Eleving Group 3M results ended on March 31, 2025

Positioned to pursue accelerated growth following resilient first-quarter results

Operational and Strategic Highlights

Profitability

• Eleving Group started the year with revenue of EUR 58.6 million in Q1 2025, up by over 13%, compared to the corresponding reporting period a year ago.
• The Group maintained a diversified business operations portfolio, generating a well-balanced revenue stream from all core business lines:
  • Flexible and subscription-based products contributed EUR 13.6 million to the revenue.
  • Traditional vehicle financing contributed EUR 19.6 million to the revenue.
  • Consumer lending products contributed EUR 25.4 million to the revenue.
• The Group's adjusted EBITDA was EUR 22.3 million, an increase of 1%, compared to the corresponding reporting period a year ago.
• The net portfolio in the first quarter of 2025 remained stable at EUR 371.1 million.
• The net profit before FX and discontinued operations amounted to EUR 8.7 million, a solid increase of almost 12%, compared to the corresponding reporting period a year ago.
• The total net profit reached EUR 6.4 million, an increase of over 10%, compared to the corresponding reporting period a year ago.

Growth

• Loan issuance volumes in Q1 2025 reached EUR 96.1 million, recording a 22% year-over-year increase, supported by a strong customer interest and a 27% increase in loan applications. This growth highlights the Group’s solid market position, strategic product enhancements in key markets, and ongoing expansion of sales channels and branch networks. Improved accessibility, through physical presence and increased digitalization, has further supported the scalability of the lending operations. On a quarter-on-quarter basis, loan volumes and applications declined, reflecting the anticipated post-Christmas seasonality effect and the implementation of stricter underwriting criteria following a remarkably strong year-end performance in Q4 2024.
• The net loan portfolio stood at EUR 371.1 million at the end of Q1 2025, reflecting a solid 12% increase on the same period in 2024. Despite this year-over-year growth, the portfolio remained largely the same, compared to the end of 2024, primarily due to seasonal patterns and the revaluation impact caused by the weakening of several local currencies against the euro.
• In Q1 2025, the Group successfully launched a new smartphone financing product in Uganda in a strategic collaboration with the leading phone manufacturers and international telecommunications partners. The initiative seeks to enhance digital inclusion and broaden access to consumer financing solutions in emerging markets. The product supports the development of local entrepreneurs by providing access to mobile applications for deliveries and taxi services, helping small businesses reach additional clientele and scale their revenues. The expansion aligns with the Group’s broader strategy to diversify its product portfolio and tap into high-potential customer segments through scalable, tech-enabled solutions.
• Eleving Group continues to actively pursue geographic expansion, with a particular focus on selected markets in both African and European regions. During Q1 2025, the Group carried out key preparatory activities, including in-depth market research, legal entity formation, and license acquisition. These efforts reflect Eleving Group’s commitment to long-term, sustainable growth through strategic market entry and regulatory compliance. Operations in the targeted markets are expected to commence in the second half of the year, further reinforcing the Group’s vision of building a diversified and resilient international footprint.

Operational Milestones

• Eleving Group has launched unsecured installment loan products in Latvia, Estonia, and Romania. Initially, these loans are being offered with an emphasis on the existing customer base, with plans to expand to a broader market segment in the second half of the year. The Group’s continued focus on diversifying its product offerings aims to drive customer growth and enhance market penetration across the Group’s core countries, with the potential for expansion into additional markets.
• In Q1 2025, Eleving Group continued to advance green mobility initiatives in Africa, solidifying its position as a leader in the East African e-motorcycle financing market. During this period, the company financed over 400 e-motorcycles, bringing the total number to approximately 2,600 units since the launch of the operations. The company's customers collectively traveled around 4.8 million kilometers powered solely by electricity, helping to save an estimated 150 metric tons of CO₂ emissions in Q1 2025.
• In Q1 2025, Eleving Group prepared its fifth sustainability report. The report follows the CSRD and ESRS guidelines, representing a major step forward in the company’s disclosure practices. It comprehensively covers all key material impacts, ranging from greenhouse gas emissions and climate impact to workforce-related issues, and concludes with corporate governance insights.
• On 13 February 2025, the Constitutional Court of North Macedonia ruled that the extraordinary corporate tax (solidarity tax) introduced in 2023 was unconstitutional, requiring the state treasury to reimburse the amounts previously paid by affected companies. As a result, Eleving Group has recognized a receivable of EUR 1.15 million from the state. Concurrently, the Group is also addressing a tax dispute in Romania, where the Romanian Tax Authority’s decision regarding additional VAT liabilities for the period of 2017–2022 is challenged. Notably, the tax has already been fully paid, and therefore, a negative decision by the tax and court authorities would not result in further economic and financial consequences for the Group in relation to the matter.

Financial Highlights and Progress

• Consistent financial performance and steady profitability, driven by strong underlying results:
  • Adjusted EBITDA of EUR 22.3 million (3M 2024: EUR 22.0 million).   
  • The net profit before FX and discontinued operations of EUR 8.7 million (3M 2024: EUR 7.8 million).  
  • Total net profit of EUR 6.4 million (3M 2024: EUR 5.8 million). Adjusted for the Romanian VAT liability, total net profit reached EUR 6.8 million.   
  • Total net loan and pre-owned vehicle rent portfolio of EUR 371.1 million (3M 2024: EUR 330.5 million).
  • Q1 2025 ended with a stable financial position, supported by the capitalization ratio of 29.4% (31 December 2024: 29.3%), ICR ratio of 2.3 (31 December 2024: 2.4), and net leverage of 3.4 (31 December 2024: 3.3), providing sufficient headroom for Eurobond covenants.   
• Eleving Group successfully completed a bond tap offering for its existing EUR 50 million bond, raising an additional EUR 40 million at an attractive 10% return rate (yield to maturity). The proceeds will be primarily used to support the growth of the Group’s loan book in the mid-term, with immediate allocation towards repaying higher-cost liabilities and further strengthening the balance sheet. This bond tap highlights the Group’s ability to secure favorable financing conditions, reinforcing its solid foundation for sustained growth and future expansion.
• Eleving Group continues to actively manage its local currency funding projects to support the expanding loan book across various markets:
  • The Kenyan local notes program saw a robust 14% increase in total investments during Q1 2025, growing from EUR 26.7 million to EUR 30.4 million. Most of this funding is secured in the local currency.
  • In Botswana, the Group secured EUR 1.6 million through the local notes program in Q1 2025, all of which is raised in local currency. The total outstanding investment in the local notes program stood at EUR 10.9 million as of the end of Q1 2025.
  • A new credit line of EUR 1.0 million, equivalent in local currency, was established in Moldova with a local bank. The two-year funding term offers a favorable pricing structure, which is below the Group's average cost of funds.
  • Eleving Group is in advanced discussions with several investors in African markets to raise additional funding through bilateral debt facilities as well as is exploring new local notes programs in select markets, aiming to diversify its funding sources and enhance its operational flexibility.
• Eleving Group has initiated discussions with several banks and preliminary potential investors as part of its early preparations for the planned 2026 bond refinancing.

Modestas Sudnius, CEO of Eleving Group, comments:

The first quarter of 2025 evolved largely in line with our expectations. Throughout the quarter, our main focus remained on developing our existing markets. Despite the anticipated seasonal effects, the portfolio remained stable on a quarter-to-quarter basis. At the same time, the company made significant progress in generating new revenue streams by developing and launching new products, as well as making strides in entering new markets. These efforts will stimulate growth in the coming quarters.

Loan issuance volumes totaled EUR 96.1 million, a slight decrease quarter-on-quarter due to seasonality and conservative underwriting criteria. While loan applications also recorded a minor decline over the same period, the Group delivered strong performance year-on-year, with the loan issuance levels increasing by 22% and applications by 27%. This originated from robust organic demand, targeted product enhancements, and continuous expansion of both sales channels and physical branch networks.

The Group’s net portfolio closed at EUR 371.1 million by the end of Q1, reflecting a 12% year-on-year increase. The key drivers of this growth were strong sales across Romania, Latvia, Armenia, and our African consumer finance markets, alongside the successful rollout of new initiatives. In Q1, we introduced new consumer financing products across multiple markets and launched a completely new offering—smartphone financing in Uganda. Building on our success in mobility, we are now expanding into connectivity solutions—essential tools for self-employed individuals in the gig economy, enabling them to increase their income. This expansion aligns closely with our broader strategy to promote social mobility, improve access to essential services, and diversify our product portfolio.

As part of our growth ambitions, we have initiated the expansion of our instalment loan product offering in Romania, Latvia, and Estonia. The launch phase is currently focused on our existing client base, allowing for a controlled and data-driven approach. A broader market rollout is planned in the second half of the year, giving us a chance to pursue additional portfolio growth in these established and digitally mature markets.

Māris Kreics, CFO of Eleving Group, comments:

The first quarter of 2025 was marked by sustained strategic discipline and a clear focus on portfolio enhancement, positioning the Group for an accelerated growth phase. While the net loan portfolio remained stable quarter-on-quarter at EUR 371.1 million, this result reflected expected seasonal dynamics and the impact of currency revaluation due to the weakening of several local currencies against the euro. On a year-on-year basis, however, we delivered solid 12% growth, underscoring the strength of our business fundamentals and demand across the markets.

Our revenue development in Q1 2025 showcased the strength of our product diversification and the scalability of the Group’s business model. The total revenue grew by 13.1% year-on-year to EUR 58.6 million, driven by healthy demand and robust credit performance across the regions. This momentum was gained by the steady progress in consumer finance and the continued reliability of traditional vehicle finance products, creating a balanced and resilient revenue mix.
  Full unaudited consolidated report on the 3M period ended on 31 March:

https://www.eleving.com/investors/reports

Conference Call:

The Group's management team will hold an English conference call on 13 May 2025 at 15:00 CET to present the results.

Link to register for a conference call can be foundhere.

Eleving Group

Edgars Rauza, Eleving Group Investor Relations Manager
Email:edgars.rauza@eleving.com

About Eleving Group

Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. Today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 54% of the group's portfolio is located in Europe, 33% in Africa, and 13% in the rest of the world.

The Group's historical customer base surpasses 1.4 million customers worldwide, while the total volume of loans issued exceeds EUR 2.0 billion. With the headquarters in Latvia, Lithuania, and Estonia and the governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2,950 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, compiled by the Financial Times in 2020 and 2021, while in 2024, Eleving Group was ranked as the 41st fastest-growing European company in the last decade in 'Europe's Long-Term Growth Champions 2025' research by Financial Times and Statista.

Read more: www.eleving.com

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