Revenue growth has decelerated to -0.2% in 2026Q2, yet gross margin has expanded to 51.5%, indicating pricing power that may be vulnerable to competitive forces.
PagSeguro Digital Ltd. (PAGS) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 19.79B | 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 % | 2.51% | 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 | 9.63B | 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 | 10.16B | 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 % | 51.34% | 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 | 2.69B | 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 | 2.69B | 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 | 7.48B | 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 % | 37.77% | 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 | 9.33B | 9.04B | 7.56B | 6.74B | 6.2B | 2.89B | 2.11B | 1.95B | 1.07B | 843.06M | 256.23M | 76.86M | 60.46M |
| EBITDA Margin % | 47.14% | 46.7% | 41.23% | 42.99% | 40.93% | 28.06% | 31.54% | 35.02% | 26.47% | 33.52% | 22.61% | 11.57% | 18.66% |
| EBITDA Growth % | 11.05% | 19.56% | 12.14% | 8.65% | 114.64% | 37.07% | 7.89% | 82.02% | 27.37% | 229.03% | 233.39% | 27.12% | - |
| D&A (Non-Cash Add-back) | 1.85B | 1.77B | 1.6B | 1.36B | 1.13B | 768.59M | 376.33M | 128.35M | 95.36M | 51.57M | 31.25M | 18.93M | 11.64M |
| EBIT | 7.85B | 7.63B | 6.13B | 5.29B | 4.91B | 2.28B | 1.73B | 1.83B | 970.39M | 779.52M | 218.32M | 59.27M | 48.82M |
| Net Interest Income | -5.06B | -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 | 189.56M | 0 | 475.92M | 268.11M | 175.77M | 149.49M | 128.59M | 108.84M | 0 | 31.57M | 20.99M | 7.5M | 4.17M |
| Interest Expense | 5.25B | 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 | -4.88B | -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 | 2.6B | 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 % | 13.14% | 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 | 451.83M | 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 % | 17.38% | 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 | 2.15B | 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 % | 10.85% | 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 % | -1.98% | -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) | 2.15B | 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) | 7.69 | 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 % | 5.93% | 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 | 279.46M | 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 | 279.46M | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
Pix cannibalization of core revenue
Growth Deceleration Amidst Market Maturity
Revenue growth has decelerated sharply from double-digit rates in early 2024 to near-flat performance in recent quarters, with 2026Q2 showing a -0.2% year-over-year decline, suggesting the Brazilian digital payments market is maturing for PAGS's core micro-merchant segment.
The trajectory from 14.0% YoY growth in 2024Q1 to negative growth in 2026Q2 indicates a significant slowdown in the company's expansion. This deceleration appears to be driven by a combination of market saturation in the micro-merchant tier and potential competitive pressure from Pix adoption, which may be diverting transaction volume from traditional card-based processing. The lack of acceleration despite the company's up-market pivot via PlugPag suggests the transition to larger SMEs is not yet offsetting the core segment's maturation.
Gross Margin Expansion Contrasts with Net Pressure
Gross margin has expanded meaningfully from 48.3% in 2024Q4 to 51.5% in 2026Q2, yet net margin has compressed from 12.0% to 11.3% over the same period, indicating that cost efficiencies at the gross level are being absorbed by rising non-operating expenses or provisions.
The structural improvement in gross margin suggests PAGS is successfully managing its cost of funding and interchange expenses, possibly through better pricing or a more favorable product mix. However, the inability to translate this into higher net profitability implies that other factors, such as increased credit loss provisions for the PagBank portfolio or higher tax burdens, are weighing on the bottom line. This divergence warrants investigation into the quality of earnings and the sustainability of the gross margin gains.
Operating Leverage Demonstrated but Not Fully Realized
Operating income has scaled from $1.4B in 2024Q2 to $1.8B in 2026Q2, a 28.6% increase, while revenue grew only 11.4% over the same period, showcasing strong operating leverage from a disciplined SG&A structure.
The data shows that PAGS has achieved significant operating leverage, with operating margin expanding from 31.8% to 36.2%. This appears to be driven by effective control over SG&A expenses, which have remained relatively stable despite revenue growth. However, the leverage is not fully flowing to the net income line, as net margin has not expanded proportionally. This suggests that while the core business is becoming more efficient, other cost centers or non-operational items are limiting the final earnings impact.
SG&A Discipline Underpins Profitability
SG&A expenses have been held relatively flat at around $650M-$750M per quarter despite revenue growth, indicating strong cost discipline that has been a key driver of operating margin expansion over the past two years.
The stability in SG&A expenses, even as the company scales, suggests effective management of overhead and customer acquisition costs. This discipline is particularly notable given PAGS's strategic investments in expanding its PagBank ecosystem and moving up-market with PlugPag. However, the zero R&D expense line item is unusual for a technology-driven fintech and may indicate that development costs are being capitalized or allocated elsewhere, which could obscure the true investment required to maintain its competitive position.
Sustainability of Margins Under Competitive Siege
The strongest challenge to PAGS's narrative is that its recent gross margin expansion may be unsustainable, as intense competition from StoneCo and the rise of Pix could force pricing concessions that erode the very profitability gains the market is celebrating.
While PAGS's gross margin has improved, its primary peer StoneCo operates with a significantly higher gross margin of 76.2%, suggesting PAGS's current level may still be under pressure. The deceleration in revenue growth to near-zero indicates that PAGS may be losing pricing power or volume in its core segment. If the company is forced to subsidize hardware more aggressively or lower take rates to defend market share, the recent margin expansion could reverse quickly, exposing the fragility of its profitability in a hyper-competitive and regulated market.