eTranzact International Plc has reported a mixed financial performance for the year ended December 31, 2025, with modest revenue growth offset by a decline in profitability driven by rising operating expenses and higher tax obligations.
The electronic payments company recorded revenue of ₦30.61 billion in 2025, compared to ₦29.90 billion in the previous year, representing a growth of about 2.4 percent. The increase was supported by sustained transaction volumes and continued expansion across its digital payment platforms.
Despite the revenue growth, cost of sales declined from ₦18.54 billion in 2024 to ₦16.30 billion in 2025, contributing to an improvement in gross profit, which rose to ₦14.31 billion from ₦11.36 billion. This indicates stronger efficiency at the direct cost level.
Brandspur Banking News Desk reports that the company’s operating performance was weighed down by a significant rise in administrative and marketing expenses, which increased sharply during the period and eroded gains achieved at the gross profit level.
Administrative expenses rose to ₦9.23 billion from ₦6.38 billion, while selling and marketing expenses more than doubled to ₦930.85 million from ₦424.10 million. Additionally, the company recorded an impairment charge of ₦198.09 million, reversing a gain recorded in the previous year.
As a result, operating profit declined to ₦3.95 billion from ₦4.66 billion, reflecting pressure on margins despite improved revenue and gross profit performance.
Finance income increased slightly to ₦258.90 million, while finance costs remained relatively low at ₦10.26 million. Other income remained marginally negative at ₦1.24 million, offering little impact on overall earnings.
Profit before tax fell to ₦4.20 billion from ₦4.90 billion in 2024, while income tax expenses rose to ₦1.73 billion from ₦1.50 billion, further impacting net earnings.
Consequently, profit after tax declined by 27.2 percent to ₦2.47 billion from ₦3.39 billion in the prior year. Earnings per share also dropped to 27 kobo from 37 kobo, reflecting the weaker bottom-line performance.
On the balance sheet, eTranzact recorded a substantial expansion in total assets, which nearly doubled to ₦46.14 billion from ₦24.00 billion in 2024. The growth was largely driven by a significant increase in cash and short-term deposits, which rose to ₦31.65 billion from ₦12.65 billion.
Other assets increased to ₦7.56 billion from ₦5.44 billion, while trade and other receivables rose to ₦995.52 million from ₦555.19 million. Inventories declined to ₦1.76 billion from ₦2.21 billion, and non-current assets grew to ₦4.18 billion from ₦3.15 billion, reflecting continued investment in operational infrastructure.
Liabilities also surged significantly during the period, rising to ₦29.95 billion from ₦9.13 billion, largely driven by trade and other payables, which increased to ₦27.94 billion from ₦7.26 billion. This reflects higher transaction-related obligations as the company scales its operations.
Total equity increased modestly to ₦16.19 billion from ₦14.87 billion, supported by retained earnings, which rose to ₦4.22 billion from ₦2.90 billion.
Overall, eTranzact’s 2025 results highlight a business experiencing growth in transaction activity and asset base, but facing rising operational costs that continue to pressure profitability. Sustaining earnings performance will depend on the company’s ability to manage expenses while leveraging its expanding liquidity and transaction volumes.
