Revenue remains highly cyclical and tethered to performance fee realizations, contributing to a contraction in operating margins from 50.7% in 2024Q4 to 36.7% in 2025Q4.
| Sales/Revenue | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - |
| Gross Profit | 369.2M | 323.72M | 288.88M | 224.05M | 220.88M | 104.39M | 80.3M | 64.26M |
| Gross Margin % | 96.2% | 86.51% | 88.18% | 86.55% | 93.79% | 90.76% | 65.03% | 60.81% |
| Gross Profit Growth % | 14.05% | 12.06% | 28.93% | 1.44% | 111.6% | 30% | 24.96% | - |
| Operating Expenses | 237.9M | 157.81M | 125.03M | 93.64M | 83.66M | 37.18M | 15.47M | 17.72M |
| OpEx % of Revenue | 61.99% | 42.17% | 38.16% | 36.17% | 35.52% | 32.32% | 12.53% | 16.77% |
| Selling, General & Admin | 43.8M | 120.89M | 97.13M | 71.75M | 74.56M | 29.3M | 12.9M | 16.44M |
| SG&A % of Revenue | 11.41% | 32.31% | 29.65% | 27.72% | 31.66% | 25.48% | 10.45% | 15.56% |
| Research & Development | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - |
| Operating Income | 131.3M | 165.9M | 163.86M | 130.41M | 137.22M | 67.21M | 64.83M | 46.54M |
| Operating Margin % | 34.21% | 44.33% | 50.01% | 50.38% | 58.27% | 58.43% | 52.5% | 44.04% |
| Operating Income Growth % | -20.86% | 1.25% | 25.65% | -4.97% | 104.18% | 3.68% | 39.29% | - |
| EBITDA | 131.3M | 201.72M | 190.97M | 151.61M | 145.98M | 74.89M | 73.1M | 53.73M |
| EBITDA Margin % | 34.21% | 53.91% | 58.29% | 58.57% | 61.98% | 65.12% | 59.2% | 50.85% |
| EBITDA Growth % | -34.91% | 5.63% | 25.96% | 3.86% | 94.91% | 2.45% | 36.04% | - |
| D&A (Non-Cash Add-back) | 0 | 35.82M | 27.12M | 21.2M | 8.76M | 7.69M | 8.28M | 7.2M |
| EBIT | 131.3M | 97.39M | 119.24M | 104.26M | 122.59M | 65.84M | 65.37M | 46.66M |
| Net Interest Income | -39M | -11.4M | -1.24M | -1.81M | -1.02M | -865K | 936K | -303K |
| Interest Income | -39M | 0 | 0 | 0 | 0 | 4K | 936K | 26K |
| Interest Expense | 0 | 11.4M | 1.24M | 1.81M | 1.02M | 869K | 0 | 206K |
| Other Income/Expense | - | - | - | - | - | - | - | - |
| Pretax Income | 92.2M | 85.99M | 118M | 102.45M | 121.57M | 64.98M | 64.45M | 46.46M |
| Pretax Margin % | 24.02% | 22.98% | 36.02% | 39.58% | 51.62% | 56.49% | 52.19% | 43.96% |
| Income Tax | 1.7M | 10.31M | -2.82M | 8.35M | 381K | 3.14M | 3.51M | 1.99M |
| Effective Tax Rate % | 1.84% | 11.98% | -2.39% | 8.15% | 0.31% | 4.83% | 5.45% | 4.29% |
| Net Income | 85.6M | 71.88M | 118.4M | 92.96M | 122.48M | 62.21M | 58.54M | 43.67M |
| Net Margin % | 22.3% | 19.21% | 36.14% | 35.91% | 52% | 54.09% | 47.41% | 41.33% |
| Net Income Growth % | 19.1% | -39.29% | 27.37% | -24.1% | 96.88% | 6.27% | 34.05% | - |
| Net Income (Continuing) | 90.5M | 75.69M | 120.81M | 94.1M | 121.19M | 61.84M | 60.94M | 44.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 21.67M | 9.85M | -21.15M | -39.33M | 0 | 1.76M | 7.59M | 6M |
| EPS (Diluted) | 0.54 | 0.47 | 0.80 | 0.63 | 0.90 | 0.47 | 0.44 | 0.37 |
| EPS Growth % | 14.89% | -41.25% | 26.98% | -30% | 91.49% | 6.82% | 18.92% | - |
| EPS (Basic) | 0.54 | 0.47 | 0.80 | 0.63 | 0.90 | 0.47 | 0.44 | 0.37 |
| Diluted Shares Outstanding | 157.97M | 153.59M | 148.68M | 147.23M | 135.98M | 133.65M | 133.65M | 117M |
| Basic Shares Outstanding | 157.97M | 153.59M | 148.21M | 147.22M | 135.98M | 133.65M | 133.65M | 117M |
| Dividend Payout Ratio | 111.15% | 184.19% | 122.59% | 111.16% | 97.81% | 97.94% | 79.26% | 87.04% |
Performance fee volatility
As reported in financial statements, PAX revenue exhibits significant quarterly variance, peaking at $157.2M in 2024Q4 before normalizing, which suggests that the firm's top-line trajectory remains heavily tethered to the timing of performance fee realizations rather than a linear expansion of management fee streams.
The revenue profile appears to be characterized by lumpy performance fee recognition, which obscures the underlying growth of fee-earning assets. Investors should monitor whether the firm can achieve more consistent revenue scaling as it integrates recent acquisitions and shifts toward a more diversified, multi-asset platform.
Based on reported figures, gross margins have fluctuated between 71.2% and 92.2% over the last ten quarters, indicating that the firm's profitability is highly sensitive to the specific composition of revenue and the associated costs of managing diverse alternative asset classes across different regional markets.
The variability in gross margins suggests that the firm's product mix—ranging from high-margin private equity to potentially lower-margin credit products—is a primary driver of profitability. Analysts should investigate whether the recent expansion into European markets will exert long-term pressure on these margins due to increased competition and higher operational overhead.
According to recent SEC filings, PAX reported a significant spike in stock-based compensation to $25.8M in 2025Q4, which appears to have materially impacted net income and highlights a potential disconnect between GAAP earnings and the actual cash-generating capacity of the firm's core asset management operations.
The substantial increase in non-cash compensation expenses warrants further investigation into the firm's long-term incentive alignment and its impact on shareholder dilution. This trend suggests that reported net income may not fully capture the economic costs of talent retention in the competitive Brazilian financial services sector.
As indicated by the income statement data, operating margins have struggled to maintain consistency, dropping from 50.7% in 2024Q4 to 36.7% in 2025Q4, which suggests that the firm is currently facing challenges in scaling its platform without a corresponding increase in fixed operating expenses.
The lack of clear operating leverage implies that the firm's cost structure is becoming increasingly rigid, potentially due to the integration of recent acquisitions. Investors should monitor whether management can successfully streamline SG&A expenses to improve operating efficiency as the platform matures and achieves greater scale.
Based on the provided financial data, the firm's reliance on Brazilian infrastructure and private equity exposes it to significant macro-economic volatility, which may lead to sustained margin compression if high benchmark interest rates continue to dampen exit activity and performance fee generation for the firm.
Short-sellers may focus on the firm's vulnerability to the Brazilian macro cycle, arguing that the current valuation fails to account for the potential for prolonged periods of low performance fee realization. The firm's ability to successfully pivot to a global, multi-asset model remains an unproven strategy that warrants a cautious outlook.
Quick answers to the most common questions about buying PAX stock.
Patria Investments Limited (PAX) is profitable, generating $85.6M in net income for the fiscal year ending 2025 with a net profit margin of 22.3%.
Patria Investments Limited (PAX) reported an operating income of $131.3M, resulting in an operating profit margin of 34.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Patria Investments Limited (PAX) generated $369.2M in gross profit for the year, representing a gross profit margin of 96.2%. This demonstrates the company's core pricing power and production efficiency.