Q1 results show modest top-line growth but a sharp tripling of credit loss provisions, suggesting deteriorating credit quality in the loan portfolio. Monitor the next quarter for further credit deterioration or stabilization. The share buyback and dividend program provide a floor but do not offset the credit risk signal.
Price Chart
Executive Summary
PagSeguro Digital Ltd. filed its Q1 2026 unaudited interim financial statements via Form 6-K. Total revenue and income grew 3.2% YoY to R$5.0 billion, while net income increased 3.9% YoY to R$545.5 million. The credit portfolio expanded 8.1% sequentially to R$4.5 billion, but credit loss allowance expenses nearly tripled YoY to R$60.0 million, signaling deteriorating asset quality.
Key Facts
- Total revenue and income for Q1 2026: R$5,005,861 thousand vs R$4,850,156 thousand in Q1 2025 (+3.2% YoY)
- Net income for Q1 2026: R$545,525 thousand vs R$525,092 thousand in Q1 2025 (+3.9% YoY)
- Basic EPS: R$1.9543 in Q1 2026 vs R$1.7297 in Q1 2025 (+13.0% YoY)
- Credit loss allowance expenses: R$60,012 thousand in Q1 2026 vs R$21,065 thousand in Q1 2025 (+184.9% YoY)
- Credit portfolio net of ECL: R$4,548,949 thousand at March 31, 2026 vs R$4,206,367 thousand at December 31, 2025 (+8.1% sequential)
- Total ECL allowance: R$414,575 thousand at March 31, 2026 vs R$356,852 thousand at December 31, 2025 (+16.2% sequential)
- Cash and cash equivalents: R$1,590,208 thousand at March 31, 2026 vs R$1,857,507 thousand at December 31, 2025 (-14.4% sequential)
- Operating cash flow: R$929,991 thousand in Q1 2026 vs R$1,216,238 thousand in Q1 2025 (-23.5% YoY)
- Share cancellation: 15,000,000 common shares cancelled in February 2026 for R$735,060 thousand
- Dividend declared: R$0.26 per share on January 2, 2026, totaling R$376,620 thousand
Financial Impact
Revenue +3.2% YoY, Net income +3.9% YoY, but credit loss expenses surged 185% YoY to R$60M. Operating cash flow declined 23.5% YoY.
Risk Factors
- Credit loss allowance expenses nearly tripled YoY, indicating worsening asset quality in the credit portfolio
- Cash and cash equivalents declined 14.4% sequentially, reducing liquidity buffer
- Operating cash flow declined 23.5% YoY, potentially constraining future capital returns
- Contingent liabilities of R$1.26 billion in possible-loss tax disputes remain unresolved
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001554855-26-001001 |
| Document: 0001554855-26-001001-index-headers.html | 0001554855-26-001001 |
| Document: 0001554855-26-001001-index.html | 0001554855-26-001001 |
| Document: 0001554855-26-001001.txt | 0001554855-26-001001 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 16d ago | 144 | $11.14 $11.13 | ▼ −0.09% | ▲ +1.40% | $8.56 (−23.16%) |
Oct 7, 2026 18d ago | 144 | $10.68 $11.12 | ▼ −4.12% | ▼ −4.40% | $8.56 (+19.85%) |
Sep 1, 2026 7w ago | 6-K | $9.84 $10.13 | ▲ +2.95% | ▲ +3.91% | $8.56 (−13.01%) |
May 12, 2026 23w ago | 6-K | $8.63 $8.95 | ▲ +3.71% | ▲ +4.87% | $8.56 (−0.81%) |
Apr 29, 2026 25w ago | 6-K | $10.02 $10.41 | ▲ +3.89% | ▲ +2.16% | $8.56 (−14.57%) |
Apr 10, 2026 28w ago | 6-K | $10.55 $11.05 | ▲ +4.81% | ▲ +1.52% | $8.56 (−18.84%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers