The following discussion should be read in conjunction with our audited consolidated financial statements and the notes thereto included elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this annual report, particularly in “Item 3D. Risk Factors.” 5A. Operating Results Principal Factors Affecting Our Financial Condition and Results of Operations We believe our operating and business performance is driven by various factors that affect the global and Brazilian economy, the Brazilian digital payments market, trends affecting the broader Brazilian financial technology solutions industry and trends affecting the specific markets and customer base that we target, particularly micro-merchants and SMEs in Brazil. The following key factors may affect our future performance. Adoption of Our Digital Payment Services and POS Devices, and Usage of Our Early Payment of Receivables Feature We believe our digital platform, digital payment services and POS devices are the foundation of our relationship with our clients. We generate revenue through the commissions and other fees that we charge for electronic payment intermediation, as well as fees for other services and revenues from the provision of POS devices and related items. In addition, we generate financial income through the early payment of receivables feature that we offer our merchant clients. We intend to continue to drive growth in our digital payment services, POS devices and early payment of receivables feature by scaling our solutions to meet the needs of our clients. Our digital payment solutions and POS devices are the principal way in which our clients become familiar with our full range of products and services. We seek to leverage the familiarity generated by these services, features and devices to encourage merchants to sign up for our other services, which can help them increase their sales and, in turn, generate incremental revenue for us. As a result, the number of new merchants who adopt our digital payment services and purchase our POS devices will affect our growth. Furthermore, our customer base consists primarily of micro-merchants and SMEs, who tend to generate relatively high levels of early payment of receivables from installment transactions in order to fulfill their working capital needs. These micro-merchants and SMEs are at the core of our strategy. Increased Use of Credit and Debit Cards and Expanded Digital Payments Network The results of our operations depend significantly on the use of credit and debit cards to make digital payments in Brazil. According to ABECS, credit, debit and prepaid cards transactions accounted for 56% of household consumption in 2025 in Brazil, totaling more than R$3 trillion. Credit, debit and prepaid card transaction volume in Brazil has increased at a compound annual growth rate, or CAGR, of 17% from 2018 to 2025 according to ABECS, in which 69% of the transactions volume corresponds to credit card transactions and 22% corresponds to debit card transactions. According to ABECS estimates, 2026 is expected to have between R$5.0 trillion and R$5.01 trillion in card volume, representing an increase of 9.5% to 11.5%. According to ABECS, online purchases made up 35% of the total number of credit card transactions in Brazil and 25% of the total transactions value in 2025, illustrating the potential for expansion of online payments in Brazil. Our results of operations depend in part on consumers’ widespread acceptance and use of the internet as a way to conduct commerce and financial transactions. E-commerce is also underpenetrated compared to e-commerce levels in more developed economies. According to eMarketer, Brazil’s e-commerce totaled approximately US$78 billion in 2025 and accounted for 12.2% (an increase from 6.7% in 2019) of the US$668 billion in retail sales for the year, compared to 20.9% worldwide in 2025. Purchases made through mobile devices (m-commerce) reached approximately US$49 billion and accounted for 63% (from 39% in 2019) of all online (e-commerce) retail sales in Brazil in 2025. Since we view commerce via mobile devices as a key driver of growth going forward, we focus on maintaining a mobile-first digital platform, and we design our solutions on a mobile-first basis so that our merchants can be always self-sufficient. 72 Table of Contents Further, Latin America’s retail industry proved resilient amid two years of market volatility caused by the pandemic. By the end of 2021, retail sales were well on their way to a full recovery from 2020. In 2025, considering the worldwide economy, total retail sales increased 3.7%, retail e-commerce sales grew 7.9% and retail e-commerce sales grew 9.3%. In its turn, in Latin America, total retail sales increased 4.9%, retail e-commerce sales grew 12.2% and retail m-commerce sales grew 14.9%. In addition, according to eMarketer’s Latin America Mobile Payment Users report, proximity payment penetration in Brazil reached 50% of smartphone users in 2025. This is higher than the penetration rate in Mexico (18%). According to ABECS, proximity payments in Brazil account for 73.6% of all in-person transactions, with 72% of the population using this payment method daily. Furthermore, according to the most recent data included in The Global Payments Report 2025 by Worldpay, consumer use of credit cards remains strong, while sources of credit are diversifying and they are increasingly paying via credit card funded digital wallets, buy now, pay later, or BNPL, and POS financing offered by banks, fintechs and merchants. For Latin American countries, they expect that digital wallets will increase from 22% to 29% of e-commerce payment volumes by 2030, surpassing the share cards (which will decrease from 46% to 31%). Globally, digital wallets are extending their omnichannel dominance, being already the leading payment method and remaining among the fastest growing methods. The projections are that digital wallets will increase from 53% to 65% of global e-commerce payment volumes by 2030 with decline in credit cards (from 20% to 13%) and debit cards and prepaid (from 12% to 7%). Nevertheless, digital wallets and credit and debit cards will still account for over 80% of e-commerce global spend by 2030. BNPL is expected to grow in transaction value at a 9% CAGR, while its market share is expected to remain stable at 5% from 2024 to 2030. Launch of New Products and Services and Cross-selling to Our Clients We strive to stay on the cutting edge of the financial technology solutions industry by developing and launching new products and services to offer to both new and existing clients and intend to continue to invest in product development to build new products and services and to bring them to market. This allows us to continue to meet the needs of our clients, as these needs grow and change over time. While we expect our total expenses to increase in the short term as we plan for growth, we expect our expenses to decline as a percentage of our total revenue and income over the medium term as these investments benefit our business and our business grows. Our existing clients represent a sizable opportunity to cross-sell products and services with relatively low incremental marketing and advertising expenses for us. We believe that our range of services, many of which can be used for both business and personal needs, represents an opportunity to further increase engagement with our existing clients. We plan to continually invest in product development so as to maintain and increase the attractiveness of our products and services. To the extent that we are able to cross-sell these products and services and develop and introduce new products and services to our existing clients and attract new clients, we expect our revenues and financial income to continue to grow and our margins to increase. Marketing and Advertising For information regarding our marketing and advertising, see “Item 4B. Business Overview—Sales and Marketing.” Merchant Size We benefit from our primary focus on micro-merchants and SMEs, who we believe were overlooked or underserved by incumbent payment providers and large financial institutions in Brazil before PagSeguro. In addition to payments solutions, we are serving our micro merchants and SMEs with evolving day-to-day banking solutions, that should increase the revenue and profitability of our client base. Serving an increasing number of larger merchants also presents an opportunity to cross-sell value-added services and features such as accounting reconciliation, which generate incremental revenues and margin with low or no customer acquisition costs. Consumer Adoption of Our Products and Services Many of our products and services reach consumers directly. Our complete and free of charge digital banking solutions are an attractive alternative not only for unbanked consumers, but also for those who, despite already being served by traditional financial institutions, seek a more efficient, accessible, and integrated banking experience. Most of our customers (representing 84% of the PagBank active customer base) already maintained a banking relationship prior to opening their PagBank account, underscoring our ability to attract consumers within a competitive and well‑served market. We have made significant investments in the development of our complete and free of charge digital banking solutions, and our ability to grow our consumer network going forward will be important for strengthening our ecosystem and driving our growth. 73 Table of Contents According to data from the World Bank, published in 2025 with reference to the closed year of 2024, 86% of the Brazilian population aged 15 and over held an account at a bank or similar financial institution, indicating a high level of financial inclusion in the country. However, access remains uneven across income groups. Among the wealthiest 60% of the population, the share of individuals with a financial account reached 92%, while among the poorest 40%, this figure was significantly lower, at 76%. These disparities highlight that, despite meaningful progress in the bankarization of the Brazilian population, important gaps in financial inclusion persist, particularly among lower-income groups. The unequal access to formal financial services reinforces the existence of a substantial segment of individuals with limited or inadequate access to the financial system, supporting the potential for further expansion of financial inclusion solutions and for the entrance and growth of innovative digital financial institutions capable of more effectively serving these partially underserved segments. Currency Fluctuations We do not generate material revenues in foreign currencies that could substantially affect our results of operations. Certain of our expenses and capital expenditure are subject to currency fluctuation, as the prices of the POS devices we purchase are set in U.S. dollars. Inflation Inflation, government policies adopted to curb inflationary pressures and uncertainties regarding possible future governmental intervention have contributed to economic uncertainty in Brazil. Brazilian inflation rate pursuant to the IPCA index was 4.26%, 4.83% and 4.62% in 2025, 2024 and 2023, respectively. The SELIC rate, the Central Bank’s overnight rate, was 15%, 12.25% and 11.75% for the twelve months ended in 2025, 2024 and 2023, respectively. The interest rates have been volatile in the past years in Brazil, with periods of increase, decrease and stability of the SELIC rate. From January 2022 until August 2022, the SELIC rate increased, reaching 13.75%, and remained stable until July 2023. From August 2023 until May 2024, the SELIC rate decreased, reaching 10.5%, and remained stable until September 2024. Following such period of stability in 2023, the SELIC rate has been increasing sand, as of the date of this annual report, it is 15% following the last meeting of COPOM on January 29, 2026. For more information, see “Item 3D. Risk Factors—Risks Relating to Brazil—Ongoing political instability in Brazil may adversely affect our business, results of operations and the trading price of Class A common shares” and “Item 3D. Risk Factors—Risks Relating to Brazil—Inflation and certain measures by the Brazilian government to curb inflation have historically affected the Brazilian economy and Brazilian capital markets, and high levels of inflation in the future could adversely affect our business and the price of our Class A common shares.” Inflation has a direct effect on our contracts with certain suppliers, such as telecommunications operators, which costs are indexed to the IPCA, and data processors, whose labor costs are adjusted according to inflation. While inflation may cause our suppliers to increase their prices, we are generally able to offset this effect by increasing the prices we charge for our products and services. Inflation also impacts on our revenues from merchants. When merchants adjust their prices for inflation, the purchasing power of consumers may be reduced, which may adversely affect our revenue if it results in a reduction in the number and volume of transactions. However, if our merchants raise their prices due to inflation, the amount we receive on each transaction also increases. 74 Table of Contents Pricing and Revenue Mix in Our Payment Processing Services We generate revenue in the form of commissions and fees on the capture, transmission, processing and settlement of transactions carried out using credit, debit, Pix and meal voucher cards, as well as fees for other services. Credit and debit cards generate commissions in the form of the merchant discount rate, or MDR, which is a commission withheld by us from the transaction value paid to the merchant. The MDR we charge may vary over time and we may make different commercial offers for different services or for larger clients. However, overall, the MDR for Pix is lower than for debit cards, which, in turn, is lower than that for credit cards Payments made using meal voucher cards and other payment methods generate per-transaction or percentage commissions at various rates. Our revenues are therefore impacted by the mix of these types of services that we sell, as well as any changes in the pricing for each service. Financing of Our Early Payment of Merchants’ Receivables Feature We receive significant financial income from offering our merchants the option to obtain early payment of their receivables from credit card installments. We incur significant financial expenses in order to maintain this optional feature and we fund this feature (i) principally by obtaining early payment of note receivables due to us from the card issuers and acquirers, enabling us to provide the related early payment to merchants, as well as (ii) through our general third-party borrowings, issuing CD’s or other financial options through BancoSeguro or PagSeguro and own capital. Our ability to maintain adequate funding for the early payment feature is important for our operations and future income generation. For further information, see “—Principal Components of Our Results of Operations—Financial Expenses.” Interchange Fees We rely on card issuers and card schemes to process our transactions, and we are required to pay fees for this service. In addition, although we are accredited as an acquirer. From time to time, card schemes such as MasterCard and Visa may increase the interchange fees that they charge for each transaction using one of their cards. Credit card schemes have the right to pass any increases in interchange fees on to us as well as to increase their own fees for processing. In addition, card schemes have imposed and may again impose special assessments for transactions that are executed through a “digital wallet,” and these fees could particularly affect us and significantly increase our costs. Although our standard contract with our merchant clients allows us to adjust our rates and tariffs at our discretion by notice to the merchant, our ability to vary our pricing remains subject to a variety of factors, including competition from other payment providers, market conditions and, in certain cases, direct price negotiations with the merchant. As a result, we may not necessarily be able to pass through all interchange and processing fees to our merchant clients and increases in these fees may therefore increase our cost of sales and services and reduce our margins. In connection with our acquiring business operations, the interchange fee, which we record as Transaction costs within Cost of sales and services, has the potential to affect our margins. An increase in interchange fees will result in an increase in our Cost of sales and services and if we cannot pass the interchange fees onto customers via a corresponding increase in MDR, our margin will also be affected. Currently, the difference between interchange fees and the MDR we charge is less for debit card transactions than for credit card transactions, so our margins on credit card transactions are greater. We cannot predict if or when the card schemes will increase their interchange fees, or what the amount of any such increases may be. For further information, see “Item 3D. Risk Factors—Risks Relating to Our Business and Industry—We partially rely on card issuers or card schemes to process our transactions. Changes to credit card scheme fees, rules or practices may harm our business.” In connection with our issuing business operations, we earn interchange revenues that vary according to the type of card that we issue to our customers (a credit, debit or prepaid card). These interchange fees are subject to the terms defined by the card schemes, and in certain cases, these fees may also be subject to terms defined by the established card schemes and in certain cases, these fees may also be subject to terms defined by regulator. Thus, our business and financial condition may be negatively affected by the terms of interchange fees established by card schemes and regulator. 75 Table of Contents As our payments ecosystem, merchant services and banking solutions include both acquiring and issuing business operations, the variations to interchange rates that may negatively affect one side of the business, may also positively affect the other side of the business. However, this correlation does not guarantee that we will not experience a negative impact on our overall financial condition as a result of variations in the interchange rates and payment methods utilization mix. Brazilian Political Environment and Macroeconomic Conditions, Interest Rates, Consumer Credit and Consumer Spending Substantially all of our operations are located in Brazil. As a result, our revenues, financial income and profitability are influenced by political and economic conditions in Brazil, including their impact on credit availability, disposable income, employment rates and average wages. Our business, as well as the financial technology solutions industry more broadly, is particularly sensitive to changes in economic conditions. Our total revenue and income depend on consumer spending levels, prevailing interest rates and the expansion or contraction of consumer credit in Brazil, each of which affect both the volume and value of payment transactions. Interest rates on consumer credit transactions have an indirect effect on us, as Lower rates tend to stimulate private consumption, increasing credit and debit card transactions or reducing the number of installments chosen by consumers. Conversely, higher interest rates may reduce private consumption or increase the number of installments selected. Rising interest rates may also discourage merchants from using our early payment of receivables feature if higher financing costs require us to raise the discount rate applied to this service. Recent economic instability in Brazil, combined with a deteriorating political environment, has weakened market confidence in the Brazilian economy. For further information, see “Item 3D. Risk Factors—Risks Relating to Brazil—Ongoing political instability in Brazil may adversely affect our business, results of operations and the trading price of Class A common shares.” The following table shows data for real GDP, inflation and interest rates in Brazil and the U.S. dollar/real exchange rate at the dates and for the periods indicated. For the Years Ended December 31, 2025 2025 2024 2023 Real growth (contraction) in GDP ( 2.3% 3.4% 3.2% Inflation (IGP-M) (1) -1.1% 6.5% -3.2% Inflation (IPCA) (2) 4.3% 4.8% 4.6% Long-term interest rates – TJLP (average) (3) 8.7% 6.9% 7.1% CDI interest rate (average) (4) 14.3% 10.8% 13.2% Period-end exchange rate—reais per US$1.00 R$5.50 R$6.19 R$4.84 Average exchange rate—reais per US$1.00 (5) R$ 5.59 R$5.39 R$5.00 Average unemployment rate (6) 5.9% 6.9% 8.0% Source: FGV, IBGE, Central Bank and Bloomberg (1) Inflation (IGP-M) is the general market price index (Índice Geral de Preços – Mercado) measured by FGV. (2) Inflation (IPCA) is a broad consumer price index measured by the IBGE. (3) TJLP is the Brazilian long-term interest rate (Taxa de Juros de Longo Prazo) (average of monthly rates for the period). (4) The CDI interest rate is an average of interbank overnight rates in Brazil (daily average for the period). (5) Average of the exchange rate on each business day of the period. (6) Average unemployment rate for year as measured by the IBGE. Our business has grown rapidly, driven by new clients and increased TPV, with our total revenue and income increasing to R$20,410.5 million in 2025 from R$18,809.6 million in 2024 and R$15,948.4 million in 2023. In addition to continuing to grow our client base, we believe that our business model will allow us to benefit from Brazil’s economic growth potential, particularly among micro-merchants, SMEs and individuals without bank accounts or underserved by traditional banking institutions. Seasonality For information regarding our seasonality, see “Item 4B. Business Overview—Seasonality.” 76 Table of Contents Principal Components of Our Results of Operations The following is a summary of the items comprising our statements of income: Total Revenue and Income Our total revenue and income consist of the total of our revenue from transaction activities and other services, financial income and other financial income. Revenues We generate revenues from transaction activities and other services. In each case, our revenues consist of gross revenues less deductions from those revenues. Revenue from Transaction Activities and Other Services Our revenue from transaction activities and other services consists of gross revenue from transaction activities and other services, less deductions from those gross revenues. Our main source of gross revenue from transaction activities and other services is commissions and fees on the capture, transmission, processing and settlement of transactions carried out using credit, debit and meal voucher cards and fees for other services. We have the primary responsibility of providing the services to our clients and we also directly set the prices for such services, independently from the related transaction costs agreed between us and the card schemes or card issuers. Since we have primary responsibility for providing our merchant clients with the intermediation service, and we have price discretion to adjust the rates and tariffs we charge merchants, we are the principal in the intermediation transaction. We therefore recognize our transaction fees as revenue on a gross basis, and we recognize the transaction costs separately as discussed below. This line item also includes the fees we charge for other services, such as revenues received from the one-time and non-refundable membership fee in order to simplify inventory control and the acquisition of POS devices by our clients and revenues from credit operations. We also recognize revenue earned on a daily pro-rata basis. Revenue from credit operations due and overdue before entering in stop accrual is recorded in revenue from transaction activities and services. After stop accrual, income will only be recognized when actually received. We recognize revenues from these commissions and fees when the purchase is approved by the card issuer, in the case of cash-in payments made via payment cards; when the transaction is carried out, in the case of payments made via other cash-in payment methods; or in the case of services, when the service, is rendered. The amounts deducted from our gross revenue from transaction activities and other services consist principally of the applicable Brazilian sales taxes and social security contributions: ISS; contributions to the Brazilian government’s PIS; and contributions to the Brazilian government’s COFINS. We are required to collect each of these on our transaction activities and other services. Financial Income As described under “Item 4B. Business Overview—Our Products and Services—Cards,” our early payment of receivables feature consists of paying our merchants their installment receivables upfront when consumers paying by credit card choose to pay the merchant in installments. We account for the remuneration from this feature as financial income. This financial income makes up a significant portion of our overall total revenue and income. Our remuneration from the early payment of receivables feature consists of a discount that we withhold from the transaction value of the receivables that we pay to merchants in advance. We recognize the discount amount as financial income at the time a sale transaction is approved involving a merchant who has opted to receive early payments of the receivables from their credit card installment sales. The discount that generates our financial income relates to any early payment for the purchases. 77 Table of Contents Our financial income relates to early payments to merchants of amounts related to receivables from purchase transactions that have been approved by the card issuer and the card scheme. The financial expenses we incur in funding this early payment of receivables feature are accounted for in our financial expenses, discussed below. Other Financial Income Our other financial income consists principally of interest generated by bank savings accounts and by deposits, we make with Brazilian courts, known as judicial deposits, which guarantee any compensation we may be required to pay in litigation matters. Our other financial income also includes our gain of foreign exchange variations, i.e., the gain on our assets and liabilities related to the appreciation or depreciation of the real against foreign currencies, which has limited impact on our cash position. Cost of Sales and Services Our cost of sales and services represents the amounts that make up the cost of the services and devices we offer. These amounts are divided into transaction costs, marketing and advertising, personnel expenses and depreciation and amortization and other costs. For further information on these costs, see Note 27 to our audited consolidated financial statements.  Our transaction costs consist of interchange fees set by card schemes that are owed to the issuer of the card; assessment fees owed to card schemes; fees paid to third-party payment processors; fees paid to acquirers; and bank settlement fees. All of our transaction costs are accounted for within our cost of sales and services. Since we are the principal in the intermediation transaction, we recognize the transaction costs that we pay to third parties, such as card schemes and card issuers who process these transactions, within our cost of sales and services separately from the transaction fees we receive, which we recognize on a gross basis. The transaction costs are agreed between the card schemes or card issuers and us, independently of the fees we charge our merchant clients.  Our marketing and advertising expenses are divided between our cost of sales and services as well as our selling expenses. Of this total, the portion of marketing and advertising that is accounted for within our cost of sales and services relates to customer support.  Our personnel expenses consist of wages, overtime, benefits (such as meal vouchers, transportation vouchers and medical insurance, among others), profit sharing, and social contribution and payroll taxes. In Brazil, social contribution and payroll taxes consist of the INSS contribution and FGTS contribution. Our personnel expenses are divided between our cost of sales and services as well as our selling expenses and our administrative expenses. Of this total, the portion of our personnel expenses that is accounted for within our cost of sales and services refers to employees engaged in activities related to the cost of services that we offer, such as technology, customer support, logistics, anti-fraud activities and mediation services.  Our depreciation and amortization expenses are allocated to our cost of sales and services as well as our selling expenses and our administrative expenses. The portion of our depreciation and amortization expenses that is included in our cost of sales and services consists mainly of: (i) the depreciation of equipment, furniture, technology and installations that form part of the cost of services that we offer; and (ii) the amortization of software that we develop internally for use in our operations.  Our other expenses are allocated to our cost of sales and services as well as our selling expenses and our administrative expenses. Of this total, the portion of our other expenses that is included in our cost of sales and services consists mainly of items such as travel expenses and office supplies that form part of the cost of services that we offer. 78 Table of Contents Selling Expenses Our selling expenses represent the amounts that we spend on publicity, marketing, quality control and direct or indirect relations with our clients. These amounts are divided into marketing and advertising, personnel expenses, chargeback and credit loss allowance expenses, depreciation and amortization expenses and other expenses. For further information on these expenses, see Note 27 to our audited consolidated financial statements.  The portion of marketing and advertising expenses included in our selling expenses relates to the production and distribution of our marketing and advertising campaigns on traditional offline media, traditional online advertising, the positioning of our products in search platforms, telemarketing related to offering our POS devices, commissions to our third party sales force and partners such as platforms, bloggers and developers, expenses incurred in relation to trade marketing at events, and amounts that we spend on consulting services and call centers for our telemarketing campaigns.  The portion of our personnel expenses included in our selling expenses relates to employees engaged in marketing and advertising of our services, POS devices, hubs and features.  Chargeback and credit loss allowance expenses consist of transaction losses arising from chargebacks related to fraudulent transactions, which occurs when a consumer makes a purchase via credit card and then requests a chargeback from the issuing bank after receiving the goods or services purchased and expected credit losses related to our credit products. All of our losses expenses are accounted for within our selling expenses.  The portion of our depreciation and amortization expense included in our selling expenses consists of the depreciation of equipment used for client relationships.  The portion of our other costs included in our selling expenses consist of expenses related to travel, lodging and insurance, facilities, rent, consultancy fees and office supplies relating to marketing and advertising of our services, POS devices and features. Administrative Expenses Our administrative expenses represent the amounts that we spend on back office and overhead expenses. These amounts are divided into Personnel expenses, depreciation and amortization expenses and other costs. While we expect our administrative expenses to increase in the short term as we plan for growth and as we incur costs of compliance associated with being a public company, we expect these expenses to decline as a percentage of our total revenue and income over the medium term as our business grows.  The portion of our personnel expenses that form part of our administrative expenses relates to our finance, legal, human resources, and administrative personnel, as well as fees paid for professional services, including legal, tax and accounting services.  The portion of our depreciation and amortization expenses that form part of our administrative expenses relates to: (i) the depreciation of the equipment, furniture, tools and technology used in our head office and back-office operations; and (ii) the amortization of software developed internally to support our head office and back-office needs and leasing needs, which is shown in Note 14 to our audited consolidated financial statements.  The portion of our other costs that form part of our administrative expenses includes items such as bank charges, travel, reimbursement of staff expenses and office supplies. Financial Expenses Our financial expenses include the charges we incur to obtain early payment of note receivables owed to us by card issuers and acquirers in order to finance the early payment of receivables feature that we offer merchants and interest related to deposits and bank accounts of our clients. Variations in our financial expenses are driven by Brazilian interest rates, which determine the cost of most of our financing, together with changes in the mix of the financing we use for our early payment of receivables feature. We incur significant financial expenses in order to maintain the early payment of receivables feature. We fund this feature (i) principally by obtaining early payment of receivables owed to us by card issuers and acquirers, enabling us to provide the related early payment to merchants, as well as (ii) through our general third-party borrowings and own capital, issuing CDs or other financial options through BancoSeguro or PagSeguro and own capital. In addition, we use FIDCs to finance the early payment of receivables of our merchants. Our remuneration from the early payment of receivables feature continues to be reflected as financial income in our consolidated financial statements. For further information regarding our FIDCs, see “Item 4B. Business Overview—Regulation of the Payments and Banking Industries in Brazil—Rules on E-Commerce, Data Protection, Consumer Protection, Banking Secrecy and Taxes—Taxation of Investment Funds.” 79 Table of Contents Other Income (Expenses), Net Our other income (expenses), net line item consists mainly of contingencies, impairment of assets mainly related to POS, software, cloud and consulting expenses and miscellaneous income or expense items. Current Income Tax and Social Contribution Current income tax and social contribution consist of tax assets and liabilities for the current year. Our liability to income tax principally reflects the level of our profit before income taxes; this line item also varies, however, to the extent that we are entitled to defer tax on certain investments in technological innovation, in which case our tax base for income tax for the year is reduced and the related deferred tax liability is accounted for in the deferred income tax and social contribution line item below. Our tax assets for the current year are calculated based on the expected recoverable amount, and tax liabilities for the current year are calculated based on the amount payable to the applicable tax authorities. The tax rates and tax laws used to calculate this amount are those enacted or substantially enacted at the balance sheet date. Current income tax and social contribution related to items recognized directly in equity is also recognized in equity. We periodically evaluate our tax positions with respect to interpreting tax regulations and, when appropriate, establish provisions. Deferred Income Tax and Social Contribution Deferred income tax and social contribution consist of temporary differences between the tax basis of assets and liabilities and their carrying amounts at the balance sheet date. This line item refers principally to deferrals of tax liability that we are entitled to take on capital investments that we make in technological innovation under Brazilian Law No. 11,196/2005, known as the Technological Innovation Law or “Lei do Bem.” We are able to use this tax deferral law principally for the investments we make in developing software internally, where we capitalize the labor and other costs involved as an intangible asset rather than accounting for these amounts as expenses, and we depreciate the accounting value of the intangible asset over its useful life. The Lei do Bem allows us to defer our tax liability on these investments. Other Brazilian tax rules also allow us to defer tax on certain items, for example on unpaid amounts due from creditors. Deferred taxes also include some entities and investment funds that adopt different taxation regimes according to the applicable rules in their jurisdictions, the main different tax regime refers to gain on the ownership of FIDC equity interests, that will be realized only in the redemption of such equity interests. The deferred income tax and social contribution line item consists of our liability to future tax under the Lei do Bem and these other tax laws, less the depreciation and amortization that we take during the year on the respective capitalized assets, and less the tax losses carried forward from prior years that we are able to offset against our tax liability during the year. For further information on this line item, see Note 23 to our audited consolidated financial statements. Deferred tax liabilities are recognized for all taxable temporary differences, except in certain situations explained in Note 2.19 of our audited consolidated financial statements. The carrying amount of deferred tax assets is reviewed at each balance sheet date and derecognized to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are reviewed, at each balance sheet date, and recognized to the extent that it is probable that future taxable profit will be available to allow for their utilization. As of the date of this annual report, there is no Cayman Islands income tax, corporation tax, capital gains tax or other taxes payable by the PagSeguro Digital or its shareholders. PagSeguro Digital is an exempted company under Cayman Islands law and as such has received an undertaking as to tax concessions pursuant to Section 6 of the Tax Concessions Act (2018 Revision). This undertaking provides that, for a period of 20 years from the date of issue of the undertaking, no law thereafter enacted in the Cayman Islands imposing any taxes to be levied on profits, income, gains or appreciation will apply to the Company or its operations. No capital or stamp duties are levied in the Cayman Islands on the issue, transfer or redemption of our Class A common shares. An annual registration fee will be payable by PagSeguro Digital to the Cayman Islands government which will be calculated by reference to the nominal amount of its authorized capital. 80 Table of Contents Results of Operations The following discussion of our results of operations is based on the financial information derived from our audited consolidated financial statements included elsewhere in this annual report. For a discussion of our results of operations for the year ended December 31, 2024, see “Item 5A. Operating Results in 2024 and 2023” of our annual report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025. Results of Operations in 2025 and 2024 For the Years Ended December 31, 2025 PercentChange 2024 (in millions of reais, with the exception ofpercentages and per-share amounts) Revenue from transaction activities and other services 8,158.7 (11.2)% 9,183.3 Financial income 11,584.6 26.6% 9,150.4 Other financial income 667.3 40.2% 475.9 Total revenue and income 20,410.5 8.5% 18,809.6 Cost of services (9,696.1) 1.6% (9,543.3) Selling expenses (1,644.9) (6.0)% (1,749.3) Credit loss allowance expenses (129.3) 17.2% (110.3) Administrative expenses (861.0) (11.4)% (972.3) Financial costs (5,228.8) 39.6% (3,746.7) Other income (expenses), net (301.1) (2.2)% (307.9) Profit before income taxes 2,549.4 7.2% 2,379.9 Current income tax and social contribution (354.3) 35.6% (261.2) Deferred income tax and social contribution (76.8) 3168.1% (2.4) Income Tax and Social Contribution (431.1) 63.6% (263.6) Net Income for the Year 2,118.4 0.1% 2,116.4 Attributable to: Equity holders of the parent 2,118.4 0.1% 2,116.4 Non-controlling interests — — — Basic earnings per common share – R$ 7.1761 7.2% 6.6953 Diluted earnings per common share – R$ 7.1118 7.4% 6.6238 Total Revenue and Income Our total revenue and income amounted to R$20,410.5 million in 2025, an increase of 8.5% from R$18,809.6 million in 2024. This increase was primarily due to an increase in our TPV and will be detailed in each revenue and income lines described below. Revenue from Transaction Activities and Other Services Our revenue from transaction activities and other services in 2025 amounted to R$8,158.7 million, a decrease of R$1,024.6 million, or 11.2%, from R$9,183.3 million in 2024, as a result of the factors described below. Our gross revenue from transaction activities and other services in 2025 amounted to R$9,419.1 million, a decrease of R$933.1 million, or 9.0%, from R$10,352.2 million in 2024. This decrease was mainly related to changes in our business pricing structure, pursuant to which a greater portion of the consideration associated with early payment arrangements within our FIDC structures is recognized as financial income. This change commenced in 2Q24 and was partially reflected in 2024, with the full-year impact reflected in 2025. Our deductions from gross revenue from transaction activities and other services, which consist principally of sales taxes, amounted to R$1,260.5 million in 2025, or 13.4% of our gross revenue from transaction activities and other services for the year. In 2024, deductions from gross revenue from transaction activities and other services totaled R$1,168.9 million, or 11.3% of our gross revenue from transaction activities and other services for the year. The R$91.6 million, or 7.8%, increase in deductions in 2025, was primarily driven by taxes incurred on intercompany transactions in 2025, for which the corresponding revenues are eliminated in consolidation. Financial Income Our financial income, which represents the volume of the discount fees we withhold from TPV in the early payment of receivables feature that we offer merchants and the MDR fee for the payment processing transaction, amounted to R$11,584.6 million in 2025, an increase of R$2,434.2 million, or 26.6%, from R$9,150.4 million in 2024. The increase in this activity in 2025 compared to 2024 was driven by higher TPV and mix of processed debit and credit card payments containing a higher percentage of credit card transactions made in installments in 2025 compared to 2024 as well as by the recognition of the early payment arrangements within our FIDC. For more information on recognition of early payment arrangements within our FIDC structures, see “––Revenue from Transaction Activities and Other Services.” 81 Table of Contents Other Financial Income Our other financial income amounted to R$667.3 million in 2025, an increase of R$191.4 million, or 40.2%, from R$475.9 million in 2024. The increase of R$191.4 million in our other financial income in 2025 was due to the increased income interest on cash and cash equivalents and financial investments as a result of the higher volume of financial investments and compulsory reserves deposited in the Central Bank and higher SELIC rate as compared to 2024. Expenses Our total expenses amounted to R$17,861.1 million in 2025, an increase of R$1,431.4 million, or 8.7%, from R$16,429.7 million in 2024. As a percentage of our total revenue and income, our total expenses in 2025 remained stable at 87.5% compared to 87.3% in 2024 each expense will be detailed in lines described below. Cost of Services Our cost of services amounted to R$9,696.1 million in 2025, an increase of R$152.8 million, or 1.6%, from R$9,543.3 million in 2024. As a percentage of our total revenue income, our cost of services decreased by 3.2 percentage points, to 47.5% in 2025 from 50.7% in 2024. The percentage of costs relative to revenue decreased due to the efficiency achieved in negotiations related to operating costs, which allowed costs to stay controlled even as revenue increased. Selling Expenses Our selling expenses amounted to R$1,644.9 million in 2025, a decrease of R$104.4 million, or 6.0%, from R$1,749.3 million in 2024. As a percentage of our total revenue and income, our selling expenses decreased to 8.1% in 2025, compared to 9.3% in 2024 This performance was mainly driven by lower chargeback due the improvement of our client analysis. Credit loss allowance expenses Our credit loss allowance expenses amounted to R$129.3 million in 2025, an increase of R$19.0 million, or 17.2%, from R$110.3 million in 2024. As a percentage of our total revenue and income, our credit loss allowance expenses remained stable at 0.6% in 2025, compared to 0.6% in 2024. Administrative Expenses Our administrative expenses amounted to R$861.0 million in 2025, a decrease of R$111.3 million, or 11.4%, from R$972.3 million in 2024. This decrease was primarily driven by lower profit sharing provisions. As a percentage of our total revenue and income, administrative expenses decreased to 4.2%, compared to 5.2% in 2024. Financial Expenses Our financial expenses amounted to R$5,228.8 million in 2025, an increase of R$1,482.1 million, or 39.6%, from R$3,746.7 million in 2024. The increase in our financial expenses was primarily driven by the rapid growth of our banking segment and TPV, which raised our working capital needs related to advances of merchants’ receivables. Expenses related to time deposits (CDBs) and bank accounts also increased compared to 2024, mainly due to the rise in the SELIC, as well as the greater amounts deposited by our clients. Other Income (Expenses), Net Our other income (expenses), net, recorded expenses of R$301.1 million in 2025, a decrease of R$6.8 million, or 2.2%, from expenses of R$307.9 million in 2024. This decrease is mainly related to provisions established in the amount of R$156.1 million in POS devices made in 2025 as compared to R$163.9 million in the year 2024. Profit before Income Taxes Our profit before income taxes amounted to R$2,549.4 million in 2025, an increase of R$169.5 million, or 7.1%, from R$2,379.9 million in 2024 as a result of the factors described above. Income Tax and Social Contribution Income tax and social contribution amounted to expenses of R$431.1 million in 2025, an increase of R$167.5 million, or 63.6%, from expenses of R$263.6 million in 2024. This total item consists of current income tax and social contribution and deferred income tax and social contribution. Our total effective tax rate was 16.9% in 2025, compared to 11.1% in 2024. In both periods, the difference between the effective income tax and social contribution rate and the rate computed by applying the Brazilian federal statutory rate was mainly related to the tax benefit under the Lei do Bem, which reduces income tax charges based on investments made in innovation and technology, such as those made by PagSeguro Brazil, our Brazilian operating subsidiary and income tax abroad due to certain entities or investment funds adopting different taxation regimes in accordance with the applicable rules in their respective jurisdictions. In 2025, we also recognized the increase in the CSLL rate, as provided under Law 224/2025, in the amount of R$142.3 million, which was the main driver of the year over year increase in tax expenses. Under Brazilian income tax law, income taxes are paid by each entity on a stand-alone basis. 82 Table of Contents Net Income for the Year As a result of the foregoing, our net income for the year amounted to R$2,118.4 million in 2025, an increase of R$2.0 million, or 0.1%, from R$2,116.4 million in 2024. As a percentage of our total revenue and income, our net income for the year decreased 0.9 percentage points, to 10.4% in 2025 from 11.3% in 2024. 5B. Liquidity and Capital Resources The following discussion of our liquidity and capital resources is based on the financial information derived from our audited consolidated financial statements included elsewhere in this annual report. For a discussion of our liquidity and capital resources for the year ended December 31, 2024, see “—Cash Flows—Year Ended December 31, 2024 Compared to Year Ended December 31, 2023” of our annual report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025. General Our principal liquidity requirements relate to the early payment of receivables feature that we offer merchants, obligations with deposits, checking accounts and borrowings. We believe our current working capital is sufficient for present requirements. Through the date of this annual report, we have satisfied our funding and working capital requirements (i) through the cash generated by our businesses, (ii) by obtaining early payment of note receivables due to us from the card issuers and acquirers and (iii) by the deposits. The table below presents our cash position at the beginning of each period, and our net cash provided by operating activities, net cash used in investing activities and net cash provided by financing activities during the periods indicated: At and for the Year Ended December 31, (in millions of reais) 2025 2024 2023 Liquidity and Capital Resources Cash and cash equivalents 1,857.5 927.7 2,899.1 Net cash provided (used in) by operating activities 7,562.4 (3,416.3) 3,999.8 Net cash used in investing activities (2,299.8) (1,830.1) (2,703.8) Net cash provided (used in) by financing activities (4,332.8) 3,275.0 (226.0) Our cash and cash equivalents, which are held in reais, include cash on hand, deposits with banks and other short-term highly liquid investments with original maturities of three months or less, and with immaterial risk of change in value. For more information, see Note 6 to our audited consolidated financial statements. Cash Flows Our net cash provided by (used in) operating activities consists of: (i) our profit before income taxes for the year; (ii) amounts that are recorded as expenses or revenues in our statement of income but which do not affect cash; (iii) amounts representing changes in our operating assets and liabilities; (iv) the cash amounts of income taxes and social contributions that we pay during the period; and (v) the cash amounts of interest income received (paid). Our cash flows used in investing activities consist of amounts paid on acquisitions, our purchases of property and equipment, our purchases of intangible assets, and our new financial investments less the payments we make to redeem existing financial investments. Our cash flows from financing activities consist of borrowings, leases, distribution of dividends and repurchased shares in accordance with our share repurchase programs. For more information on our share repurchases, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.” 83 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Our cash and cash equivalents at the year ended December 31, 2025 amounted to R$1,857.5 million. Our profit before income taxes for the year ended December 31, 2025 amounted to R$2,549.4 million. The amounts for revenue, income and expenses recorded in our statement of income in the year ended December 31, 2025 but which did not affect our cash flows totaled the positive amount of R$4,762.3 million, mainly due to R$112.1 million of share-based LTIP-Goals expenses, R$251.6 million in chargeback, R$129.3 million in credit loss allowance expenses, R$1,807.5 million of depreciation and amortization recorded in our statement of income, R$182.7 million in loss on disposal of property, equipment, intangible, inventories and investments assets and R$2,158.9 million of interest in income and expenses accrued. LTIP-Goals expenses relate to equity awards under our LTIP-Goals, chargeback relate to amounts that we initially recorded as revenues but for which we did not receive the related cash payment due primarily to fraud and credit loss allowance is related to delinquency on unsecured loans and expected credit losses related to our credit products. Changes in our operating assets and liabilities in the year ended December 31, 2025 amounted to a negative cash flow of R$2,933.5 million:  Our accounts receivable item, mainly related to receivables derived from transactions where we act as the financial intermediary in operations with the issuing banks, which is presented net of transaction costs and financial expenses we incur when we elect to receive early payment of the accounts receivable owed to us by card issuers, consists of the difference between the opening and closing balances of the accounts receivable item of current assets and non-current assets on our balance sheet (R$56,061.4 million on December 31, 2025, compared to R$56,650.5 million on December 31, 2024) excluding interest income received in cash and total losses, which are presented separately in the statement of cash flows. Accounts receivable represented a negative cash flow of R$5,054.6 million in the year ended December 31, 2025.  Our credit portfolio item, mainly related to amounts receivable arising from credit card operations, payroll loans and other loans operations, presented net of provision for losses, consists of the difference between the opening and closing balances of the loan portfolio item recorded in current and non-current assets on our balance sheet (R$4,206.4 million on December 31, 2025, compared to R$3,152.8 million on December 31, 2024), excluding expected credit losses, which are presented separately in the statement of cash flows. The credit portfolios represented a negative cash flow of R$1,159.7 million for the year ended December 31, 2025.  Our payables to third parties item, which is presented net of revenue from transaction activities and financial income we receive when merchants elect to receive early payments, consists of the difference between the opening and closing balances of the payables to third parties item of current and non-current liabilities on our balance sheet (R$10,893.7 million on December 31, 2025, compared to R$11,642.2 million on December 31, 2024). Payables to third parties represented a negative cash flow of R$711.2 million in the year ended December 31, 2025.  Our checking accounts item, which refers to amounts due to merchants that use PagSeguro Brazil platform and balance from clients, consists of the difference between the opening and closing balances of the checking accounts item of our balance sheet (R$12,243.7 million on December 31, 2025, compared to R$12,030.6 million on December 31, 2024), excluding interest income paid. Checking accounts represented a negative cash flow of R$630.6 million in the year ended December 31, 2025.  Our obligations to FIDC quota holders, which refers to amounts of senior quotas of the FIDC that were issued to third parties investors, consists of the difference between the opening and closing balances of the obligations to FIDC quota holders item of current and non-current liabilities on our balance sheet (R$1.171,5 million on December 31, 2025, compared to R$1,151.4 million on December 31, 2024), excluding interest income paid. Obligations to FIDC quota holders represented a negative cash flow of R$50.6 million in the year ended December 31, 2025.  Our receivables from (payables to) related parties item consists of the difference between the opening and closing balances of the payables to related parties item excluding interest paid, which are presented separately in the statement of cash flows (receivables R$25.9 million on December 31, 2025, compared to R$31.8 million on December 31, 2024, payables R$780.4 million compared to R$1,131.2 million on December 31, 2024). Receivables from (payables to) related parties represented a negative cash flow of R$344.9 million in the year ended December 31, 2025.  Our salaries and social charges item represent amounts that were recorded on our statement of income, but which remained unpaid at the end of the period. This item represented a negative cash flow of R$19.1 million in the year ended December 31, 2025.  Our trade payables item consists of the difference between the opening and closing balances of the trade payables (R$606.7 million on December 31, 2025, compared to R$663.2 million on December 31, 2024). Trade payables represented a negative cash flow of R$53.9 million in the year ended December 31, 2025.  Taxes and contributions item consists of sales taxes (ISS, ICMS, PIS and COFINS). This item represented negative cash flow of R$165.6 million in the year ended December 31, 2025 due to increased TPV in the year ended December 31, 2025. 84 Table of Contents  Our compulsory reserve item consists in the minimum amount that we need to maintain available as requested by the Central Bank. This item represented a positive cash flow of R$1,056.3 million in the year ended December 31, 2025, due to the reduction in our deposits amounts that requires a compulsory reserve.  Our recoverable taxes item consists of withholding taxes and recoverable taxes on transaction activities and other services and purchase of POS devices. This item represented a negative cash flow of R$81.2 million in the year ended December 31, 2025, mainly related to withholding taxes from FIDC quotas redeemed in 2025.  Our banking issuances item consists of issued certificates of deposit, excluding paid interest income paid to, which are presented separately in the statement of cash flows. This item represented a positive cash flow of R$4,561.8 million in the year ended December 31, 2025. We paid income tax and social contribution in cash totaling R$187.9 million and recorded a positive cash flow of R$3,372.1 million related to interest income received (paid) in cash in 2025. As a result of the above, our net cash provided by operating activities in the year ended December 31, 2025 totaled R$7,562.4 million. Our cash flows used in investing activities in the year ended December 31, 2025 totaled R$2,299.8 million. This amount consisted of R$1,236.8 million in purchases and development of intangible assets, which represent purchases of third-party software and salaries and other amounts that we paid to develop internally software and technology, which we capitalize as intangible assets, R$1,040.0 million in purchases of property and equipment, mainly related to POS device purchases and negative cash flow of R$22.9 million related to the acquisition of financial investments. Our cash flows used in financing activities in the year ended December 31, 2025 totaled R$4,332.8 million, principally related to our contracted borrowings less the payments of principal and interest in the negative amount of R$2,305.4 million along with R$1,330.2 million that we spent on the repurchase of shares to be held in treasury and dividend distributions totaling R$617.1 million. After considering the total increase in cash and cash equivalents of R$929.8 million in 2025, as discussed above, our cash and cash equivalents at December 31, 2025 amounted to R$1,857.5 million Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 For this discussion, see our annual report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025. Loans and Financings The composition of our borrowings is as follows: Origination date Due date Interest rate December 31, 2025 December 31, 2024 March, 2024 March, 2025 110.2% of the CDI — 252,287 March, 2024 March, 2025 109.9% of the CDI — 762,078 December, 2024 January, 2025 106.6% of the CDI — 2,513,021 December, 2024 February, 2025 105.5% of the CDI — 350,168 December, 2024 December, 2025 105.0% of the CDI — 643,949 January, 2025 January, 2026 107.0% of the CDI 989,076 — December, 2025 March, 2026 102.9% of the CDI 800,454 — December, 2025 December, 2026 104.5% of the CDI 647,316 — 2,436.846 4,521,503 The borrowings balance refers to funds for working capital related to the merchant’s prepayment operation and credit underwriting. These borrowings have attractive interest rates and consist substantially of borrowings with very short maturity, therefore, the decision to raise funds through borrowings is based on market opportunities and financial efficiency regardless of the instrument used. For more information on our borrowings, see note 22 to our audited consolidated financial statements. 85 Table of Contents Commitments and Contractual Obligations Our contractual obligations at December 31, 2025 consisted of obligations to purchase POS devices and deposits obligations as follows: At December 31, 2025 Less than1 year 1 to 3years Total (R$ millions) POS device purchases 823.3 — 823.3 Banking issuances obligations 18,947.9 9,480.1 28,428.0 Borrowings 2,436.8 — 2,436.8 Total 22,208.0 9,480.1 31,688.1 Off-Balance Sheet Arrangements Other than the POS contractual obligations shown above, we do not have any off-balance sheet arrangements. For a discussion of off-balance sheet arrangements for the year ended December 31, 2024, see “Item 5A. Operating Results—Off-Balance Sheet Arrangements” of our annual report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025. New Accounting Pronouncements Effective for Periods Beginning on or After January 1, 2025 Certain IFRS accounting pronouncements became effective for periods beginning on or after January 1, 2025. The nature and effect of these changes did not have material impacts on our audited consolidated financial statements. For further information, see Note 2.24 to our audited consolidated financial statements. Accounting Pronouncements Issued but Not yet Effective There are new and amended standards and interpretations in respect of presentation and preparation of consolidated financial statements that are issued, but not yet effective, up to the date of issuance of the consolidated financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. For more information on accounting pronouncement issued but not yet effective, see Note 2.25 to our audited consolidated financial statements. 5C. Research and Development, Patent and Licenses, etc. For more information on our research and development and intellectual property, see “Item 4B. Business Overview—Product Development and Technology,” and “Item 4D. Property, Plant and Equipment—Intellectual Property.” 5D. Trend Information We believe that increasing levels of penetration and usage of credit cards among the Brazilian population and the introduction of new products and services will continue to fuel volume growth in our business. However, we expect many factors to affect our future business, financial condition, results of operations, liquidity, capital resources, and the trading price of our Class A common shares, including:  the Brazilian economic, fiscal, political and financial environment (for further information, see “Item 5A. Operating Results,” “Item 3D. Risk Factors—Risks Relating to Brazil,” and “Item 3D. Risk Factors—Risks Relating to Our Business and Industry”);  the legal and regulatory developments affecting our operations (for further information, see Item 4B. Business Overview—Regulation of the Payments and Banking Industries in Brazil” and “Item 3D. Risk Factors—Risks Relating to Our Business and Industry”);  the global effects of U.S. policies involving four main factors: increase in tariffs, deregulation, decreases in national taxes and deportation of immigrants, which may affect the labor market and its impacts on global trade;  the ongoing geopolitical tensions and armed conflicts, particularly the escalation of conflicts in the Middle East, may affect global economic activity depending on the duration of the conflict and the extent of damage to energy infrastructure, especially through higher and more volatile oil and energy prices (for further information, see “Item 3D. Risk Factors—Risks Relating to Brazil—Developments and the perceptions of risks in other countries, including other emerging markets, the United States and Europe, may adversely affect the Brazilian economy and the price of Brazilian securities, including the price of our Class A common shares”);  interest rates, inflation, exchange rates and other factors affecting our financial condition and results of operations (for further information, see “Item 5A. Operating Results,” ‘‘Item 5B. Liquidity and Capital Resources,” and “Item 3D. Risk Factors—Risks Relating to Brazil”); and  risks we face in our operations and that could affect our business, results of operations and financial conditions (for further information, see “Item 3D. Risk Factors”). 5E. Critical Accounting Estimates For a discussion on critical accounting estimates, see Note 3 to our audited consolidated financial statements. 86 Table of Contents