Our mission is to revolutionize financial services for the largest and fastest growing segment of Brazil’s population: individuals who have been underserved by incumbent banks and have not been effectively reached by digital-only banks. We seek to make credit and banking solutions more accessible and affordable for the Brazilian consumers who we believe need it the most, including social security beneficiaries and private and public sector workers. We have designed a unique value proposition for this population, who may be older, have a lower income, be less tech-savvy or have less access to education. Our target market: (1) includes 107 million people, comprised of 41.4 million social security beneficiaries, 52.7 million private sector workers and 12.8 million public sector workers; and (2) represents a total estimated addressable market of over R$2.0 trillion in financial services as of September 30, 2025, based on data from the Central Bank of Brazil and SUSEP. AGI (NYSE:AGBK) is a leading technology-powered provider of specialized financial services in Brazil. We empower nearly 6.4 million active clients as of September 30, 2025 to access their social security benefits, severance fund benefits, and public or private sector payrolls through innovative secured lending solutions and complementary banking, credit and insurance products tailored to their needs. To deliver our solutions, we developed a proprietary business model designed to bridge the product and service gaps between incumbent and digital-only banking. We combine disruptive technology capabilities, including cloud-based software, AI-driven automation, and mobile applications, with a proprietary network of asset-light retail locations that incorporate best practices from modern “experiential retail” pioneered by leading U.S. consumer technology companies. Our Agi Model was built on the foundation of three key pillars that we believe are the cornerstones of our success: 1. Unique Hybrid Engagement Model – which is a unique go-to-market approach that begins with a friendly, welcoming and respectful in-person retail experience through our physical Hyper-Local Smart Hub network where we acquire and onboard many of our customers. Once a customer relationship has been established, we inform our customers about our products and migrate them to our mobile banking app that provides them with the convenience, speed and efficiency of digital self-service through which they can manage their accounts and sign up for new solutions. As our target market includes less tech-savvy customers for whom our app may sometimes be their first digital banking experience, we deploy Agi Agents in our Smart Hubs to provide end-to-end support in the on-boarding process. Agi Agents also provide step-by-step personalized guidance to our clients on how to manage their account and explore new products and services on our mobile app. This has resulted in 88% of our customers adopting digital channels such as our mobile app within 30 days of onboarding. Following the onboarding, the Smart Hubs continue to provide convenient access to in-person support should our customers face difficulties with the digital app and seek human interaction. 2. Specially Designed Suite of Solutions – which are mission-critical for our target customers because they provide a path to financial flexibility that most incumbent bank offerings do not. Our solutions enable our customers to access their benefits and payrolls, access secured credit solutions, seamlessly adjust and refinance their credit usage as needed, and adopt a growing range of banking, credit and insurance products to meet the evolving financial needs of their daily lives. Although we leverage PIX to serve our customers and offer them a quick and easy way to transfer money and make payments, we can provide the full range of our suite of solutions without using PIX and independently of the PIX infrastructure operated by the Central Bank of Brazil. 3. Powerful Proprietary Technology and Insights – which integrates our (1) cloud-based software tools that run our Smart Hub applications and operations, (2) proprietary processing platform which manages our core banking and transaction processing operations, (3) our AI-powered agents which automate a range of digital banking and customer service functions, (4) machine learning algorithms which optimize our credit scoring and underwriting, and (5) data-rich analytics platform that enables us to drive growth and efficiencies across our organization and deliver the best experiences to our customers. As a result, our model has enabled us to achieve a powerful combination of market leadership, growth and profitability milestones. These include: . Leadership in Secured Lending – We have built a credit portfolio of R$34.5 billion as of September 30, 2025, of which R$29.7 billion, or 86.2%, were loans secured by a dedicated income stream, as further detailed in the following table. As of September 30, As of December 31, 2025 2024 2023 (in millions of R$) Social security benefit loans(1) 27,279.0 19,416.7 12,556.1 FGTS-backed loans(2) 1,253.2 585.2 398.9 Private sector payroll loans(3) 980.2 0.0 0.0 Public sector payroll loans(4) 201.3 44.9 6.2 Loans secured by a dedicated income stream 29,713.7 20,046.8 12,961.1 (1) Secured by social security benefits paid by the INSS. Social security benefit loans accounted for 79.2% of our total credit portfolio of R$34.5 billion as of September 30, 2025. (2) Secured by FGTS advances. FGTS-backed loans accounted for 3.6% of our total credit portfolio of R$34.5 billion as of September 30, 2025. (3) Secured by salaries paid by entities in the private sector. Private sector payroll loans accounted for 2.8% of our total credit portfolio of R$34.5 billion as of September 30, 2025. (4) Secured by salaries and benefits paid by the Brazilian government or public sector entities. Public sector payroll loans accounted for 0.6% of our total credit portfolio of R$34.5 billion as of September 30, 2025. According to data from the Central Bank of Brazil, we had 8.8% market share of the total amount of outstanding social security benefit loans in Brazil as of September 30, 2025. In addition, according to the Social Security Institute, we were ranked the #1 social security benefit loans originator for the nine months ended September 30, 2025, with a market share of 17.5% of all loans originated in that period. . Valuable Customer Relationships – We have built a customer base by nurturing long-term relationships through our go-to-market approach, which we believe have enabled us to build a strong reputation for customer respect, fairness and transparency and high-quality service. As of September 30, 2025 we had a Net Promoter Score, or NPS, of 70. . Compounding & Durable Growth – We have generated strong growth over the past three years. From 2022 to 2024, our active client base and our total revenues grew at compound annual growth rates of 34.9% and 48.1% respectively, reaching R$7,284.4 million in total revenues for the year ended December 31, 2024 and 3.9 million active clients as of December 31, 2024. As of September 30, 2025, our active client base reached 6.4 million active clients, an increase of 77.2% compared to September 30, 2024, and in the nine months ended September 30, 2025 our total revenues reached R$7,735.8 million, an increase of 50.3% compared to R$5,147.1 million in the nine months ended September 30, 2024. Despite our rapid growth, our total market share of all benefits and payroll related loans in Brazil remains relatively small, at only 3.6% as of September 30, 2025. As a result, we believe we are in the early stages of a long-term period of growth driven by the combination of: . Continued Market Share Gains from Incumbent Players – Because Brazil’s five largest incumbent banks still serve as the primary providers of payroll loans, with approximately 70% of the country’s credit balance in payroll credit, as of June 30, 2025; and . Continued Expansion of Our Addressable Markets – Because we recently entered two new large market segments that we believe provide a significant opportunity for expansion: (1) public sector payroll loans, which we decided to enter strategically in 2024 and (2) private sector payroll loans, which we entered in 2025 after the government implemented a new regulatory framework that made this segment more attractive and secure to serve. The private sector payroll loans growth opportunity was boosted by the introduction of a new Brazilian government program, “Crédito do Trabalhador” (“Private Sector Workers’ Credit”), which allowed private sector workers to be onboarded through digital platforms using a centralized and automated process through Brazilian government systems, reducing bureaucracy and improving efficiency and scalability. . Superior Unit Economics – We operate with strong unit economics that we believe are driven by our ability to operate more efficiently than the incumbent banks and monetize our client base more effectively than the digital-only banks due in part to our structural advantages. These include our: . Low CAC – Our customer acquisition cost, or CAC, is calculated as the sum of marketing expenses, costs related to credit card issuance, including embossing and shipping, fees paid to credit bureaus for the purpose of opening new checking accounts, portability expenses, and a portion of hub-related operating expenses, including personnel and administrative expenses. This figure is then divided by the number of new clients acquired during the period. We estimate that our CAC was R$65 per customer in the nine months ended September 30, 2025 and R$156 per customer in the year ended December 31, 2024. We believe that our CAC has declined over the nine months ended September 30, 2025 as a result of changes to the private-payroll loan regulatory framework, which has temporarily expanded the customer inflow, increasing client acquisition volumes without a corresponding increase in total acquisition costs. Based on our internal research, we believe that, even at 2024 levels, our CAC is one of the lowest across financial services companies in Brazil. . High LTV/CAC – We measure our customer acquisition efficiency by comparing the lifetime value, or LTV, of acquired customers to the CAC associated with those customers, resulting in an LTV/CAC ratio. We calculate LTV as the Risk-Adjusted NIM plus fee revenues, multiplied by the weighted average duration of the products, divided by the number of active clients during the year. Based on this methodology, we estimate our LTV/CAC to be greater than 20x in 2024. We believe that the lower CAC observed in the nine months ended September 30, 2025 was due to a temporary effect and that estimates for LTV/CAC in 2024 are in line with normalized levels for our business. . High ARPAC – Our monthly average revenue per active client, or ARPAC, for the nine months ended September 30, 2025, which we calculate as total revenues for the period, divided by the average active clients for the past four quarters, was R$168.0. This was more than three times higher than the median ARPAC of R$50 for Brazilian publicly traded digital banks for the nine months ended September 30, 2025, according to public filings made by such banks. . Low Cost-to-Serve – We can serve our customers with a much lower cost structure than Brazilian incumbent banks because (1) our Smart Hub locations are asset-light and require a smaller workforce than an incumbent bank branch, generally resulting in the possibility of rapid breakeven in under four months, and (2) we engage with most of our customers via our digital app, which drives further cost efficiencies. . Our Credit Portfolio – Historically, our portfolio has exhibited lower loss ratios relative to other consumer credit segments. As of September 30, 2025, 86.2% of our credit portfolio consists of loans secured by a dedicated income stream, enabled us to maintain a 2.6% 90-day non-performing loan rate, or NPL, and a credit loss allowance expenses/credit portfolio ratio of 5.3%. We believe this was significantly lower than the delinquency rates of the consumer portfolios of most of Brazil’s leading incumbent and digital banks as of September 30, 2025, based on the public filings made by such incumbent and digital banks. . Market Leading Earnings Growth – Our net income for the year was R$794.4 million in the year ended December 31, 2024, up 86.4% from the year ended December 31, 2023, having increased at a CAGR of 114.5% from 2022 to 2024. Our net income for the nine months ended September 30, 2025 reached R$831.7 million, up 39.3% from the same period in 2024. We believe this was the fastest net income growth rate in Brazil from 2022 to 2024, based on a benchmarking of public filings from the five largest traditional banks, but excluding the two largest digital banks in Brazil, which were not profitable in 2022. . Market Leading Profitability – We believe we are one of the most profitable financial institutions in Brazil based on our annualized return on average equity, or ROAE, of 39.1% for the nine months ended September 30, 2025. Based on publicly available information and subject to methodological limitations, we believe this was the highest ROAE in Brazil in the period, based on a benchmarking of public filings from the five largest traditional banks and the two largest digital banks in Brazil. Our principal executive offices are located in Campinas, Brazil.
