• The Square (Block Inc.) of Brazil

• Payment Processing Services: StoneCo provides the underlying technology and infrastructure for merchants to accept electronic payments from their customers.
• In-store Payment Solutions: The company offers hardware and software to facilitate payment acceptance for brick-and-mortar businesses, including point-of-sale systems.
• Online and Mobile Commerce Solutions: StoneCo provides digital tools, platforms, and integrations that enable online businesses and mobile applications to process payments.

StoneCo (STNE) primarily provides financial technology solutions to other companies in Brazil.

Due to the nature of its business serving a large and fragmented customer base, specific named major customer companies are not individually identified in the provided information. Instead, its customers can be categorized as follows:

• Small-and-Medium-Sized Businesses (SMBs): These are merchants across in-store, online, and mobile channels that utilize StoneCo's fintech solutions for electronic commerce. As of December 31, 2020, the company served approximately 652,600 clients primarily in this category.
• Integrated Partners: This category includes entities such as global payment service providers, digital marketplaces, and integrated software vendors that integrate StoneCo's technology and solutions. As of December 31, 2020, the company served 260 integrated partners.

Major Suppliers:

• Visa Inc. (V)
• Mastercard Incorporated (MA)
• Worldline S.A. (WLN.PA)

Mateus Scherer, Chief Executive Officer (effective March 2026)

Mateus Scherer, currently the Chief Financial Officer and Investor Relations Officer, will assume the role of Chief Executive Officer of StoneCo, effective March 2026. He has been with StoneCo since its early days and has played a central role in capital allocation, financial strategy, risk management, and the execution of the company's banking and credit initiatives. Scherer previously assumed the CFO role in 2023.

Diego Salgado, Chief Financial Officer (effective March 2026)

Diego Salgado, currently StoneCo's Treasury Officer and a member of the executive committee, will expand his responsibilities to include the company's broader finance agenda and will assume the role of Chief Financial Officer and Investor Relations Officer, effective March 2026.

Pedro Zinner, Chief Executive Officer (until March 2026)

Pedro Zinner has served as the Chief Executive Officer of StoneCo since approximately March 2023, and will resign from this position effective March 2026 for personal reasons. He is expected to be nominated for election to the Board of Directors and, if approved, appointed as Chairman of the Board. Prior to joining StoneCo's board in March 2022, Zinner was the CEO of Eneva, a leading power-generation company in Brazil, from 2017 to November 2022. He brings over 25 years of management and leadership experience in strategy, risk management, and finance from his time at Eneva, BG Group, and Vale. During his tenure at StoneCo, Zinner led a strategic pivot that included divesting non-core assets such as Linx, implementing streamlining initiatives, establishing a disciplined capital allocation framework, and expanding the company's financial services platform.

Thiago Piau, Board Member

Thiago Piau was the Chief Executive Officer of StoneCo from the end of 2017 until March 2023, and is now a Board member of the company. He joined StoneCo as a partner in 2013. Under his leadership, StoneCo significantly grew its annualized revenue and expanded its client base from 103,000 to over 2 million clients. Piau also oversaw the launch of banking solutions and established StoneCo as a leading retail software provider in Brazil through the acquisition of Linx.

Augusto Lins, Senior Advisor

Augusto Lins is a co-founder and former president of StoneCo, currently serving as a senior advisor in a part-time capacity since May 2023. He played a crucial role in the company's early development, contributing to sales and operations initiatives and fostering a client-centric culture. Before StoneCo, Lins co-founded a software development company in the mid-1980s. His extensive career includes serving as Commercial Director at Redecard (2011-2013), and various director positions at Itaú Unibanco, Hipercard Banco Múltiplo, and Cartão Unibanco (2001-2011). He also held roles as Corporate Finance Director at ING Bank (1993-2001) and worked in corporate finance at N M Rothschild & Sons. Lins has authored a book detailing Stone's approach to customer service.

Here are the key risks to StoneCo's business:

1. Macroeconomic and Political Instability in Brazil

   StoneCo's operations are heavily concentrated in Brazil, making it highly susceptible to the country's macroeconomic and political conditions. Economic fluctuations, such as high inflation, shifts in interest rates, and slow GDP growth, can significantly impact consumer spending and small business activity, directly affecting StoneCo's transaction volumes and overall revenue. Political instability and government policy changes can also introduce uncertainty and negatively affect the business environment. Elevated interest rates in Brazil, for instance, can increase StoneCo's financial expenses and squeeze profit margins.

2. Intense Competition and Pricing Pressure

   The Brazilian fintech market is highly competitive, with StoneCo facing significant rivals including PagSeguro, Mercado Pago, Cielo, and traditional banks. The widespread adoption of Pix, Brazil's instant payment system, while beneficial for the economy, also poses a competitive challenge to StoneCo's traditional card transaction volumes and fee-based revenue, potentially leading to increased pricing pressure and erosion of profit margins. This competitive environment necessitates continuous innovation and differentiation to maintain market share.

3. Credit Quality and Loan Portfolio Risks

   StoneCo has expanded its offerings to include credit solutions, particularly for its micro, small, and medium-sized business (MSMB) clients. Lending to this segment in an emerging market like Brazil carries inherently higher default risks. Historical challenges with credit quality and loan loss provisions have impacted StoneCo's profitability in the past, leading to significant write-offs and net income losses. A worsening economic outlook could further exacerbate credit quality pressures, increasing loan loss provisions and negatively affecting the company's profit margins and cash flow generation.

The addressable markets for StoneCo's main products and services in Brazil are substantial and growing across several key areas:

• Fintech Market (Brazil): The Brazilian fintech market was valued at approximately USD 5.5 billion in 2025. It is projected to grow to USD 19.1 billion by 2034, with a compound annual growth rate (CAGR) of 14.92% from 2026 to 2034. Another estimate indicates the market was USD 5.75 billion in 2025 and is expected to reach USD 33.58 billion by 2035, exhibiting a CAGR of 19.30% during the period of 2026-2035.
• Payment Processing Solutions Market (Brazil): The market for payment processing solutions in Brazil generated USD 1,336.6 million in revenue in 2023. This market is projected to reach USD 3,955.5 million by 2030, growing at a CAGR of 16.8% from 2024 to 2030. Another report states the market size was USD 1,553.6 million in 2024 and is anticipated to grow to USD 1,799.6 million by 2035, with a CAGR of 15.83% during the forecast period 2025-2035.
• E-commerce Market (Brazil): In 2023, the e-commerce market in Brazil generated approximately US$33.4 billion in revenue. It is projected to reach US$48.26 billion in 2025 and is expected to increase to US$71.01 billion by 2029, with an annual growth rate (CAGR) of 10.14% from 2025 to 2029. Another source estimates the market size at USD 69.21 billion in 2026, with a projection to reach USD 150.91 billion by 2031, at a CAGR of 16.87%.
• Fintech Online Lending and Credit Market (Brazil): The Brazil FinTech Online Lending & Credit Platforms Market is currently valued at approximately USD 10 billion. For lending specifically to small and medium-sized enterprises (SMEs) in Brazil, the opportunity has been identified as a 200 billion reais market.

• Expansion of Credit and Banking Solutions: StoneCo is strategically transitioning its growth from being primarily dependent on Total Payment Volume (TPV) to focusing on credit and banking services. This shift is anticipated to enhance earnings and foster more sustainable profitability. The company's credit portfolio has been scaling rapidly, with credit revenues showing significant sequential growth. Additionally, its banking active client base has expanded, and client deposits have grown considerably, indicating progress in bundling payments and banking into an integrated value proposition.
• Growth in Client Base and Deeper Engagement: StoneCo continues to increase its client base, particularly within the small and medium-sized business (MSMB) segment. The company aims to deepen client engagement and increase wallet share through cross-selling end-to-end financial solutions, including payments, digital banking, and working capital credit. This strategy is demonstrated by growing deposit balances and credit portfolio expansion, which supports higher recurring revenue.
• AI-Driven Productivity and Operational Efficiency: Management has highlighted new AI-driven productivity initiatives as a multi-year priority. These efforts are geared towards enhancing cost efficiency and improving margins, which can indirectly contribute to revenue growth by allowing for competitive pricing and reinvestment into growth areas. Strategic cost efficiency measures are noted as key drivers of anticipated earnings growth.

Share Repurchases

• StoneCo announced and completed a share repurchase program in late 2025, buying back 21,872,021 Class A shares for approximately R$1.95 billion. This program was authorized on May 8, 2025, for up to R$2.00 billion with no fixed end date.
• In December 2025, StoneCo's Board of Directors authorized a new share repurchase program, replacing the previous one, allowing the company to repurchase up to R$2 billion in outstanding Class A common shares without a fixed expiration date.
• During the fourth quarter of 2025, StoneCo made R$1.3 billion in share repurchases. The company also plans to return over BRL 2 billion to shareholders in 2026 through a new share repurchase program.

Capital Expenditures

• In a recent quarter, StoneCo reported capital expenditures totaling 426.26 million BRL.
• StoneCo's capital allocation includes investments in a scalable credit business and AI-powered productivity initiatives.