StoneCo walked into this earnings print as a heavily discounted fintech stock, trading on a P/E of 3.2x and already down double digits over the past month. The market still hit it again, with the share price falling 6.6% today. That reaction sits awkwardly next to trailing net profit margin of 26.8% and earnings that rose strongly over the last year.

The real headline is not revenue volume or client count. It is the tug of war between those fat margins and the pressure from weak interest coverage that still hangs over StoneCo’s balance sheet. The rest of this report unpacks that tension.

Love StoneCo’s strong margins but concerned about the balance sheet pressure from weaker interest coverage? Take a look at our shortlist of…