3Q23

Earnings Release
November 16, 2023

1
 PAGS Reports Third Quarter 2023 Results
Net Income (Non-GAAP) of R$ 440 million, +7% y/y
Net Income (GAAP) of R$ 411 million, +8% y/y

São Paulo, November 16, 2023 – PagSeguro Digital Ltd. (“PAGS,” “PagBank” or “we”) announced today its third
quarter results for the period ended September 30, 2023. The consolidated financial statements are presented in Reais (R$) and
prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”).
.

3Q23 Highlights
Total Finance Volume (TFV) Total Payment Volume (TPV) Total Banking Volume (TBV)

R$ 244 Billion R$ 99.8 Billion R$ 143.9 Billion

Total Revenue and Income Payments | Gross Profit Financial Services | Gross Profit

R$ 4.03 Billion R$ 1.4 Billion R$ 101 Million

Net Income | Non-GAAP Payments | Adj. EBITDA Financial Services | Adj. EBITDA

R$ 440 Million R$ 892 Million R$ 2 Million

2
To our shareholders
We are happy to announce our earnings results for the third quarter and first nine months of 2023 and to continue to
share our recent developments and milestones.

In September 2023, we reached 30.2 million clients, amounting to R$669 billion in transactions occurring over the
first nine months of the year. These numbers comprise of R$389 billion in Total Banking Volume (formerly known as PagBank
TPV) and R$281 billion in Total Payment Volume (formerly known as PagSeguro TPV).

In the third quarter, TPV grew faster than the industry’s growth, driven by growth in all merchant segments: micro-
merchants, SMBs and large accounts. Also, as of November 2023, PIX has been operational for 3 years in the Brazilian market,
and we are very well positioned to take advantage of its capabilities. PagBank Cash-in, which comprise of all PIX P2P transactions
and wire transfers sent from different financial institution to us, amounted to R$ 56 billion.

Improved trends in our TPV and PagBank Cash-in resulted in our deposits reaching a record level of almost
R$ 22 billion. We have now concluded an important 12-month cycle through which we managed the impact of high interest
rates for an extended period through a repricing process, while at the same time diversified our funding structure backed by
deposits. As a result, we have executed a valuable strategy to keep increasing our gross profit by disassociating the reliance on
take rate trajectory, driven by merchants’ mix change, lowering our average cost of funding. For example, this quarter our
financial expenses decreased in comparison to the same period in 2022, a trend we have not observed since early 2021 when
interest rate hikes began in Brazil.

Consequently, our net income reached an all-time high, posting R$ 440 million on a non-GAAP basis, representing
+7% year-over-year, and pushing our net cash balance to R$ 10.6 billion, which is our cornerstone against economic turmoil
and a buffer for new investments without causing shareholder dilution. Also, we totaled over R$ 1 billion in share buybacks since
2021, executing more than 80% of our current program.

We see compelling opportunities to further expand our footprint in different geographies in Brazil through our HUBs
and by boosting our online payments penetration, providing a seamless omnichannel solution. As we are expecting to address
the mismatch between capital expenditures and depreciation/amortization levels in the second half of 2024, we have started to
increase our salesforce to reach our goals and foster the natural cross-selling of our financial services, making the financial lives
of our clients easier and empowering them through a one-stop-shop financial ecosystem.

We continue to pursue technological disruptions. In October, we executed our first transaction using DREX, the Brazilian
digital currency through the blockchain platform, embracing the digital assets revolution. In November, we announced a facial
authentication feature for our clients aiming to use our payment link option, reinforcing our security features while improving
user experience and confidence.

Our management principles remain the same:

• Superior execution in balancing growth with profitability;

• Robust financials with high liquidity, sustainable results, and low funding costs; and

• Solid and ethical corporate governance.

I am looking forward to the next milestones of our journey.

Alexandre Magnani, Chief Executive Officer

3
Selected Capsule of Income Statement Data1

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Revenues and Income 4,026 4,035 -0.2% 3,826 5.2% 11,602 11,373 2.0%
(-) Other Financial Income (66) (46) 42.2% (65) 1.0% (195) (132) 47.2%
(-) Transactions Costs (1,508) (1,424) 5.9% (1,414) 6.7% (4,311) (4,141) 4.1%
Net Take Rate 2,452 2,565 -6.3% 2,347 4.5% 7,095 7,099 -0.8%
(-) Financial Expenses (820) (921) -10.9% (796) 3.1% (2,429) (2,297) 5.7%
(-) Total Losses² (165) (273) -39.4% (122) 35.8% (413) (793) -47.9%
(+) FX Expenses 10 12 -20.7% 9 15.7% 36 34 4.0%
Gross Profit 1,477 1,384 6.7% 1,438 2.7% 4,289 4,044 6.1%
Payments 1,376 1,272 8.2% 1,327 3.7% 3,899 3,813 2.3%
Financial Services 101 113 -10.5% 111 -9.1% 390 231 68.9%
(-) Operating Expenses (583) (615) -5.1% (589) -1.0% (1,759) (1,778) -1.1%
Adj. EBITDA³ 894 770 16.1% 849 5.3% 2,530 2,265 11.7%
Payments 892 832 7.2% 850 4.9% 2,460 2,471 -0.4%
Financial Services 2 (62) n.a. (1) n.a. 70 (205) n.a.
(-) POS Write-off (64) (41) 54.9% (65) -1.5% (191) (134) 42.0%
(-) D&A (329) (290) 13.5% (310) 6.3% (941) (810) 16.1%
(+/-) Other Income (Expense), Net 56 34 65.5% 56 -1.2% 159 98 62.4%
EBT 557 472 17.9% 531 4.8% 1,557 1,419 9.8%
(-) Income Tax and Social Contribution (117) (61) 91.0% (116) 0.7% (310) (233) 32.9%
Net Income | Non-GAAP 440 411 7.0% 415 6.0% 1,248 1,186 5.2%
4
EPS | Non-GAAP R$ 1.36 R$ 1.25 8.7% R$ 1.28 6.6% R$ 3.83 R$ 3.60 6.5%
(-) Non-GAAP Effects (29) (31) -5.0% (30) -2.4% (82) (89) -7.8%
Net Income | GAAP 411 380 8.0% 385 6.7% 1,166 1,097 6.3%
EPS | GAAP 4 R$ 1.27 R$ 1.16 9.7% R$ 1.18 7.2% R$ 3.58 R$ 3.33 7.6%
Cash Earnings | Adj. EBITDA (-) CapEx 365 267 36.4% 319 14.5% 1,063 507 109.6%
Capital Expenditures (CapEx) 529 502 5.3% 530 29.5% 1,467 1,758 -16.6%
1. This selected capsule income statement data is presented only to facilitate a general overview of highlights of our financial performance for the periods indicated for informational purposes.
For our complete Income Statement information, see our consolidated financial statements prepared in accordance with IFRS as issued by the IASB, in our Form 6-K related to the Financial
Statements, published on the date hereof;
2. Total Losses: Chargebacks and Expected Credit Losses;
3. Adj. EBITDA: EBITDA net of Financial Expenses;
4. Considering the Weighted Average Number of Diluted Common Shares:
3Q23: 323,773,637 shares;
2Q23: 325,480,431 shares;
3Q22: 328,898,070 shares;
9M23: 325,596,375 shares;
9M22: 329,612,792 shares.

Key Performance Indicators

KPIs 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
ARPAC¹
Payments R$ 2,080 R$ 1,764 17.9% R$ 2,022 2.9% R$ 2,080 R$ 1,764 17.9%
Financial Services R$ 73 R$ 96 -23.9% R$ 82 -10.6% R$ 73 R$ 96 -23.9%
Efficiency Ratio² 16.4% 20.5% (4.1) p.p. 16.2% 0.2 p.p. 16.0% 20.1% (3.7) p.p.
Credit Portfolio | R$ Billion 2.5 2.7 -7% 2.6 -6% 2.5 2.7 -7%
Total Deposits | R$ Billion 21.6 19.4 11% 18.3 18% 21.6 19.4 11%
1. ARPAC: Sum of LTM revenues / Average of active clients over the last 5 quarters;
2. Efficiency Ratio: Selling, Administrative and Other Expenses required for each amount of Total Revenue and Income generated.

4
Selected Capsule of Balance Sheet Data¹

Balance Sheet | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q
Total Assets 47,327 43,276 9.4% 42,836 10.5%
Current Assets 41,147 37,709 9.1% 36,898 11.5%
Cash and Financial Investments 2 3,053 2,478 23.2% 2,846 7.3%
Accounts Receivable 37,521 34,570 8.5% 33,440 12.2%
3
Others 573 661 -13.4% 611 -6.3%
Non-current Assets 6,180 5,567 11.0% 5,939 4.1%
Accounts Receivable 1,000 731 36.7% 918 8.9%
PP&E and Intangible Assets 4 4,962 4,671 6.2% 4,833 2.7%
Others 5 218 164 32.8% 188 16.2%
Total Liabilities and Equity 47,327 43,276 9.4% 42,836 10.5%
Current Liabilities 28,665 28,287 1.3% 25,890 10.7%
Accounts Payable6 16,971 8,214 106.6% 8,374 102.7%
PagBank | Checking Accounts 1,736 6,734 -74.2% 8,258 -79.0%
PagBank | Savings Accounts and CDs 8,577 10,795 -20.5% 7,813 9.8%
Borrowings 193 987 -80.5% 292 -34.0%
Others 7 1,189 1,558 -23.7% 1,153 3.1%
Non-current Liabilities 5,793 3,477 66.6% 4,421 31.0%
Accounts Payable6 159 0 n.a. 127 25.1%
PagBank | Savings Accounts and CDs 3,337 1,843 81.0% 2,219 50.4%
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Others 2,297 1,634 40.6% 2,074 10.7%
Equity 12,868 11,512 11.8% 12,526 2.7%
Retained Net Income 7,403 5,830 27.0% 6,992 5.9%
Capital 5,465 5,682 -3.8% 5,533 -1.2%
Net Cash Balance9 10,573 9,050 16.8% 10,089 4.8%
1. This selected capsule balance sheet data is presented only to facilitate a general overview of the highlights of our financial performance for the periods indicated for informational purposes.
For our complete Balance Sheet information, see our consolidated financial statements prepared in accordance with IFRS as issued by the IASB, in our Form 6-K related to the Financial
Statements, published on the date hereof.

Balance Sheet Reconciliation:

2. Cash & Financial Investments: Cash and Cash Equivalents + Financial Investments;
3. Others: Inventories + Taxes Recoverable + Other Receivables + Receivables from Related Parties;
4. PP&E & Intangible Assets: Property and Equipment + Intangible Assets;
5. Others: Judicial Deposits + Prepaid Expenses + Deferred Income Tax and Social Contribution + Investments + Receivables from Related Parties;
6. Accounts Payable: Payables to third parties (including (i) transactions of sales and services to settle with merchants, net of PagSeguro’s revenue, (ii) the balance of client bank accounts
that are invested by the client in Certificate of Deposits, and (iii) the balance of merchant payment accounts through which PagSeguro acquires treasury bonds to comply with certain
requirements);
7. Others: Trade Payables + Payables to Related Parties + Derivative Financial Instruments + Salaries and Social Charges + Taxes and Contributions + Provision for Contingencies + Deferred
Revenue + Other Liabilities;
8. Others: Deferred Income Tax and Social Contribution + Provision for Contingencies + Deferred Revenue + Other Liabilities;
9. Net Cash Balance: Cash and Cash Equivalents + Financial Investments + Current & Non-Current Account Receivables – Current & Non-Current Payables to Third Parties – Borrowings –
Derivative Financial Investments – Current & Non-Current Deposits.

Capital Markets¹

Capital Markets 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

Market Cap
In BRL billion R$ 14.21 R$ 23.58 -39.7% R$ 14.99 -5.2%
In USD billion $ 2.84 $ 4.36 -34.9% $ 3.11 -8.8%
Stock Price
In BRL R$ 43.12 R$ 71.53 -39.7% R$ 45.49 -5.2%
In USD $ 8.61 $ 13.23 -34.9% $ 9.44 -8.8%
Book Value per Share
In BRL R$ 40.25 R$ 35.29 14.0% R$ 38.89 3.5%
In USD $ 8.88 $ 13.64 -34.9% $ 9.73 -8.8%
1. As of September 30, 2023;

Brazilian Central Bank Currency Exchange Rate (PTAX) BRL/USD:

3Q23: R$ 5.0076;
3Q22: R$ 5.4066;
2Q23: R$ 4.8192.

5
Operational Performance
Total Finance Volume

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Finance Volume 243,691 195,485 24.7% 221,050 10.2% 669,477 522,415 28.2%
1
Total Payment Volume 99,836 90,261 10.6% 92,676 7.7% 280,609 259,576 8.1%
2
Total Banking Volume 143,855 105,224 36.7% 128,374 12.1% 388,868 262,839 47.9%
1. Total Payment Volume: includes debit cards, credit cards, prepaid cards, vouchers, boletos and PIX P2M (fee-based product);
2. Total Banking Volume: includes prepaid card top-ups, PagBank card issuing TPV (debit, credit, prepaid), mobile top-ups, wire transfers to third-parties, cash-in through boletos, bill payments,
tax collections, P2P transactions, PIX P2P (no fee-based), credit underwriting, super app top-ups and GMV.

Total Finance Volume (TFV), formerly known as PAGS TPV, totaled R$ 243.7 billion, representing an increase of
+24.7% vs. 3Q22 due to the growth in both Total Payment Volume and Total Banking Volume.

Total Payment Volume (TPV), formerly known as PagSeguro TPV, totaled R$ 99.8 billion, representing an increase
of +10.6% vs. 3Q22 mainly due to:

(i) larger share of wallet mainly driven by the cash conversion into electronic payments;
(ii) maturation of existing cohorts due to increasing productivity of our sales channels; and
(iii) better performance of all merchants’ segments, consisting of micro-merchants, SMBs and large accounts.

Total Banking Volume (TBV), formerly known as PagBank TPV, totaled R$ 143.9 billion, representing an increase of
+36.7% vs. 3Q22. This growth is mainly related to our clients’ higher engagement with digital bank features (such as PIX, bill
payments, mobile top-up), cards’ spending and credit underwriting.

PagBank Clients

# Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

1
Total Clients 30.2 25.9 16.4% 29.5 2.5%
2
Active Clients 16.7 15.8 6.3% 16.4 1.8%
Consumers 10.6 9.1 16.4% 10.2 3.5%
Merchants 6.1 6.6 -7.6% 6.2 -1.0%
1. Total Clients: Number of bank accounts registered at Brazilian Central Bank;
2. Active Clients: Active merchants using one additional digital account feature/service beyond acquiring and consumers with a balance in their digital account on the last day of the month.

PagBank ended the quarter with 30.2 million clients, representing an increase of +16.4% vs. 3Q22, and Active Clients
of 16.7 million, an increase of +6.3% vs. 3Q22. This increase is mainly related to higher penetration in the consumers segment
which represents 63% of PagBank clients vs. 58% in 3Q22.

Active Merchants

# Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Active Merchants1 6.7 7.3 -9.1% 6.8 -1.7% 6.7 7.3 -9.1%
Net Addittions (0.1) (0.2) -39.8% (0.1) -22.3% (0.4) (0.4) 13.3%
2
TPV per Merchant | R$ thousand 14.9 12.2 22.2% 12.9 15.7% 40.9 36.1 13.3%
1. Active Merchants: At least one transaction in the last twelve months;
2. TPV per Merchant: Amount of TPV divided by the average of active merchants during the period.

Active Merchants ended the quarter with 6.7 million, representing a decrease of -9.1% vs. 3Q22. Since early 2022,
the company has been adopting a more selective go-to-market strategy focusing on clients with better unit economics, higher
activation ratio, and higher engagement in PagBank financial services. Additionally, we have been improving our onboarding and
risk assessment processes since early 2023 to reduce chargebacks and losses.

6
Credit Portfolio

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

Credit Portfolio 2,462 2,653 -7.2% 2,609 -5.6%
Working Capital 471 813 -42.0% 625 -24.6%
Credit Card 816 1,014 -19.6% 886 -7.9%
1
Payroll Loan + Others 1,175 826 42.3% 1,099 7.0%
Provision for Losses (651) (903) -27.9% (816) -20.2%
Working Capital (387) (494) -21.7% (513) -24.6%
Credit Card (236) (400) -40.9% (288) -18.1%
1
Payroll Loan + Others (28) (9) 210.2% (14) 95.6%
Credit Portfolio, net 1,811 1,751 3.5% 1,794 1.0%
1. Payroll Loan + Others: Refers to loan portfolios, including advance Brazil's Severance Indemnity Fund (FGTS) withdrawals and payroll loans to public sector employees and retirees.

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

Credit Portfolio 2,462 2,653 -7.2% 2,609 -5.6%
Secured Products 1,469 926 58.6% 1,347 9.1%
% Credit Portfolio 60% 35% 24.8 p.p. 52% 8.1 p.p.
Unsecured Products 993 1,727 -42.5% 1,263 -21.4%
% Credit Portfolio 40% 65% (24.8) p.p. 48% (8.1) p.p.

Credit Portfolio reached R$ 2.5 billion in 3Q23, representing a decrease of -7.2% vs. 3Q22, mainly driven by our
strategy to grow in secured products, which represented 60% of the portfolio, combined with the run-off of working capital loans
and the write-offs of the working capital loans and payroll loans in 3Q23 and credit cards in 2Q23, according to the credit models
update based on IFRS 9 and our tax planning.

Total Deposits

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

Total Deposits 21,569 19,402 11.2% 18,290 17.9%
1
Average Percentage Yield (APY) 93.4% 99.0% (5.5) p.p. 94.3% (0.9) p.p.
Checking Accounts 9,655 6,734 43.4% 8,258 16.9%
1
Average Percentage Yield (APY) 72.0% 66.0% 6.0 p.p. 73.0% (1.0) p.p.
Merchant's Payment Accounts 1,736 832 108.5% 762 127.9%
Banking Accounts 7,919 5,901 34.2% 7,496 5.6%
Savings Accounts 11,914 12,668 -5.9% 10,033 18.8%
1
Average Percentage Yield (APY) 110.8% 116.5% (5.7) p.p. 111.8% (1.0) p.p.
Certificate of Deposits 9,583 10,215 -6.2% 8,273 15.8%
Interbank Deposits 2,331 2,248 3.7% 1,759 32.5%
Corporate Securities 0 205 n.a. 0 n.a.
1. As % of CDI (Brazilian Interbank Rate).

Total Deposits reached R$ 21.6 billion, representing an increase of +11.2% vs. 3Q22. This increase was driven by the
+43.4% y/y growth in Checking Accounts Balance (following better trends observed in TPV and PagBank cash-in), which
allowed us to further reduce annual percentage yields, resulting in lower costs of funding.

Brazilian Interest Rates 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
SELIC 12.75% 13.75% (1.0) p.p. 13.75% (1.0) p.p. 11.75% 13.75% (1.0) p.p.
SELIC | Average 13.38% 13.58% (0.2) p.p. 13.75% (0.4) p.p. 13.62% 12.14% 1.2 p.p.
CDI 12.65% 13.65% (1.0) p.p. 13.65% (1.0) p.p. 10.75% 12.75% (0.1) p.p.
CDI | Average 13.28% 13.47% (0.2) p.p. 13.65% (0.4) p.p. 13.52% 12.04% 1.2 p.p.

7
Financial Performance
Total Revenue and Income

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
1
Total Revenue and Income 4,026 4,035 -0.2% 3,826 5.2% 11,602 11,373 2.0%
Payments 3,771 3,712 1.6% 3,575 5.5% 10,796 10,443 3.4%
Financial Services 2 260 376 -30.8% 243 7.0% 834 1,052 -20.8%
Other Financial Income 66 46 42.2% 65 1.0% 195 132 47.2%
1. Including Other Financial Income;
2. Including Float, intercompany revenue from Payments’ business unit.

Total Revenue and Income reached R$ 4,026 million in 3Q23, representing a slight decrease from R$ 4,035 million
reported in 3Q22, but represented an increase of +5.2% quarter-over-quarter. The breakdown of Payments, Financial Services
and Other Financial Income differs from Total Revenue and Income amount due to the Float from Financial Services unit, which
is an intercompany revenue from Merchant Acquiring funding, not accounted for Total Revenue and Income. Before 1Q23, Float
from Checking Accounts Balance was partially booked in Payments. Going forward, 100% of Float will be fully booked in Financial
Services, similar to other financial institutions. The main differences will be:

(i) Total Revenue and Income: The mismatch between Total Revenue and Income and the managerial Total Revenue
and Income’s breakdown in Payments, Financial Services and Other Financial Income increase given the intercompany
Float will no longer offset a portion of the Financial Expenses. In 3Q23, intercompany Float amounted to R$ 71 million
vs. R$ 99 million in 3Q22 and R$ 57 million in 2Q23.

(ii) Payments: No change in revenue except for an increase in Financial Expenses, since the share of such expenses offset
by the Float usually booked in Payments will no longer occur. Consequently, Gross Profit and Adj. EBITDA will decrease.

(iii) Financial Services: An increase in Revenue since the Float will lead to a higher interest income. Consequently, Gross
Profit and Adj. EBITDA will increase.

For more details about Float accounting reconciliation between Financial Services and Payments, please refer to page 16.

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Revenue and Income 4,026 4,035 -0.2% 3,826 5.2% 11,602 11,373 2.0%
Transaction Activities and Other Services 2,269 2,292 -1.0% 2,166 4.8% 6,586 6,602 -0.2%
Financial Income 1,691 1,697 -0.4% 1,595 6.0% 4,820 4,638 3.9%
Other Financial Income 66 46 42.2% 65 1.0% 195 132 47.2%

Total Revenue and Income performance is explained below:

(i) Transaction Activities and Other Services in 3Q23 amounted to R$ 2,269 million, representing a slight decrease of
-1.0% vs. 3Q22, but represented an increase of +4.8% quarter-over-quarter. This performance is mainly due to the
focus on revenues with higher margins, increasing share of larger merchants in Payments, the impact of the regulatory
change on prepaid/debit cards that came into force on April 1, 2023 and the mix change in credit portfolio towards
secured products with lower yields and longer duration in Financial Services.

(ii) Financial Income, which represents the discount fees we withhold from credit card transactions in installments for the
early payment of Accounts Payable to Third Parties (merchants), reached R$ 1,691 million, representing a slight
decrease of -0.4% vs R$ 1,697 million in 3Q22, mainly due to the increasing share of larger merchants with lower take
rates and shorter duration of TPV of Credit Card installments.

(iii) Other Financial Income reached R$ 66 million in 3Q23, an increase of +42.2% vs. 3Q22, mainly due to the increase
in interest accrued on Cash and Cash Equivalents and higher position.

8
Total Cost and Expenses explained by function

Non-GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Costs and Expenses (3,469) (3,563) -2.6% (3,295) 5.3% (10,044) (9,954) -0.9%
Cost of Sales and Services (2,028) (1,911) 6.1% (1,923) 5.4% (5,875) (5,545) -5.6%
Selling Expenses (377) (531) -29.0% (320) 17.7% (1,013) (1,510) 49.1%
Administrative Expenses (166) (141) 17.4% (162) 2.4% (473) (429) -9.2%
Financial Expenses (820) (921) -10.9% (796) 3.1% (2,429) (2,297) -5.4%
Other Expenses, Net (79) (59) 33.3% (94) -16.1% (255) (173) -32.3%

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Costs and Expenses (3,514) (3,610) -2.7% (3,341) 5.2% (10,168) (10,088) -0.8%
Cost of Sales and Services (2,033) (1,862) 9.2% (1,926) 5.6% (5,889) (5,502) -6.6%
Selling Expenses (378) (531) -28.7% (321) 17.7% (1,018) (1,511) 48.4%
Administrative Expenses (206) (185) 11.3% (203) 1.4% (581) (555) -4.6%
Financial Expenses (820) (921) -10.9% (796) 3.1% (2,429) (2,297) -5.4%
Other Expenses, Net (76) (111) -31.4% (94) -19.0% (253) (225) -11.1%

Total Costs and Expenses, on a non-GAAP basis, amounted to R$ 3,469 million in the 3Q23, representing a decrease
of -2.6% from R$ 3,563 million in the 3Q22.

The decrease is mainly related to:

Cost of Sales and Services reached R$ 2,028 million in the 3Q23, representing an increase of +6.1% year-over-year,
mainly due to the TPV growth, leading to higher interchange and card scheme fees, and higher POS depreciation and
amortization of intangible assets.

When excluding non-GAAP figures related to LTIP (long-term incentive plan), Cost of Sales and Services, on a GAAP basis,
reached R$ 2,033 million, representing an increase of +9.2%, from R$ 1,862 million reported in 3Q22.

Selling Expenses totaled R$ 377 million, representing a decrease of -29.0% from R$ 531 million reported in the same
period of 2022, mainly driven by lower losses and optimizations in Marketing expenses.

When excluding non-GAAP figures related to LTIP (long-term incentive plan), Selling Expenses reached R$ 378 million,
representing a decrease of -28.7%, from R$ 531 million reported in 3Q22.

Administrative Expenses reached R$ 166 million, representing an increase of +17.4% from R$ 141 million presented in
3Q22, mainly driven by higher expenses in software licenses and cloud services.

When excluding non-GAAP figures related to LTIP Costs and M&A, Administrative Expenses reached R$ 206 million,
representing an increase of +11.3%, from R$ 185 million reported in 3Q22.

Financial Expenses totaled R$ 820 million in 3Q23, representing a decrease of -10.9% vs. 3Q22, mainly due to a lower
average cost of funding led by deposits growth, which posted a strong figure quarter-over-quarter, increasing its relevance
in our funding strategy, and lower expenses related to the Brazilian Basic Interest Rate (SELIC) decrease, partially offset by
TPV growth in the period.

Other Expenses, net reached R$ 79 million in 3Q23, representing an increase of +33.3% from expenses of R$ 59 million
reported in 3Q22. This increase is mainly driven by POS write-off during the period.

When excluding non-GAAP figures related to the capital gains from the revaluation of assets of 10% of NETPOS in the
amount of RS 3 million, Other Expenses, net, on a GAAP basis, reached R$ 76 million, representing an increase of +33.3%
from expenses of R$ 59 million reported in 3Q22.

On a GAAP basis, including LTIP, M&A and Other Expenses of R$ 45 million, Total Costs and Expenses amounted to
R$ 3,514 million, representing a decrease of -2.7% in comparison to the amount of R$ 3,610 million presented in 3Q22.

9
Total Cost and Expenses explained by nature

Transaction Costs

Non-GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Transactions Costs (1,508) (1,424) 5.9% (1,414) 6.7% (4,311) (4,141) 4.1%
% Total Revenue and Income 37.5% 35.3% 2.2 p.p. 37.0% 0.5 p.p. 37.2% 36.4% 1.1 p.p.
Interchange and Card Scheme Fee (1,450) (1,380) 5.1% (1,357) 6.8% (4,145) (3,975) 4.3%
Others (59) (45) 31.3% (57) 2.3% (166) (166) 0.0%

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Transactions Costs (1,508) (1,372) 10.0% (1,414) 6.7% (4,311) (4,089) 5.4%
% Total Revenue and Income 37.5% 34.0% 3.5 p.p. 37.0% 0.5 p.p. 37.2% 36.0% 1.5 p.p.
Interchange and Card Scheme Fee (1,450) (1,380) 5.1% (1,357) 6.8% (4,145) (3,975) 4.3%
Others (58) 8 n.a. (57) 2.2% (166) (114) 46.1%

Transaction Costs, on a non-GAAP basis, totaled R$ 1,508 million, representing an increase of +5.9% from R$ 1,424
million in 3Q22. As a percentage of the Total Revenue and Income, Transaction Costs increased to 37.5% in 3Q23 vs. 35.3% in
3Q22.

Transaction Costs, on a GAAP basis, totaled R$ 1,508 million, representing an increase of +10.0% from R$ 1,372
million in 3Q22. As a percentage of Total Revenue and Income, Transaction Costs represented 37.5% vs. 34.0% in 3Q22, mainly
driven by:

Interchange and Card Scheme Fees totaled R$ 1,450 million in 3Q23, representing an increase of +5.1% y/y, mainly
driven by TPV growth partially offset by the impact of the regulatory changes on prepaid/debit cards that came into
force on April 1, 2023; and

Other Costs increased by +31% vs. 3Q22 mainly due to better trends in merchants’ additions leading to higher logistics
and maintenance costs. The non-GAAP effect of R$ 53 million is related to the termination of the provision related to
the PagPhone supply agreement, which was recorded in 2021 and finalized in 2022 (booked in 3Q22).

Net Take Rate

Net Take Rate totaled R$ 2,452 million in 3Q23, representing a decrease of -6.3% vs. 3Q22, mainly due to:

(i) Payments: higher share of larger merchants with lower take rates and shorter duration of TPV from Credit
Card installments; and

(ii) Financial Services: the impact of the regulatory change on prepaid/debit cards that came into force on April
1, 2023, and the mix change in credit products towards secured products with lower yields and longer duration.

10
Financial Expenses

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Financial Expenses (820) (921) -10.9% (796) 3.1% (2,429) (2,297) 5.7%
% Total Revenue and Income 20.4% 22.8% (2.4) p.p. 20.8% (0.4) p.p. 20.9% 20.2% 0.7 p.p.
Securitization of Receivables (249) (307) -19.0% (245) 1.4% (708) (1,017) -30.4%
Accrued Interest on Deposits and Others (571) (614) -6.9% (550) 3.8% (1,721) (1,280) 34.5%

Financial Expenses totaled R$ 820 million in 3Q23, representing a decrease of -10.9% vs. 3Q22. As a percentage of
Total Revenue and Income, Financial Expenses decreased to 20.4% in 3Q23 vs. 22.8% in 3Q22, mainly due to:

(i) Lower average cost of funding led by deposits growth, which posted a strong figure quarter-over-quarter,
increasing its relevance in our funding strategy; and

(ii) Lower expenses related to the Brazilian Basic Interest Rate (SELIC) decrease.

Total Losses

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Total Losses¹ (165) (273) -39.4% (122) 35.8% (413) (793) -47.9%
% Total Revenue and Income 4.1% 6.8% (2.7) p.p. 3.2% 0.9 p.p. 3.6% 7.0% (3.4) p.p.
Chargebacks (136) (123) 10.8% (115) 18.1% (338) (323) 4.4%
Expected Credit Losses (ECL) (29) (150) -80.6% (6) 356.8% (76) (469) -83.9%
1. Review of accounting allocations that resulted in a negligible change between the chargeback and ECL lines in 2Q23 amounting R$ 5 million.

Total Losses reached R$ 165 million in 3Q23, representing a decrease of -39.4% vs. 3Q22. As a percentage of Total
Revenues and Income, Total Losses decreased to 4.1% in 3Q23 vs. 6.8% in 3Q22. This decrease was mainly driven by the
improved asset quality of our credit portfolio with increased exposure to secured products with negligible NPLs, demanding
lower expected credit losses provisions. Quarter-over-quarter, Total Losses increased by +35.8% mainly as a result of our credit
model update on our outstanding balance of provisions in working capital loan and payroll loan portfolio, aligned to IFRS 9.

Gross Profit

Gross Profit totaled R$ 1,477 million in 3Q23, representing an increase of +6.7% vs. 3Q22. This increase is mainly
related to lower financial expenses and lower losses.

11
Operating Expenses

Non-GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Operating Expenses (583) (615) -5.1% (589) -1.0% (1,759) (1,778) -1.1%
% Total Revenue and Income 14.5% 15.2% (0.7) p.p. 15.4% (0.9) p.p. 15.2% 15.6% (0.5) p.p.
Personnel Expenses (245) (235) 4.2% (246) -0.6% (744) (704) 5.7%
Marketing and Advertising (140) (200) -30.1% (129) 8.1% (387) (540) -28.3%
Other Expenses (Income), Net (199) (180) 10.4% (214) -7.1% (629) (535) 17.5%

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Operating Expenses (610) (710) -14.0% (619) -1.4% (2,026) (2,086) -2.9%
% Total Revenue and Income 15.2% 17.6% (2.4) p.p. 16.2% (1.0) p.p. 17.5% 18.3% (0.9) p.p.
Personnel Expenses (274) (278) -1.3% (276) -0.5% (822) (825) -0.4%
Marketing and Advertising (140) (200) -30.1% (129) 8.1% (387) (540) -28.3%
Other Expenses (Income), Net (196) (232) -15.4% (214) -8.2% (817) (721) 13.2%

Operating Expenses, on a GAAP basis, totaled R$ 610 million, representing a decrease of -14.0% from R$ 710 million
in 3Q22. As a percentage of Total Revenue and Income, Non-GAAP Operating Expenses represented 15.2% vs. 17.6% in 3Q22.

Operating Expenses, on a Non-GAAP basis, which include Personnel Expenses, Marketing and Advertising and Other
Expenses, totaled R$ 583 million, representing a decrease of -5.1% from R$ 615 million in 3Q22. As a percentage of Total
Revenue and Income, Non-GAAP Operating Expenses represented 14.5% vs. 17.3% in 3Q22. These trends are mainly due to
the following:

Personnel Expenses reached R$ 245 million, representing an increase of +4.2% vs. 3Q22, driven by the impact of
our collective bargaining agreement and an increase in our salesforce. When including non-GAAP Expenses of R$ 27
million, Personnel Expenses, on a GAAP basis, totaled R$ 274 million, representing a decrease of -1.3% vs. 3Q22 due
to the lower relevance of the long-term incentive plan given the current shares price level.

Marketing and Advertising totaled R$ 140 million in 3Q23, representing a decrease of -30.1% vs. 3Q22, led by the
optimizations on marketing deployment, focusing on being more selective in attracting new clients with better unit
economics; and

Other Expenses reached R$ 199 million in 3Q23, representing an increase of +10.4% from R$ 180 million reported in
3Q22, mainly driven by software licenses and consulting services. When excluding non-GAAP Expenses of R$ 3 million
in 3Q23 and including R$ 52 million in 3Q22, Other Expenses, on a GAAP basis, totaled R$ 196 million, representing
a decrease of -15.4% vs. 3Q22. For more information, refer to note 23 on our Form 6-K containing our 3Q23 Financial
Statements furnished on the date hereof.

Adj. EBITDA, Capital Expenditures and Cash Earnings

Non-GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Adj. EBITDA¹ 894 770 16.1% 849 5.3% 2,530 2,266 11.7%
% Total Revenue and Income 22.2% 19.1% 3.1 p.p. 22.2% 0.0 p.p. 21.8% 19.9% 1.9 p.p.
Payments 892 832 7.2% 850 4.9% 2,460 2,471 -0.4%
Financial Services 2 (62) n.a. (1) n.a. 70 (205) n.a.
Capital Expenditures (CapEx) 529 502 5.3% 530 -0.3% 1,467 1,758 -16.6%
% Total Revenue and Income 13.1% 12.4% 0.7 p.p. 13.9% (0.7) p.p. 12.6% 15.5% (2.3) p.p.
Cash Earnings | Adj. EBITDA (-) CapEx 365 267 36.4% 319 14.4% 1,063 507 109.5%
1. Adj. EBITDA: GAAP Net Income + Income Tax and Social Contribution – Other Financial Income + POS Write-off + Depreciation and Amortization + FX Expenses + M&A Expenses + LTIP
Expenses. Please see the Supplemental Information for a reconciliation of this adjusted financial measure

Adjusted EBITDA amounted to R$ 894 million in 3Q23, representing an increase of +16.1% vs. 3Q22, led by our gross
profit evolution combined with the efficiencies observed in our operating expenses, resulting in higher margins.

Capital Expenditures amounted to R$ 529 million in 3Q23, representing an increase of +5.3% vs. 3Q22, mainly driven
by better trends in gross adds (restoring POS inventories) and investments in PagBank new products development.

12
 Cash Earnings amounted to R$ 365 million, representing an increase of +36.4% year-over-year, driven by better
operating performance combined with a stable trend on capital expenditure deployments in comparison with the previous year.

Depreciation and Amortization

Depreciation and Amortization reached R$ 346 million, representing an increase of +17.7%, from R$ 294 million in
3Q22, mainly explained by:

(i) the depreciation of POS devices; and

(ii) the amortization of R&D investments, mainly related to product development and data security. These
investments allow us to defer our tax liability through “Lei do Bem” (Technological Innovation Law).

When including non-GAAP Expenses of R$ 17 million, D&A, on a GAAP basis, totaled R$ 329 million, representing an
increase of +13.5% vs. 3Q22 due to M&A expenses related to the fair value assets amortization and expenses for external
consulting services.

POS Write-off

In 3Q23, this value amounted to R$ 64 million, representing an increase of +54.9% year-over-year. In September 2019,
we changed our business model from selling POS devices to a subscription model to follow the industry’s best standards and to
improve the merchant’s user experience in terms of:

(i) POS delivery for new merchants; and

(ii) POS maintenance and replacement for existing merchants.

At that time, we strategically prepared for the launch of our HUBs strategy to have the best SLAs in the market, providing
a superior value proposition to focus not only on pricing (POS, MDR and prepayment) fee itself.

Between 2020 and 2021, the COVID-19 pandemic changed merchants’ transaction profile into the PAGS ecosystem,
adding more complexity to understanding merchants’ engagement and activity levels. Now we have a better understanding of
merchants’ activity, and we started to write-off POS devices beginning in the 2Q22.

13
Earnings Before Tax (EBT)

Earnings before Tax amounted to R$ 557 million in 3Q23, representing an increase of +17.9% vs. 3Q22, reflecting
the business growth in Payments and Financial Services, lower financial expenses, lower losses, and operational efficiencies
partially offset by higher Depreciation and Amortization levels.
When including non-GAAP Expenses of R$ 45 million, Earnings before Tax, on a GAAP basis, totaled R$ 512 million,
representing an increase of +20.4% vs. 3Q22.

Income Tax and Social Contribution Reconciliation

1. Refers to the benefit granted by the Technological Innovation Law (“Lei do Bem”), which reduces the income tax charges, based on the amount invested by the PagSeguro Digital Ltd. On
specific intangible assets. Please, see Note 12 in our Form 6-K related to the Financial Statements, published on the date hereof;
2. Some entities and investment funds adopt different taxation regimes according to the applicable rules in their jurisdictions.

Income Tax and Social Contribution amounted to an expense of R$ 101 million in 3Q23, representing an increase
of +125.1% versus 3Q22. Effective Tax Rate (ETR) increased by +920 bps to 19.8% in 3Q23 from 10.6% in 3Q22, mainly driven
by lower results in FIDC and lower Capital Expenditure deployments in 2023 vs. 2022 in regards to “Lei do Bem” eligibility. 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:

(i) Technological Innovation Law (“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

(ii) Taxation of Income abroad. Certain entities or investment funds adopt different taxation regimes in
accordance with the applicable rules in their respective jurisdictions.

14
Net Income

Net Income for the quarter amounted to R$ 440 million, representing an increase of +7.0%, from R$ 411 million
reported in 3Q22.

Including Non-GAAP expenses of R$ 29 million, Net Income on GAAP basis totaled R$ 411 million, up +8.0% when
compared to R$ 385 million reported in 3Q22.

Adj. EBITDA and Net Income (Non-GAAP) Reconciliation

R$ Million 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23

Net Income | GAAP 350 367 380 408 370 385 411
(+) Income Tax and Social Contribution 67 76 45 67 66 100 101
2
(+) LTIP Expenses 28 51 43 (42) 19 30 30
(+) POS Write-off 0 93 41 66 62 65 64
(+) Depreciation and Amortization 249 281 294 307 317 326 346
(-) Other Financial Income (42) (45) (46) (43) (65) (65) (66)
(+) M&A Expenses 3 0 0 0 0 0 0 (3)
(+) FX Expenses 13 9 12 15 17 9 10
(+) PagPhone realizable value reversal 1 0 0 (53) 0 0 0 0
2
(-) Software's disposals 0 0 29 11 0 0 0
2
(-) Boleto Flex impairment 0 0 13 0 0 0 0
2
(-) Agreement with POS supplier 0 0 10 0 0 0 0
Adj. EBITDA 665 831 770 788 787 849 894

R$ Million 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23

Net Income | GAAP 350 367 380 408 370 385 411
2
(+) LTIP Expenses 28 51 43 (42) 19 30 30
3
(+) M&A Expenses 5 5 5 5 5 5 3
(+) Income Tax and Social Contribution (11) (19) (16) (2) (11) (16) (15)
(+) PagPhone realizable value reversal 1 0 0 (35) 0 0 0 0
(-) Software's disposals 2 0 0 19 11 0 0 0
2
(-) Boleto Flex impairment 0 0 8 0 0 0 0
2
(-) Agreement with POS supplier 0 0 7 0 0 0 0
(+) Capitalized Expenses of platforms development 0 0 0 32 10 11 12
Net Income | Non-GAAP 371 403 411 411 392 415 440
Total Costs and Expenses (Non-GAAP) are booked in:
1. Transaction Costs;
2. Operating Expenses;
3. Depreciation and Amortization.

15
Managerial Float Reconciliation1

1. The observed increase in Financial Services revenues and decrease in Gross Profit/EBITDA in Payments is attributed to the revised float allocation: R$33M in 1Q23, R$33M in 4Q22 and
R$28M in 1Q22.

16
Cash Flow Analysis

Cash and Cash Equivalents at the end of 3Q23 amounted to R$ 1,975 million, representing an increase of
R$ 570 million, up +40.6% year-over-year.

Expenses (Revenues) not affecting Cash amounted of R$ 826 million, representing a decrease of -33.3% year-over-
year mainly driven by:

▪ Lower Losses, mainly related to better fraud prevention actions related to Total Payment Volume and more detailed
credit analysis for credit operations;

▪ Depreciation and Amortization growth due to the deployed capital expenditures in prior years;

▪ Decrease in the Interest accrued from Financial Assets and Liabilities given the lower average cost of funding driven by
the deposits growth;

▪ Increase in Disposal of Property, Equipment, and Intangible Assets, mainly explained by the write-offs of POS devices.

Net Cash provided by (used in) Operating Activities

Net Cash provided in Operating Activities in 3Q23 totaled R$ 972 million, representing a decrease of -9.2% vs.
3Q22.

The adjustments for changes in Operating Assets and Liabilities amounted to negative cash flow of R$ 1,037 million
in 3Q23, mainly due to:

▪ Accounts receivable, 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;

▪ Payables to third parties, 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 Liabilities on our Balance Sheet;

▪ Receivables from (Payables to) related Parties, consists of the difference between the opening and closing balances
of the Payables to related Parties excluding Interest Paid, which are presented separately in the statement of Cash
Flows;

17
▪ Salaries and Social Charges consist of the amounts that were recorded on our Statement of Income, but which
remained unpaid at the end of the period.

▪ Trade Payables item consists of the difference between the opening and closing balances of trade payables, negatively
impacting the result.

▪ Taxes and contributions item consists of sales taxes (ISS. ICMS. PIS and COFINS), negatively impacting the result.

▪ Financial Investments (mandatory guarantee) item consists of the minimum amount that we need to maintain as
required by the Brazilian Central Bank. This item impacted positively the third quarter ended September 30, 2023.

▪ Taxes Recoverable item consists of withholding taxes and recoverable taxes on transaction activities and other
services and purchase of POS devices. This item impacted positively the cash flow in the third quarter.

▪ Deposits consists of issued certificates of deposit excluding interest income paid to, which are presented separately in
the statement of cash flows. This item impacted positively the cash flow in the third quarter.

▪ We paid Income tax and social contribution in cash totaling R$ 19 million.

▪ Interest Income received, net consisted of interest recorded under Accounts Receivable (monthly), which related to
fees charged from merchants, considering the Brazilian monthly Interest Rate over PAGS Accounts Receivable and
interest paid related to our deposits. Interest Income amounted to R$ 690 million.

18
Net Cash provided by (used in) Investing Activities

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Net Cash from Investing Activities (503) (498) 1.1% (553) -8.9% (1,618) (1,758) -8.0%
1
Amount paid on Acquisitions (31) 0 n.a. 0 n.a. (31) 0 n.a.
Property and Equipment (266) (247) 8.1% (277) -3.9% (692) (1,027) -32.6%
Intangible Assets (262) (256) 2.4% (253) 3.5% (775) (731) 5.9%
Redemption (Acquisition) of Fin. Invest. 56 4 1247.8% (22) n.a. (120) 0 n.a.
1. Net of Cash acquired.

Net Cash used in Investing Activities in 3Q23, totaled R$ 503 million, up +1.1% vs. 3Q22, mainly due to:

▪ Acquisitions, net of cash acquired, resulted in a negative impact of R$ 31 million, related to acquisition of the remaining
shares of NetPOS.

▪ Purchases of Property and Equipment of R$ 266 million, representing an increase of +8.1% y/y.

▪ Purchases and Development of Intangible Assets of R$ 262 million, representing an increase of +2.4% y/y, in
connection with purchases of third-party software and salaries and other amounts that we invested to develop software
and technology internally, which we capitalize as intangible assets.

▪ Acquisition (redemption) of Financial Investments, which positively impacted net cash used by investing activities.

Net Cash provided by (used in) Financing Activities

GAAP | R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q 9M23 9M22 Var. y/y
Net Cash from Financing Activities (218) (361) -39.4% (3) 7146.8% (71) (221) -67.9%
Proceeds from Borrowings 0 0 n.a. 100 n.a. 300 250 20.0%
Payment of borrowings (100) (243) -58.8% 0 n.a. (100) (250) -60.0%
Payment of borrowings interests (10) (15) -37.3% 0 n.a. (10) (15) -37.3%
Capital inc. by non-controlling shareholders 0 0 n.a. 0 n.a. 0 0 n.a.
Payment of Leases (4) (4) -11.7% (5) -20.9% (13) (14) -9.8%
Acquisition of Treasury Shares (105) (98) 7.1% (98) 6.9% (249) (192) 29.7%

Net Cash used in Financing Activities in 3Q23, totaled a disbursement of R$ 218 million, representing a decrease
of -39.4% year-over-year, mainly related to the Payment of borrowings and interests in the amount of R$ 110 million and
acquisitions of treasury shares in the amount of R$ 105 million.

19
Appendix
Balance Sheet

R$ Million 3Q23 3Q22 Var. y/y 2Q23 Var. q/q

Total Assets 47,327 43,276 9.4% 42,836 10.5%
Current Assets 41,147 37,709 9.1% 36,898 11.5%
Cash and Cash Equivalents 1,975 1,405 40.6% 1,724 14.5%
Financial Investments 1,078 1,074 0.4% 1,122 -3.9%
Accounts Receivable 37,521 34,570 8.5% 33,440 12.2%
Derivative Financial Instruments 0 0 n.a. 0 n.a.
Receivables from Related Parties 4 0 n.a. 2 103.3%
Inventories 26 52 -49.7% 33 -20.1%
Taxes Recoverable 379 460 -17.6% 421 -10.0%
Other Receivables 163 149 9.4% 155 5.4%
Non-current Assets 6,180 5,567 11.0% 5,939 4.1%
Judicial Deposits 50 44 12.6% 50 0.2%
Accounts Receivable 1,000 731 36.7% 918 8.9%
Receivables from related parties 28 0 n.a. 13 109.2%
Other receivables 39 16 148.7% 25 54.6%
Deferred Income Tax 102 103 -1.4% 98 3.9%
Investment 0 2 n.a. 2 n.a.
Property and Equipment 2,478 2,672 -7.2% 2,474 0.2%
Intangible Assets 2,484 1,999 24.2% 2,359 5.3%
Total Liabilities and Equity 47,327 43,276 9.4% 42,836 10.5%
Current Liabilities 28,665 28,287 1.3% 25,890 10.7%
Payables to Third Parties 18,707 14,947 25.2% 16,632 12.5%
Trade Payables 439 372 18.2% 465 -5.5%
Payables to Related Parties 78 451 -82.6% 74 5.7%
Borrowings 193 987 -80.5% 292 -34.0%
Derivative Financial Instruments 28 157 -82.1% 33 -14.2%
Deposits 8,577 10,795 -20.5% 7,813 9.8%
Salaries and Social Charges 334 301 11.0% 276 20.8%
Taxes and Contributions 83 73 12.9% 83 -0.4%
Provision for Contingencies 70 43 64.0% 62 13.4%
Deferred Revenue 126 132 -4.6% 125 0.7%
Other Liabilities 30 29 3.8% 34 -12.7%
Non-current Liabilities 5,793 3,477 66.6% 4,421 31.0%
Payables to Third Parties 159 0 n.a. 127 25.1%
Deferred Income Tax 1,755 1,530 14.7% 1,666 5.3%
Provision for Contingencies 6 15 -56.5% 7 -8.1%
Deposits 3,337 1,843 81.0% 2,219 50.4%
Deferred Revenue 18 19 -5.4% 18 1.6%
Payables to related parties 284 0 n.a. 155 83.5%
Other Liabilities 233 70 232.6% 229 2.0%
Equity 12,868 11,512 11.8% 12,526 2.7%
Share Capital 0 0 0.0% 0 0.0%
Capital Reserve 6,097 6,089 0.1% 6,062 0.6%
Retained earnings 7,403 5,830 27.0% 6,992 5.9%
Treasury Shares (610) (377) 61.9% (506) 20.6%
Other Comprehensive Income (0) (9) -99.2% (1) -93.6%
Equity Valuation Adjustments (22) (22) 0.0% (22) 0.0%

20
Basic and Diluted EPS | Third Quarter 2023

1. Weighted average number.

21
Cash Flow

22
Non-GAAP disclosure
This press release includes certain non-GAAP measures. We present non-GAAP measures when we believe that the
additional information is useful and meaningful to investors. These non-GAAP measures are provided to enhance investors'
overall understanding of our current financial performance and its prospects for the future. Specifically, we believe the non-
GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses,
as the case may be, that may not be indicative of our core operating results and business outlook.

These measures may be different from non-GAAP financial measures used by other companies. The presentation of
this non-GAAP financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not
intended to be considered separately from, or as a substitute for, our financial information prepared and presented in accordance
with IFRS as issued by the IASB. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with
our results of operations as determined in accordance with IFRS. These measures should only be used to evaluate our results
of operations in conjunction with the corresponding GAAP measures.

Non-GAAP results consist of our GAAP results as adjusted to exclude the following items:

LTIP Expenses: This consists of expenses for equity awards under our two long-term incentive plans (LTIP and LTIP-
Goals). We exclude LTIP expenses from our non-GAAP measures primarily because they are non-cash expenses and the related
employer payroll taxes depend on our stock price and the timing and size of exercises and vesting of equity awards, over which
management has limited to no control, and as such management does not believe these expenses correlate to the operation of
our business.

M&A Expenses: This consists of expenses for mergers & acquisitions (“M&A”) transactions, including, among others,
expenses for external consulting, accounting and legal services in connection with due diligence and negotiating M&A
documentation for our acquisitions, as well as amortization and write-downs of the fair value of certain acquired assets. We
exclude M&A expenses from our non-GAAP measures primarily because such expenses are non-recurring and do not correlate
to the operation of our business.

Non-recurring Effects: This consists of one-time effects related to PagPhone sales, PagPhone inventory provisions,
tax impairment, software disposals and development. We exclude non-recurring effects from our non-GAAP measures primarily
because such items are non-recurring and do not correlate to the operation of our business.

Income Tax and Social Contribution on LTIP Expenses, M&A Expenses and Non-Recurring Adjustments: This
represents the income tax effect related to the LTIP expenses, M&A expenses and non-recurring adjustments mentioned above.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see the
tables elsewhere in this press release under the following headings: “Income Tax and Social Contribution Reconciliation,”
“Adjusted EBITDA and Non-GAAP Net Income Reconciliation,” “Reconciliation of Basic and diluted EPS to non-GAAP Basic and
diluted EPS” and “Reconciliation of GAAP Measures to non-GAAP Measures.”

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Earnings Call
PagSeguro Digital Ltd. (NYSE: PAGS) will host a conference call and earnings webcast on November 16, 2023 at 5:00 pm ET.

Event Details
HD Web Phone: Click here

Dial–in (Brazil): +55 (11) 3181-8565 or +55 (11) 4090-1621

Dial–in (US and other countries): +1 (412) 717-9627 | +1 (844) 204-8942
Password: PagSeguro Digital

Webcast: https://choruscall.com.br/pagseguro/3q23.htm

Contacts:
Investor Relations: Media Press:
[email protected] [email protected]
investors.pagbank.com

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements
contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,”
“expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,”
“could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements. We cannot
guarantee that such statements will prove correct. These forward-looking statements speak only as of the date hereof and are
based on our current plans, estimates of future events, expectations and trends (including trends related to the global and
Brazilian economies and capital markets, as well as the continuing economic, financial, political and public health effects of the
coronavirus, or the COVID-19, pandemic.) that affect or may affect our business, financial condition, results of operations, cash
flow, liquidity, prospects and the trading price of our Class A common shares, and are subject to several known and unknown
uncertainties and risks, many of which are beyond our control. As consequence, current plans, anticipated actions and future
financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this
press release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information
presented. In light of the risks and uncertainties described above, the future events and circumstances discussed in this press
release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any
investment decision based upon these estimates and forward-looking statements. To obtain further information on factors that
may lead to results different from those forecast by us, please consult the reports we file with the U.S. Securities and Exchange
Commission (SEC) and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in our annual
report on Form 20-F.

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