eTranzact International Plc recorded a slowdown in profit growth in 2025, ending a four-year run of rising earnings as higher operating costs offset modest revenue gains, according to the company’s unaudited financial statements for the year ended December 31, 2025.
The payments and switching company reported a profit after tax of N2.97 billion in 2025, down 15.6 percent from N3.52 billion in 2024. The decline marked a reversal from a steady earnings climb that had seen profit rise from N455.7 million in 2021 to N1.17 billion in 2022 and N2.2 billion in 2023, before peaking in 2024.
Revenue from continuing operations edged up to N29.82 billion in 2025 from N29.51 billion a year earlier, though turnover remained below the N33.9 billion recorded in 2023. Over the five years, revenue growth has been uneven, rising from N23.6 billion in 2021 to N22.5 billion in 2022, surging in 2023 and easing in the two subsequent years.
Lower cost of sales supported an improvement in gross profit, which rose to N14.17 billion from N11.39 billion in 2024. However, this was offset by a sharp rise in administrative expenses to N9.24 billion from N6.16 billion, resulting in compressed operating margins. Operating profit fell to N4.00 billion, compared with N4.81 billion in the prior year.
Despite the earnings pullback, the 2025 results showed a marked improvement in cash generation. Net cash from operating activities surged to N22.27 billion, reversing a N5.48 billion outflow in 2024 and lifting cash and cash equivalents to N31.69 billion by year-end.
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Total assets expanded sharply to N46.19 billion from N24.00 billion in 2024, largely driven by higher cash balances and advances. Long-term borrowings declined to N138.64 million from N210.87 million following scheduled repayments on the Central Bank of Nigeria’s Shared Agent Network Expansion Facility loan.
Shareholders’ equity increased to N16.69 billion from N14.87 billion, supported by retained earnings, even as the company paid N1.15 billion in dividends during the year.
eTranzact has projected continued profitability for the first quarter ending March, with an expected revenue of N3.74 billion. While the revenue outlook reflects a contraction, the forecasts point to a company restructuring its business strategy, moving away from low-margin, high-volume activities.
Operating profit is expected to reach N1.06 billion, and profit before tax is forecast at N961.02 million. Net profit for the period is projected at N672.7 million, making a turnaround from losses recorded in the prior year. The earnings outlook is also likely to be supported by eTranzact’s participation in the Federal Inland Revenue Service e-invoicing programme, which continues to expand to a broader base of businesses. The initiative is expected to provide more stable, recurring fee-based income for service providers.
E-Tranzact International is currently the 49th most valuable stock on the Nigerian Exchange (NGX) with a market capitalization of N160 billion. They began the year with a share price of N11.35 and have since gained 52.9 percent to N17.35 as of February 2, 2026. The company is ranked 21st on the NGX in terms of year-to-date performance.
Overall, the results highlight a shift from rapid profit expansion to a more moderate earnings phase, reflecting rising cost pressures in Nigeria’s digital payments market even as eTranzact maintains profitability well above earlier levels.
