PICS (NASDAQ:PICS) Announces Earnings Results, Misses Estimates By $0.07 EPS

PICS (NASDAQ:PICS) issued its quarterly earnings results on Wednesday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.07), Zacks reports. The business had revenue of $558.09 million for the quarter.

Here are the key takeaways from PICS’s conference call:

• PicPay reported results above the top end of its IPO guidance, with Q4 net revenues of BRL 3.0 billion (+69% YoY) and full‑year revenues of BRL 10.3 billion (+85%), signaling strong execution as a newly public company.
• The credit business is the primary growth engine: total credit balances reached BRL 24.1 billion (up 128% YoY), driven by rapid private‑payroll and secured lending origination, which management says offers higher NIMs and long runway for monetization (but will raise provisioning needs as mix shifts).
• Unit economics and profitability are improving materially — ARPAC rose to BRL 71 in Q4 (+52%), cost‑to‑serve per active client grew only ~11%, the efficiency ratio fell below 50%, and quarterly ROE expanded to 24.4%, reflecting operating leverage.
• A one‑time ECL methodology update reclassified ~BRL 590 million from stage 2 to stage 3 (adding BRL 88 million of provisions), temporarily lifting stage‑3 formation to 7.1%; management expects normalization to ~3.7–4.0% in Q1‑2026 but the change increased near‑term credit costs.

PICS Price Performance

PICS traded down $3.15 during trading on Thursday, reaching $12.68. The company had a trading volume of 41,783 shares, compared to its average volume of 787,135. PICS has a 12-month low of $12.80 and a 12-month high of $19.95.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on PICS shares. Wall Street Zen lowered shares of PICS from a “buy” rating to a “hold” rating in a research report on Tuesday, February 17th. Mizuho began coverage on shares of PICS in a report on Monday, February 23rd. They issued an “outperform” rating and a $30.00 target price on the stock. Bank of America initiated coverage on shares of PICS in a research note on Tuesday, February 24th. They set a “buy” rating and a $27.00 target price for the company. Wells Fargo & Company set a $27.00 price target on shares of PICS in a research report on Tuesday, February 24th. Finally, HSBC began coverage on PICS in a report on Thursday, February 19th. They issued a “buy” rating and a $21.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $25.50.