StoneCo Reports Lower-Than-Expected Q4 Earnings, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy STNE?
Source: seekingalpha
- Disappointing Earnings: StoneCo reported an adjusted gross profit of R$6.32 billion for 2025, reflecting a 13.5% year-over-year increase but falling short of the R$6.38 billion expected, resulting in a 3.41% drop in after-hours trading to $16.45.
- Q4 Profit Growth: The company achieved an adjusted gross profit of R$1.66 billion in Q4, up 9.1% year-over-year, indicating potential for growth driven by enhanced client monetization and increased contributions from credit products.
- Impairment Losses: In Q4, StoneCo recognized an impairment loss of R$157.8 million from the Linx divestment and incurred R$48.5 million in expenses related to civil lawsuit settlements, negatively impacting overall financial performance.
- Strategic Restructuring: Former CEO Pedro Zinner emphasized that the sale of Linx was a strategic move to focus on core areas such as payments, banking, and credit, which is expected to strengthen the company's competitive advantages and drive future growth.
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Analyst Views on STNE
Wall Street analysts forecast STNE stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 17.030
Low
20.00
Averages
22.00
High
25.00
Current: 17.030
Low
20.00
Averages
22.00
High
25.00
About STNE
StoneCo Ltd. is a provider of financial technology and software solutions. The Company designed its cloud-based technology platform, namely the Stone Business Model, for its clients to connect, get paid, and grow their businesses. Its segments include financial services and software. In financial services, it offers payments, digital banking, and credit solutions, focused mainly on Micro, Small, and Medium Businesses (MSMBs). In software, it offers Point of Sale (POS) and Enterprise Resource Planning (ERP) solutions for different retail and service verticals, Customer Relationship Management (CRM), engagement tools, electronic commerce, and order management system solutions. It also provides digital product enhancements to help its merchants improve their consumers' experience, such as its split-payment processing, multi-payment processing, recurring payments for subscriptions, and one-click buy functionality. It provides its clients with store, life, and health insurance solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
StoneCo Reports Q4 2024 Earnings with Mixed Results
- Earnings Per Share: StoneCo reported an adjusted basic EPS of R$2.87 for Q4 2024, which, while in line with market expectations, failed to significantly boost stock prices, reflecting investor caution regarding future profitability.
- Revenue Growth: The company achieved revenue of R$3.73 billion in Q4, marking a 3.3% year-over-year increase, primarily driven by the expansion of its credit portfolio, indicating ongoing penetration in the credit market and an expanding customer base.
- Credit Portfolio Insights: The growth of StoneCo's credit portfolio evokes memories of 2021, yet the context and market conditions this time differ, potentially impacting future profitability models and risk management strategies.
- Market Reaction: Despite revenue growth, StoneCo's stock dipped due to 2025 adjusted gross profit falling below expectations, highlighting market concerns about the company's future profitability and a reassessment of its financial health.
See More
StoneCo Q4 Earnings Beat Expectations but Stock Plummets
- Earnings Beat: StoneCo reported Q4 earnings of R$2.84 per share, surpassing analyst expectations of R$2.65, yet the stock plummeted 18.7%, indicating a negative market reaction despite the strong performance.
- Significant Sales Growth: The company achieved a 13% year-over-year increase in sales from continuing operations to R$3.7 billion in Q4, with full-year sales rising 17.5% to R$14.2 billion, reflecting robust core business performance.
- Profit Margin Improvement: StoneCo's Q4 net income reached R$706.9 million with a net profit margin of 19%, while the full-year net income stood at R$2.5 billion, maintaining a net profit margin of 17.5%, showcasing stable profitability.
- Strategic Reinvestment: The company plans to reinvest over R$3 billion from the sale of its Linx software assets into its core businesses of payments, banking, and credit, aiming to enhance market competitiveness through data-driven strategies and technology.
See More
StoneCo Reports Q4 Earnings Beat Despite Stock Drop
- Significant Earnings Growth: StoneCo reported a 13% year-over-year increase in Q4 sales, reaching R$3.7 billion, with net earnings of R$706.9 million, reflecting a 12.4% annual growth and demonstrating strong performance in the e-commerce software sector.
- Earnings Per Share Beat: Although analysts expected earnings of R$2.65 per share, StoneCo achieved R$2.84, indicating improved profitability; however, the stock plummeted 18.7%, suggesting a negative market reaction despite the earnings beat.
- Strong Annual Performance: For the full year, StoneCo's sales rose 17.5% to R$14.2 billion, with net income also increasing by 17.5% to R$2.5 billion, maintaining a net profit margin of 17.5%, indicating robust growth in its core business.
- Impact of Asset Sale: StoneCo's sale of Linx software assets generated over R$3 billion last year, which, while not included in regular earnings, will be reinvested into core areas like payments, banking, and credit, highlighting a strategic shift in focus.
See More
StoneCo (STNE) Q4 2025 Earnings Call Transcript
See More
StoneCo Reports Lower-Than-Expected Q4 Earnings, Stock Drops
- Disappointing Earnings: StoneCo reported an adjusted gross profit of R$6.32 billion for 2025, reflecting a 13.5% year-over-year increase but falling short of the R$6.38 billion expected, resulting in a 3.41% drop in after-hours trading to $16.45.
- Q4 Profit Growth: The company achieved an adjusted gross profit of R$1.66 billion in Q4, up 9.1% year-over-year, indicating potential for growth driven by enhanced client monetization and increased contributions from credit products.
- Impairment Losses: In Q4, StoneCo recognized an impairment loss of R$157.8 million from the Linx divestment and incurred R$48.5 million in expenses related to civil lawsuit settlements, negatively impacting overall financial performance.
- Strategic Restructuring: Former CEO Pedro Zinner emphasized that the sale of Linx was a strategic move to focus on core areas such as payments, banking, and credit, which is expected to strengthen the company's competitive advantages and drive future growth.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
StoneCo Reports Q4 2024 Earnings with Mixed Results
- Earnings Per Share: StoneCo reported an adjusted basic EPS of R$2.87 for Q4 2024, which, while in line with market expectations, failed to significantly boost stock prices, reflecting investor caution regarding future profitability.
- Revenue Growth: The company achieved revenue of R$3.73 billion in Q4, marking a 3.3% year-over-year increase, primarily driven by the expansion of its credit portfolio, indicating ongoing penetration in the credit market and an expanding customer base.
- Credit Portfolio Insights: The growth of StoneCo's credit portfolio evokes memories of 2021, yet the context and market conditions this time differ, potentially impacting future profitability models and risk management strategies.
- Market Reaction: Despite revenue growth, StoneCo's stock dipped due to 2025 adjusted gross profit falling below expectations, highlighting market concerns about the company's future profitability and a reassessment of its financial health.
See More
StoneCo Q4 Earnings Beat Expectations but Stock Plummets
- Earnings Beat: StoneCo reported Q4 earnings of R$2.84 per share, surpassing analyst expectations of R$2.65, yet the stock plummeted 18.7%, indicating a negative market reaction despite the strong performance.
- Significant Sales Growth: The company achieved a 13% year-over-year increase in sales from continuing operations to R$3.7 billion in Q4, with full-year sales rising 17.5% to R$14.2 billion, reflecting robust core business performance.
- Profit Margin Improvement: StoneCo's Q4 net income reached R$706.9 million with a net profit margin of 19%, while the full-year net income stood at R$2.5 billion, maintaining a net profit margin of 17.5%, showcasing stable profitability.
- Strategic Reinvestment: The company plans to reinvest over R$3 billion from the sale of its Linx software assets into its core businesses of payments, banking, and credit, aiming to enhance market competitiveness through data-driven strategies and technology.
See More
StoneCo Reports Q4 Earnings Beat Despite Stock Drop
- Significant Earnings Growth: StoneCo reported a 13% year-over-year increase in Q4 sales, reaching R$3.7 billion, with net earnings of R$706.9 million, reflecting a 12.4% annual growth and demonstrating strong performance in the e-commerce software sector.
- Earnings Per Share Beat: Although analysts expected earnings of R$2.65 per share, StoneCo achieved R$2.84, indicating improved profitability; however, the stock plummeted 18.7%, suggesting a negative market reaction despite the earnings beat.
- Strong Annual Performance: For the full year, StoneCo's sales rose 17.5% to R$14.2 billion, with net income also increasing by 17.5% to R$2.5 billion, maintaining a net profit margin of 17.5%, indicating robust growth in its core business.
- Impact of Asset Sale: StoneCo's sale of Linx software assets generated over R$3 billion last year, which, while not included in regular earnings, will be reinvested into core areas like payments, banking, and credit, highlighting a strategic shift in focus.
See More
StoneCo (STNE) Q4 2025 Earnings Call Transcript
See More
StoneCo Reports Lower-Than-Expected Q4 Earnings, Stock Drops
- Disappointing Earnings: StoneCo reported an adjusted gross profit of R$6.32 billion for 2025, reflecting a 13.5% year-over-year increase but falling short of the R$6.38 billion expected, resulting in a 3.41% drop in after-hours trading to $16.45.
- Q4 Profit Growth: The company achieved an adjusted gross profit of R$1.66 billion in Q4, up 9.1% year-over-year, indicating potential for growth driven by enhanced client monetization and increased contributions from credit products.
- Impairment Losses: In Q4, StoneCo recognized an impairment loss of R$157.8 million from the Linx divestment and incurred R$48.5 million in expenses related to civil lawsuit settlements, negatively impacting overall financial performance.
- Strategic Restructuring: Former CEO Pedro Zinner emphasized that the sale of Linx was a strategic move to focus on core areas such as payments, banking, and credit, which is expected to strengthen the company's competitive advantages and drive future growth.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
