PicS N.V. (PICS) Delivers Credit Portfolio Momentum and Q2 Outperformance Across the Board

For the recently reported second quarter, PicS N.V. (NASDAQ:PICS) outperformed relative to its previous guidance across all profitability metrics. The total account base for the company went up to 70.4 million during the second quarter, showcasing a 10% jump from the prior year. Moving on to the bottom line figures, the adjusted earnings before tax, without factoring in costs associated with stock-based compensation came in at R$291 million for the quarter. This represented a 2.1% outperformance relative to the company’s R$285 million guidance. Similarly, compared to the R$245 million projection, adjusted net income for the period actually stood 15.5% higher at R$283 million.

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Client Growth and Deposit Gains

The second quarter concluded with strong financial and operating momentum for PicS. The company recorded a 9% annual and 2% sequential growth in its client base, which went up to 45.4 million active users. The total credit portfolio jumped to R$31.9 billion, exceeding management’s guidance by 3%. This outperformance came due to a higher number of mature credit card cohorts, and accelerated origination within secured and partly secured categories. An additional factor that accounted for the credit portfolio growth was management’s measured expansion into higher risk areas such as newer platform credit and private payroll lending.

Managerial revenue rose to R$3,730 million, topping guidance by 3.6%, and net interest income reached R$2,002 million, 5.4% above projections, boosted by growing credit income. Total cash in totaled R$136.4 billion, up 17% from a year earlier and 9% from the previous quarter, with customers bringing in an average of approximately R$45.4 billion to the platform each month. Total deposits climbed to R$35.8 billion, a 45% yearly jump and 10% quarterly rise.

Uptick in Credit Impairments

Some concerns related to the company’s loan portfolio emerged during the quarter. Non-performing loans more than 90 days overdue increased to 9.8% of the credit portfolio during the quarter, up 93 basis points sequentially. Stage 3 exposure, which includes a broader set of credit-impaired loans, reached 12.9% of the total credit portfolio.

Another notable factor was the company’s funding costs, which concluded the quarter at 96% over CDI. A two percentage point increment relative to the prior quarter can be attributed to the funding mix, which had been diversified through additional sources such as FIDCs and third party distributions.

Hedge Fund Sentiment

Institutional data tracked by Insider Monkey, covering more than 1,000 hedge funds, shows significant drop in institutional interest. As per 13F filings, hedge fund ownership declined from 23 funds in Q1 2026 to 13 funds in the following quarter. Short interest remains limited at 2.67%, suggesting very nominal amount of active bets against the stock.

Goldman Sachs is the largest institutional stakeholder in the company, as per Yahoo Finance database. It holds 3.15 million shares, translating into 7.31% ownership in the stock. Other notable stakeholders include FIL and Samlyn Capital with 4.02% and 3.39% ownerships respectively.

The reported numbers for the second quarter appear highly encouraging, as they reflect on PicS’ enhanced earning capacity and a more diversified funding base. Investors can show confidence in management’s risk management practices amid outperformance across financial metrics throughout the period. Expansion of deposit base and the resulting inflows bolster the company’s liquidity position, which should support steady credit growth further down the line.

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