Eleving Group achieves record-high net profit of EUR 27.8 million in the first nine months of 2026

Financial highlights

Profitability
 

• Eleving Group reported a record-high EUR 263.8 million in total revenue during the first nine months of 2026, representing a 47.5% increase compared to the corresponding reporting period last year.

 

• The Group maintained a diversified business portfolio, generating a well-balanced revenue stream from all the core product segments:  
  • Vehicle financing products accounted for EUR 112.0 million in revenue (a 21.2% increase compared to the first nine months of 2025)
  • Device financing products accounted for EUR 39.2 million in revenue, reflecting the growing contribution of the product segment to the Group’s revenue following its launch in 2025
  • Consumer financing products accounted for EUR 112.6 million in revenue (a 33.2% increase compared to the first nine months of 2025)

 

• The Group’s adjusted EBITDA reached EUR 103.4 million, increasing by 41.8% compared to the corresponding reporting period last year, in line with the revenue growth.

 

• The net profit before FX and discontinued operations totaled EUR 40.4 million, representing a 26.3% year-over-year increase and nearly matching the full-year 2025 result of EUR 40.9 million.  

 

• The total net profit for the first nine months of 2026 amounted to EUR 27.8 million, an increase of 17.8% compared to the EUR 23.6 million recorded in the corresponding period of 2025. During the third quarter alone, the Group generated a record net profit of EUR 11.3 million, reflecting the positive effects of earlier initiatives focused on product profitability and cost optimization.

 

• The Group concluded the reporting period with a return on equity of 28.7%, calculated based on the profit for the trailing 12 months.

Financial position

• At the end of September 2026, Eleving Group’s net portfolio reached EUR 548.7 million—up by 22.9% from EUR 446.3 million at year-end 2025.

 

• As at 30 September 2026, the capitalization ratio stood at 23.3% (31 December 2025: 23.7%), the interest coverage ratio at 2.4 (31 December 2025: 2.3), and net leverage at 3.6 (31 December 2025: 3.8).

 

• Eleving Group continued to manage foreign exchange exposure through a combination of the local currency borrowing and hedging arrangements. Alongside its fundraising activities in Africa, the Group further expanded its access to local currency financing in Armenia and Georgia during the first nine months of 2026. In Georgia, the Group secured its first local currency credit facility from a domestic commercial bank, equivalent to nearly EUR 7 million, while in Armenia, the total available funding in local currency increased to nearly EUR 13 million. The Group continues to advance discussions with investors across other target markets, with additional facilities expected to be secured by the end of 2026. 

 

• In October 2026, Eleving Group has successfully completed the issuance of EUR 200 million senior secured and guaranteed bonds (ISIN: XS3517354141), priced at 9% through a private placement. The transaction included a EUR 25 million public exchange offer for holders of the Group’s 13% 2023/2028 bonds (ISIN: DE000A3LL7M4). The proceeds have been partially used to refinance the 13% bonds, the outstanding Mintos borrowings, and other euro-denominated debt facilities. The reduction in the coupon rate from 13% to 9%, together with the six-year maturity of the new bonds, is expected to significantly contribute to lower overall cost of funding over the coming years. The remaining proceeds are being gradually deployed to support measured portfolio growth.

 

• In accordance with Eleving Group’s dividend policy, the next dividend payment is expected to take place at the end of November 2026, based on the profits generated during the first six months of the year.

 

• No material changes in the Group’s risk profile or other events requiring additional disclosure were recorded during the reporting period. Volatility in global energy prices continued to put pressure on emerging market currencies, increasing foreign exchange risks in certain operating markets. The Group continued to manage these risks through local currency funding and hedging arrangements, maintaining substantial hedging coverage and keeping foreign exchange expenses under control. Expected currency-related costs were also  incorporated into product pricing to support profitability.

Operational and strategic highlights

Growth
 

• During the first nine months of 2026, Eleving Group recorded its highest loan issuance volumes to date, reaching EUR 472.0 million, a 38.2% increase year-over-year. The growth was well balanced across both business lines, with vehicle and device finance issuances increasing by 42.1% to EUR 224.3 million—comprising EUR 177.1 million in vehicle financing and EUR 47.2 million in device financing—while consumer finance issuances grew by 34.9% to EUR 247.7 million.

 

• The Group’s vehicle financing product segment recorded steady customer demand, with over 120 thousand loans issued during the reporting period, representing a 52.2% year-over-year increase. The conversion rate was 25.4%, reflecting higher motorcycle financing volumes in East African markets, supported by the Group’s effective distribution strategy and favorable competitive conditions despite the impact of volatile global energy prices on these markets.

 

• The device financing products continued to scale in Kenya, Uganda, and Tanzania, reaching a milestone of 500 thousand smartphone loans issued during the first nine months of the year. The Group maintained strong issuance volumes through its advanced digital underwriting process and an expanding distribution network, reaching 1,800 active third party retail stores by the end of September 2026.

 

• In the consumer financing segment, growth was recorded across multiple operating markets, with the number of loans issued increasing by 11.0% year-over-year to 400 thousand during the first nine months of 2026. The Group was focused on client retention initiatives, with a significant share of issuances made to repeat customers. At the same time, the Group maintained prudent underwriting standards across all applicants, with an overall conversion rate of 33.2%.

 

• As at 30 September 2026, the total net loan portfolio stood at EUR 548.7 million. The vehicle financing products represented EUR 275.3 million of the portfolio, followed by consumer financing at EUR 239.3 million and device financing at EUR 34.1 million. The countries representing the largest share in the portfolio were Kenya (18.8%), Latvia (14.4%, including the Primero1 product portfolio in the total portfolio balance), Romania (11.3%), and Albania (7.6%).

Operational milestones
 

• During the third quarter of the year, Eleving Group introduced group-wide measures to optimize capital allocation across products and markets, aiming to improve portfolio efficiency and long-term profitability. Particular focus was placed on refining the unit economics of recently introduced products, assessing their contribution to overall profitability, and identifying opportunities to improve impairment performance. As part of these optimization efforts, the Group is exploring a potential expansion of its partnership with Primero, a joint venture with a local bank in Latvia.

 

• Eleving Group continued to develop its existing products to better meet local customer needs, focusing on greater flexibility and more efficient lending processes. The Group introduced shorter-term consumer loans in Romania and Armenia, while in Albania, it is developing a longer-term secured consumer financing product, further broadening its offering in line with the local market demand.

 

• The Group has established a strong position in the smartphone financing market across its East African operations, supported by continued product development and an advanced digital lending infrastructure. The Group’s proprietary mobile application, used by over half a million customers, provides a convenient platform for loan applications and ongoing loan management. The product also features an integrated digital collection system, enabling automatic device locking in the event of overdue payments and supporting effective credit risk management. With loans typically repaid through daily or weekly installments, the Group processes approximately 280,000 payments per day, demonstrating the capacity of its in-house technology to manage high transaction volumes and support further business growth.

 

• Following the launch of operations in July 2026, Eleving Group recorded over 1,800 loan issuances in South Africa during the third quarter. The business remains in a gradual roll-out phase, with the Group assessing different customer segments and refining its underwriting approach to support sustainable portfolio growth. While the majority of loans are currently issued through a fully digital lending process, the Group has also established two operational branches and plans to further develop its offline distribution network to broaden its customer reach and support future growth.

 

• The Group’s cost-to-income ratio improved to 32.6% for the first nine months of 2026, compared to the 38.0% for the full year 2025. The improvement reflects the effects of cost optimization measures implemented earlier in the year, continued control over administrative expenses, and revenue growth across the Group’s financing products. The Group remains focused on maintaining a disciplined cost base and identifying further opportunities to improve operational efficiency across its operations.

Comments from Eleving Group CEO and CFO

Modestas Sudnius, CEO of Eleving Group

We are very satisfied with our results of the first nine months of 2026. Our revenue continued to grow across all three product segments, increasing by nearly a half to a record high compared to the corresponding reporting period of 2025.

As planned, we moderated loan issuance volumes in the second half of the year to maintain a balance between growth and profitability. This approach was reflected in our third-quarter performance, with issuance volumes remaining broadly in line with the previous quarter. The moderation in loan issuance volumes, combined with our efficiency measures, contributed to our strongest quarterly net profit to date. In addition, in the first nine months of 2026, we delivered a level of profitability comparable to that achieved for the full year of 2025. While we are pleased with these results, we remain focused on driving further profitability through greater operational efficiency and stronger unit economics across our products.

At the same time, growth remains an important part of our strategy. In July, we launched operations in South Africa, our newest market, where we are testing different customer segments and refining our underwriting approach to support further expansion and sustainable portfolio growth. On the product side, we have established a strong position in the smartphone financing market in East Africa, having launched these operations approximately a year ago. The rapid expansion has been supported by our advanced in-house technology infrastructure, which processes approximately 280,000 payments daily. The expansion of our smartphone financing business has also helped us reach the milestone of one million active customers. While it took us 14 years to reach our first million of active customers, we believe we can double our active customer base over the next two years, supported by the firm foundations laid for future growth.

Overall, we are well positioned to finish the year strongly. At the same time, we continue to closely monitor global economic developments, particularly the rising energy prices and interest rates. While we have not seen any immediate material impact on our third-quarter results, we remain prudent and prepared to respond to challenges that could affect our business.

Māris Kreics, CFO of Eleving Group

October 2026 marked a significant milestone in the strengthening of our funding structure through a new bond issuance of EUR 200 million. Despite the ongoing volatility in capital markets, the transaction attracted significant interest from institutional investors and family offices in the UK, the US, Germany, Switzerland, and the Baltics, with the offering oversubscribed nearly 1.5 times. The strong investor interest enabled us to secure a 9% coupon, compared with the 13% on the refinanced bond, substantially reducing our cost of funding. The successful issuance also reflects investor confidence in our financial performance, credit profile, and established position in the international debt capital markets.

The proceeds from the bond issuance have already been used to refinance EUR 90 million worth of the bond issued in 2023, while also proceeding with the repayment of our outstanding borrowings through Mintos. The remaining proceeds will be gradually deployed to support portfolio growth, resulting in a temporarily elevated cash position over the next three to four months. Overall, the transaction has significantly strengthened our liquidity position, extended our debt maturity profile, and secured sufficient funding to support our planned portfolio growth for the foreseeable future.

Alongside the strengthening our capital structure, we continued to improve operational efficiency and profitability. Our cost-to-income ratio decreased from 38.0% for the full year 2025 to 32.6% for the first nine months of 2026, reflecting effective cost control and disciplined expense management. These improvements contributed to a record high quarterly net profit in the third quarter. We will continue to focus on improving efficiency and delivering sustainable profit growth.

Our improved profitability and disciplined financial management also support our commitment to delivering consistent returns to shareholders. We expect to make our next dividend payment at the end of November 2026, in line with our dividend policy. At the same time, we will continue to balance shareholder returns with maintaining a strong financial position, carefully managing our capitalization ratio and leverage levels while ensuring sufficient capacity to support future growth.

Full unaudited consolidated report on the 9M period ended on 30 June: https://www.eleving.com/investors/reports

Conference Call: the Group's management team will hold a conference call in English on 10 November 2026 at 15:00 CET to present the results. Conference call registration link here.

Additional information:

Elīna Dobulāne
Group’s Chief Corporate Affairs Officer, Eleving Group
elina.dobulane@eleving.com | +371 25959447

About Eleving Group

Eleving Group is a publicly listed international financial technology company founded in 2012. Today, the group operates in 18 countries on three continents, providing vehicle, smartphone and consumer financing services. Since its founding, Eleving Group has served more than 2.5 million registered users. The group employs over 4,800 people across its operations. The company’s headquarters are located in Riga, Latvia.

Since October 16, 2024, the Eleving Group shares have been listed on both the Nasdaq Baltic Official List and the Frankfurt Stock Exchange Prime Standard.