StoneCo Backer Madrone Partners Trims Stake Ahead of Q3 Earnings Test
Madrone Partners sold 750,000 StoneCo shares ahead of the fintech firm's Q3 earnings, as high Brazilian interest rates pressure the sector.
U.S. retail investors holding shares of Nasdaq-listed financial technology firms are preparing for a crucial update on how rising credit risks and high interest rates are impacting digital payment processors. The focus is shifting to corporate balance sheets as the third-quarter earnings season enters its final stretch, with market participants closely watching whether consumer spending and merchant volumes can sustain growth.
In Brazil, the financial technology sector is facing a similar, high-stakes test. StoneCo Ltd., one of the country's dominant merchant payment and software providers, is scheduled to release its third-quarter 2026 financial results on Thursday, November 12, 2026, after the market closes, according to a StoneCo investor relations announcement. The upcoming report will spotlight how the company is managing its credit expansion under the weight of Brazil's high interest rate environment, where the central bank's benchmark Selic rate stands at 13.75% as of November 2026.
The earnings announcement comes on the heels of notable institutional selling. An amended Schedule 13D/A filed with the U.S. Securities and Exchange Commission (SEC) on October 7, 2026, revealed that Madrone Partners, L.P. executed open-market sales of 750,000 Class A common shares of StoneCo on October 5, 2026. The shares were liquidated at a weighted average price of $11.90, with transaction prices ranging from $11.75 to $12.02.
Following the transaction, Madrone and its affiliates—including managing directors Gregory Penner, Jameson McJunkin, and Thomas Patterson—retained beneficial ownership of 24,589,276 shares, representing approximately a 10.8% stake in the company. The sale represents a minor but notable reduction in exposure from a major, long-term institutional backer that has supported the firm since its 2018 initial public offering.
Beyond institutional trims, the health of StoneCo's expanding loan book remains a key focus for global investors. High domestic interest rates in Brazil increase the cost of funding for payment processors while elevating default risks among the small and medium-sized merchants that make up StoneCo’s core client base. During the previous quarter, analysts flagged rising non-performing loans, which climbed to 8.6% in the second quarter of 2026, making the upcoming November 12 disclosure a critical barometer for the company's credit underwriting standards.
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StoneCo Ltd. is listed in New York on the Nasdaq exchange. Its performance is a major driver of specialized fintech exchange-traded funds, and it is also held within broader emerging markets funds such as the iShares MSCI Brazil ETF, which tracks large and mid-sized Brazilian equities.
