StoneCo (NASDAQ:STNE) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

StoneCo (NASDAQ:STNE) released its earnings results on Thursday. The company reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.03), FiscalAI reports. The business had revenue of $126.71 million for the quarter, compared to the consensus estimate of $715.99 million. StoneCo had a return on equity of 22.19% and a net margin of 22.92%. StoneCo updated its FY 2026 guidance to 2.101-2.218 EPS.

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

• Stone cut its 2026 outlook: adjusted gross profit is now expected at BRL 6.1–6.2 billion, down from BRL 6.6–7.0 billion, and adjusted basic EPS at BRL 9.1–9.5, down from BRL 10.8–11.4. The company also withdrew its 2027 targets, citing macroeconomic uncertainty and limited visibility on interest rates and credit conditions.
• Management reported early signs of improvement in merchant retention: TPV growth accelerated, overall market share stabilized, and Stone gained modest share in its segment. The active merchant base reached 5.1 million, although card TPV continued to decline year over year.
• Credit-related provisions and higher operating costs weighed on profitability, and Stone is reviewing its credit models for a tougher economic outlook. Cost of risk improved to 20.1% from 21.5% in the prior quarter, but management expects the decline toward the mid-to-high teens to take longer than previously anticipated.
• Stone’s credit portfolio grew 78% year over year to BRL 4.1 billion, with growth increasingly directed to government-backed loans; newer credit cohorts are performing better, according to management. The company also repurchased more than BRL 200 million of shares in the quarter and reaffirmed its plan to distribute BRL 2 billion in excess capital during 2026.

StoneCo Stock Performance

STNE stock traded up $0.01 during midday trading on Friday, reaching $7.73. 7,329,557 shares of the company’s stock traded hands, compared to its average volume of 5,626,438. The firm has a market capitalization of $1.92 billion, a PE ratio of 3.12, a price-to-earnings-growth ratio of 0.22 and a beta of 1.76. The company has a 50-day moving average price of $9.75 and a two-hundred day moving average price of $11.86. StoneCo has a 52 week low of $7.06 and a 52 week high of $18.19. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.26 and a current ratio of 1.26.

Top StoneCo Stories

Investors following STNE have been watching these stories:

• Neutral Sentiment: StoneCo filed unaudited interim financial statements for the quarter ended September 30. The filing itself provides financial disclosures but no separate new outlook. StoneCo Files September 30 Interim Financial Statements
• Negative Sentiment: Third-quarter earnings missed estimates: StoneCo reported about $0.45–$0.46 per share, compared with consensus estimates of $0.48–$0.49. The shortfall may weigh on investor sentiment. StoneCo Q3 Earnings Lag Estimates
• Negative Sentiment: The company revised its 2026 guidance lower and withdrew its 2027 target, signaling a less certain near-term outlook. Its updated 2026 EPS range is $2.101–$2.218, versus a consensus estimate of $2.210. StoneCo’s Q3 Earnings Miss, Guidance Revised Lower

Analyst Ratings Changes

A number of analysts recently issued reports on STNE shares. UBS Group downgraded shares of StoneCo from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $15.00 to $8.50 in a report on Thursday, November 5th. Jefferies Financial Group started coverage on shares of StoneCo in a research note on Thursday, July 23rd. They issued a “hold” rating and a $12.60 target price on the stock. Weiss Ratings lowered shares of StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, November 3rd. Finally, The Goldman Sachs Group lowered their price target on shares of StoneCo from $11.00 to $9.50 and set a “neutral” rating on the stock in a report on Friday, October 30th. Two analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $12.30.

Insiders Place Their Bets

In other StoneCo news, Director Silvio Morais sold 21,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $9.91, for a total value of $208,110.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 11.25% of the stock is owned by insiders.

StoneCo Company Profile

StoneCo Ltd. is a Brazilian financial technology company that provides payment processing and business management solutions, primarily to merchants in Brazil. Its services are designed to help businesses accept and manage payments across in-person and online channels. The company’s offerings include payment terminals, digital payment tools, financial services and software for managing business operations. Through brands such as Stone, Pagar.me and Linx, StoneCo serves businesses ranging from smaller merchants to larger retailers.