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StoneCo Ltd. is a financial technology and software solutions provider primarily serving merchants in Brazil. The company empowers businesses to manage and grow their operations through a combination of financial services and software solutions. StoneCo offers payment solutions, digital banking, credit, and a range of software products tailored to various industries.
- Financial Services - Offers payment solutions, digital banking, credit, and insurance solutions, serving over 3.5 million active payments clients and 2.1 million active banking clients.
- Software - Provides point-of-sale (POS) and enterprise resource planning (ERP) systems, customer relationship management (CRM) tools, and e-commerce platforms, focusing on strategic verticals like gas stations, retail, food, and drugstores.
- Non-Allocated Activities - Includes non-strategic businesses and results from the disposal or discontinuation of non-core businesses.
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Trinks Serviç os de Internet S.A. (Trinks) | 2024 | Acquired 100% equity on May 2, 2024 for a total consideration of R$59,256 thousand, including a previous 19.9% stake and a step acquisition gain of R$7,467 thousand; the deal strengthens the group’s software offering in the beauty services segment by leveraging Trinks’ integrated management platform. |
Neostore Desenvolvimento de Programas de Computador S.A. (Neomode) | 2024 | Increased its stake from 40.02% to 42.25% through a loan conversion on April 17, 2024, enhancing the group’s strategic investment in digital solutions. |
Linx People Ltda., Linx Saúde Ltda., Linx Commerce Ltda., and Linx Enterprise Ltda. | 2024 | Established in the second quarter of 2024 as wholly owned subsidiaries with no further specific acquisition terms disclosed, supporting the group’s broader strategic expansion. |
Hubcount Tecnologia S.A. | 2023 | Acquired a 75% equity interest—initially completed on August 31, 2022 and finalized in Q1 2023—for a total consideration of R$11,124 thousand, aimed at harnessing synergies in its accounting technology solutions for both accounting offices and large corporations. |
Reclame Aqui | 2022 | Acquired a 50% stake on February 17, 2022 for R$224 million, with governance rights (including board seats and CFO appointment), a call option to acquire the remaining stake in 2027, and contingent consideration up to R$145.5 million linked to net revenue performance. |
Gyra+ (Gyramais Tecnologia S.A. & Gyramais Securitizadora S.A.) | 2022 | Acquired a 13.04% equity interest in each company—via a combination of a loan conversion and capital increase—to support its fintech platform offering short-term credit lines to SMEs, although the precise accounting treatment is still being evaluated. |
RH Software | 2022 | Acquired a 20% stake on May 2, 2022 for R$2,320 through a loan agreement conversion, aiming to achieve operational synergies in software solutions for dental clinics, and holds an option to acquire an additional 30% in the near future. |
Plugg.to (ThirdLevel Soluções de Internet S.A.) | 2022 | Acquired 100% of Plugg.to on June 8, 2022 for R$39.88 million with an additional contingent payment of up to R$25 million tied to operational targets; subsequently merged into Linx Sistemas to enhance integration capabilities for online marketplace and ERP solutions. |
Recent press releases and 8-K filings for STNE.
- Strong Q4 performance: StoneCo delivered robust results in Q4 2024 by executing its key strategic priorities. Despite MSMB card TPV coming in slightly below guidance (BRL 403 billion vs. BRL 412 billion), the company saw overall growth in total MSMB TPV to BRL 454 billion and exceeded deposit targets with BRL 8.7 billion in retail deposits.
- Improved profitability and efficiency: The quarter achieved significant improvements with adjusted EBIT growing 22% and adjusted net income increasing 18% year-over-year, aided further by share buybacks that drove EPS growth.
- Operational and strategic updates: The company enhanced client engagement across payments, banking, and credit solutions. In addition, the software segment noted a BRL 3.6 billion goodwill impairment amid a strategic shift to focus on cross-selling financial services, reflecting a reallocation of value within the business.
- Updated guidance outlook: StoneCo provided forward-looking guidance with expectations of adjusted gross profit above BRL 7.05 billion and adjusted basic EPS above BRL 8.6 per share for 2025, with long-term targets for 2027 including surpassing BRL 670 billion in MSMB TPV and achieving EPS guidance above BRL 15 per share, indicating continued revenue acceleration.
- Adjusted Net Income for Q4 2024 reached R$2.2bn, exceeding guidance and showing a significant year-on-year improvement, which underscores the company’s strong growth trajectory.
- Operational efficiency was demonstrated with improved margins, as Adjusted EBT margins and cost controls supported robust revenue and income figures, with total revenue growing by 11.1% sequentially.
- The company continued its capital management initiatives, executing a share buyback program with R$497mn repurchased and maintaining a positive adjusted net cash position, reinforcing its liquidity and financial stability.
- StoneCo delivered solid Q4 performance with total revenue of R$3,609.4 mn (11.1% YoY growth), Adjusted EBT of R$778.1 mn (up 21.9% YoY), and Adjusted Net Income of R$665.6 mn (up 18.1% YoY).
- The company advanced its strategic priorities by expanding its MSMB and banking segments—achieving MSMB TPV of R$128.4 bn in Q4 (up 21.1% YoY) and retail deposits of R$8.7 bn—while noting a 55% share price decline in 2024.
- StoneCo Ltd. presented its audited consolidated financial statements for December 31, 2024 and 2023, detailing comprehensive figures on current and non-current assets, liabilities, and equity, with total assets increasing to BRL 54,813,463 thousand in 2024.
- The company reported a net loss of BRL 1,507,050 thousand for 2024, alongside robust disclosures on revenue streams from transaction activities and subscription services, highlighting challenges in profitability.
- Detailed notes cover significant aspects such as treasury share repurchase programs, adjustments in share capital, and the classification and measurement of financial assets under IFRS 9, which are crucial for monitoring the company’s financial strategy.