| Segment information |
32.
Segment information
Operating segments are determined based on information
reviewed by the board of directors, the Chief Operating Decision Maker (CODM), which is responsible for allocating resources and assessing
business performance.
The CODM monitors the operating results of each
segment separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on Adjusted Gross Profit, which is defined as ‘Total revenue and financial income’ less ‘transaction expenses’, ‘interest
and other financial expenses’ and ‘credit loss allowance expenses’, all of which are consistent with the same lines in the
consolidated statements of profit or loss except for amounts that are not allocated to segments and inter-segment amounts.
The Group’s organizational structure has
four reportable segments, which reflect its major business lines, as follows:
| a) | Consumer Banking: generates revenue from various transaction
activities occurring in the digital wallet, such as Pix, peer-to-peer (P2P) transfers, and bill payments, including when customers use
credit cards as a funding source for payments or money transfers, either in one or multiple installments. It also encompasses interest
income from financial investments backed by customers’ account balances. In addition, the segment includes interest revenues from credit
activities managed by PicPay Bank, fee revenues from distributing third-party credit products in the financial marketplace, interchange
fees from prepaid and credit card transactions, and commissions from distributing insurance and investment products from third-party
partners on the platform. |
| b) | Small and Medium-Sized Businesses: generates revenues from
MDR (merchant-discount rates) charged to merchants accepting PicPay as a payment network. Additionally, it encompasses interchange fees
from corporate benefit card transactions, financial income from account balances, and settlement scheduled floating relating to corporate
benefits solutions. |
| c) | Audiences and Ecosystem Integration: This segment provides
services to all of the Group’s customers, which include consumers and businesses, with the goal of increasing engagement and monetization
of both sides of the ecosystem. This segment generates monetization of the audiences by leveraging PicPay’s customer base of consumers
and merchants by offering products and solutions such as PicPay Ads, allowing brands and companies to benefit from PicPay’s audience
in app and promote its products and services, as well as many others non-financial products. Ecosystem engagement is achieved, for example,
through PicPay Shop, which is a platform that allows online merchants to sell their products and services to consumers. |
| d) | Institutional: This segment encompasses revenues, costs and
expenses from financial investments and funding activities executed at the Corporate level. The Institutional unit has the role of managing
funding and liquidity at the Group level as well as the allocation of liquidity and capital to each segment. |
The Group does not disclose total assets and liabilities
by segment since this information is not presented to its CODM.
As of December 31, 2025
a) Segment information
| | |
Consumer
Banking | | |
Small and
Medium-Sized
Businesses | | |
Audiences
and
Ecosystem
Integration | | |
Institutional | | |
Total
reportable
segments | |
| Net revenue from transaction activities and other services | |
| 1,439,582 | | |
| 338,232 | | |
| 113,390 | | |
| - | | |
| 1,891,204 | |
| Financial income | |
| 8,913,787 | | |
| 77,617 | | |
| 4,846 | | |
| 1,172,749 | | |
| 10,168,999 | |
| Total revenue and financial income | |
| 10,353,369 | | |
| 415,849 | | |
| 118,236 | | |
| 1,172,749 | | |
| 12,060,203 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Transaction expenses | |
| (605,530 | ) | |
| (82,967 | ) | |
| (1,536 | ) | |
| (1,194 | ) | |
| (691,227 | ) |
| Interest and Other financial expenses | |
| (3,947,955 | ) | |
| (173,642 | ) | |
| (111 | ) | |
| (1,160,067 | ) | |
| (5,281,775 | ) |
| Credit loss allowance expenses | |
| (2,528,281 | ) | |
| (262 | ) | |
| - | | |
| - | | |
| (2,528,543 | ) |
| Adjusted gross profit | |
| 3,271,603 | | |
| 158,978 | | |
| 116,589 | | |
| 11,488 | | |
| 3,558,658 | |
b) Revenue and financial income reconciliation
| | |
December 31,
2025 | |
| Net revenue from transaction activities and other services | |
| 1,891,204 | |
| Financial income | |
| 10,168,999 | |
| Total reportable segments | |
| 12,060,203 | |
| Inter-segment revenues, adjustments or reclassifications (1) | |
| (1,782,379 | ) |
| Total revenue and financial income | |
| 10,277,824 | |
| (1) | Represents eliminations of inter-segment revenue from funding
transactions between the Consumer banking, Small and Medium-Sized Businesses, Audiences and Ecosystem Integration and Institutional segments
for R$ (1,782,379). |
c) Reconciliation from segment adjusted gross profit to profit before
income taxes
| | |
December 31,
2025 | |
| Adjusted gross profit - Total reportable segments | |
| 3,558,658 | |
| Expenses and income that are not part of adjusted gross profit: | |
| | |
| Technology expenses | |
| (502,690 | ) |
| Marketing expenses | |
| (494,885 | ) |
| Personnel expenses | |
| (1,422,727 | ) |
| Administrative expenses | |
| (444,686 | ) |
| Depreciation and amortization | |
| (442,761 | ) |
| Other expenses | |
| (58,946 | ) |
| Other income | |
| 125,376 | |
| Profit before income taxes | |
| 317,339 | |
As of December 31, 2024
a)
Segment information
| | |
Consumer
Banking | | |
Small and
Medium-Sized
Businesses | | |
Audiences and
Ecosystem
Integration | | |
Institutional | | |
Total
reportable
segments | |
| Net revenue from transaction activities and other services | |
| 1,275,845 | | |
| 164,433 | | |
| 83,770 | | |
| - | | |
| 1,524,048 | |
| Financial income | |
| 4,386,071 | | |
| 26,061 | | |
| 1,742 | | |
| 114,902 | | |
| 4,528,776 | |
| Total revenue and financial income | |
| 5,661,916 | | |
| 190,494 | | |
| 85,512 | | |
| 114,902 | | |
| 6,052,824 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Transaction expenses | |
| (404,594 | ) | |
| (87,487 | ) | |
| (1,595 | ) | |
| - | | |
| (493,676 | ) |
| Interest and Other financial expenses | |
| (1,810,052 | ) | |
| (7,200 | ) | |
| - | | |
| (104,092 | ) | |
| (1,921,344 | ) |
| Credit loss allowance expenses | |
| (887,022 | ) | |
| (3 | ) | |
| - | | |
| - | | |
| (887,025 | ) |
| Adjusted gross profit | |
| 2,560,248 | | |
| 95,804 | | |
| 83,917 | | |
| 10,810 | | |
| 2,750,779 | |
b) Revenue and financial income reconciliation
| | |
December 31,
2024 | |
| Net revenue from transaction activities and other services | |
| 1,524,048 | |
| Financial income | |
| 4,528,776 | |
| Total reportable segments | |
| 6,052,824 | |
| Inter-segment revenues, adjustments or reclassifications (1) | |
| (482,680 | ) |
| Total revenue and financial income | |
| 5,570,144 | |
| (1) | Represents eliminations of inter-segment revenue from transactions
between the Consumer Banking and Institutional segments for R$ (482,680). |
c) Reconciliation from segment adjusted gross profit to profit before
income taxes
| | |
December 31,
2024 | |
| Adjusted gross profit - Total reportable segments | |
| 2,750,779 | |
| Expenses and income that are not part of adjusted gross profit: | |
| | |
| Technology expenses | |
| (508,600 | ) |
| Marketing expenses | |
| (333,180 | ) |
| Personnel expenses | |
| (1,090,833 | ) |
| Administrative expenses | |
| (234,423 | ) |
| Depreciation and amortization | |
| (292,911 | ) |
| Other expenses | |
| (33,013 | ) |
| Other income | |
| 88,153 | |
| Profit before income taxes | |
| 345,972 | |
As of December 31, 2023
| | |
Consumer
Banking | | |
Small and
Medium-Sized
Businesses | | |
Audiences and
Ecosystem
Integration | | |
Institutional | | |
Total
reportable
segments | |
| | |
| | |
| | |
| | |
| | |
| |
| Net revenue from transaction activities and other services | |
| 815,961 | | |
| 92,023 | | |
| 76,759 | | |
| - | | |
| 984,743 | |
| Financial income | |
| 2,198,022 | | |
| 41,475 | | |
| 10,542 | | |
| 156,738 | | |
| 2,406,777 | |
| Total revenue and financial income | |
| 3,013,983 | | |
| 133,498 | | |
| 87,301 | | |
| 156,738 | | |
| 3,391,520 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Transaction expenses | |
| (277,464 | ) | |
| (69,651 | ) | |
| (25,789 | ) | |
| - | | |
| (372,904 | ) |
| Interest and Other financial expenses | |
| (1,141,934 | ) | |
| - | | |
| - | | |
| (69,053 | ) | |
| (1,210,987 | ) |
| Credit loss allowance expenses | |
| (14,290 | ) | |
| - | | |
| - | | |
| - | | |
| (14,290 | ) |
| Adjusted gross profit | |
| 1,580,295 | | |
| 63,847 | | |
| 61,512 | | |
| 87,685 | | |
| 1,793,339 | |
| b) | Revenue and financial income reconciliation |
| | |
December 31,
2023 | |
| | |
| |
| Net revenue from transaction activities and other services | |
| 984,743 | |
| Financial income | |
| 2,406,777 | |
| Total reportable segments | |
| 3,391,520 | |
| Inter-segment revenues, adjustments or reclassifications (1) | |
| 67,126 | |
| Total revenue and financial income | |
| 3,458,646 | |
| (1) | Includes eliminations of inter-segment revenue from transactions
between the Consumer Banking and Institutional segments of R$ (8,068) and unallocated revenue of R$ 75,194. |
| c) | Reconciliation from segment adjusted gross profit to profit
before income taxes |
| | |
December 31,
2023 | |
| | |
| |
| Adjusted gross profit - Total reportable segments | |
| 1,793,339 | |
| Expenses and income that are not part of adjusted gross profit: | |
| | |
| Technology expenses | |
| (312,098 | ) |
| Marketing expenses | |
| (312,560 | ) |
| Personnel expenses | |
| (879,362 | ) |
| Administrative expenses | |
| (136,659 | ) |
| Depreciation and amortization | |
| (169,823 | ) |
| Other expenses | |
| (4,638 | ) |
| Other income | |
| 23,468 | |
| Profit before income taxes | |
| 1,667 | |
|