food, and groceries, ranging from 100 to 150 reais. AgiPlus ensures a seamless end-to-end experience, and this is key to our strategy. It creates a sticky ecosystem that encourages daily engagement. For the customer, the value is immediate and tangible. A subscriber on our entry-level plan can save up to $1,500 annually. For AGI, this model is a powerful engine for recurring service re-haveness, driving higher app open frequency, improved retention, and deeper loyalty. This way, we are expanding our value proposition while also effectively de-risking our business model. We are very pleased with the launch of AgiPlus and have conviction that this program represents a shift in how we engage with our customers. We look forward to seeing AgiPlus become a core of our long-term growth strategy. And we are confident that AGI Plus will serve as a significant lever in the evolution of AGI's service revenues, a trend confirmed by our initial adoption rates and early engagement metrics. With that, I would like to turn the call over to Marcelo, who will discuss the product unit economics and this quarter's results.

Thank you, Matheus, and good afternoon, everyone. We are very excited about the launch of AgiPlus and the revenue stream it has the potential to bring to our business. On slide 12, we've highlighted a few early sales metrics and unit economics, which we believe are very encouraging, given that the product has been in the market for less than two months. As we think about AgiPlus, we see a clear two-phase growth path. The first wave is driven by penetration within our existing customer base. With 7.6 million active customers, we have a significant opportunity to distribute the product through channels we already own at a very attractive customer acquisition cost. The early results are encouraging. In just 45 days, we reached more than 250,000 active subscriptions, with 67% of new credit originations including an AgiPlus cross-sell and 99% of our sales agents successfully selling at least one subscription. The second wave comes from the continual expansion of our customer base. As Agibank continues to add new clients across INSS beneficiaries, private sector workers, and public servants, AgiPlus becomes another scalable layer of monetization embedded in our ecosystem. Just as importantly, the unit economics are very compelling. We estimate an annual RPAC of approximately R$600 per customer against servicing costs of around R$118, resulting in an expected contribution margin of approximately 80%. We believe this makes AlgaePlus not only a highly attractive product for our customers, but also a meaningful long-term contributor to earnings and revenue diversification. With that, let me now turn to our financial results. In the second quarter, we've made further progress against our core strategic priorities, growing our customer base in Brazil with a focus on multi-product relationships, expanding our marketing leadership in payroll lending through new products and integrations, and maintaining our position among Brazil's most efficient and trusted financial institutions. On today's call, I will walk you through our second quarter results in the context of a challenging macro environment and, more importantly, the positive inflection we believe is now underway across our business. On slide 14, we outline a few of the key drivers of improvement we are seeing, with material increases in active clients, credit portfolio, and INSS market share relative to last year, as well as sequential decline in our greater than 90 days NPL. Taking a closer look at customer growth, as seen on slide 15, total active customer count increased 36% in the second quarter compared to the prior year period and 7% quarter over quarter, and had 7.6 million active customers as of the end of the second quarter of 2026, which we define as those using at least one product at quarter end. We believe this growth demonstrates the resilience of our business, as earlier explained by Marciano. Turning to our credit portfolio on slide 16, total loan balances grew 21% year over year in the second quarter of 2026 to 37.1 billion reais. Our credit portfolio maintains a healthy mix with secured loans representing 88% of total or 32.6 billion reais and unsecured loans representing 12% or 4.4 billion reais. We believe this mix brings a sustainable balance of profitability, credit quality, and focus on long-term relationships with our clients. An unsecured lending, which is restricted to account holders who maintain primary relationships with Agile to mitigate default exposure while improving margins, was flat year-over-year at R$4.4 billion in the second quarter. Quarter over quarter, we see a slight decrease sequentially reflecting the short term duration of this portfolio. However, we saw in the second quarter an increase in the number of clients with principality reaching 1.5 million clients. Within INSS payroll credit, we continue to successfully execute against our strategy of being the disruptor of this segment in Brazil. As you can see on slide 17, based on our strong positioning with the INSS in leveraging our competitive advantages in this segment, Our market share in Q2 was 9.6%, an increase of 160 bps year-over-year. It is worth mentioning that we were able to expand our market share by 60 bps in this quarter despite the recent periods of regulatory volatility. In private payroll credit, on slide 18, our credit portfolio grew to R$ 1.4 billion, an increase of 48% sequentially and 184% year-over-year. It is worth mentioning that our appetite for production of this product remains strong after making enhancements to its credit model and observing good evolution in its credit quality. With regards to credit quality in the overall portfolio, on slide 19, non-performing loans exceeding 90 days declined in the second quarter to 3.3%, reflecting normalization in defaulting cohorts. At the quarter end, NPLs for the overall portfolio remain comfortably below the average for consumer credit in Brazil, which continues to trend up. The coverage ratio measured by provisions over NPLs over 90 days was 182% at the end of June, a level we consider comfortable to operate the business. On slide 20, we have aggregated the key financial KPIs across our business, which I will now discuss in greater detail. Turning to our revenue on slide 21, in the second quarter, we delivered a total revenue of R$ 3.2 billion, a slight acceleration in the quarter and an increase of 26% year over year and 6% quarter over quarter, even considering the disruptions in the period. On slide 22, we see net interest income growth of 11% year over year and 3% quarter over quarter to R$1.3 billion. The slight decline in NIM on an LTM basis is primarily due to the asset mix with a lower contribution from personal loans in the credit portfolio. Analyze NIM was flattish at 11.9% and after provisions was 6.8%, compressing 50 bps on a quarterly basis, suggesting that the portfolio is in a normalization path after the impacts of the suspensions. While persistently high interest rates continue to wait on spreads, we view this compression as transitory and expect margins to recover as higher yielding vintages season and our asset mix normalizes. Moving to efficiency on slide 23, which highlights the operating leverage embedded in our unique and highly scalable business model, our operating efficiency ratio, which we calculate as NII plus fee revenues divided by operating and personnel expenses, increased to 48.9% in the second quarter, up 570 basis points quarter over quarter. This increase mainly reflects the operating expense growth tied to the acceleration in principality clients and in our credit portfolio. Costs we incur ahead of the revenue these relationships generate. Continue down to income statement and to slide 24, recurring net income in the second quarter reached 200 million reais, an increase of 7% over the previous quarter, indicating that AGI's profitability improved quarter over quarter. Now onto our funding approach on slide 25. As a regular debt issuer, AGI maintains established relationship with Brazil's credit markets, diversifying funding sources to support portfolio expansion. As a result, total deposits reached 39.9 billion reais, an increase of 18% from the second quarter 2025. Institutional counterparties now representing 62% of total funding, while retail sources came down to a share of 38%. Recently, AGI also received credit rating upgrades from both Moody's and Fitch Ratings, who raised up a notch the bank's credit rating from AA- to AA. These upgrades are a significant demonstration of confidence in AGI's business model. Moving to equity on slide 26, it increased by 62% in June 2026 compared to the prior year period, reflecting the receipt of the net proceeds of the IPO. Return on equity over the last 12 months was stable at 21.6%, impacted by the proceeds of the IPO now being accounted for the net equity. On slide 27, you can see our total assets have grown to 51.1 billion reais, an increase of 73% year over year, and representing a 1.7 trillion 12 months increase in ROA, driven by the growth of the credit portfolio. Lastly, as you can see on slide 28, our capital adequacy ratio consolidated at the holding level declined by 60 bps to 18.7% in the second quarter, with a tier one capital ratio of 17.6%. also reflecting the receipt of the net proceeds from the IPO. These are comfortable levels of capital adequacy, allowing us to continue investing in customer growth and technology while maintaining disciplined focus on long-term returns. As Marciano mentioned, we believe we have compelling evidence of a recovery in the business, both in our credit products and in our fee-based revenue. Looking ahead, we are encouraged by improving trends in the business and are confident in AGI's long-term investment thesis and our ability to execute towards a full recovery in 2027. On behalf of AGI, I would like to thank you all for your interest and support. And now we would like to open the call for the Q&A session. Thank you very much. Operator.

Thank you. We will now begin the Q&A session. If you'd like to ask a question, please click on Raise Hand. The first question comes from Jorge Cury with Morgan Stanley.

Hi. Good afternoon, everyone. Thanks for the presentation. I have two questions, if I may. The first one is on your private payroll loans growing 48% quarter on quarter. And not coming from a small base anymore. I mean, you've been one of the leaders in that product. What gives you comfort that that is the right level of growth? And then you're not going to end up with higher MPLs. It is still a relatively untested product. Some of your peers that have gone aggressively into the product have seen first payment default and delinquency levels that are well above expectations, just want to get some comfort on why a 50% increase in one single quarter is the right level of growth without putting too much risk on the balance sheet. My second question is, if you can address your pre-tax profit, which was 115 million, if I'm correct, down 47% quarter-on-quarter, missing consensus by, say, 50%. What exactly happened there? And to what extent this is transitory? Is this a new level of underlying profitability? Just help us understand this very surprising decline in pre-tax profit. Thank you.

Thank you, Cody, for a question. Good to talk to you. So this is Marcelo. I will answer both of the questions. So first of all, in the private payroll loans, we previously mentioned in the first quarter we had arrived at a quality of credit modeling where we were comfortable in accelerating growth in this product at a level of circa 200 million reais per month of origination. So that's what we did. So the 50% comes, you know, a fixed number at a smaller base. But it's kind of the same pace we want to continue to to go over in the future from 200 to 150 million reais net origination per month. And what gives us comfort is that we are seeing the cohorts of we are looking into this product as providing us good quality of first payment defaults below Teams level. And as we improved using technology, data, AI in the credit modeling over time, remember, we took a step back Inc. Inc. Inc. And another point is that we look at a product with the loss absorption concept, right? So we take the cost of credit and we divide the NII of the product over the cost of credit expected for that product. And if you reach a number that is 1.4, 1.5 times that, we have appetite to continue growth in that product. And that's what we are getting from this product and we'll continue to do so. So this is what we see for the private payroll. And also, that is a product that can bring us cross-sell of other services product as we have in the portfolio, brings us with more relationship with the clients that we originate. Out of the 7.6 million clients that we have, we have a big portion of those clients that are from the private sector, not only for the private payroll specifically, but the private in general. So circa half of the clients are from the private sector and the other half are from the social security system. So we are in this, continue to have appetite and continue growing in this product. Always we'll have cautious on, you know, taking very seriously the provisioning, as you saw, and then you link to your other question, right, on the earnings before taxes. One of the reasons of the, and the transitory name that used, I think is very appropriate for this number, Because we are planting the seeds in the operational side for a much stronger second semester. As we have been saying the whole year, we are in a recovery phase. We were able to grow portfolio across the franchise in the NSS payroll credit, in the private payroll credit. Our unsecured credit also, the origination also grew. very strongly. You don't see that in the balance of the portfolio because of two factors specifically for the unsecured. The short-term duration of the amortization and also the We have in the second quarter the amortization of the 13th salary in Brazil in May and it contributes to reduce this portfolio momentarily, but we are in a pace of origination that will bring us to growth again going forward. What happens is, as we grow the operational side very strongly, as we did in this quarter, and growing the number of clients, growing the number of clients with principality, reaching 1.5 million clients, All of that makes sense to absorb the costs upfront. As Marciano mentioned in his speech, the expected losses is the cost to serve these clients and the transactional costs that is involved in serving all of this increased amount of credit origination and new clients. What we see is that all of that and the escalation in the NII, as a technical explanation, mathematically has to happen over time. We have under control the expenses going forward. We think it's in a normal pace of growth. transitory is what we really believe for the number in terms of the earnings before taxes. On top of that, we see the fee business as very strongly, not only in this quarter, growing 35%, but if you open the notes, you see that specifically the brokerage fees line grew of almost 80% in the quarter, which means that the business is recovering at a very healthy pace. And on top of that, you might have seen today we launched the AgiPlus product, which will add another very stable stream of revenue to our results. So we are very confident with the results. And financially, we are momentarily with these adjustments, but in a very good position for the second half.

Thank you, Marcelo. If you don't mind, can I do a follow-up on this last part? Sure. I want to make sure it's clear. So if I understood correctly, the rapid acceleration in loans, particularly private sector payroll loans, required an up from investment that is pressuring your pre-tax profit more than expected, also because the growth was higher than expected. Now, how do I think about the provisioning? Because if I look at your provisions for the quarter of $562 million, that was up 12% quarter to quarter. which is obviously nowhere near this very rapid growth you're seeing. Or am I just not able to look exactly at what the provisioning is for that specific product? To what extent do you think that it is really the provisions that show that upfront investment or is there anything else on the P&L at this high level going forward because it's related to that growth that we saw in the second quarter?

Yes, provisions. If you look at the cost of credit, the percentage is a bit higher, but very, very slightly in terms of the percentage, 5.9%. And that is due to the mix, right? So when we add more of the product that has higher provisions, like the private payroll and the pace of growth, it brings us to a higher necessity. So we take very seriously the 4699 CMN instruction to provision in our balance sheet. And on top of that, our NPLs went down, right, as you could see, with the coverage ratio also going up with 180%. So for us, everything matches and goes together with the growth that we saw in the mix that we had in this quarter. In terms of expenses, what we saw is, as I said, expenses that are part of the expenses that are variable with the number of clients in the region and the transactional expenses. So part of that is due to technology involved. Part of that is due to the cost to serve the new clients with principality. And that will be surpassed by the compounding of the revenues and the growth of the NII going forward. This is a natural consequence when we grow very fast. The expenses come first and then the compounding will come in the second stage. But, you know, the size that we see in the income states Thank you very much. The next question comes from Tito Labarta with Goldman Sachs.

Hi, good evening. Thanks for the call and taking my questions. A couple questions also, if I may. I guess first, you mentioned this quarter should be an inflection point, and we're seeing some of that growth, but how do you think about the profitability from here going forward, right? Because you haven't booked additional provisions given the growth in private payroll. I mean, I guess that could be a short-term headwind. You also had a very negative tax rate, so I mean, almost half of your earnings were from a tax benefit. How How should that evolve going forward? How do we think about the tax rate from here? Just think about, given that to really recover profitability, you really need to grow earnings, pre-tax earnings at a very strong pace, considering a more normalized tax rate. And then my second question is maybe to get a little more color on the Aji Plus, right? Seems to have a nice uptake. Color in terms of where you're seeing, is it more in the entry, the medium, or the premium, where there's the most interest? And how quickly do you think that that can really expand into your client base, right, if you have 250,000 today? Do you have targets or even initial thought on how quickly that can penetrate your client base? Thank you.

Hi, Tito. Good to be talking to you. And then, so just starting with the last part of the question, at AgiPlus, yeah, we're correct. We are, you know, at a very strong pace of penetration in our customer base. We see this product, you know, the entry package as the most stronger in terms of selling. But, you know, the average RPAC will be that 600 reais per year with an 80% contribution margin. What we see is that it is possible to reach a 1 million number of clients by the end of the year in terms of subscribers. So it is a very strong contributor of profitability that we see now that hasn't contributed a single real in the second quarter in our revenues. So if today we already have 250,000 subscribers, we do the math, it is going to be a good contributor to the fee revenues in the income statement going forward. And, you know, the penetration continues, the cross-sell continues to be very strong and improving time over time. So this is one part of your question. The second part is the earning before taxes. You are right. So the focus here, of course, we know and we understand that although net profit grew, we understand, you know, the slowdown in the pre-tax profitability. And all that we are seeing in the operational sides, We put us in position or already put us in position. We already passed the point of reflection. I can comment about July operational results already. So July we had continued to operate at high pace of origination in all of the products that we work with. So We continue to plant the seeds to have compounding revenues and compounding net interest income to have the operational leverage we need to go back to increasing profitability early before taxes. So that's why we say we are in a strong position for the second half of the year. probably sequentially in terms of how we can demonstrate that over time. So it's a technical explanation because we have, you know, the expenses shouldn't move in a very, you know, way over the quarters. But the MII has the potential and the fee business has the potential to compound strongly over the course of the next months. And in terms of the provisioning, Provisioning, we haven't seen much of big changes in percentage terms, as I said, so 5% or low 6%. And the NPL is from 3.5 to 4%. We are now at 3.3%. The coverage ratio, 180%. So we are very comfortable with a large cushion of provisions to go forward. So also that's something, a point of comfort in our numbers. And then I'll talk about the negative effective tax rates. It's a combination of a few components. First, the cash from the IPO proceeds are allocated into eligible instruments offshore, right? And they have separate tax treatment. And they are structural, you know, in our balance sheet, the way we manage. Then the third tax assets in the period, including tax losses, are a result of the current organizational structure we have. And third, which is the reason of this magnitude, is the lower pre-tax base. As we had the lower pre-tax base, it could not You know, the current tax did not offset the deferred taxes that we saw in the quarter. So I would say, directionally, as the pre-tax, the earnings before taxes recovers, the rate normalizes upward going forward. If that makes sense.

Yes, that's another helpful thing, Marcelo. So just to clarify, I guess cost to risk sounds like it should remain around the 6%. And... On the tax rate, maybe harder to figure out, but how should that normalize from here? Like, we should just stay negative in the short term? Does it get back to positive quickly? Just any color on how do you think at least maybe the full year tax rates are going into?

We won't say a number here, but it will normalize upward, probably at some point going again in a positive side in the short term, not probably the maximum at the end of the year, the fourth quarter, but eventually still in the third quarter. Still early to determine here, but it will normalize upward for sure.

Okay, sounds good.

Thanks, Marcelo.

The next question comes from Arnon Shirazi with City.

Hi, guys. Thank you for the opportunity of making question. My main question here is regarding the core piece, how it's evolving. I see that for this quarter, we have a positive effect coming from Azure device, which you explained the adding of 250 million subscribers with an average fee of 50 reais. But besides that, the core... Hope we can see that the insurance distribution is recovering this quarter. Thank you.

Arno, thank you for the question. Yeah, so first of all, AgiPlus, you know, still haven't had any benefits for the second quarter. We will have that starting and contributing in the third quarter, which has the potential to be a very strong contributor, as I said. And talking specifically about the core fee business in the second quarter, If you take a look in the business notes and you see the line of the brokerage fees, you can see that we almost got 80% increase in the fees generated in the quarter, which is a consequence of the high growth of the products that have the new clients that we could originate. And it's a phenomenon that we believe will continue to improve in the second part of the year. So we're very comfortable with the core fee business part. There's one part of the fee business which is the Portability fees that we receive when the client is ported out from the bank to our bank, which was smaller this quarter, which was due to the new regulations, the provisional measures that the government issued in May, tied to the Disney Call-Up programs. But it's still temporary. We don't know if it will continue or not. And that is a small part of the fee business. Got it, thanks.

The next question comes from Renato Meloni with Autonomous Research.

Hi, everyone. Thank you for the space to ask questions. So first, to be clear on the name and loan mix, you mentioned earlier, well, actually, even before that, last quarter, you said that the expectation was that unsecured loans would, again, gain more share. And that didn't happen this quarter. And the reason for that, you explained, it's preseason, so I wonder what went differently given that. like the advance payments for 13th salary should have been embedded in your expectations. And then when do you see that mix shifting again towards unsecured lending? Then the second part here is on the NIM. You're mentioning the NIM compression that happened versus first. But I'm looking here at your interest expenses also around 6.6, a portion of your funding seems to be going up. So I wonder if that was also part of the effect and if you had some change in your funding structure here. Thank you.

Hi Renato, thank you for the question. So starting by the last part of the question, yes, of course, the high interest rates in Brazil continue to weigh on spreads overall across the industry. So we still have high interest rates. In terms of funding, we don't have a different structure of funding. It's actually getting better, improving every quarter. As you know, this quarter, a few weeks ago, we got upgraded by two different credit groups. rating agencies, Moody's and Fitch from AA- to AA. And our average cost of funding on average on the portfolio continues to go down every month a few bits. What happens is at some point in the calendar, we issued that in different sizes. And specifically this quarter, we issued another FIDIC, which is a very sizable check of two billion, two and a half billion reais. And that also weigh on the margins because it's funding ahead of the origination before we deploy the capital. So we carry a little bit of time, this cash in the balance sheet when we do that. But it is a very... a very good way to have financial planning to deploy capital over the years, so we continue to do this type of funding in our structure. In terms of the overall name, Well, we advanced it to you in the last quarter that the unsecured part of the credit portfolio was reducing because of the short-term duration, and what we needed to do is to increase origination. It's exactly what we did in this quarter. We increased origination by 80%. The net origination of unsecured loans increased by 80% in the quarter. And what happened is that on top of the natural amortization, we had also the 13th salary. So what we are set to do is continue to originate in the unsecured part together with the private payroll loans as well. to bring back this name to an upward movement instead of being flat as it is in this quarter. So we believe we have all the conditions and the operational part of the business demonstrate to us that we can do this second half of the year.

And do you have any expectations of when the name will inflect and start going up?

Well, this is a matter of, you know, a few months having more origination of the, it's a technical calculation, right? So, although we don't have, still don't have the number, absolute number of our portfolio balances in a secure, growing more than the secure part, the new ones bounce back. So it's a matter of time. But we want to set here a specific quarter to provide with the improving number. Also, we are in an environment that the leak rate is above the expectation from everyone six months ago. We were expecting the leak to be at least 100 bps lower than it is now. So it depends on what will happen with the base rate as well. Thank you.

The next question comes from Marcelo Mizrahi with Bradesco BBI.

Hello, guys.

Questions regarding the expenses, again, so just to understand. So, first, looking forward, so you guys believe that the level of expenses on the GENE expenses are enough? to sustain the growth of the bank looking forward, so you don't expect any more growth looking forward? And also, can you give us a breakdown of this growth? What drives this growth on this part, I think?

Hi, I'm Zaheer Marcello here. What growth you were talking about at the end of the question, the expenses?

The G&A expenses, yes.

Yeah. So, yes, in terms of the... Your microphone is open, Zaheer. Thank you. So in terms of the overall size of expenses, we believe it is very well in line with the size of number of clients that we have in the portfolio, so we don't see big movements going forward. Instead, exactly what happened in this quarter, the part that is variable, the number of clients that have principalities, We have the cost to serve per client per month as we increase the number of clients. And the transactional technology part that we invest a lot of AI and users of AI and tokens. So when we improve and increase the usage of technology, of course, we use more expenses. But it is a Thank you.

With this, we conclude today's presentation. We thank you all for your participation and have a nice evening.