Beyond the Machines: Stone’s Ambitious Strategy to Triple Profits and Expand into Software


The Stone Company is taking strategic steps to double its profits within the next four years. One of these strategies is the integration with Linx, a move aimed at attracting new customers through its software business. The company’s management is confident in their ability to surpass expectations and advises investors to remain optimistic.

During the Investor Day held in New York, the company announced its target of achieving an annual profit of R$1.9 billion by 2024, with a projected sum of up to R$4.3 billion by 2027. This ambitious goal would more than triple the company’s bottom line on the balance sheet. CEO Pedro Zinner explains that the company has historically prioritized growth speed, but now sees numerous opportunities to improve profitability through efficiency.

The focus on micro, small, and medium-sized enterprises (MPMEs) has been further emphasized. Stone aims to outpace the industry average with a growth rate of 2.7 percent, intending to process payments worth more than R$600 billion by 2027. This sector has always been a priority for the company, but its importance has been further solidified.

In an interview with EXAME Invest, Zinner emphasized that the company’s goal is not to alter its strategy but rather to clarify its implementation and concentrate on the most lucrative opportunities. While the main business remains in payment processing, Stone’s vision extends beyond card machines by integrating financial services and software.

The growth strategy will be fueled by the synergy between the businesses, as Stone plans to provide its software company’s customers with financial products. The company aims to become a “one-stop-shop” solution for MPMEs, with a particular focus on grocery stores, restaurants, pharmacies, and petrol stations. Zinner states that by combining financial services and software, the company can maximize value extraction from these verticals.

The announcement of Stone’s integration strategy with Linx’s software business has solidified the company’s commitment to this expansion. This move was long-awaited by the market, which had been requesting clearer signs of business integration since the acquisition of Linx in 2020.

Financial services have also been identified as a major revenue driver for the company. The company’s financial services platform, initially focused on payments but now expanded to include banking and credit solutions, is currently in an expansion phase. Stone’s chief strategist, Lia Matos, sees the software as a differentiating factor that enables the company to monetize its customer base effectively.

At the beginning of the year, Stone identified an opportunity to resume lending and strengthen its banking vertical. Despite facing significant challenges due to the wave of insolvency in 2021, the company sees room for cautious expansion. Stone’s CFO, Mateus Scherer, announced that they have restarted lending operations this year with R$113 million in available credit. The goal is to increase this amount to R$800 million next year and surpass R$5.5 billion in card revenue by the end of 2027.

In addition to credit, Stone also plans to expand its range of financial services. The company currently has deposits totaling R$4.5 billion and aims to reach R$7 billion next year and R$14 billion by 2027.

Overall, Stone is leveraging its integration with Linx and capitalizing on the opportunities presented by the MPME sector to achieve its goal of doubling profits within the next four years. By combining financial services, software, and efficient operations, the company is well-positioned to deliver sustainable growth and generate substantial value for its investors.