PICS (NASDAQ:PICS) Posts Earnings Results, Misses Expectations By $0.07 EPS

PICS (NASDAQ:PICS) issued its quarterly earnings data on Wednesday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.07), Zacks reports. The firm had revenue of $558.09 million for the quarter.

Here are the key takeaways from PICS’s conference call:

• PicPay reported results above the top end of its IPO guidance, with Q4 net revenues of BRL 3.0 billion (+69% YoY) and full‑year revenues of BRL 10.3 billion (+85%), signaling strong execution as a newly public company.
• The credit business is the primary growth engine: total credit balances reached BRL 24.1 billion (up 128% YoY), driven by rapid private‑payroll and secured lending origination, which management says offers higher NIMs and long runway for monetization (but will raise provisioning needs as mix shifts).
• Unit economics and profitability are improving materially — ARPAC rose to BRL 71 in Q4 (+52%), cost‑to‑serve per active client grew only ~11%, the efficiency ratio fell below 50%, and quarterly ROE expanded to 24.4%, reflecting operating leverage.
• A one‑time ECL methodology update reclassified ~BRL 590 million from stage 2 to stage 3 (adding BRL 88 million of provisions), temporarily lifting stage‑3 formation to 7.1%; management expects normalization to ~3.7–4.0% in Q1‑2026 but the change increased near‑term credit costs.

PICS Price Performance

Shares of NASDAQ:PICS traded down $3.15 during trading hours on Thursday, reaching $12.68. The stock had a trading volume of 128,172 shares, compared to its average volume of 787,135. PICS has a 1 year low of $11.64 and a 1 year high of $19.95.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Mizuho began coverage on PICS in a research report on Monday, February 23rd. They issued an “outperform” rating and a $30.00 target price on the stock. Wall Street Zen cut PICS from a “buy” rating to a “hold” rating in a research note on Tuesday, February 17th. Zacks Research upgraded PICS to a “hold” rating in a report on Wednesday, February 25th. Citigroup began coverage on PICS in a research note on Monday, February 23rd. They set a “buy” rating and a $28.00 target price on the stock. Finally, Wolfe Research upgraded PICS to a “strong-buy” rating in a report on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $25.50.