PagSeguro Digital Ltd. (PAGS) is a financial technology company based in Brazil, focused on providing innovative and affordable financial solutions to consumers, individual entrepreneurs, micro-merchants, and small and medium-sized enterprises (SMEs). The company offers a comprehensive digital ecosystem that combines payments and financial services, empowering underserved segments with mobile-first solutions. PAGS sells digital banking services, payment solutions, and card issuance products.
- Payments - Operates as a full acquirer and cross-border payment service provider, offering point-of-sale (POS) devices and supporting multiple payment methods and cash-out options.
- POS Devices - Provides entry-level devices like the Minizinha, enabling merchants to accept card payments.
- Banking - Offers free digital accounts under the PagBank brand, providing functionalities such as bill payments, mobile phone top-ups, wire transfers, and more.
- Digital Accounts - Includes features like peer-to-peer cash transfers, prepaid, debit, and credit cards, loans, and investments.
- Card Issuance - Issues prepaid, cash, debit, and credit cards to enhance its financial ecosystem.
- Early Payment of Receivables - Provides merchants with the option of early payment of receivables to meet working capital needs.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Luis Frias ExecutiveBoard | Chairman of the Board, Principal Executive Officer | Publisher of Grupo Folha; Founder of UOL | Founder of UOL and PAGS; expanded UOL into fintech; continues to lead Grupo Folha and UOL. | |
Alexandre Magnani Executive | Chief Executive Officer | None | Joined PAGS in 2015; led sales and financial services; oversaw record growth in TPV and PagBank deposits. | View Report → |
Artur Schunck Executive | Chief Financial Officer, Chief Accounting Officer, Investor Relations Officer | None | Joined PAGS in 2015; managed finance, treasury, and credit products; became CFO in 2020. | |
Ricardo Dutra da Silva Executive | Principal Executive Officer | None | Joined PAGS in 2017; led the convergence of PagBank and PagSeguro brands; oversaw the granting of a brokerage license and initiatives to improve profitability. | |
Cleveland Prates Teixeira Board | Board Member | Managing Partner of Microanalysis Consultoria Econ\u00f4mica; Coordinator at FIPE | Joined PAGS in 2019; expert in economics, regulation, and competition; teaches at FGV-SP and coordinates courses at FIPE. | |
Eduardo Alcaro Board | Vice Chairman of the Board | CFO of UOL EdTech | Joined PAGS in 2017; previously held executive roles including CFO and Chief Business Development Officer; now Vice Chairman of the Board. | |
Marcia Nogueira de Mello Board | Board Member, Audit Committee Member | President of the Board of Smartbank; Consulting Board Member at DMCard; Mentor at Quintessa | Joined PAGS in 2020; recognized for promoting gender diversity; serves on audit committee and holds leadership roles in financial and social impact organizations. | |
Maria Carolina Ferreira Lacerda Board | Board Member, Chairwoman of the Audit Committee | Board Member at China Three Gorges Brasil, IHS Towers, Rumo S.A., Hypera Pharma | Joined PAGS in 2023; experienced in investment banking and corporate governance; serves on multiple boards and audit committees. | |
Maria Judith de Brito Board | Board Member | Principal Executive Officer of Grupo Folha; Vice Chairman of UOL's Board | Joined PAGS in 2017; recognized for promoting gender diversity on the board; has held leadership roles at Grupo Folha and UOL since the 1990s. |
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Despite reporting strong net income growth, your Return on Average Equity remains below 15% with a conservative capital structure; what factors are constraining further ROAE expansion, and how do you plan to enhance shareholder returns, possibly through changes in your capital allocation strategy?
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Given recent regulatory scrutiny in Brazil's gambling industry, can you provide more details on your exposure to gaming clients and explain the potential risks to your TPV and bottom line if there are adverse changes in this sector?
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With the SELIC rate increasing faster than expected and each 100 basis points potentially adding BRL 300 million to your financial expenses over 12 months, how confident are you in your ability to pass these costs onto clients without impacting TPV growth or causing higher customer churn, especially among MSMBs?
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Your prepayment portfolio is growing at a faster rate than your TPV, indicating increased reliance on prepayment income; how sustainable is this growth considering potential interest rate fluctuations and credit risks, and could this heightened reliance pose a risk if market dynamics change?
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In your strategy to expand within the LMEC segment without buying market share, how are you balancing the need for growth in the competitive online space with maintaining profit margins, and what measures are in place to ensure that new large merchants contribute positively to your bottom line?
Research analysts who have asked questions during PagSeguro Digital earnings calls.
Renato Meloni
Autonomous Research
7 questions for PAGS
Eric Ito
Bradesco BBI
3 questions for PAGS
James Friedman
Susquehanna Financial Group, LLLP
3 questions for PAGS
Maria Guedes
Banco Safra
3 questions for PAGS
Antonio Buichi
Bank of America
2 questions for PAGS
Antonio Gregorin Ruette
Bank of America
2 questions for PAGS
Antonio Ruette
Bank of America
2 questions for PAGS
Arnon Shirazi
BTG Pactual
2 questions for PAGS
Beatriz Bomfim de Abreu
Goldman Sachs Group, Inc.
2 questions for PAGS
Carlos Gomez-Lopez
HSBC
2 questions for PAGS
Christopher Svensson
Deutsche Bank AG
2 questions for PAGS
Ernan Churezzi
Citigroup Inc.
2 questions for PAGS
Kaio Penso Da Prato
UBS
2 questions for PAGS
William Buonsanti Barranjard
Itaú Corretora de Valores S.A.
2 questions for PAGS
Beatriz Abreu
Goldman Sachs Group, Inc.
1 question for PAGS
Bryan Keane
Deutsche Bank
1 question for PAGS
Daniel Vaz
Banco Safra
1 question for PAGS
Gabriel Gusan
Citi
1 question for PAGS
Gustavo Schroden
Citigroup
1 question for PAGS
Hernan
Citibank
1 question for PAGS
John Coffey
Barclays PLC
1 question for PAGS
Jorge Kuri
Morgan Stanley
1 question for PAGS
Kamila
UBS Group AG
1 question for PAGS
Mario Pierry
Bank of America
1 question for PAGS
Neha Agarwala
HSBC
1 question for PAGS
Pedro Leduc
Itau BBA
1 question for PAGS
Ricardo Buchpiguel
BTG Pactual
1 question for PAGS
Tito Labarta
Goldman Sachs
1 question for PAGS
William Barranjard
Itaú BBA
1 question for PAGS
Yuri Fernandes
JPMorgan Chase & Co.
1 question for PAGS
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Netpos Serviços de Informática S.A. | 2023 | In a completed acquisition on July 18, 2023, PagSeguro Digital Ltd. acquired the remaining 90% of Netpos shares for a total cash consideration of R$32 million, achieving 100% ownership; the deal included detailed purchase price allocation for key assets such as customer portfolio, software, non-compete agreement, and goodwill, aligning with PagSeguro’s strategy to expand its digital ecosystem. |
Recent press releases and 8-K filings for PAGS.
- PagSeguro Digital Ltd. expects to achieve a Basel Index (BIS) Target Level of 18% to 22%, which is anticipated to generate R$2 billion to R$3 billion in excess capital.
- The company estimates R$3.8 billion in shareholder returns between 2025 and 2026, comprising R$1.4 billion in dividends in 2026, R$623 million in cash dividends already declared in 2025, R$696 million in stock buybacks executed in 2025, and a current share repurchase program of up to R$1.1 billion/US$200 million.
- PagSeguro aims to achieve long-term financial goals by the end of 2029, targeting a Credit Portfolio of R$25 billion, Gross Profit CAGR greater than 10% from 2025 to 2029, and Earnings Per Share CAGR greater than 16% from 2025 to 2029.
- PagSeguro Digital is transitioning to a full digital bank, targeting a credit portfolio of BRL25 billion by 2029, a significant increase from its current BRL4 billion.
- The company aims to return BRL5.5 billion to shareholders by 2026, including an extraordinary BRL1.4 billion in dividends planned for the coming quarters, in addition to BRL623 million already committed for this year, potentially leading to a total yield close to 20% with open buybacks.
- Long-term financial targets include a gross profit CAGR over 10% and an EPS CAGR over 16% between 2025 and 2029.
- The strategic shift involves increasing the mix of unsecured credit products and leveraging AI-powered solutions, with acceleration in credit growth expected after 2026.
- A base capital ratio target of 18% to 22% has been set to ensure financial strength and support disciplined growth.
- PagSeguro Digital (PagBank) presented a strategic update outlining its long-term view, emphasizing its position with a full banking offering and the largest payments acceptance network in Brazil, aiming to democratize financial services.
- The company reported R$43 billion in deposits/funding in Q2 2025 and a diluted GAAP EPS of R$8.2 for 2025 YTD.
- PagBank highlights significant growth opportunities in Brazil's financial market, with the payment sector projected to grow approximately 10% per annum, driven by 15% growth in PIX and 8% in card transactions.
- The company plans to return over R$5.5 billion to shareholders, with R$3.8 billion expected between 2025 and 2026, including a R$1.4 billion dividend scheduled for payment in 2026, in addition to R$623 million already announced/paid in 2025.
- PagSeguro Digital Ltd. announced that its Board of Directors has approved the payment of a special cash dividend of US$0.12 per common share.
- The dividend is scheduled to be paid on November 3, 2025, to shareholders of record as of October 6, 2025.
- The company anticipates making one more special distribution of cash dividends in the same amount of US$0.12 per common share within the next two quarters, contingent on market and company financial conditions.
- PagBank reported net revenue of R$5.1 billion in Q2 2025, representing an 18% growth year-over-year when excluding the foreign exchange effect.
- Recurring net income reached R$565 million (+4% y/y) and reported net income was R$537 million (+7% y/y), with a return on equity (ROE) of 14.5%.
- The company's banking revenue increased 61% year-over-year and now accounts for 26% of gross profit, which totaled R$1.9 billion (+7% y/y).
- PagBank allocated R$1.9 billion to dividends and share repurchases over the past 12 months, demonstrating a focus on shareholder value.
- On June 16, 2025, PagSeguro’s board approved a special cash dividend of US$0.12 per common share, payable on August 15, 2025 to shareholders of record as of July 16, 2025.
- The company expects two additional special cash dividends of US$0.12 per share within the next three quarters, subject to market and company financial conditions and at the board’s discretion.
- PagSeguro Digital Ltd. announced its third share repurchase program with an authorization to buy back up to US$200 million in outstanding Class A common shares, effective immediately and without a fixed expiration date.
- The announcement noted that the previous program, initiated in August 2024, successfully repurchased US$200 million in Class A common shares, and stated that the repurchases would comply with Rule 10b-18 under the Securities Exchange Act.
- PagBank recorded a net revenue of R$4.9 billion in Q1 2025, marking a 13% YoY increase.
- The company achieved a recurring net income of R$554 million, representing a 6% YoY growth.
- The strong performance was announced by PagSeguro Digital Ltd amidst challenging macroeconomic conditions.