StoneCo Ltd. closed the sale of its software unit Linx on February 27, 2026, after receiving regulatory approval from the Brazilian Administrative Council for Economic Defense (CADE) on February 20. The transaction, which was announced on February 28, 2026, valued Linx at an enterprise value of R$3.05 billion plus an estimated R$360 million in net cash, bringing the total proceeds to R$3.41 billion.
The divestiture removes Linx from StoneCo’s balance sheet and eliminates the goodwill impairment that had weighed on earnings. StoneCo originally acquired Linx for R$6.04 billion (US$1.11 billion) in August 2020; the fiscal goodwill of approximately R$3.8 billion associated with that acquisition remains on the books and will be amortized over eight years. By shedding the software unit, StoneCo eliminates a segment that represented about 79% of its software revenue and 71% of its software profitability in 2024, freeing management to focus on payments, banking, and credit operations that now account for more than 90% of its addressable market.
StoneCo’s earnings trajectory has been strong, with Q3 2025 earnings per share of $0.47 beating analyst expectations of $0.43 by $0.04 (9.3%). The beat was driven by disciplined cost control and a favorable mix shift toward higher‑margin financial services, offsetting the lower profitability of the legacy software business. Revenue for Q3 2025 rose 17% year‑over‑year to R$3.57 billion, supported by robust demand in the MSMB payment volume and credit portfolio expansion. The company’s guidance for Q4 2025, to be disclosed on March 2, 2026, is expected to reflect continued momentum in its core financial services segments.
Management emphasized that the proceeds from the Linx sale will be used to strengthen the balance sheet, reduce debt, and potentially fund share buybacks or reinvestment in high‑growth areas. While the company has not yet detailed the exact allocation, analysts anticipate that the R$3.41 billion will improve capital efficiency and provide flexibility for future strategic initiatives. StoneCo’s CEO Pedro Zinner has highlighted the importance of financial prudence and maximizing long‑term value, signaling a shift toward profitability over aggressive market‑share expansion.
Market reaction to the transaction was muted, as the sale had been announced in July 2025 and had already been priced into the market. The more significant driver of recent share price movement was the unexpected resignation of CEO Pedro Zinner, which caused a sharper decline than the Linx sale itself. Investors are now focusing on the upcoming earnings call for details on how the proceeds will be deployed and the company’s outlook for the remainder of 2025.
The sale positions StoneCo to compete more directly with rivals such as PagSeguro and MercadoPago, while maintaining a leaner, higher‑margin business model. By partnering with TOTVS for software needs rather than owning the vertical, StoneCo can leverage its integrated ecosystem to deepen merchant relationships and drive cross‑sell opportunities in payments, banking, and credit. The divestiture is a key milestone in StoneCo’s transformation strategy, expected to enhance profitability and capital efficiency over the long term.
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