By Brazil Stock Guide – PicPay delivered a strong first quarter of 2026, reinforcing the idea that one of Brazil’s largest fintech platforms is entering a more mature phase of growth. The company reported adjusted net income of R$169 million, up 92% from a year earlier, while net revenue rose 70% to R$3.5 billion.
The numbers came above the company’s guidance and strengthened PicPay’s case that its model can combine scale, profitability and diversification. Once known mainly as a digital wallet, PicPay is increasingly presenting itself as a full financial platform, with payments, credit, insurance, merchant services, advertising and everyday digital products inside the same ecosystem.
The company ended the quarter with 68.6 million users, up 11% year over year. Active accounts rose 10% to 44.3 million, with 1.5 million active clients added from the previous quarter.
Profitable scale
The quarter showed a clear improvement in operating leverage. Gross profit reached R$1.1 billion, up 44% from a year earlier, while net interest income climbed 76% to R$1.7 billion.
Average revenue per active client rose 55% to R$80.70. That was almost four times the cost to serve each client, which stood at R$20.30. For investors, this is one of the most important indicators in the release: PicPay is not just growing its user base, but extracting more value from each relationship.
The digital wallet remains the company’s main engine for acquisition, engagement and data. Total payment volume in the wallet grew 24% to R$134 billion, supported by higher penetration of the PicPay Card.
Return on equity reached 15.5%, reflecting the larger capital base created by the IPO in the first quarter. PicPay said the effect was temporary and mathematical, not a sign of weaker fundamentals. As the company deploys that capital into growth, especially in credit, it expects ROE to gradually return to the previous level of about 20%.
Disciplined credit
Credit remains one of PicPay’s most attractive growth avenues. The company’s total credit portfolio reached R$28 billion at the end of March, up 116% from a year earlier.
The expansion is significant, but PicPay is trying to grow with a more controlled risk profile. Credit represents 54% of total revenue, and 54% of the portfolio is backed by collateral or guarantees, including public and private payroll loans, FGTS-backed loans and secured credit cards.
The cost of risk remained stable at 3.7% for the second consecutive quarter, even as originations increased. That gives the company a stronger argument that growth is being driven by better segmentation, pricing and risk management, rather than by simply taking more risk.
Private payroll loans were a highlight. PicPay said it is originating about R$700 million per month in the product, with roughly 5% market share in new sector contracts. That positions the company among the five largest players in Brazil. In the first quarter, originations in the segment reached about R$2 billion.
Broader revenues
PicPay’s results also show a company becoming less dependent on any single revenue source. Low-risk and risk-free products accounted for 69% of revenue in the quarter. Non-credit revenue, including wallet, acquiring, float and insurance, grew 47% to R$1.6 billion.
Revenue from collateralized credit products rose 272% from a year earlier, showing how the company is using its distribution power to expand into products with stronger economics and better asset protection.
The small-business segment also gained momentum. Monthly openings of business accounts increased from about 60,000 to 80,000 in the quarter. PicPay also originated R$693 million in receivables-backed products for companies, helping merchants anticipate cash flows and manage working capital.
Ecosystem growth
PicPay is also expanding its role beyond financial transactions. Its audiences and ecosystem vertical, which includes travel, delivery, entertainment and shopping offers, posted an 11.5% annual increase in users. The advertising unit grew revenue by 95% year over year.
A new partnership with TIM adds another growth channel. Under the two-way distribution agreement, PicPay will offer TIM telecom plans inside its app, while TIM will offer PicPay accounts and credit products to its customer base.
The deal fits PicPay’s broader strategy: reduce customer acquisition costs, increase engagement and turn the app into a more frequent destination for daily services.
Technology is also supporting the efficiency story. PicPay said 100% of customer-service chat interactions now begin with artificial intelligence. Its WhatsApp assistant already allows users to make Pix payments, pay bills and receive due-date reminders. Internally, the company’s HubAI platform supports more than 4,000 employees.
A stronger platform
PicPay’s first quarter suggests the company is moving into a more valuable stage of its development. The user base is large, engagement is rising, monetization is improving and credit growth is being supported by collateralized products and stable risk metrics.
The IPO gave PicPay more capital to accelerate that strategy. The immediate effect was a lower ROE, but the broader message from the quarter is positive: the company has more room to grow, more products to sell and a stronger base from which to generate recurring revenue.
For a Brazilian fintech sector often judged by the tension between growth and profitability, PicPay’s numbers offer a cleaner story. The company is growing fast, but with better monetization, broader revenue streams and a clearer path to stronger returns.