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Delfin Group Audit Report / Information 2025
2238_rns_2026-02-26_9f305abe-dd96-4fd3-bc52-dc835d5c4b36.pdf
Audit Report / Information
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delfingroup
Financial report
Audited results for 2025
Ending 31 December 2025
delfingroup
delfingroup
Key highlights
- Strong financial performance throughout 2025
- Revenue growth of 24% and profit before tax +35% in 2025
-
ROE 35%. Cost to income ratio improved to 40%
-
Continuous growth of business volumes
-
Starting from Q2 2025 additional focus on cost discipline and optimisation
-
After a unique transaction in the Baltic capital markets DelfinGroup becomes a part of INDEXO
-
Continued work on diversified funding structure in 2025 with two new bank financing agreements and a new bond issue
delfingroup
Key results
- Loan issuance in Q4 2025 reached EUR 33.6 million, up 24% from previous year which was facilitated by a strong online market presence in Latvia and Lithuania. Slight decrease compared to exceptionally good Q3 2025. Q4 2025 issuance according to expected level.
- Alongside loan issuance, the net loan portfolio, including consumer and pawn loans, has increased by 27% in 2025, reaching EUR 144.4 million.
- Annual revenue reached EUR 78.2 million, increase of 24% compared to 2024. Quarterly revenues continued to increase by reaching EUR 20.9 million, 21% growth compared to Q4 2024.
- Q4 2025 profit before tax reached an all-time high reaching EUR 4.6 million, a 91% increase. EUR 1 million from profit was due to one-off events related to tax refund and effective interest rate recalculation.
Total loans Issued
Net loan portfolio
Total revenue
Profit before tax
*One-off effect of EUR 1 million.
delfingroup
delfingroup
Cost discipline & efficiency
In Q2 DelfinGroup started to work on cost discipline and efficiency to optimize the operations and improve profitability. Overall business operations were reviewed to make the company leaner.
- Termination of pawn and retail business in Lithuania.
- Closure of all 7 branches in Lithuania.
- Headcount in Latvia and Lithuania reduced by 42 FTEs.
- Overall shift of focus to consumer lending business which provides higher return on investment.
- Pawn and retail business continues to operate in Latvia as usual.
As a result, company managed to stay flat on the administrative expenses which recorded only 4% increase in 2025, while Q4 2025 saw 9% decrease compared to last year.
Cost-to-income ratio LTM
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Consumer loans
- The consumer lending portfolio continued increasing, as did the average loan amount and term. At the end of 2025, the net loan portfolio reached 136.4 million euros, a 31% increase in 2025.
- The consumer loan portfolio growth was facilitated by the issuance growth in both markets - Latvia and Lithuania.
- Consumer loan portfolio quality remain stable with non-performing loan ratio at 4.3% which is at comfortable level compared to industry.
Consumer net loan portfolio
Average loan*
Weighted average term of loans issued
Non-performing loan ratio**
Average consumer loan balance for one client at the end of period.
*NPL ratio methodology changed from previous presentations. Current formula: loans 90+ days par due / gross consumer loan portfolio.
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Consumer loans
Lithuania
- 2025 was the first full year in which consumer loans in Lithuania were provided since it was launched at the very end of 2024.
- The growth of consumer loan origination was facilitated by online sales channels resulting in a strong origination and portfolio growth.
- Consumer issuance in Lithuania in 2025 amounted to EUR 11.8m and to EUR 3.6m in Q4.
- Alongside the strong loan issuance, the net loan portfolio at the end of 2025 reached EUR 7.7 million, a 30% growth during Q4 2025.
- Online consumer lending remain as the only business segment for DelfinGroup in Lithuania.
LT consumer loan issuance
LT consumer net loan portfolio
delfingroup
Pawn loans
- Pawn loan portfolio has remained stable over the last year, since the company has reached a distinct market leader position in Latvia.
- The average pawn loan amount has grown over the last years as inflation and gold price has pushed prices for items and jewelry.
- Currently DelfinGroup is focusing on the profitability of the pawn lending segment.
Pawn net loan portfolio*
Average pawn loan amount
- Active portfolio excluding portfolio part where collateral is available for sale.
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Retail of pre-owned goods*
- Retail sales of pre-owned goods in 2025 reached EUR 19.4 million, an increase of 15% compared to 2024 while Q4 2025 sales saw 4% increase to previous year.
- Online store sales in 2025 increased by 25% compared to 2025.
- In addition to regular retail business, DelfinGroup sold gold scrap in the amount of EUR 4.5 million, which is 104% more than in previous year with the aim to unlock the funds and to free up the inventory.
Sales of pre-owned goods
Online store sales**
* Including directly purchased goods from clients and unredeemed items from pawnshop. Excluding wholesale of precious metals (scrap).
** data from previous periods restated by including the effect of bought back items.
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Banknote branch network
Efficiency of the branch network has been set as a focus in Latvia to secure sustainable business operations.
Banknote has extensive branch network across Latvia
- 88 stores in Latvia including 4 XL concept Banknote branches with wider store floor and increased product offering.
- One of the largest standard-format branches located at Lielā street, Liepāja, was converted into XL format branch.
- New, renovated and relocated branches in Riga, Ogre, Valmiera, Cēsis and Tukums.
38 Presence in cities
88 Branches in Latvia
40+ Branches in Riga
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Strategy and outlook for 2026
In 2026 DelfinGroup plan to concentrate on increasing the loan portfolio in Latvia and Lithuania which will result in rise of profit for the company.
There are several initiatives to improve DelfinGroup product offering such as:
- to launch home equity loan product. Clients will have a possibility to unlock their full financing potential by using their existing real estate as a collateral and to receive financing at better rates.
- It is planned to tap into lower risk client segments in consumer lending market by offering them more competitive deals.
Guidance 2026 - 2028*
| Indicator | 2025 result | 2026 target | 2027 target | 2028 target |
|---|---|---|---|---|
| Net loan portfolio EUR | 144 393 542 | 171 000 000 | 194 000 000 | 208 000 000 |
| Profit before taxes EUR | 12 412 576 | 14 600 000 | 18 700 000 | 22 300 000 |
| ROE | 34.9% | >30% | >30% | >30% |
| Cost-to-income ratio | 40.2% | <45% | <45% | <45% |
| Adjusted equity ratio | 24.7% | >20% | >20% | >20% |
- No potential synergies with INDEXO included
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DelfinGroup becomes a part of INDEXO group
In December and January INDEXO organized voluntary un mandatory DelfinGroup share purchase offers.
- After the voluntary offer INDEXO reached 67.42% ownership.
- After the mandatory offer Indexo reached 71.52% ownership and is the largest shareholder of DelfinGroup.
The completion of the mandatory share buyback offer concluded a transaction that was unique in the Latvian capital market, whereby one listed company acquired another through a share exchange or purchase involving several thousand shareholders.
By joining INDEXO the group will work intensively to implement various synergy opportunities to develop INDEXO group into the leading financial services group.
Shareholder Structure
After 26.01.2026.
| IPAS INDEXO | 71.52% |
|---|---|
| Minority Shareholders | 24.48% |
On 06.02.2026 in total 7,941 shareholders. 68% from Estonia, 27% from Latvia, 5% from Lithuania and 1% from other countries.
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delfingroup
Consolidated income statement
- Due to cost optimization process which was started in Q2, selling and administrative expenses have not increased compared to Q4 2024.
- EUR 1 million from the profit was due to one-off events related to VAT refund for previous periods and recalculation of loan portfolio effective interest rate for 2025.
- As a result, company was able to generate record-high quarterly profit before tax of EUR 4.6 million, a 91% increase compared to Q4 2024. 24% increase if adjusted for one-offs.
- Credit loss expenses increased at a faster pace than loan portfolio growth, primarily due to a prudent provisioning approach. Provisions are calculated based on a last twelve months (LTM) methodology; they would have been lower if a shorter reference period had been applied. We expect credit loss development to stabilize in 2026.
| Income statement, EUR'000 | 2025 Q4 | 2024 Q4 | Change X |
|---|---|---|---|
| Total revenue | 20,940 | 17,353 | +21% |
| Cost of sales | -2,416 | -2,374 | +2% |
| Credit loss expenses | -5,370 | -4,060 | +32% |
| Interest and similar expenses | -3,474 | -2,891 | +20% |
| Gross profit | 9,679 | 8,028 | +21% |
| Selling expenses | -3,261 | -3,544 | -8% |
| Administrative expenses | -1,699 | -1,861 | -9% |
| Other operating income | 140 | 46 | +205% |
| Other operating expenses | -284 | -277 | +2% |
| Profit before tax | 4,577 | 2,392 | +91% |
| Income tax expense | -1,035 | -492 | +110% |
| Net profit | 3,541 | 1,900 | +86% |
| 2025 | 2024 | Change X | |
| --- | --- | --- | |
| 78,240 | 62,954 | +24% | |
| -9,701 | -7,028 | +38% | |
| -21,206 | -15,104 | +40% | |
| -12,763 | -10,911 | +17% | |
| 34,570 | 29,912 | +16% | |
| -14,408 | -13,215 | +9% | |
| -7,409 | -7,127 | +4% | |
| 406 | 181 | +124% | |
| -747 | -577 | +29% | |
| 12,413 | 9,174 | +35% | |
| -2,798 | -1,898 | +47% | |
| 9,615 | 7,276 | +32% |
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Consolidated balance sheet
| Balance sheet, EUR 000 | 31.12.2025 | 31.12.2024 | Change % |
|---|---|---|---|
| Fixed and intangible assets | 2,943 | 3,228 | -9% |
| Right-of-use assets | 2,938 | 2,653 | +11% |
| Net loan portfolio | 144,394 | 113,474 | +27% |
| Inventory and scrap | 2,947 | 3,990 | -26% |
| Other assets | 5,820 | 2,014 | +189% |
| Cash | 3,539 | 1,644 | +115% |
| Total assets | 162,582 | 127,003 | +28% |
| Equity | 30,144 | 24,929 | +21% |
| Share capital and reserves | 4,546 | 4,541 | +0% |
| Share premium | 6,891 | 6,891 | +0% |
| Other capital reserves | 274 | 223 | +23% |
| Retained earnings | 18,433 | 13,274 | +39% |
| Liabilities | 132,438 | 102,074 | +30% |
| Interest-bearing debt | 123,134 | 94,662 | +30% |
| Trade payables and other liabilities | 6,043 | 4,458 | +36% |
| Lease liabilities for right-of-use assets | 3,261 | 2,954 | +10% |
| Total equity and liabilities | 162,582 | 127,003 | +28% |
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Financial ratios
EBITDA margin*
Adjusted equity ratio**
ROE*
Cost-to-income ratio*
Cost of interest-bearing liabilities
Interest coverage ratio*
*Last 12 months figures.
**Including subordinated debt
Data for previous period of Q1 2025 restated as per corrections made in the audited annual statements for 2025.
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Capital markets & funding highlights
Bonds
- In September 2025 DelfinGroup launched a new bond issue of up to EUR 25 million with 9.5% coupon rate and 2 year maturity. The issue was finalized in January 2026 and the bond ISIN LV0000106649 was listed on Nasdaq First North bond market.
- Bond ISIN LV0000802718 was redeemed in full amount of EUR 10,995 million on 25 February 2026.
Banks
- At the end of 2025 DelfinGroup signed a new credit line agreement with Multitude Bank p.l.c. for EUR 17,25 million. 11 million euros were used to refinance existing credit line agreement with Multitude Bank p.l.c. and the remaining funds are used for further business development.
- After the receipt of the new credit line funds, total exposure to Multitude Bank p.l.c. lending facilities amount to 29.75 million euros.
Mintos
- Mintos risk score for VIZIA - 9.1 and Banknote - 8.6.
- Risk scores on Mintos remain as one of the best scores on the platform.
- Mintos exposure in Q4 2025 decreased by 2.9 million euros.
- At the end of 2025 launched revolving pool product on Mintos.
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delfingroup
Capital structure
Equity 30.1 m €
Subordinated bonds 10.0 m €
Mintos 30.1 m €
Unsecured bonds 61.7 m €
Banks 23.5 m €
DelfinGroup on Mintos
Since
2016
Active investors
80+ thousand
Investors from
100+ countries
Schedule of maturities
m €
*In nominal value
**Amount which has been subscribed from the initial placement on 31.12.2025.
*** Schedule of maturities at 31.12.2025. In January 2026 bank loan for EUR 11 million was refinanced with a new loan of EUR 17.25 million with maturity in 2028. On 25 February 2026 bonds worth EUR 9.5 million were redeemed.
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Dividends
Unique dividend distribution proposal in Baltics
Quarterly dividends
- At least 4 dividend payments per year
- Up to 50% from previous Q profit
Dividend yield 8.9%*
*Based on share price of EUR 1.288 on 31 December 2025 and including management's proposed dividends from Q4 2025 net profit.
| Dividend period | Dividend payment date | EUR/Share | EUR Total | Payout ratio*** |
|---|---|---|---|---|
| Q4 2025 | Upon shareholders approval** | 0.0391** | 1 777 975** | 50.00%** |
| Q3 2025 | 30.12.2025 | 0.0256 | 1 163 492 | 49.88% |
| Q2 2025 | 29.09.2025 | 0.0217 | 981 258 | 49.99% |
| Q1 2025 | 30.06.2025 | 0.0194 | 880 885 | 49.79% |
| Q4 2024 | 07.04.2025 | 0.0223 | 1 012 564 | 49.93% |
| Q3 2024 | 30.12.2024 | 0.0210 | 953 535 | 49.79% |
| Q2 2024 | 01.10.2024 | 0.0202 | 916 626 | 49.76% |
| Q1 2024 | 14.06.2024 | 0.0178 | 807 720 | 49.89% |
| Q4 2023 | 16.04.2024 | 0.0143 | 648 898 | 49.99% |
| Dividend period | Dividend payment date | EUR/Share | EUR Total | |
| --- | --- | --- | --- | |
| Annual | 11.07.2025 | 0.0092 | 417 739 | |
| Annual | 12.07.2024 | 0.0088 | 399 322 | |
| Annual | 17.05.2022, 15.07.2022 | 0.0552 | 2 501 642 |
Proposed dividends, distribution is subject to Shareholders meeting decision.
*Dividend amount paid from the net profit of the respective quarter. Q4 2025 distribution is set that all dividend payments from 2025 would be 50% from annual net profit.
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Share performance
- Share price changes since Q2 2024 due to the largest shareholder's public share offerings in which the shares were offered at a discount for a price of EUR 1.09 per share. Since then the share price has recovered to EUR 1.30 level.
- DelfinGroup investors have received additionally EUR 0.3884 per share in dividends since IPO.
| 31.12.2025 | DelfinGroup |
|---|---|
| Capitalization m € | 58.5 |
| EPS TTM € | 0.211 |
| P/E | 6.1 |
| ROE (LTM) | 34.9% |
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delfingroup
Consolidated income statement
| Balance sheet, EUR'000 | 2023 | 2024 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1* | Q2* | Q3* | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Total revenue | 11,333 | 11,970 | 13,208 | 13,912 | 14,260 | 14,838 | 16,503 | 17,353 | 17,527 | 19,511 | 20,263 | 20,940 |
| Cost of sales | -1,372 | -1,096 | -1,641 | -1,977 | -1,505 | -1,166 | -1,983 | -2,374 | -1,956 | -2,717 | -2,612 | -2,416 |
| Credit loss expenses | -2,466 | -2,769 | -2,843 | -2,608 | -3,421 | -3,550 | -4,072 | -4,060 | -4,658 | -5,324 | -5,855 | -5,370 |
| Interest expenses and similar expenses | -1,792 | -2,052 | -2,285 | -2,450 | -2,561 | -2,662 | -2,797 | -2,891 | -2,865 | -3,067 | -3,356 | -3,474 |
| Gross profit | 5,702 | 6,052 | 6,439 | 6,878 | 6,773 | 7,461 | 7,651 | 8,028 | 8,049 | 8,403 | 8,440 | 9,679 |
| Selling expenses | -2,062 | -2,054 | -2,244 | -2,388 | -3,102 | -3,181 | -3,387 | -3,544 | -3,769 | -3,818 | -3,560 | -3,261 |
| Administrative expenses | -1,766 | -1,957 | -1,942 | -2,063 | -1,554 | -1,876 | -1,836 | -1,861 | -1,920 | -2,004 | -1,786 | -1,699 |
| Other operating income | 15 | 12 | 11 | 37 | 25 | 38 | 72 | 46 | 37 | 63 | 166 | 140 |
| Other operating expenses | -64 | -82 | -92 | -145 | -103 | -117 | -81 | -277 | -132 | -53 | -279 | -284 |
| Profit before tax | 1,825 | 1,971 | 2,174 | 2,319 | 2,039 | 2,324 | 2,419 | 2,392 | 2,265 | 2,591 | 2,981 | 4,577 |
| Income tax expense | -212 | -202 | -226 | -1,021 | -420 | -482 | -504 | -492 | -495 | -619 | -648 | -1,035 |
| Net profit | 1,613 | 1,769 | 1,948 | 1,298 | 1,619 | 1,842 | 1,915 | 1,900 | 1,770 | 1,972 | 2,332 | 3,541 |
*Data for previous period of Q1 2025 restated as per corrections made in the audited annual statements for 2025
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Consolidated balance sheet
| Balance sheet, EUR'000 | 2023 | 2024 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4* | Q1 | Q2 | Q3 | Q4 | |
| Fixed and intangible assets | 1,595 | 1,823 | 2,150 | 2,680 | 2,814 | 3,032 | 3,192 | 3,228 | 3,241 | 3,254 | 3,172 | 2,943 |
| Right-of-use assets | 2,698 | 2,712 | 2,655 | 2,887 | 2,701 | 2,804 | 2,736 | 2,653 | 2,623 | 2,923 | 3,021 | 2,938 |
| Net loan portfolio | 73,453 | 78,099 | 84,552 | 89,026 | 95,554 | 101,549 | 107,734 | 113,474 | 120,992 | 129,041 | 139,200 | 144,394 |
| Inventory and scrap | 3,909 | 4,662 | 3,571 | 3,391 | 3,558 | 3,782 | 3,905 | 3,990 | 4,014 | 3,639 | 3,082 | 2,947 |
| Other assets | 1,042 | 1,105 | 1,081 | 1,149 | 893 | 1,860 | 1,370 | 2,014 | 2,079 | 5,301 | 6,060 | 5,820 |
| Cash | 2,398 | 3,013 | 3,222 | 5,929 | 2,995 | 4,354 | 5,546 | 1,644 | 1,518 | 3,356 | 2,802 | 3,539 |
| Total assets | 85,095 | 91,415 | 97,232 | 105,061 | 108,515 | 117,381 | 124,483 | 127,003 | 134,466 | 147,514 | 157,337 | 162,582 |
| Equity | 18,915 | 19,917 | 21,016 | 21,322 | 22,332 | 22,972 | 23,996 | 24,929 | 25,531 | 26,373 | 27,747 | 30,144 |
| Share capital and reserves | 4,532 | 4,532 | 4,532 | 4,538 | 4,538 | 4,538 | 4,538 | 4,541 | 4,541 | 4,541 | 4,543 | 4,546 |
| Share premium | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 | 6,891 |
| Other capital reserves | 128 | 163 | 198 | 170 | 210 | 215 | 240 | 223 | 69 | 238 | 259 | 274 |
| Retained earnings | 7,364 | 8,331 | 9,395 | 9,724 | 10,694 | 11,329 | 12,327 | 13,274 | 14,030 | 14,704 | 16,055 | 18,433 |
| Liabilities | 66,179 | 71,498 | 76,216 | 83,739 | 86,183 | 94,409 | 100,487 | 102,074 | 108,835 | 121,141 | 129,590 | 132,438 |
| Interest-bearing debt | 59,840 | 65,872 | 71,336 | 76,971 | 78,152 | 86,298 | 92,190 | 94,662 | 99,597 | 111,983 | 120,203 | 123,134 |
| Trade payables and other liabilities | 3,365 | 2,629 | 1,934 | 3,600 | 5,045 | 5,015 | 5,263 | 4,458 | 6,410 | 5,917 | 6,044 | 6,043 |
| Lease liabilities for right-of-use assets | 2,974 | 2,997 | 2,946 | 3,168 | 2,986 | 3,096 | 3,034 | 2,954 | 2,927 | 3,241 | 3,343 | 3,261 |
| Total equity and liabilities | 85,095 | 91,415 | 97,232 | 105,061 | 108,515 | 117,381 | 124,483 | 127,003 | 134,466 | 147,514 | 157,337 | 162,582 |
*Data for previous period of Q1 2025 restated as per corrections made in the audited annual statements for 2025.
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Historic timeline
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Sales split by product category
Sales split by product category (Q4 2025)
| 29% | 19% | 22% | 18% | 7% | 7% |
|---|---|---|---|---|---|
- Jewelry
- Smartphones
- Other
- Computer Equipment
- TV, Audio, Video, Photo
- Power Tools
Clients have access to a wide range of pre-owned goods at Banknote online store and branch network. The most demanded product categories are electronics, such as smartphones, computers, TVs and jewelry.
Jewelry is professionally renewed and sold with its original appearance but for a more affordable price.
delfingroup
Definitions for alternative performance measures
EBITDA
Earnings before interest, taxes, depreciation and amortization = (Profit before tax) + (Interest expenses and similar expenses) + (Rights of used assets depreciation) + (Depreciation of fixed assets) + (Amortization). Used as a measure of corporate performance as it shows earnings before the influence of accounting and financial deductions.
EBITDA Margin
Operating profitability as a percentage of its total revenue, calculated as EBITDA / (Interest income + Gross profit from sale of foreclosed items). Used as a profitability measure that is factoring out the effects of decisions related to financing and accounting.
Interest Coverage Ratio
Profitability and debt ratio, calculated as EBITDA / Interest expenses and similar expenses. Used to determine how easily a company can pay interest on its outstanding debt.
Cost-to-Income Ratio
((Sales expenses) + (Administrative expenses) + (Other expenses (excluding result from cession (debt sales) of non-performing loans))) / ((Net sales) - (Cost of sales) + (Interest income and similar income) + (Other operating income) - (Interest expenses and similar expenses))
Return on Equity (ROE)
Net profit for the period/months in the period*12 / ((Equity as at start of the period) + (Equity as at period end)) / 2)
Total Revenue
Net sales + Interest income and similar income. Represents income generated by company's business segments.
Interest-Bearing Debt
Liabilities that require the payment of interest, including bonds, other loans, leasing liabilities etc. Interest-Bearing Debt has a priority over other debts.
Cost of Interest-Bearing Liabilities
Weighted average nominal interest rate calculated by amount of interest bearing liabilities as at period end
Equity Ratio
Equity/Total assets
Non-Performing Loan Ratio
90+ days overdue portfolio share in consumer loan portfolio
Dividend Yield
Dividends per share paid over the last 12 months / price per share. If additional dividend payment is proposed by the company's Management Board but not yet paid, it is included in the calculation, and the last 12 months are calculated from the proposed dividend payment date.
The goal of alternative performance measures is to provide investors with performance measures that are widely used when making investment decisions and comparing the performance of different companies.
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Disclaimer
This presentation is of selective nature and is made to provide an overview of the company's (AS DelfinGroup and its subsidiaries) business.
Unless stated otherwise, this presentation shows information from consolidated perspective.
Facts and information used in this presentation might be subject to revision in the future. Any forward-looking information may be subject to change as well.
This presentation is not a legally binding document, and the Company has no liability for any direct or indirect loss from the use of this presentation.
This presentation does not intend to contain all the information that investors may require in evaluating the Company. Investors should read publicly available information regarding the Company to make an investment decision.
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delfingroup
AS DelfinGroup
Skanstes Street 50A,
Riga, Latvia, LV-1013
[email protected]
(+371) 26 18 99 88
www.delfingroup.lv