Revenue growth has reaccelerated to 11.0% YoY in Q3 2025, but the significant gap between a 51.2% operating margin and a 14.1% net margin in Q4 2025 indicates non-operating costs are compressing final profitability.
StoneCo Ltd. (STNE) annual income statement — 10-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 |
|---|
| Sales/Revenue | 14.02B | 14.15B | 12.74B | 11.36B | 9.02B | 4.58B | 3.17B | 2.39B | 1.53B | 741.35M | 423.2M |
| Revenue Growth % | 6.47% | 11.11% | 12.1% | 26.04% | 97.02% | 44.52% | 32.52% | 56.22% | 106.33% | 75.18% | - |
| Cost of Goods Sold | 3.86B | 3.37B | 3.39B | 2.98B | 2.67B | 1.71B | 769.95M | 426.96M | 323.04M | 224.11M | 133.19M |
| COGS % of Revenue | - | 23.78% | 26.6% | 26.25% | 29.61% | 37.45% | 24.31% | 17.87% | 21.12% | 30.23% | 31.47% |
| Gross Profit | 10.16B | 10.79B | 9.35B | 8.38B | 6.35B | 2.86B | 2.4B | 1.96B | 1.21B | 517.24M | 290.01M |
| Gross Margin % | 72.44% | 76.22% | 73.4% | 73.75% | 70.39% | 62.55% | 75.69% | 82.13% | 78.88% | 69.77% | 68.53% |
| Gross Profit Growth % | - | 15.38% | 11.56% | 32.06% | 121.7% | 19.44% | 22.12% | 62.66% | 133.27% | 78.35% | - |
| Operating Expenses | 3.15B | 3.52B | 3.47B | 3.14B | 2.85B | 1.94B | 1.02B | 646.4M | 503.87M | 266.62M | 155.63M |
| OpEx % of Revenue | - | 24.85% | 27.23% | 27.62% | 31.56% | 42.37% | 32.18% | 27.05% | 32.94% | 35.96% | 36.77% |
| Selling, General & Admin | 3.15B | 3.07B | 3.24B | 2.89B | 2.63B | 1.94B | 898.38M | 646.4M | 443.03M | 266.62M | 155.63M |
| SG&A % of Revenue | - | 21.69% | 25.4% | 25.41% | 29.2% | 42.37% | 28.37% | 27.05% | 28.96% | 35.96% | 36.77% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 447.45M | 232.67M | 251.24M | 213.08M | 0 | 120.78M | 0 | 60.84M | 0 | 0 |
| Operating Income | 7.01B | 7.27B | 5.88B | 5.24B | 3.5B | 923.59M | 1.38B | 1.32B | 702.69M | 250.62M | 134.38M |
| Operating Margin % | 50.01% | 51.38% | 46.17% | 46.14% | 38.83% | 20.18% | 43.5% | 55.08% | 45.94% | 33.81% | 31.75% |
| Operating Income Growth % | - | 23.64% | 12.18% | 49.76% | 279.06% | -32.96% | 4.66% | 87.31% | 180.38% | 86.49% | - |
| EBITDA | 7.95B | 8.27B | 6.83B | 6.12B | 4.3B | 1.43B | 1.63B | 1.48B | 795.02M | 307.82M | 177.34M |
| EBITDA Margin % | 56.69% | 58.46% | 53.62% | 53.86% | 47.7% | 31.27% | 51.6% | 61.92% | 51.98% | 41.52% | 41.9% |
| EBITDA Growth % | 8.2% | 21.13% | 11.59% | 42.31% | 200.59% | -12.42% | 10.42% | 86.11% | 158.27% | 73.58% | - |
| D&A (Non-Cash Add-back) | 936.91M | 1B | 949.39M | 878.18M | 800.33M | 507.37M | 256.29M | 163.4M | 92.33M | 57.21M | 42.96M |
| EBIT | 5.61B | 4.71B | 5.72B | 5.25B | 3.41B | 850.86M | 1.33B | 1.32B | 672.83M | 116.47M | 80.5M |
| Net Interest Income | -2.47B | -1.17B | -538.09M | -4.46M | -361.09M | -253.18M | -199.16M | -167.08M | -251.49M | -211.82M | -227.96M |
| Interest Income | 358.32M | 754.13M | 518.3M | 690.98M | 572.6M | 247.29M | 140.69M | 186.37M | 49.58M | 25.27M | 16.72M |
| Interest Expense | 2.83B | 1.92B | 1.06B | 695.44M | 933.69M | 500.48M | 339.84M | 353.45M | 301.06M | 237.09M | 244.68M |
| Other Income/Expense | -4.43B | -4.48B | -6.9B | -3.27B | -3.89B | -2.37B | -249.91M | -225.59M | -260.35M | -346.28M | -283.61M |
| Pretax Income | 2.59B | 2.79B | -1.02B | 1.97B | -387.29M | -1.45B | 1.13B | 1.09B | 442.34M | -95.67M | -149.22M |
| Pretax Margin % | 18.45% | 19.71% | -7.99% | 17.34% | -4.3% | -31.59% | 35.61% | 45.64% | 28.92% | -12.9% | -35.26% |
| Income Tax | -921.34M | 412.76M | 489.42M | 370.4M | 139.11M | -68.21M | 290.22M | 286.46M | 137.11M | 9.3M | -27.03M |
| Effective Tax Rate % | -35.61% | 14.8% | -48.09% | 18.79% | -35.92% | 4.72% | 25.74% | 26.26% | 31% | -9.73% | 18.11% |
| Net Income | 3.31B | 2.32B | -1.52B | 1.59B | -519.42M | -1.36B | 854.07M | 803.23M | 301.23M | -108.73M | -119.83M |
| Net Margin % | 23.61% | 16.41% | -11.89% | 14.01% | -5.76% | -29.69% | 26.97% | 33.61% | 19.69% | -14.67% | -28.31% |
| Net Income Growth % | 361.84% | 253.3% | -195.17% | 406.51% | 61.77% | -259.1% | 6.33% | 166.65% | 377.04% | 9.26% | - |
| Net Income (Continuing) | 3.51B | 2.38B | -1.51B | 1.6B | -526.4M | -1.38B | 837.45M | 804.2M | 305.23M | -104.97M | -122.19M |
| Discontinued Operations | -2M | -37.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 42.25M | 39.73M | 51.3M | 53.7M | 56.12M | 90.77M | 138.56M | 155.62K | -300K | 15.21M | 58.12M |
| EPS (Diluted) | 13.49 | 8.33 | -5.02 | 4.99 | -1.69 | -4.46 | 2.91 | 2.90 | 1.10 | -0.38 | -0.58 |
| EPS Growth % | 404.96% | 265.94% | -200.6% | 395.27% | 62.11% | -253.26% | 0.34% | 163.64% | 389.47% | 34.48% | - |
| EPS (Basic) | - | 8.54 | -5.02 | 4.99 | -1.69 | -4.46 | 2.95 | 2.90 | 1.10 | -0.38 | -0.58 |
| Diluted Shares Outstanding | 245.39M | 273.49M | 301.7M | 319.27M | 311.88M | 308.91M | 293.74M | 277.35M | 277.18M | 277.07M | 205.21M |
| Basic Shares Outstanding | 239.49M | 266.86M | 301.7M | 319.27M | 311.03M | 308.82M | 289.29M | 277.32M | 277.18M | 277.07M | 205.21M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying STNE stock.
For fiscal year 2025, StoneCo Ltd. (STNE) reported total revenue of $14.15B. This represents a 3244.5% increase compared to $423.2M in 2016.
StoneCo Ltd. (STNE) is profitable, generating $2.32B in net income for the fiscal year ending 2025 with a net profit margin of 16.4%.
StoneCo Ltd. (STNE) reported an operating income of $7.27B, resulting in an operating profit margin of 51.4%. This margin reflects the operational efficiency of the business before interest and taxes.
StoneCo Ltd. (STNE) generated $10.79B in gross profit for the year, representing a gross profit margin of 76.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Net margin compression from non-operating costs
Growth Reacceleration After a Pause
StoneCo's revenue growth reaccelerated to 11.0% year-over-year in Q3 2025, up from a low of 1.3% in Q2 2024, suggesting a successful re-engagement of its core merchant base and potential benefits from the Linx integration.
The growth trajectory shows a clear inflection point in mid-2024, moving from low-single-digit expansion to double-digit growth. This acceleration appears driven by a combination of higher transaction volumes from an expanding MSMB client base and the cross-selling of software solutions, which may be improving customer retention and lifetime value. The durability of this trend will depend on StoneCo's ability to maintain take rates while defending its market share against both legacy incumbents and digital-first competitors.
Gross Margin Resilience Amidst Cost Pressures
Despite a high variable cost structure tied to Brazilian interest rates, StoneCo's gross margin has remained robust, averaging 74.5% over the last four reported quarters, indicating strong pricing power in its core payment processing services.
The company's gross margin profile is structurally higher than peers like PagSeguro (50.6%) and EVERTEC (49.7%), which suggests a more favorable revenue mix or superior cost control in its payment facilitation model. However, the recent dip to 65.7% in Q2 2026 warrants monitoring, as it may signal rising funding costs or a shift in revenue composition toward lower-margin financial services. The sustainability of this margin advantage is critical, as any compression would directly impact the company's ability to fund its growth and software integration efforts.
Operating Leverage Eroded by Non-Operating Items
While StoneCo's operating margin reached a strong 51.4% in Q4 2025, the net margin compressed to just 16.4% in the same period, indicating that significant non-operating costs, likely interest expense or taxes, are consuming a large portion of operating profits.
The substantial gap between operating and net profitability suggests that the company's capital structure and financing activities are a major drag on bottom-line returns. This dynamic is particularly concerning given the elevated debt-to-equity ratio of 1.49, which implies that higher interest rates in Brazil could further pressure net income. Investors should focus on the 'Financial Expenses' line item to understand if this is a temporary cost of growth or a structural feature of the business model.
Net Income Volatility from Non-Recurring Charges
The reported net income shows extreme volatility, including a massive $2.9 billion loss in Q4 2024, which appears to be a non-cash write-down or provision that severely distorts the underlying earnings power of the business.
Excluding the anomalous Q4 2024 loss, normalized net income has been growing, but the quality of earnings is questionable due to the large swing. The absence of stock-based compensation in recent quarters is a positive for shareholder dilution, but the erratic net margin trend—ranging from -83.8% to 18.5%—makes it difficult to assess sustainable profitability. This volatility suggests that reported EPS may not be a reliable indicator of cash flow generation, and analysts should focus on operating metrics and free cash flow instead.
SG&A Discipline Amidst Strategic Investments
Selling, General & Administrative expenses have been held relatively flat as a percentage of revenue, hovering around 23-24% of sales, which indicates management is exercising cost discipline even while investing in the Hub network and Linx integration.
The stability of SG&A as a percentage of revenue, despite the company's growth phase, suggests that the decentralized Hub model is operating efficiently and not requiring disproportionate overhead. However, the complete absence of reported R&D expenses is unusual for a technology-focused company and may indicate that software development costs are being capitalized or bundled within other line items, which could obscure the true investment in product innovation. This cost structure appears optimized for the current scale but may need to be re-evaluated if competitive intensity increases.
The Net Margin Compression Risk
The most significant risk to the income statement narrative is the persistent and widening gap between strong operating margins and weak net margins, which suggests that the core business's profitability is being systematically eroded by financing costs or other non-operational burdens.
A short-seller would focus on the fact that for every dollar of operating profit StoneCo generates, only a fraction reaches the bottom line, as evidenced by the 51.4% operating margin versus the 16.4% net margin in Q4 2025. This implies that the company's capital-intensive model, particularly the prepayment business, may be less profitable than it appears on a gross or operating basis. If Brazilian interest rates remain elevated or the company's credit quality deteriorates, this margin compression could accelerate, turning strong top-line growth into minimal shareholder value creation.