StoneCo stock dipped after the financial technology and software solutions provider for the Brazilian market reported a 2025 adjusted gross profit that rose less than expected.
During the fourth quarter, the company recognized an impairment loss of R$157.8M from the Linx divestment and an expense of R$48.5M on account of a settlement related to civil lawsuits.
Adjusted gross profit for the year came in at R$6.32B, up 13.5% year-over-year but less than the R$6.38B expected.
Shares were down 3.41% to $16.45 during Monday after-hours trading.
For the fourth quarter, the company reported an adjusted gross profit of R$1.66B, up 9.1% year-over-year.
Adjusted basic EPS for the quarter was R$2.87, compared to R$2.26 in the same period a year ago.
Revenue rose to R$3.73B from R$3.3B a year ago.
The increase was primarily attributed to enhanced client monetization following repricing initiatives implemented in early 2025 to mitigate interest rate hikes, expansion of active client base, and increasing contribution from credit products.
“The most consequential act of simplification in 2025 was the sale of our software assets, Linx, to TOTVS for more than R$3.0B. We want to be clear about why,” said Former CEO and Incoming Board Chairman Pedro Zinner in the letter to shareholders.
“Our competitive advantages live at a very specific intersection: payments, banking, and credit, all reinforced by proprietary transaction data, deep distribution, disciplined underwriting, and end-to-end technology we control,” said Zinner. “Linx was a good business sitting outside that intersection.”
Earnings call scheduled for today at 5:00 PM EST.