The company’s performance reflects a mixed financial picture: improved top-line cost efficiency helped boost gross earnings, but higher administrative and marketing expenses narrowed overall profitability.
Revenue for the year grew modestly to N29.8 billion, a 1.08% increase from 2024. The growth was supported largely by the company’s electronic payment processing and switching services. In the fourth quarter alone, eTranzact generated N9.8 billion, representing a 30% year-on-year increase, while pretax profit for the period stood at N802.3 million.
Cost of sales fell significantly to N15.6 billion, compared with N18.1 billion in the prior year, reflecting improved operational efficiency. This helped lift gross profit to N14.1 billion, a 24.48% increase from the N11.3 billion reported in 2024.
However, the improved gross margin was undermined by a sharp rise in operating expenses. Administrative expenses surged by 50.08% to N9.2 billion, while selling and marketing costs jumped 119.5% to N930.8 million. These increases placed pressure on operating profitability, which declined to N4.0 billion from N4.8 billion in the previous year.
After accounting for finance costs of N19.2 million and investment income of N258.8 million—a 6.58% increase—profit before tax settled at N4.2 billion, compared with N5.02 billion in 2024.
On the balance sheet, total assets rose sharply by 92%, reaching N46.1 billion, driven largely by cash and cash equivalents, which accounted for N31.6 billion of the total. Shareholders’ equity also strengthened to N16.6 billion, supported by an increase in retained earnings to N4.7 billion from N2.8 billion in the prior year. However, total liabilities rose substantially to N29.5 billion, up from N9.1 billion, reflecting a significant increase in financial obligations.
The market reaction to the results has been broadly positive. eTranzact shares gained more than 7% as of mid-trading on 4 February 2026, trading above N18, suggesting investors are placing greater emphasis on the company’s continued profitability and stronger balance sheet rather than the year-on-year decline in pretax earnings.