E) ratio of 8.88 and a price-to-sales (P/S) ratio of 2.50. The P/E ratio helps investors gauge a company's value relative to its earnings. The company's financial structure includes a debt-to-equity ratio of 3.62, which compares its total debt to its total shareholder equity.
