Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>StoneCo Ltd. reported steady progress in the second quarter of 2026, showing cautious optimism amid a complex operating environment marked by elevated interest rates and macroeconomic challenges.</li><li>Total payment volume (TPV) growth accelerated modestly to 4% year-over-year, reflecting early encouraging signs from retention initiatives, particularly among micro merchants where simplified offerings and improved client experience have helped reduce churn.</li><li>However, challenges remain with small and medium-sized businesses (SMBs), given their diverse needs and more complex sales channels, which require prolonged, calibrated efforts to achieve meaningful TPV acceleration.</li></ul>

StoneCo Ltd. reported steady progress in the second quarter of 2026, showing cautious optimism amid a complex operating environment marked by elevated interest rates and macroeconomic challenges.Total payment volume (TPV) growth accelerated modestly to 4% year-over-year, reflecting early encouraging signs from retention initiatives, particularly among micro merchants where simplified offerings and improved client experience have helped reduce churn.However, challenges remain with small and medium-sized businesses (SMBs), given their diverse needs and more complex sales channels, which require prolonged, calibrated efforts to achieve meaningful TPV acceleration.

StoneCo's BRL 10.8 Billion Deposit Base — Can It Supercharge Banking Growth?

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>
<a href="https://smartkarma.com/entities/stoneco-ltd-class-a">StoneCo</a> is a leading Brazilian fintech provider that has established a strong position in the micro, small, and medium business (MSMB) segment by offering an integrated ecosystem of payments, software, and financial services (banking and credit).</li>
  <li>The company is navigating a highly competitive and rapidly evolving market, with growth increasingly dependent on its ability to cross-sell higher-margin software and credit solutions to its large payment client base.</li>
  <li>Key risks revolve around Brazil's macroeconomic volatility, intense competition from incumbents and other fintechs, and execution risk related to its credit portfolio, which has experienced significant stress and write-downs in the past.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
StoneCo is a leading Brazilian fintech provider that has established a strong position in the micro, small, and medium business (MSMB) segment by offering an integrated ecosystem of payments, software, and financial services (banking and credit).
  The company is navigating a highly competitive and rapidly evolving market, with growth increasingly dependent on its ability to cross-sell higher-margin software and credit solutions to its large payment client base.
  Key risks revolve around Brazil's macroeconomic volatility, intense competition from incumbents and other fintechs, and execution risk related to its credit portfolio, which has experienced significant stress and write-downs in the past.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

<ul><li>StoneCo, a key player in the Brazilian fintech sector, recently concluded its fourth-quarter financial results for the fiscal year 2025.</li><li>The earnings presentation highlighted several strategic shifts and operational metrics that are critical in evaluating the company's current status and forward-looking investment potential.</li><li>In 2025, StoneCo executed significant portfolio adjustments aiming to streamline its operations and focus more on payments, banking, and credit services.</li></ul>

StoneCo, a key player in the Brazilian fintech sector, recently concluded its fourth-quarter financial results for the fiscal year 2025.The earnings presentation highlighted several strategic shifts and operational metrics that are critical in evaluating the company's current status and forward-looking investment potential.In 2025, StoneCo executed significant portfolio adjustments aiming to streamline its operations and focus more on payments, banking, and credit services.

StoneCo Ltd.: From POS Machines To Financial Ecosystem—A Strategic Reinvention Underway!

Credit

<ul><li>StoneCo Ltd. reported results that reflected operational progress despite a challenging macroeconomic backdrop and intensifying competition in Brazil’s financial technology sector.</li><li>Revenue and income from continuing operations rose 16% year over year to BRL 3.6 billion, primarily driven by solid execution in the company’s payments and banking businesses.</li><li>Adjusted gross profit increased 12% to BRL 1.6 billion, aligned with total payment volume (TPV) growth of 11%.</li></ul>

StoneCo Ltd. reported results that reflected operational progress despite a challenging macroeconomic backdrop and intensifying competition in Brazil’s financial technology sector.Revenue and income from continuing operations rose 16% year over year to BRL 3.6 billion, primarily driven by solid execution in the company’s payments and banking businesses.Adjusted gross profit increased 12% to BRL 1.6 billion, aligned with total payment volume (TPV) growth of 11%.

StoneCo: Is Its BRL 2.3B Credit Portfolio the Next Big Earnings Lever—or a Hidden Risk?

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful</li>
<li>Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list</li>
<li>We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples</li>
</ul>


In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful
Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list
We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples


Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Brazil

StoneCo Ltd. is a Brazilian financial technology and software solutions provider. The company offers a cloud-based platform for payments, digital banking, and credit solutions primarily to micro, small, and medium businesses (MSMBs). It also provides Point of Sale (POS) and Enterprise Resource Planning (ERP) solutions. Headquartered in George Town, Cayman Islands, StoneCo was founded in 2012.

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StoneCo (STNE US)

StoneCo's BRL 10.8 Billion Deposit Base — Can It Supercharge Banking Growth?

StoneCo Ltd. reported steady progress in the second quarter of 2026, showing cautious optimism amid a complex operating environment marked by...

Baptista Research

Primer: StoneCo (STNE US) - Aug 2026

StoneCo is a leading Brazilian fintech provider that has established a strong position in the micro, small, and medium business (MSMB) segment...

αSK Primers

StoneCo Ltd.: From POS Machines To Financial Ecosystem—A Strategic Reinvention Underway!

StoneCo, a key player in the Brazilian fintech sector, recently concluded its fourth-quarter financial results for the fiscal year 2025. The...

Baptista Research

StoneCo: Is Its BRL 2.3B Credit Portfolio the Next Big Earnings Lever—or a Hidden Risk?

StoneCo Ltd. reported results that reflected operational progress despite a challenging macroeconomic backdrop and intensifying competition in...

Baptista Research

Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Our 2H 2023 payments company longs are card network megacap Visa, value play PagSeguro and PayPal with our short calls being DLocal, Kakao Pay and...

Victor Galliano

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