While revenue growth decelerated to -0.4% in 2026Q1, the company successfully expanded gross margins to 51.2% by optimizing its hardware-centric cost structure.
| Sales/Revenue | 19.8B | 19.36B | 18.33B | 15.68B | 15.16B | 10.3B | 6.69B | 5.58B | 4.06B | 2.51B | 1.13B | 664.18M | 324.08M |
| Revenue Growth % | 5.1% | 5.57% | 16.92% | 3.44% | 47.19% | 54.04% | 19.8% | 37.59% | 61.29% | 121.95% | 70.59% | 104.94% | - |
| Cost of Goods Sold | 9.68B | 9.56B | 9.54B | 8.13B | 7.47B | 5.78B | 3.77B | 2.76B | 2.14B | 1.32B | 623.67M | 382.48M | 142.48M |
| COGS % of Revenue | - | 49.42% | 52.05% | 51.87% | 49.28% | 56.08% | 56.42% | 49.49% | 52.87% | 52.66% | 55.04% | 57.59% | 43.97% |
| Gross Profit | 10.13B | 9.79B | 8.79B | 7.55B | 7.69B | 4.52B | 2.91B | 2.82B | 1.91B | 1.19B | 509.38M | 281.69M | 181.6M |
| Gross Margin % | 51.14% | 50.58% | 47.95% | 48.13% | 50.72% | 43.92% | 43.58% | 50.51% | 47.13% | 47.34% | 44.96% | 42.41% | 56.03% |
| Gross Profit Growth % | - | 11.38% | 16.46% | -1.83% | 69.97% | 55.24% | 3.37% | 47.46% | 60.58% | 133.7% | 80.83% | 55.12% | - |
| Operating Expenses | 2.62B | 2.52B | 2.83B | 2.16B | 2.61B | 2.4B | 1.18B | 992.54M | 933.11M | 398.94M | 284.4M | 223.77M | 132.78M |
| OpEx % of Revenue | - | 13.04% | 15.45% | 13.79% | 17.25% | 23.32% | 17.67% | 17.78% | 23% | 15.86% | 25.1% | 33.69% | 40.97% |
| Selling, General & Admin | 2.62B | 2.52B | 2.83B | 2.16B | 2.61B | 2.4B | 1.18B | 992.54M | 933.11M | 398.94M | 284.4M | 223.77M | 132.78M |
| SG&A % of Revenue | - | 13.04% | 15.45% | 13.79% | 17.25% | 23.32% | 17.67% | 17.78% | 23% | 15.86% | 25.1% | 33.69% | 40.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 7.51B | 7.27B | 5.96B | 5.39B | 5.07B | 2.12B | 1.73B | 1.83B | 978.44M | 791.49M | 224.98M | 57.92M | 48.82M |
| Operating Margin % | 37.92% | 37.54% | 32.5% | 34.34% | 33.47% | 20.6% | 25.91% | 32.72% | 24.12% | 31.47% | 19.86% | 8.72% | 15.06% |
| Operating Income Growth % | - | 21.95% | 10.65% | 6.14% | 139.1% | 22.48% | -5.13% | 86.64% | 23.62% | 251.8% | 288.42% | 18.64% | - |
| EBITDA | 9.34B | 9.04B | 7.54B | 6.74B | 6.19B | 2.89B | 2.11B | 1.95B | 1.07B | 843.06M | 256.23M | 76.86M | 60.46M |
| EBITDA Margin % | 47.16% | 46.7% | 41.13% | 42.99% | 40.81% | 28.06% | 31.54% | 35.02% | 26.47% | 33.52% | 22.61% | 11.57% | 18.66% |
| EBITDA Growth % | 17.62% | 19.86% | 11.87% | 8.95% | 114.06% | 37.07% | 7.89% | 82.02% | 27.37% | 229.03% | 233.39% | 27.12% | - |
| D&A (Non-Cash Add-back) | 1.83B | 1.77B | 1.58B | 1.36B | 1.11B | 768.59M | 376.33M | 128.35M | 95.36M | 51.57M | 31.25M | 18.93M | 11.64M |
| EBIT | 7.5B | 7.27B | 5.96B | 5.29B | 5.07B | 2.12B | 1.73B | 1.83B | 970.39M | 779.52M | 218.32M | 59.27M | 48.82M |
| Net Interest Income | -4.78B | -5.13B | -3.27B | -3B | -2.98B | -641.14M | 19.36M | 108.84M | -29.73M | -104.54M | -68.3M | -29.7M | -11.09M |
| Interest Income | 356.81M | 0 | 475.92M | 268.11M | 175.77M | 149.49M | 128.59M | 108.84M | 0 | 31.57M | 20.99M | 7.5M | 4.17M |
| Interest Expense | 5.13B | 5.13B | 3.75B | 3.27B | 3.15B | 790.63M | 109.23M | 0 | 29.73M | 95.97M | 62.96M | 18.95M | 9.33M |
| Other Income/Expense | -4.92B | -4.77B | -3.58B | -3.37B | -3.31B | -633.84M | 42.27M | 86.36M | 239.18M | -107.99M | -69.62M | -17.61M | -12.67M |
| Pretax Income | 2.59B | 2.5B | 2.38B | 2.02B | 1.76B | 1.49B | 1.77B | 1.91B | 1.22B | 683.5M | 155.36M | 40.32M | 36.15M |
| Pretax Margin % | 13.08% | 12.91% | 12.98% | 12.86% | 11.61% | 14.45% | 26.54% | 34.27% | 30.02% | 27.18% | 13.71% | 6.07% | 11.15% |
| Income Tax | 453.4M | 422.6M | 263.56M | 363.42M | 254.55M | 321.74M | 482.39M | 545.51M | 307.21M | 204.71M | 27.58M | 4.83M | 8.9M |
| Effective Tax Rate % | 17.51% | 16.91% | 11.07% | 18.02% | 14.47% | 21.62% | 27.18% | 28.52% | 25.23% | 29.95% | 17.75% | 11.97% | 24.62% |
| Net Income | 2.14B | 2.08B | 2.12B | 1.65B | 1.5B | 1.17B | 1.29B | 1.37B | 909.27M | 478.78M | 127.19M | 35.08M | 25.97M |
| Net Margin % | 10.79% | 10.73% | 11.54% | 10.55% | 9.93% | 11.32% | 19.32% | 24.47% | 22.42% | 19.04% | 11.23% | 5.28% | 8.01% |
| Net Income Growth % | -1.05% | -1.87% | 27.98% | 9.9% | 29.04% | -9.72% | -5.41% | 50.19% | 89.91% | 276.44% | 262.52% | 35.08% | - |
| Net Income (Continuing) | 2.14B | 2.08B | 2.12B | 1.65B | 1.5B | 1.17B | 1.29B | 1.37B | 910.41M | 478.79M | 127.78M | 35.49M | 27.25M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 2.33M | 5.56M | 23.81M | 3.5M | 0 | 2.19M | 1.78M |
| EPS (Diluted) | 7.55 | 6.96 | 6.62 | 5.10 | 4.57 | 3.51 | 3.92 | 4.15 | 2.86 | 1.83 | 0.48 | 0.13 | 0.10 |
| EPS Growth % | 6.85% | 5.14% | 29.8% | 11.6% | 30.2% | -10.46% | -5.54% | 45.1% | 56.28% | 281.25% | 269.23% | 31.31% | - |
| EPS (Basic) | - | 7.01 | 6.70 | 5.10 | 4.60 | 3.53 | 3.92 | 4.16 | 2.86 | 1.83 | 0.48 | 0.13 | 0.10 |
| Diluted Shares Outstanding | 282.87M | 297.87M | 319.51M | 323.96M | 329.23M | 332.17M | 329.81M | 329.26M | 318.13M | 315.14M | 315.14M | 315.14M | 315.14M |
| Basic Shares Outstanding | 279.14M | 295.2M | 319.51M | 323.95M | 327.11M | 330.31M | 329.29M | 328.17M | 317.65M | 315.14M | 315.14M | 315.14M | 315.14M |
| Dividend Payout Ratio | - | 29.13% | - | - | - | - | - | - | - | 11.34% | - | - | - |
Pix payment system cannibalization
As indicated by the most recent quarterly financial statements, PAGS revenue growth has decelerated to -0.4% in 2026Q1, marking a significant departure from the double-digit expansion observed throughout 2024, suggesting that the company's core payment processing volume is struggling to maintain its historical momentum.
The transition from double-digit growth in 2024 to a contraction in the most recent quarter suggests that the company's penetration into the micro-merchant segment may be reaching a saturation point. Investors should monitor whether this deceleration reflects a broader cooling of the Brazilian retail environment or a loss of market share to alternative payment rails like Pix.
Based on reported figures, PAGS has successfully expanded its gross margin to 51.2% in 2026Q1, up from 47.3% in 2024Q2, demonstrating an ability to manage hardware subsidy costs despite the intensifying competitive landscape within the Brazilian merchant acquiring industry.
The improvement in gross margin suggests that the company is becoming more disciplined with its hardware-as-a-loss-leader strategy. This expansion warrants further investigation into whether the company is successfully shifting its revenue mix toward higher-margin digital banking services rather than relying solely on transaction processing.
According to the income statement data, operating income reached $1.8B in 2026Q1, reflecting a 37.3% operating margin that highlights the company's ability to scale its digital-first infrastructure without a proportional increase in overhead expenses compared to earlier periods.
The stability of SG&A expenses, which have remained relatively flat despite revenue fluctuations, indicates a high degree of operational efficiency. This suggests that the company's self-service onboarding model is effectively containing customer acquisition costs, providing a buffer against potential top-line volatility.
As reported in recent filings, the cessation of stock-based compensation in 2026Q1 has positively impacted the quality of net income, which reached $535.3M, suggesting that management is prioritizing shareholder value by reducing dilution and focusing on cash-based profitability metrics.
The elimination of stock-based compensation is a notable shift that improves the transparency of earnings. Investors should monitor whether this trend continues, as it may indicate a more conservative approach to talent retention and capital allocation in the current macroeconomic environment.
While operating margins appear robust, the potential for Pix to cannibalize high-margin credit card volumes remains a significant risk, as evidenced by the company's sensitivity to regulatory shifts and the ongoing evolution of the Brazilian digital payment ecosystem.
Short-sellers may focus on the potential for margin compression if the company is forced to lower its take rate to remain competitive against instant payment alternatives. The reliance on prepayment spreads makes the company particularly vulnerable to interest rate fluctuations, which could quickly erode the current profitability profile.
Quick answers to the most common questions about buying PAGS stock.
For fiscal year 2025, PagSeguro Digital Ltd. (PAGS) reported total revenue of $19.36B. This represents a 5872.4% increase compared to $324.1M in 2014.
PagSeguro Digital Ltd. (PAGS) is profitable, generating $2.08B in net income for the fiscal year ending 2025 with a net profit margin of 10.7%.
PagSeguro Digital Ltd. (PAGS) reported an operating income of $7.27B, resulting in an operating profit margin of 37.5%. This margin reflects the operational efficiency of the business before interest and taxes.
PagSeguro Digital Ltd. (PAGS) generated $9.79B in gross profit for the year, representing a gross profit margin of 50.6%. This demonstrates the company's core pricing power and production efficiency.