PagSeguro Digital (NYSE:PAGS) Issues Earnings Results, Misses Expectations By $0.01 EPS

PagSeguro Digital (NYSE:PAGS) released its quarterly earnings results on Tuesday. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01), FiscalAI reports. The company had revenue of $642.01 million during the quarter, compared to analyst estimates of $952.64 million. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%.

Here are the key takeaways from PagSeguro Digital’s conference call:

• TPV reaccelerated to BRL 128 billion, roughly flat year over year, with management saying it expects TPV growth to turn positive in Q2 and accelerate in the second half of 2026.
• Credit continued to scale quickly, with the expanded credit portfolio reaching BRL 51 billion, up 11% year over year, led by a 190% surge in working capital lending.
• Profitability improved despite higher rates, as net revenue excluding interchange fees rose 6.4% to BRL 3.3 billion and recurring non-GAAP net income increased 4% to BRL 575 million, though financial costs remained pressured by Brazil’s Selic rate.
• Operating leverage was a key strength, with operating expenses declining about 230 basis points as a share of revenue and management highlighting further efficiency gains from AI and process optimization.
• Capital returns remained strong, as PagBank returned more than BRL 2.4 billion over the last 12 months and announced another BRL 400 million dividend for June, while maintaining a managerial Basel ratio of 24.1% to support further growth and buybacks.

PagSeguro Digital Stock Up 6.0%

PAGS traded up $0.52 on Thursday, reaching $9.15. The company’s stock had a trading volume of 2,251,639 shares, compared to its average volume of 3,953,805. The stock has a 50 day moving average of $10.19 and a two-hundred day moving average of $10.19. The company has a market capitalization of $2.56 billion, a price-to-earnings ratio of 7.14, a P/E/G ratio of 0.40 and a beta of 1.37. PagSeguro Digital has a fifty-two week low of $7.74 and a fifty-two week high of $12.32.

PagSeguro Digital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, April 22nd will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 11.4%. The ex-dividend date of this dividend is Wednesday, April 22nd. PagSeguro Digital’s dividend payout ratio is 81.25%.

Insider Buying and Selling

In other news, Director Luis Frias acquired 498,500 shares of PagSeguro Digital stock in a transaction on Friday, March 27th. The stock was bought at an average price of $9.96 per share, for a total transaction of $4,965,060.00. Following the completion of the purchase, the director owned 2,673,605 shares in the company, valued at $26,629,105.80. This represents a 22.92% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Alexandre Mr Magnani sold 200,000 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $11.26, for a total value of $2,252,000.00. Following the completion of the sale, the director owned 607,390 shares of the company’s stock, valued at approximately $6,839,211.40. This represents a 24.77% decrease in their position. The SEC filing for this sale provides additional information.

Institutional Investors Weigh In On PagSeguro Digital

Large investors have recently modified their holdings of the stock. Atlas Capital Advisors Inc. purchased a new stake in shares of PagSeguro Digital during the fourth quarter worth approximately $45,000. Caitong International Asset Management Co. Ltd raised its position in PagSeguro Digital by 108.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company’s stock worth $48,000 after acquiring an additional 2,569 shares in the last quarter. Meeder Asset Management Inc. purchased a new position in PagSeguro Digital in the fourth quarter worth $53,000. Osaic Holdings Inc. raised its position in PagSeguro Digital by 93.4% in the second quarter. Osaic Holdings Inc. now owns 7,891 shares of the company’s stock worth $76,000 after acquiring an additional 3,810 shares in the last quarter. Finally, Brooklyn Investment Group purchased a new position in PagSeguro Digital in the fourth quarter worth $99,000. Hedge funds and other institutional investors own 45.88% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on PAGS. Autonomous Res lowered PagSeguro Digital from a “hold” rating to a “strong sell” rating in a report on Thursday, April 30th. Weiss Ratings reiterated a “hold (c+)” rating on shares of PagSeguro Digital in a research note on Friday, May 8th. Wall Street Zen upgraded shares of PagSeguro Digital from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. UBS Group boosted their price objective on PagSeguro Digital from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Wednesday, January 28th. Finally, JPMorgan Chase & Co. lowered their price objective on PagSeguro Digital from $13.00 to $12.00 and set a “neutral” rating for the company in a research report on Monday, April 13th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $12.00.

About PagSeguro Digital

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company’s product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.