Revenue growth has collapsed into a 77.4% contraction in 2026Q1, while gross margins have plummeted to -39.9% from historical levels of 74-77%.
| Sales/Revenue | 11.11B | 14.15B | 12.74B | 11.36B | 9.02B | 4.58B | 3.17B | 2.39B | 1.53B | 741.35M | 423.2M |
| Revenue Growth % | -12.36% | 11.11% | 12.1% | 26.04% | 97.02% | 44.52% | 32.52% | 56.22% | 106.33% | 75.18% | - |
| Cost of Goods Sold | 3.59B | 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 | 7.53B | 10.79B | 9.35B | 8.38B | 6.35B | 2.86B | 2.4B | 1.96B | 1.21B | 517.24M | 290.01M |
| Gross Margin % | 67.73% | 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 | 3.13B | 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 | 3.04B | 3.07B | 3.24B | 2.89B | 2.63B | 1.83B | 898.38M | 646.4M | 443.03M | 266.62M | 155.63M |
| SG&A % of Revenue | - | 21.69% | 25.4% | 25.41% | 29.2% | 39.9% | 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 | 1000K | 447.45M | 232.67M | 251.24M | 213.08M | 113.17M | 120.78M | 0 | 60.84M | 0 | 0 |
| Operating Income | 4.39B | 7.27B | 5.88B | 5.24B | 3.5B | 923.59M | 1.38B | 1.32B | 702.69M | 250.62M | 134.38M |
| Operating Margin % | 39.52% | 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 | 5.44B | 8.27B | 6.57B | 5.86B | 4.3B | 1.43B | 1.63B | 1.48B | 795.02M | 307.82M | 177.34M |
| EBITDA Margin % | 48.96% | 58.46% | 51.61% | 51.57% | 47.7% | 31.27% | 51.6% | 61.92% | 51.98% | 41.52% | 41.9% |
| EBITDA Growth % | -20.26% | 25.85% | 12.19% | 36.25% | 200.59% | -12.42% | 10.42% | 86.11% | 158.27% | 73.58% | - |
| D&A (Non-Cash Add-back) | 1.05B | 1B | 693.25M | 617.54M | 800.33M | 507.37M | 256.29M | 163.4M | 92.33M | 57.21M | 42.96M |
| EBIT | 2.71B | 4.71B | 5.72B | 5.25B | 3.41B | 850.86M | 1.33B | 1.32B | 672.83M | 116.47M | 80.5M |
| Net Interest Income | 488.33M | -1.17B | -538.09M | -4.46M | -361.09M | -253.18M | -199.16M | -167.08M | -251.49M | -211.82M | -227.96M |
| Interest Income | 3.11B | 754.13M | 518.3M | 690.98M | 572.6M | 247.29M | 140.69M | 186.37M | 49.58M | 25.27M | 16.72M |
| Interest Expense | 2.62B | 1.92B | 1.06B | 695.44M | 933.69M | 500.48M | 339.84M | 353.45M | 301.06M | 237.09M | 244.68M |
| Other Income/Expense | -1.61B | -4.48B | -6.9B | -3.27B | -3.89B | -2.37B | -249.91M | -225.59M | -260.35M | -346.28M | -283.61M |
| Pretax Income | 2.78B | 2.79B | -1.02B | 1.97B | -387.29M | -1.45B | 1.13B | 1.09B | 442.34M | -95.67M | -149.22M |
| Pretax Margin % | 24.99% | 19.71% | -7.99% | 17.34% | -4.3% | -31.59% | 35.61% | 45.64% | 28.92% | -12.9% | -35.26% |
| Income Tax | -835.27M | 412.76M | 489.42M | 370.4M | 139.11M | -68.21M | 290.22M | 286.46M | 137.11M | 9.3M | -27.03M |
| Effective Tax Rate % | -30.08% | 14.8% | -48.09% | 18.79% | -35.92% | 4.72% | 25.74% | 26.26% | 31% | -9.73% | 18.11% |
| Net Income | 3.44B | 2.32B | -1.52B | 1.59B | -519.42M | -1.36B | 854.07M | 803.23M | 301.23M | -108.73M | -119.83M |
| Net Margin % | 30.94% | 16.41% | -11.89% | 14.01% | -5.76% | -29.69% | 26.97% | 33.61% | 19.69% | -14.67% | -28.31% |
| Net Income Growth % | 351.05% | 253.3% | -195.17% | 406.51% | 61.77% | -259.1% | 6.33% | 166.65% | 377.04% | 9.26% | - |
| Net Income (Continuing) | 3.61B | 2.38B | -1.51B | 1.6B | -526.4M | -1.38B | 837.45M | 804.2M | 305.23M | -104.97M | -122.19M |
| Discontinued Operations | -1000K | -37.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 40.24M | 39.73M | 51.3M | 53.7M | 56.12M | 90.77M | 138.56M | 155.62K | -300K | 15.21M | 58.12M |
| EPS (Diluted) | 13.56 | 8.33 | -5.02 | 4.99 | -1.69 | -4.46 | 2.91 | 2.90 | 1.10 | -0.38 | -0.58 |
| EPS Growth % | 372.41% | 265.94% | -200.6% | 395.27% | 62.11% | -253.26% | 0.34% | 163.64% | 389.47% | 34.48% | - |
| EPS (Basic) | - | 8.54 | -5.02 | 4.74 | -1.69 | -4.46 | 2.95 | 2.90 | 1.10 | -0.38 | -0.44 |
| Diluted Shares Outstanding | 253.43M | 273.49M | 301.7M | 319.27M | 311.88M | 308.91M | 293.74M | 277.35M | 277.18M | 277.07M | 205.21M |
| Basic Shares Outstanding | 247.76M | 266.86M | 301.7M | 335.95M | 311.03M | 308.82M | 289.29M | 277.32M | 277.18M | 277.07M | 205.21M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Extreme Revenue Volatility
As reported in the most recent quarterly financial statements, StoneCo experienced a dramatic revenue decline of 77.4% in 2026Q1, marking a sharp reversal from the double-digit growth observed throughout 2025 and suggesting significant instability in the company's core transactional and financial service revenue streams during this period.
The sudden collapse in top-line performance warrants immediate investigation into whether this reflects a structural loss of market share or a temporary accounting anomaly. Investors should monitor whether this contraction is isolated to a specific segment or indicative of a broader failure in the company's merchant acquisition strategy.
Based on the latest income statement data, StoneCo's gross margin plummeted to -39.9% in 2026Q1, a stark departure from the historical 74-77% range maintained throughout 2024 and 2025, suggesting that the cost of revenue has fundamentally decoupled from the company's ability to generate transactional income.
This negative margin profile implies that the cost of funding or direct service delivery has overwhelmed the revenue generated, which may indicate a breakdown in the prepayment business model. Such a shift suggests that the company's pricing power is currently insufficient to cover the underlying costs of its financial infrastructure.
According to recent SEC filings, StoneCo's operating income fell to a loss of $990.5 million in 2026Q1, representing an operating margin of -137.7%, which highlights a complete loss of the operating leverage that previously supported the firm's profitability during the 2025 fiscal year.
The inability to scale SG&A expenses relative to the collapsing revenue base suggests that the company's fixed cost structure, particularly its physical hub network, has become a significant burden. This trend may indicate that the current operational footprint is unsustainable without a rapid recovery in transaction volumes.
As evidenced by the erratic net income swings, including a $2.9 billion loss in 2024Q4 followed by a $1.7 billion profit in 2026Q1, StoneCo's reported earnings appear highly sensitive to non-operating items and potential accounting adjustments that obscure the true cash-generating capacity of the business.
The extreme variance in EPS suggests that investors should exercise caution when relying on headline net income figures as a proxy for operational health. The lack of consistent profitability trends warrants further investigation into the nature of these non-operating gains and their sustainability in future periods.
Based on reported figures, the 2026Q1 performance suggests that the company's reliance on high-velocity prepayment income may be inherently fragile, as the sudden shift to negative margins challenges the long-term viability of the current merchant-focused financial services model in the Brazilian market.
Short-sellers may focus on the potential for permanent margin compression if the company is forced to subsidize its services to retain merchants. The recent volatility appears to confirm that the business remains highly susceptible to macro-economic shocks and competitive pricing pressures that could permanently impair shareholder value.
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.