StoneCo's Profit Surge: Defying the Odds

Brazilian payments company StoneCo reported a 35% increase in third-quarter adjusted net profit, surpassing analysts' expectations. With significant growth in total payment volume and revenue, the firm is exploring options for its software business. StoneCo remains a major player in the Brazilian payments industry.

Brazilian payments firm StoneCo has announced a remarkable 35% rise in its third-quarter adjusted net profit, defying analysts' expectations. The profit for the quarter, which ended in September, reached 587 million reais, comfortably exceeding the 555 million reais projected by experts in an LSEG poll.

StoneCo, regarded as one of Brazil's biggest payment companies and listed in New York, experienced a total revenue climb of 7% year-on-year, reaching 3.4 billion reais. The firm's primary business, serving micro-, small-, and medium-sized companies, witnessed a notable 20% increase in total payment volume.

The company's adjusted earnings before taxes surged by 35% to 733 million reais. In strategic moves, StoneCo has hired advisers to explore options for its software business, following reports of potential sales of its unit, Linx, though without a set deal deadline.

(With inputs from agencies.)