XP Inc. (NASDAQ:XP) reported managerial net revenue, a non-GAAP measure, of R$4.884 billion, up 9% and slightly above consensus estimates. IFRS total revenue and income were R$4.849 billion. Adjusted net income increased 5% to R$1.384 billion, while adjusted diluted EPS rose 9% to R$2.67. The shares nevertheless slipped about 1% after hours on August 17.
CEO Thiago Maffra raised the larger strategic question. XP Inc. (NASDAQ:XP) views a U.S. banking operation as a natural evolution and is considering whether to seek a new charter or acquire an existing institution. No final decision has been announced. Would a bank create a second growth platform, or add complexity while XP Inc. (NASDAQ:XP) is still improving its Brazilian business?
The domestic platform produced solid but uneven results. XP Inc. (NASDAQ:XP) reported R$1.535 trillion under its company-defined client-assets measure, up 12% from a year earlier. The measure supports retail-revenue analysis and excludes institutional-client custody. Net inflows reached R$28 billion, while the managerial EBT margin expanded 172 basis points to 32%.
Within its managerial reporting, XP Inc. (NASDAQ:XP) recorded an 8% increase in retail revenue. Wholesale revenue rose 32%, although that comparison includes Institutional, which the company began reporting within Wholesale in the first quarter. Fixed-income revenue declined 16% year over year but recovered 10% sequentially. Active clients decreased approximately 0.4% from the first quarter to 4.772 million.
BULL CASE: A U.S. BANK COULD DEEPEN CLIENT RELATIONSHIPS
XP Inc. (NASDAQ:XP) already serves international clients through regulated U.S. broker-dealer and advisory entities. A banking operation could broaden the products available to Latin American clients with financial interests in the United States.
The domestic model is also expanding beyond investments. XP Inc. (NASDAQ:XP) increased card payment volume by 8%, while its expanded loan portfolio reached R$77.9 billion, up 16%. Gross written insurance premiums increased 10%, covering policies issued by the company and third-party insurers.
XP Inc. (NASDAQ:XP) ended the quarter with a 20.3% groupwide BIS ratio and adjusted annualized return on tangible equity of 27.2%. Those figures show that the company enters the discussion from a position of strong regulatory capital and profitability, even if the structure and economics of any U.S. operation remain undecided.
BEAR CASE: THE BRAZILIAN CORE STILL NEEDS WORK
The estimate beat did not resolve every weakness. XP Inc. (NASDAQ:XP) grew adjusted net income more slowly than managerial net revenue, while adjusted annualized return on average equity declined 189 basis points to 22.5%. Headcount increased 13% from a year earlier, and the annualized retail take rate fell five basis points.
A bank would represent a meaningful step beyond the company’s existing U.S. securities and advisory operations. It would bring bank-specific supervision, compliance obligations, and capital requirements while management continues addressing fixed-income pressure and limited active-client growth in Brazil.
That does not make the expansion inherently misguided. The strategic case depends on whether a U.S. bank can deepen existing client relationships without weakening management’s focus on the much larger Brazilian platform.
INSIDER MONKEY’S HEDGE FUND DATA
The filings available so far reflect positions held before XP Inc. (NASDAQ:XP) released its second-quarter results and disclosed its U.S. banking considerations. Insider Monkey’s database showed 34 hedge funds holding XP Inc. (NASDAQ:XP) at the end of March 2026, down from 36 funds three months earlier.
CONCLUSION
A U.S. banking operation could become a credible extension of the company’s cross-border offering, but it is not yet a demonstrated second growth engine. The absence of a final structure, regulatory path, or disclosed economics keeps the opportunity preliminary.
For now, the U.S. plan should remain secondary to improving client growth, take rates, and revenue quality in Brazil. The quarter showed that XP Inc. (NASDAQ:XP) can grow earnings and attract assets, but sustainable recovery in the core business remains the more immediate test.
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Disclosure: None. This article is originally published at Insider Monkey.
