XP Inc. Q2: Better, But Not Way Better (Upgrade)

Kenio Fontes 3.08K Followers Follow Summary XP Inc. delivered a solid Q2 with 8% revenue and 15% EBT growth, maintaining a robust 22.5% ROE. XP is evolving its ecosystem, expanding fee-based services to 26% of customers, and accelerating net new money inflows, especially from retail. Despite improvements, XP faces persistent competition and macroeconomic risks, making its 8x earnings valuation reasonable but not compelling versus peers. I upgrade XP to hold, recognizing operational progress and low valuation, but remain cautious due to uncertainties and more attractive alternatives in Brazil. Edson Souza/iStock via Getty Images My last (and only) article about XP Inc. ( XP ) was in 2025. Coincidentally, it was after the Q2 earnings release. I thought the company delivered some good results at that time, but it wasn’t compelling enough for This article was written by Kenio Fontes 3.08K Followers Follow Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Analyst’s Disclosure: I/we have a beneficial long position in the shares of INTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.