AGI Inc 2026 Q2 Earnings Call

Please go ahead. Hello, everyone, and welcome to Agibank's second quarter 2026 earnings conference call.

Thank you for joining us. I'm Felipe Gaspar Oliveira, Head of Investor Relations. Joining me today are Marciano Testa, our Founder and Chairman and CEO, Marcello Dubeux, our Chief Financial Officer, and Matheus Girardi, our Chief Client Officer. During today's call, we will discuss our second quarter results and business review, followed by a live Q&A session with our management team. Throughout this conference call, we'll be presenting certain non-IFRS financial measures. These are important measures for Agibank's management, but should not be considered in isolation or as a substitute for IFRS measures and may not be comparable to similar types of measures reported by other companies. Reconciliations between non-IFRS and IFRS measures are available in our earnings release. Unless otherwise noted, all figures discussed today are presented in Brazilian reais.

I'd also like to remind everyone that today's discussion may include forward-looking statements, which are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. These statements are not guarantees of future performance. This outlook reflects management's current expectation and assumptions, including, among others, assumptions regarding the trajectory of Brazil's benchmark interest rate, Selic, the pace of credit originations, the regulatory environment governing payroll lending, including the INSS framework, and general macroeconomic conditions in Brazil and is not guarantee of future performance. The outlook is only effective as of the date given and should not be considered updated or affirmed unless and until we do so publicly. Before I hand the call over to Marciano, let me briefly walk you through today's agenda.

We'll begin with an overview of how the market environment has evolved over the past several months, and why we believe the operating backdrop has become increasingly supportive of sustainable growth. Matheus will then introduce Agi+, our new subscription platform, and discuss why we believe it represents an important new avenue for customer engagement, recurring revenues, and long-term value creation. Finally, Marcello will review our second quarter financial results. With that, I will now turn the call over to Marciano.

Marciano, please go ahead. Good afternoon, everyone, thank you for joining us today.

I would like to begin today's call by reinforcing the three key principles that guides our business long term. First, we live for the customers, which means that we prioritize clients' value when we make all of our decisions. Second, moving with technology. We continuously enhance our technology capabilities to serve and operate in a better way. Third, we promote an entrepreneurial culture to innovate and grow while we maintain a disciplined focus on long-term returns. I keep these three principles in mind every day, and I want to make sure you understand them because they shape how we make decisions, allocate capital, and build the company for the long term. Next, I want to share some thoughts on the evolution of our performance since the end of the last year.

First, walking through the significant disruption we had over the past year, finally, showing that we are still growing in this scenario and we see the second quarter 2026 results at inflection point of this trajectory. As you know, we are affected by several regulatory changes in the market, which has impacted the whole sector temporarily paused growing new client signs and origination in the second half of last year. Our results for the second and the third quarter are below our normal performance levels due to the delay impact of slower origination in 2025. Since mid-April, the INSS has changed the full management and implemented a series of measures to strengthen governance, improve operational processes, and restoring the confidence across the system.

These initiatives have increased confidence in the market that the regulatory environment is become more stable, predictable, and supportive for the long-term sustainable development of the payroll lending market. As a result of our three principles and the business model, we are able to adjust these structural changes and the new regulatory requirements very quickly, perhaps faster than others. I believe we are among the first companies to return to strong growth. Based on this quick adaptation, since the end of the first quarter, we started to see strong growth in the customer base with Principalidade Agi. As a result, we grew the business and the credit origination through our hybrid platform, which is in digital channels and Smart Hubs network. As you can see here on this slide, we originated over BRL 7 billion in gross credit this quarter, while attracting more than 600,000 new customers.

Within 7.6 million active clients, records for the company. As we will see further in this presentation, we have been able to grow at this pace while maintaining the asset quality under control. Our private payroll portfolio grew by almost 50% quarter-over-quarter, with new origination doubling versus the previous quarter. Secured personal loan originations also increased by more than 80%, demonstrating that growing is returning across multiple products, not just as a single business line. At the same time, we continue to gain market share in the INSS payroll business. We surpassed, as a payroll of the benefits, 1.5 million customers. We left Santander behind us. As a result, we are reaching 9.6% and increasing of 60 basis points in just one quarter. Reaffirms that even after all the disruption the industry faced last year, we continue to execute well and strengthen our competitive position.

Other clear evidence that our operating engine has fully recovered is the fee revenue. Fee revenues reached over BRL 135 million in the second quarter and increased from more than 35% quarter-over-quarter. Unlike credit revenues, this carries no provisions dynamics and are recognized immediately, making them one of the best real-time indicator of the business activity. Based on the performance in this current quarter, we are confident in delivering even higher growth in this third quarter. Taking together these metrics given us the confidence that the business has reached an important operational inflection point. The origination engine is performing at full capacity again, we expect this momentum to continue flowing through our financial results over the coming quarters. When you grow at this pace, we observe three costs up front.

Expected losses provision on every new vintage, the customer acquisition cost, the cost to serve, and active time on the platform. The revenues from these same customers, interest, fees, cross-sells accrues over the following quarters and years. In other words, this quarter, the period that carried the full cost of customer whose earnings belong to the upcoming quarters. These improvements will take some time to show in the numbers during the next few months because we have a natural lag between operational improvements and income statement. I believe our resurge will begin to drive sequentially higher income starting in the third quarter, and a full recovery in the fourth quarter with even more force. Again, we are in the inflection point.

Finally, the end of the quarter, we launched Agi+, our new subscription product, already showing strong engagement and increased number of the customer now use the platform daily or weekly, deepening each relationship. We will become a subscriber bank. The evidence of which is our over 250,000 subscribers in only 45 days, and we will see this positive impact reflected in our financial statements in the fourth quarter. With that, I will pass over to Matheus to cover Agi+ in detail and Marcelo to present its unit economics.

Thank you. Thank you, Marcelo.