XP Inc. greenlights treasury share retirement and share buyback initiative
Share Retirement: XP Inc. has approved the retirement of 10,970,754 Class A common shares, reducing the total share count from 530,859,761 to 519,889,007, which is about 2.1% of the company's total shares.
New Share Repurchase Program: The board has authorized a new share repurchase program allowing the company to buy back up to R$1.0 billion of its outstanding Class A common shares, starting from November 18, 2025, until November 18, 2026, depending on market conditions.
Funding for Repurchases: XP plans to use its existing cash reserves to fund the share repurchases under the new program.
Market Conditions Consideration: The execution of the repurchase program will be contingent upon market conditions during the specified period.
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- New Position Established: According to a February 17, 2026 SEC filing, SQUADRA Investments - Gestao de Recursos Ltda. initiated a new stake in MercadoLibre by acquiring 89,656 shares, with an estimated transaction value of $180.59 million, reflecting the fund's confidence in the Latin American e-commerce market.
- Asset Allocation Shift: This investment accounts for 33.8% of the fund's reportable assets under management as of December 31, 2025, indicating SQUADRA's prioritization of MercadoLibre within its portfolio, which may influence its future investment strategies.
- Market Performance Insight: As of February 17, 2026, MercadoLibre's stock price stood at $1,975.51, down 5.9% over the past year; given the increased competition, SQUADRA's investment could yield returns in the long run, especially with potential economic improvements in Argentina and Venezuela.
- Risk Management Strategies: MercadoLibre is addressing rising bad loans by employing AI to predict borrower behavior, a strategy that may enhance its financial stability and support SQUADRA's investment.
- New Investment: SQUADRA Investments - Gestao de Recursos Ltda. initiated a new position in MercadoLibre (NASDAQ:MELI) by acquiring 89,656 shares valued at $180.59 million, demonstrating strong confidence in the Latin American e-commerce and fintech platform.
- Asset Allocation Shift: At quarter-end, MercadoLibre represented 33.8% of the fund's reportable assets, with a position value of $180.59 million, reflecting both the impact of the share purchase and price appreciation, thereby enhancing the fund's portfolio diversification.
- Market Competition Challenges: Despite facing increased competition in the e-commerce sector and rising bad debts, MercadoLibre's strategy of using AI to predict borrower behavior indicates a proactive approach to risk management, potentially laying the groundwork for future profitability.
- Economic Environment Improvement: With economic improvements in Argentina and Venezuela, MercadoLibre may experience a turnaround in its e-commerce business, and although its stock sold off following Q4 earnings, SQUADRA's investment could yield significant returns in the long run.
- Share Reduction Details: SQUADRA Investments sold 1,784,458 shares of StoneCo in Q4 2025, with an estimated transaction value of $29.84 million, indicating a diminishing confidence in the stock.
- Asset Allocation Shift: Following this sale, StoneCo now represents only 3.4% of SQUADRA's 13F reportable assets, down from 12.8% in the previous quarter, reflecting a significant reduction in portfolio concentration.
- Market Performance Insight: As of February 17, 2026, StoneCo shares were priced at $16.46, up 63% year-over-year, yet the stock faced a notable sell-off in the latter half of 2025, impacting investor sentiment.
- Investment Strategy Shift: Since Q4 2024, SQUADRA has steadily reduced its holdings in StoneCo by approximately 91%, suggesting a strategic pivot towards other fintech stocks like MercadoLibre that may offer better growth prospects.
- Strong Asset Growth: XP reported total assets exceeding 2 trillion reals ($400 billion) in Q4 2025, marking a 22% year-over-year increase, which highlights its diversified economic base and strengthens its competitive position in the Brazilian market.
- Increased Client Engagement: With assets under management and administration growing 35% and 44% year-over-year, respectively, XP not only attracts new clients but also enhances existing clients' interaction with advisors, thereby reinforcing customer loyalty.
- Rising Profitability: XP's net income rose 10% in Q4 to 1.3 billion reals ($247 million), while full-year net income increased 15% to 5.2 billion reals ($990 million), indicating sustained profitability that may boost market confidence in its future performance.
- Optimistic Future Outlook: Despite facing challenges, XP's forward P/E ratio of about 10 is attractive compared to U.S. peer Charles Schwab's 16, drawing interest from patient investors and suggesting investment value even in a high-risk environment.
- Customer Base Growth: XP's customer base has grown to nearly 5 million, completing 50,000 fixed-income transactions daily, indicating strong market appeal in Brazil and potential for further market share expansion.
- Asset Management Increase: As of Q4 2025, XP reported total assets exceeding 2 trillion reals (approximately $400 billion), a 22% year-over-year increase, providing a solid economic foundation for continued growth and enhancing its competitive position in a challenging market.
- Profitability Improvement: XP's net income reached 1.3 billion reals (about $247 million) in Q4 2025, a 10% increase, with full-year net income rising 15% to 5.2 billion reals (approximately $990 million), demonstrating sustained profitability that may attract more investor interest.
- AI Technology Utilization: XP is leveraging artificial intelligence to optimize operations, allowing financial advisors to spend more time on client interactions, which is expected to enhance customer satisfaction and loyalty, potentially driving future revenue growth.
- Earnings Highlights: XP reported a Q4 2025 Non-GAAP EPS of R$2.56 with revenues of R$4.95 billion, reflecting a 10.2% year-over-year growth, indicating strong performance and enhanced profitability in the market.
- Client Asset Growth: Client assets totaled R$1.5 trillion in Q4 2025, up 16% year-over-year and 5% quarter-over-quarter, driven by R$94 billion in net inflows and R$111 billion in market appreciation, showcasing client trust and investment willingness in XP.
- Stable Retail Net Inflows: The net inflow for Q4 2025 was R$32 billion, with retail net inflows at R$20 billion, maintaining stability year-over-year and quarter-over-quarter, although the total retail net inflow for the year was R$94 billion, down 13% from 2024, reflecting increased market competition.
- Active Clients and Transaction Volume: XP had 4.8 million active clients in Q4 2025, a 2% increase year-over-year, remaining stable quarter-over-quarter, while total payment volume (TPV) reached R$14.6 billion, an 11% year-over-year growth, indicating ongoing growth in client base and transaction activity.





