Brazilian fintech PicPay faces a critical earnings test on Monday after its shares fell nearly 45% from its January initial public offering, leaving the stock at about $10.60. The company listed on the Nasdaq at $19 per share in late January, raising $434 million in the first major U.S. listing by a Brazilian company in over four years.
PicPay’s second-quarter results, covering the period ended June 30, are expected to show earnings of 37 cents per share, a 44% sequential increase from the 25-cent profit reported in the first quarter. Revenue is projected at $643.4 million, a roughly 7% decline from the prior quarter’s $694.4 million, though still exceeding estimates by more than 20% at the time. Analysts have trimmed revenue forecasts by about 3% over the past 60 days, while per-share earnings estimates have risen 2.7%.
Nine analysts covering PicPay maintain buy ratings, with a consensus price target of $19.64—implying 85% upside from current levels. The stock trades at a trailing earnings multiple of 6.1 times and a forward multiple of 7.3 times, reflecting expectations for continued growth despite recent volatility. PicPay reported 80% annual revenue growth in the first quarter, beating earnings by 10%.
The fintech operates one of Brazil’s largest digital payment platforms, with 66 million registered customers and an 11% share of the country’s Pix instant payment system. Its performance will be closely watched as a bellwether for Latin America’s fintech sector, following Nubank’s blockbuster 2021 IPO and amid broader market scrutiny of high-growth but unprofitable tech listings.
