Here are 1-3 brief analogies for XP (XP):

• The Charles Schwab of Brazil
• Fidelity for Brazil

• Investment Products & Services: XP offers a comprehensive platform providing access to a wide range of investment vehicles, including equities, fixed income, mutual funds, and derivatives for retail and institutional investors.
• Wealth Management & Advisory: The company provides personalized financial planning, portfolio management, and advisory services to high-net-worth individuals and families.
• Digital Banking Services: XP offers digital accounts, credit cards, and other banking solutions to its clients, expanding beyond traditional investment offerings.
• Insurance Solutions: Various insurance products, such as life, auto, and home insurance, are available through its platform.
• Corporate & Investment Banking: XP provides services to corporate clients, including mergers & acquisitions advisory, capital markets solutions, and structured finance.

XP Inc. (XP) primarily serves individual investors rather than other companies directly as its major customers.

Based on the services offered and target market, XP's individual customers can be broadly categorized into the following three segments:

• Self-Directed Retail Investors: This category includes individuals who utilize XP's digital platform and tools to independently manage their investments. They typically seek direct access to a wide range of investment products (e.g., stocks, fixed income, funds) and educational content, often preferring a do-it-yourself approach with the convenience of a robust online platform.
• Advised Retail Investors: These are individuals who seek personalized financial guidance and recommendations from financial advisors associated with XP. They value the expertise of a professional to help them build and manage their investment portfolios, plan for financial goals, and navigate market complexities, often through a hybrid model combining digital access with human advice.
• High-Net-Worth (HNW) and Ultra-High-Net-Worth (UHNW) Individuals: This segment comprises affluent clients with significant assets who require comprehensive wealth management solutions. XP offers dedicated services (such as XP Private) for these individuals, providing highly personalized advice, private banking services, estate planning, exclusive investment opportunities, and sophisticated financial strategies tailored to their complex financial needs.

Amazon.com, Inc. (AMZN)

Alphabet Inc. (GOOGL)

Thiago Maffra Chief Executive Officer

Thiago Maffra joined XP Inc. in 2015 as a trader. He co-founded XDEX, a cryptocurrency exchange, from June 2017 to October 2018. Maffra became the Executive Director of Technology and Chief Technology Officer (CTO) in 2018, leading XP's digital transformation. He assumed the role of CEO in May 2021.

Victor Mansur Chief Financial Officer

Victor Mansur was appointed Chief Financial Officer of XP Inc. effective August 1, 2024. He joined XP CCTVM in 2012 and has held various senior positions within the company, including Executive Director, Head of Treasury, and Head of Structuring, Trading, and Sales. Prior to joining XP, he gained experience at two other broker-dealer firms.

Guilherme Benchimol Chairman of the Board

Guilherme Benchimol founded the XP group in 2001 and served as its CEO until May 2021, when he transitioned to the role of Executive Chairman. He started XP with initial capital of approximately $2,000 after being dismissed from a brokerage firm. Under his leadership, XP Inc. grew significantly, acquiring companies like Interfloat, Senso Corretora, Infomoney, Clear Corretora, and Rico Corretora de Valores. In 2017, Itaú Unibanco acquired 49.9% of XP's shares.

Bruno Constantino Board Member

Bruno Constantino served as Chief Financial Officer of XP Inc. from 2019 to 2024 and remains a member of the board of directors. He joined XP CCTVM in 2012. Prior to XP, he was CIO of Graphus Capital from 2010 to 2012 and a partner at BTG Pactual from 2000 to 2010, where he was involved in significant private equity investments in the energy sector. He was named a partner at BTG Pactual in 2004. He also held board positions at CEMIG, Light, and Valid.

Fabrício Almeida General Counsel

Fabrício Almeida has served as General Counsel of XP Inc. since November 2019 and has been part of the XP group since 2011. Before joining XP, he was a lawyer at Barbosa, Müssnich & Aragão from 2005 to 2011.

The key risks to XP Inc.'s business are primarily linked to its concentrated operations in Brazil, intense competition, and high financial leverage.

1. Macroeconomic and Political Uncertainty in Brazil: XP Inc. operates predominantly in Brazil, with a significant portion of its revenue generated from the country. This exposes the company heavily to Brazil's economic, political, and regulatory landscape. Economic shocks, such as currency devaluation, political instability, or prolonged recessions, could significantly impact XP's revenue and client assets. Furthermore, high interest rates in Brazil have previously led to a slowdown in XP's growth rates and influenced client asset allocation towards lower-margin products. The Brazilian government's substantial influence over the economy and the country's sub-investment-grade sovereign credit rating further compound this risk.
2. Intense Competition and Fee Compression: XP Inc. faces robust competition from both large, established incumbent banks and rapidly expanding digital banks in Brazil. These competitors are aggressively enhancing their investment platforms and cross-selling financial products, often offering low-cost alternatives. This competitive pressure contributes to fee compression, particularly evident in a declining retail take rate (revenue as a percentage of client assets), which directly impacts XP's ability to grow revenue and maintain client margins.
3. High Leverage and Financial Risk: XP Inc. exhibits a high debt-to-equity ratio, which has been noted at 3.33 in Q3 2025 and 4.202 in another report, and a low Altman Z-Score of 0.04, placing it in a "distress zone." While financial services firms generally have higher debt-to-equity ratios due to their business model, this metric remains a critical indicator of the company's financial health and a key area for investors to monitor.

One clear emerging threat for XP Inc. is the **intensified and evolving competition from both well-established traditional banks and rapidly growing digital banks and fintechs** within the Brazilian financial services market.

XP initially gained significant market share by disrupting the traditional banking model, offering superior digital platforms, a broader range of investment products, and a network of independent financial advisors. However, its success has spurred significant retaliation and innovation from competitors. Major incumbent banks (such as Itaú, Bradesco, and Santander Brasil) are now investing heavily in technology, digitalizing their services, improving their investment platforms, and reducing fees to retain and attract clients, directly challenging XP's value proposition.

Concurrently, agile digital banks and fintechs (like Nubank, C6 Bank, and BTG Pactual's digital arm) are rapidly expanding their client bases and integrating sophisticated investment products into their user-friendly, low-cost ecosystems. Nubank's acquisition of Easynvest (now NuInvest), for instance, exemplifies a digital bank directly entering and scaling in the investment brokerage space, offering a compelling alternative to XP for a wide range of investors. This dual pressure from both ends of the competitive spectrum threatens XP's client acquisition, retention, and ultimately its fee-based revenue model, forcing it to continuously innovate and adapt in an increasingly commoditized market.

XP Inc. operates primarily in Brazil and offers a wide range of financial products and services, including investment products, wealth management, credit products, banking services, and insurance.

• For its core investment business combined with new verticals such as pension funds, credit cards, credit, and insurance, the total annual revenue in the Brazilian financial system represents an addressable market of approximately BRL 800 billion (Brazilian Real). XP Inc. aims to address BRL 500 billion of this market in the short to medium term.
• For its banking business, XP Inc. targets a total addressable market of 30 million individuals in Brazil who are investors.

XP Inc. (NASDAQ: XP) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, focusing on expanding its client base, diversifying its product offerings, and shifting towards a more fee-based model. These strategies are underpinned by the company's strong position in the Brazilian financial market and its continued investment in technology.

Here are 3-5 expected drivers of future revenue growth:

1. Expansion of Active Client Base and Advisor Network: XP continues to focus on attracting new clients and expanding its network of investment advisors. The company reported an active client base of 4.7 million, increasing 6% year-over-year in the nine months of 2024, and its total number of advisors reached 18,400, growing 9% year-over-year. This expansion in both clients and advisors is a fundamental driver for increasing Assets Under Custody (AUC) and, consequently, revenue. XP aims to be a leader in investments, which is its core business.
2. Growth in New Business Verticals and Cross-Selling: XP is actively diversifying its revenue streams by expanding into new business verticals beyond its core investment platform. New product offerings, including credit cards, life insurance, retirement plans, and consortium services, generated significant revenue growth in the first half of 2025. For instance, in Q2 2025, these new offerings contributed $256 million in revenue, a 146% year-over-year increase. The company is also seeing promising growth in areas like corporate and SMB businesses. This cross-selling strategy deepens client relationships and increases client wallet share.
3. Shift Towards Fee-Based Models: A strategic differentiator for XP is its transition to a fee-based model. While currently 5% of total client assets are under fee-based arrangements, management targets 7%-8% over the next few years. This shift aligns with global trends and is expected to enhance client lifetime value and wallet share, creating a flywheel effect for sustainable growth.
4. Technological Innovation and Platform Enhancement: XP's growth strategy is significantly influenced by its tech-driven initiatives. The company is continuously investing in technology, including AI-driven personalization for investment recommendations and fraud detection, data analytics for refining product offerings, and ongoing platform development. These technological advancements are aimed at improving efficiency, attracting and retaining clients, and enhancing the overall client experience, thereby contributing to revenue growth and improved net margins.
5. Corporate and Institutional Segment Expansion: While retail remains a highlight, XP is also focusing on expanding its corporate and institutional client segments. The corporate gross revenue grew by a 50% CAGR from Q3 2023 to Q2 2024 (last 12 months). The recent launch of the Corporate Digital Account and upcoming Trade Finance services highlight cross-sell opportunities within these segments for the coming years. This expansion contributes to diversifying the company's overall revenue mix.

Share Repurchases

• XP Inc. announced a new share repurchase program on November 19, 2024, authorizing the repurchase of up to R$1.0 billion (one billion Brazilian Reais) of its Class A common shares. This program is set to run from November 20, 2024, until November 20, 2025.
• In May 2024, the company announced a share buyback plan to repurchase up to R$1.0 billion of its Class A common shares, with the program starting on May 23, 2024, and potentially concluding by the end of that year.
• A share buy-back program approved in May 2022 was amended in November 2022 to increase the maximum repurchase amount to R$2.0 billion. By March 31, 2023, the company had repurchased 25,037,192 shares, equivalent to R$2,059 million or approximately US$394 million, completing the program.

Share Issuance

• In June 2020, an offering of 19,535,420 Class A common shares was made by selling shareholders (XP Controle Participações S.A. and General Atlantic (XP) Bermuda, L.P.); XP Inc. did not receive any proceeds from this sale.

Outbound Investments

• Between 2018 and 2021, XP Inc. invested proceeds from its IPO and earnings in strategic acquisitions and new verticals to complement and improve customer experience.
• XP's net change in long-term investments showed a net decrease of approximately $0.034 billion in 2022 and $0.007 billion in 2023, with $0 billion in 2024.

Capital Expenditures

• XP Inc.'s capital expenditures were R$127 million in 2022, R$196.2 million in 2023, and R$330.2 million in 2024.
• Expected capital expenditures are R$391.2 million for 2025 and R$465.7 million for 2026.
• Capital expenditures for 2024 amounted to 1.9% of net revenues, an increase from 1.3% in 2023, with the primary focus on investing in business growth.