eTranzact International Plc saw profitability weaken in the first nine months of 2026 as cost pressures outpaced revenue growth, with profit after tax falling 42.7% to N1.38 billion from N2.41 billion in the same period of 2025.
Revenue for the electronic payment solutions provider rose 4.4% to N20.99 billion from N20.11 billion. However, cost of sales climbed 13.1% to N11.55 billion from N10.21 billion, while administrative expenses increased 20.3% to N7.20 billion from N5.99 billion, squeezing the gross profit margin to approximately 45% from 49.2%.
Operating profit consequently dropped 44.4% to N1.75 billion from N3.14 billion. Selling and marketing expenses fell 36.3% to N494.69 million from N776.67 million, investment income declined 27% to N228.18 million from N312.39 million, and finance costs eased to N10 million from N15.04 million.
Profit before tax declined 42.7% to N1.97 billion from N3.44 billion. The company's tax expense fell to N590.96 million from N1.03 billion, leaving profit after tax at N1.38 billion.
Third-quarter results were weaker still, with profit after tax down 80.6% to N156.04 million from N803.96 million a year earlier, while quarterly revenue dropped 30% to N4.71 billion from N6.74 billion.
On the balance sheet, total assets contracted 30.2% to N32.21 billion as at September 30, 2026, from N46.14 billion at December 31, 2025, largely due to lower cash balances. Cash and cash equivalents declined to N17.15 billion from N31.65 billion, and restricted cash fell to N13.25 billion from N25 billion.
Net cash generated from operating activities stood at N2.11 billion, while investing activities used N16.55 billion, including a N15.41 billion movement in restricted cash and N1.38 billion on property, plant and equipment. Total liabilities fell to N14.64 billion from N29.95 billion, and shareholders' equity rose 8.5% to N17.57 billion from N16.19 billion, helped by growth in retained earnings to N5.60 billion from N4.22 billion.
In the market, eTranzact shares fell 7.39% on Friday, October 30, 2026, to close at N16.30 on the Nigerian Exchange, down from N17.60. The stock lost N1.30 per share, reversing part of the 10% gain recorded on Thursday, October 29, when it advanced from N16.00 to N17.60. The daily trading range was N15.85 to N16.30, against a 52-week range of N11.00 to N26.90.
