[Management View]
XP achieved record net income and expanded profitability in Q2 2025, driven by retail revenue growth and asset expansion despite a challenging macroeconomic environment. Management reaffirmed a 10% top-line growth target for the year, supported by new products, channel diversification, and sales team expansion.

[Outlook]
Management expects continued growth in retail net new money, aiming for $20 billion per quarter. They anticipate potential volatility from upcoming tax policy changes and continued pressure on corporate net new money. Shareholder returns remain a priority through elevated capital ratios and a defined buyback program.

[Financial Performance]
- Total client assets (AUM + AUA): BRL 1.9 trillion, 17% YoY growth.
- Gross revenues: BRL 4.7 billion, up 4% YoY and 2% QoQ.
- Net income: BRL 1.3 billion, up 18% YoY.
- Return on equity (ROE): 24.4%, up 223 basis points YoY.
- Diluted EPS: 22% YoY growth.
- SG&A expenses: BRL 1.6 billion, up 10% YoY and QoQ.
- Efficiency ratio: Improved to 34.5%, a 161 basis point improvement YoY.

[Q&A Highlights]
Question 1: Can you provide more details on capital generation and dividends and buybacks?
Answer: Net income is growing faster than RWA, delivering leverage in capital terms. The company expects to distribute more than 50% of net income through dividends and buybacks, with a CET1 ratio at 18%, well above the industry average of 12%.

Question 2: What is your perception of corporate lending and its impact on the ecosystem?
Answer: Corporate lending is seen as a product to originate and sell. The portfolio grew by BRL 3 billion, which will be securitized and sold over the next quarters. The company maintains a risk appetite and will not increase the portfolio beyond this.

Question 3: Can you elaborate on initiatives to speed up net new money in the second half of the year?
Answer: Initiatives include channel diversification, new product creation, and increasing IFA productivity. The company is confident in achieving $20 billion per quarter in retail net new money, with potential acceleration if the macro environment improves.

Question 4: Can you provide more color on inflows so far in the third quarter and EBITDA margin improvement?
Answer: The company is confident in delivering $20 billion per quarter in net new money. EBITDA margin improvement is driven by product mix and tax rate trends, with continued investments in strategic areas.

Question 5: What drove the significant increase in non-people related expenses?
Answer: Higher marketing and technology investments, including events and cloud technology, contributed to the increase. The company remains committed to cost control and efficiency.

Question 6: Can you discuss the impact of the fee-based model on take rates and revenue?
Answer: The fee-based model is growing and expected to reach 7%-8% of AUC. While take rates may decrease slightly, higher share of wallet per client is expected to compensate for revenue compression.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on growth initiatives and confidence in achieving financial targets despite macroeconomic challenges.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|----------------------------|---------------|---------------|---------------|
| Total Client Assets (AUM + AUA) | BRL 1.9 trillion | BRL 1.85 trillion | BRL 1.62 trillion |
| Gross Revenues | BRL 4.7 billion | BRL 4.6 billion | BRL 4.5 billion |
| Net Income | BRL 1.3 billion | BRL 1.2 billion | BRL 1.1 billion |
| ROE | 24.4% | 23.2% | 22.2% |
| Diluted EPS | BRL 2.46 | BRL 2.40 | BRL 2.02 |
| SG&A Expenses | BRL 1.6 billion | BRL 1.5 billion | BRL 1.45 billion |
| Efficiency Ratio | 34.5% | 35.0% | 36.1% |

[Risks and Concerns]
- Challenging operating environment affecting growth initiatives.
- Risk of continued corporate net outflows due to banks' reciprocity requirements.
- Potential changes in tax rules impacting tax-exempt fixed income instruments.

[Final Takeaway]
XP delivered record net income and expanded profitability in Q2 2025, driven by retail revenue growth and asset expansion. Management remains confident in achieving a 10% top-line growth target for the year, supported by new products, channel diversification, and sales team expansion. However, potential volatility from upcoming tax policy changes and continued pressure on corporate net new money pose risks. Shareholder returns remain a priority through elevated capital ratios and a defined buyback program.