XP Inc. Boosts Shareholder Value with Inaugural Dividend and R$1 Billion Buyback

XP Inc. Boosts Shareholder Value with Inaugural Dividend and R$1 Billion Share Buyback

XP Inc. (NASDAQ: XP), a leading technology-driven financial services platform in Brazil, has announced a significant multi-faceted capital allocation strategy designed to enhance shareholder returns. In a move signaling strong confidence in its financial health and future prospects, the company's Board of Directors has approved its first-ever cash dividend, a new substantial share repurchase program, and the retirement of a portion of its treasury shares. This announcement follows a period of robust financial performance, including a record-breaking third quarter.

A Strategic Trifecta: Dividend, Buyback, and Share Retirement

XP Inc. has rolled out a comprehensive plan to return capital to its shareholders, demonstrating a balanced approach to prudent financial management and value creation. The three key initiatives work in concert to directly reward investors and improve the company's stock value proposition.

Inaugural Cash Dividend: A Landmark for Investors

For the first time, XP Inc. will distribute a cash dividend to its shareholders. The company has declared a dividend of US$0.18 per share , which amounts to an aggregate payout of approximately R$500 million (around $94 million USD).

This move is a significant milestone, marking a new phase in the company's maturity. Distributing dividends is often seen as a sign of a stable, profitable company with reliable cash flow, making the stock more attractive to a broader range of income-focused investors. This direct return of profit underscores the management's commitment to sharing its success with its equity holders.

New R$1 Billion Share Repurchase Program

Complementing the dividend, XP Inc. has authorized a new share repurchase program of up to R$1.0 billion (approximately $190 million USD). This program is scheduled to run for 12 months, from November 18, 2025, to November 18, 2026.

A share buyback, or repurchase, involves the company buying its own shares from the open market. This action reduces the number of outstanding shares, which can have several positive effects:

• Increased Earnings Per Share (EPS) : With fewer shares in circulation, the company's net income is divided by a smaller number, boosting the EPS.
• Enhanced Shareholder Value : By increasing demand for the stock, buybacks can help support or increase the share price.
• Signal of Confidence : It signals that the company's management believes its stock is undervalued and represents a good investment.

Retiring Treasury Shares

The third component of the strategy is the decision to retire a significant number of treasury shares, amounting to 2.1% of the company's total shares . Treasury shares are shares that the company had previously repurchased. By retiring them, XP Inc. permanently removes them from the pool of outstanding shares, reinforcing the positive impact on EPS and other per-share metrics.

Financial Strength and Market Context

This strategic announcement is not occurring in a vacuum. It is underpinned by XP Inc.'s impressive recent financial performance. The company reported record profits in the third quarter, beating market estimates and showcasing the strength of its business model. The expanded loan portfolio and a solid Return on Tangible Equity (ROTE) of 28.0% highlight its operational efficiency and profitability.

The market has responded positively to both the strong earnings and the shareholder return initiatives. Following the announcement, XP Inc.'s shares saw a notable jump, reflecting investor approval and renewed confidence in the stock's trajectory.

Summary of Capital Return Initiatives

Future Outlook: A Commitment to Sustainable Growth

By launching these initiatives, XP Inc.'s management is sending a clear message about its optimistic outlook. A company commits to returning billions in capital only when it is confident in its ability to generate strong, consistent cash flow in the future. This move suggests that XP Inc. believes it can continue to fund its growth and operational needs while simultaneously rewarding its shareholders.

This strategy balances reinvesting in the business—such as expanding its loan portfolio and technological platform—with providing tangible returns to investors. It reflects a mature and strategic approach to capital management that can foster long-term, sustainable value creation.

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