# Xp (XP.US)

Canonical: https://gigainvestors.com/s/XP

Analysis as of: 2026-10-16T07:33:17.234Z. Financial observations: FY2013–FY2026.

Listing currency: USD. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $30.04 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.36×

- FY2018: 0.27×

- FY2019: 0.31×

- FY2020: 0.32×

- FY2021: 0.34×

- FY2022: 0.30×

- FY2023: 0.31×

- FY2024: 0.39×

- FY2025: 0.32×

- LTM to Jun 2026: 0.32×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.5%

- ROIC, second-lowest year: 5.8%

- Typical minus recent gross margin: 2.4 pp

- Typical gross margin (annual median): 69.2%

- Recent gross margin (lower of latest and 3-year median): 66.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 10.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 24.6%

- FY2017: 38.0%

- FY2018: 7.8%

- FY2019: 5.5%

- FY2020: 10.9%

- FY2021: 66.7%

- FY2022: 38.0%

- FY2023: 14.2%

- FY2024: 10.2%

- FY2025: 5.8%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 22B

- Net income, five-year total: BRL 22B

- Return on incremental invested capital: 15.5%

- Working capital / revenue, annual change: 46.1 pp

- Working capital / revenue, change between three-year averages: 393.7 pp

- Working capital / revenue, final three-year average: 200.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.02×

- FY2023: 1.01×

- FY2024: 1.00×

- FY2025: 1.02×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 24.6% vs 10.2%

- Per-share earnings: 0.32 to 9.44 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.0%

- Ordinary dilution, 5-year annual growth: -1.0%

- Diluted shares, 10-year annual growth: 8.0%

- Diluted shares, 5-year annual growth: -1.0%

- Per-share value growth: 52.7%

- Per-share value change: BRL 9.12

- Per-share value, starting three-year median: BRL 0.32

- Per-share value, ending three-year median: BRL 9.44

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 3.4%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: BRL 2.7B

- Cumulative net income, 10 years: BRL 26B

- ROIC, first three-year median: 24.6%

- ROIC, last three-year median: 10.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.32

- FY2017: BRL 0.88

- FY2018: BRL 0.99

- FY2019: BRL 2.05

- FY2020: BRL 3.74

- FY2021: BRL 6.50

- FY2022: BRL 6.47

- FY2023: BRL 7.05

- FY2024: BRL 9.44

- FY2025: BRL 9.53

### accounting: pass

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 4.1%

- FY2017: 2.3%

- FY2018: 5.3%

- FY2019: -1.1%

- FY2020: 0.6%

- FY2021: 5.6%

- FY2022: 1.0%

- FY2023: -1.7%

- FY2024: -1.7%

- FY2025: -1.8%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 50% since Oct 2023 · sales +4.7%

Story as of 2026-10-16T09:59:54.301Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +4.7%; source https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm; observed 2026-04-29.

- FY2017: BRL 1.9B 

- FY2018: BRL 3.0B 

- FY2019: BRL 5.1B 

- FY2020: BRL 8.2B 

- FY2021: BRL 12B 

- FY2022: BRL 13B 

- FY2023: BRL 15B 

- FY2024: BRL 17B 

- FY2025: BRL 18B 

- FY2026: BRL 19B 

### Gross margin · FY2025

gross margin 66.8%; source https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm; observed 2026-04-29.

- FY2016: 66.4% 

- FY2017: 70.3% 

- FY2018: 69.2% 

- FY2019: 66.9% 

- FY2020: 69.2% 

- FY2021: 73.9% 

- FY2022: 73.0% 

- FY2023: 67.2% 

- FY2024: 79.0% 

- FY2025: 66.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are BRL 18.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm#000207097926000182 (filed 2026-04-29); FY2025: revenue 18398597000; grossProfit 12286059855; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); XP.US: XP Inc. engages in the provision of financial products and services in Brazil. It operates XP Platform, an open product platform that provides clients to access investment products in the market comprising brokerage securities, fixed income securities, mutual, hedge, and private equity funds; derivatives and synthetic instruments; credit cards; loan operations/collateralized credit products; pension and social security funds, and life and travel insurance products; and other investment products comprising real estate funds, and equity and debt capital markets solutions, as well as wealth management services. The company offers brokerage and issuer services to institutional and corporate clients. It also manages mutual funds focused on stocks and macro strategies distributed to retail and to institutional clients; funds and managed portfolios for high-net-worth retail clients, and proprietary treasury funds; and passive mutual funds that track market indexes, and mutual and investment funds focused on fixed income, credit, real estate, infrastructure, and other alternative strategies. In addition, the company offers securities brokerage services for institutional and retail investors; interdealer brokerage services for institutional traders; and commercial and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits, as well as develops and sells financial education courses and events online and in person to retail clients. It offers its sell products and services through its omni-channel distribution network and online portals. XP Inc. was founded in 2001 and is based in George Town, the Cayman Islands.

### Why customers stay

Margins ranged from 66.8% to 79% during 2023–25; it earns 12.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: grossProfit / revenue = 67.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: grossProfit / revenue = 79%.

- Source: https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm (filed 2026-04-29); FY2025: grossProfit / revenue = 66.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,0.24586003602642448],[2017,0.37973246114553655],[2018,0.07751721387395291],[2019,0.05489578513424481],[2020,0.10866067293230279],[2021,0.6674281756047802],[2022,0.37981321413527935],[2023,0.14174821497663118],[2024,0.10235849890766478],[2025,0.05809424207529565]]; median 0.12520444395446698. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 6.2% of cash earnings; earns 15.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2016: growth capex 10035300; upkeep 21599700; owner earnings 176604420. Growth capex / owner earnings = 0.05682360611359557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2017: growth capex 20408116.462094318; upkeep 30587883.537905682; owner earnings 426567101.4620943. Growth capex / owner earnings = 0.04784268733370154.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2018: growth capex 30548346.830153987; upkeep 106117653.16984601; owner earnings 439327281.830154. Growth capex / owner earnings = 0.06953437242252604.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2019: growth capex 73018136; upkeep 88429864; owner earnings 1048124779. Growth capex / owner earnings = 0.06966549924491386.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2020: growth capex 122289584.5275343; upkeep 169242415.4724657; owner earnings 2068150837.5275342. Growth capex / owner earnings = 0.05912991562730067.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 112171279; upkeep 240841721; owner earnings 3730553352. Growth capex / owner earnings = 0.030068268274427296.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2022: growth capex 0; upkeep 126975000; cash acquisitions 244305000; owner earnings 3786297864. Growth capex plus acquisitions / owner earnings = 0.06452344975889092.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: growth capex 0; upkeep 196223000; cash acquisitions 0; owner earnings 3892664873. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: growth capex 64887000; upkeep 265325000; cash acquisitions 1393863000; owner earnings 5177367669. Growth capex plus acquisitions / owner earnings = 0.28175514919181993.

- Source: https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm (filed 2026-04-29); FY2025: growth capex 0; upkeep 209285000; cash acquisitions 320650000; owner earnings 5163093842. Growth capex plus acquisitions / owner earnings = 0.06210423629948812.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Incremental return on capital 0.1548025668919594, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,174365000],[2017,189998000],[2018,325000000],[2019,500000000],[2020,0],[2021,0],[2022,0],[2023,3542298000],[2024,2037082000],[2025,494517000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm (filed 2026-04-29); FY2025: cash repurchases 1900691000 BRL.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); XP.US SharesStats.PercentInsiders = 0.734 percentage points; cache date 2026-10-16.

### What the price says

The price is 4.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 30.04 USD; reporting-to-trading FX 0.19614; FY2025 annual sales per share 34.588835226151154; price multiple 4.4279001603605685. FY2025 cash earnings/share 9.706468496380115. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-12: $38.52 per share

- 2020-01: $40.14 per share

- 2020-02: $34.65 per share

- 2020-03: $19.29 per share

- 2020-04: $25.16 per share

- 2020-05: $30.36 per share

- 2020-06: $42.01 per share

- 2020-07: $46.50 per share

- 2020-08: $49.39 per share

- 2020-09: $41.69 per share

- 2020-10: $40.08 per share

- 2020-11: $41.01 per share

- 2020-12: $39.67 per share

- 2021-01: $43.64 per share

- 2021-02: $44.14 per share

- 2021-03: $37.67 per share

- 2021-04: $39.60 per share

- 2021-05: $39.66 per share

- 2021-06: $43.55 per share

- 2021-07: $41.06 per share

- 2021-08: $48.65 per share

- 2021-09: $40.17 per share

- 2021-10: $32.81 per share

- 2021-11: $28.68 per share

- 2021-12: $28.74 per share

- 2022-01: $33.31 per share

- 2022-02: $32.34 per share

- 2022-03: $30.10 per share

- 2022-04: $24.61 per share

- 2022-05: $22.61 per share

- 2022-06: $17.96 per share

- 2022-07: $21.10 per share

- 2022-08: $19.24 per share

- 2022-09: $19.01 per share

- 2022-10: $18.33 per share

- 2022-11: $17.51 per share

- 2022-12: $15.34 per share

- 2023-01: $17.82 per share

- 2023-02: $12.42 per share

- 2023-03: $11.87 per share

- 2023-04: $14.29 per share

- 2023-05: $17.65 per share

- 2023-06: $23.46 per share

- 2023-07: $27.01 per share

- 2023-08: $25.34 per share

- 2023-09: $23.05 per share

- 2023-10: $20.00 per share

- 2023-11: $23.29 per share

- 2023-12: $26.07 per share

- 2024-01: $24.58 per share

- 2024-02: $23.64 per share

- 2024-03: $25.66 per share

- 2024-04: $20.47 per share

- 2024-05: $18.99 per share

- 2024-06: $17.59 per share

- 2024-07: $17.11 per share

- 2024-08: $18.41 per share

- 2024-09: $17.94 per share

- 2024-10: $17.46 per share

- 2024-11: $13.54 per share

- 2024-12: $11.85 per share

- 2025-01: $13.65 per share

- 2025-02: $14.15 per share

- 2025-03: $13.75 per share

- 2025-04: $16.10 per share

- 2025-05: $19.36 per share

- 2025-06: $20.20 per share

- 2025-07: $16.14 per share

- 2025-08: $18.14 per share

- 2025-09: $18.79 per share

- 2025-10: $18.22 per share

- 2025-11: $19.71 per share

- 2025-12: $16.37 per share

- 2026-01: $19.51 per share

- 2026-02: $21.53 per share

- 2026-03: $19.04 per share

- 2026-04: $19.16 per share

- 2026-05: $16.67 per share

- 2026-06: $16.26 per share

- 2026-07: $17.06 per share

- 2026-08: $18.23 per share

- 2026-09: $21.00 per share

- 2026-10: $30.04 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:02.612Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1787425/000207097926000182/xp-20251231.htm); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.