LM PAY S.A. Reports 48.5% Revenue Growth in FY 2025, Q1 2026 Shows Continued Momentum Despite Romanian Expansion Halt

LM PAY S.A., a fintech provider of embedded finance solutions for healthcare and insurance sectors, reported solid preliminary financial results for the fiscal year 2025, demonstrating robust growth and operational efficiency despite a net loss attributed to non-operational accounting adjustments. The company also provided a positive update on Q1 2026 business momentum, though it announced the suspension of its international expansion into Romania due to regulatory hurdles.

For FY 2025, LM PAY achieved a 48.5% year-over-year increase in total revenue, reaching PLN 37.8 million (approximately EUR 8.9 million), compared with a revised PLN 25.46 million in 2024. This growth was driven by the expansion of its partner network, escalating consumer demand in beauty and healthcare sectors, and growing performance in its vehicle insurance premium financing segment. Earnings Before Interest and Tax (EBIT) rose by over half to PLN 10.8 million (approximately EUR 2.6 million), up from PLN 7.0 million in the prior year, reflecting exceptional operational efficiency.

The company reported a net loss of PLN 1.9 million (approximately EUR 0.4 million) for FY 2025, primarily due to deferred tax adjustments—a non-operational, timing-related accounting item. However, LM PAY achieved a gross profit of PLN 1.2 million, demonstrating solid core business strength. An accounting policy change regarding early loan repayments and customer withdrawals, which are now presented as a cost rather than a reduction in revenue, had no effect on operating profit. Early repayments totaled PLN 5.97 million in 2025, up from PLN 2.71 million in 2024.

Customer loyalty continued to strengthen, with the proportion of returning clients rising to 32% and total services processed increasing by 12% year-over-year to 43,000 individuals. The company's financial reports for FY 2025 will be released upon completion of the external audit cycle.

In the first quarter of 2026, sales growth continued, with revenue reaching PLN 7.5 million (approximately EUR 1.7 million), a 3.8% increase compared to the same quarter of the previous year. EBIT fell by 24.6% to PLN 1.6 million due to development costs related to product offering expansion and new sales partnerships in the insurance sector. Customer acquisition rose by 6.4% to 12,800, and the returning customer share remained high at 34%.

However, LM PAY announced that its international expansion into Romania is suspended for the current fiscal year. The National Bank of Romania (NBR) refused to approve the registration of the Romanian branch in the General Register, primarily due to the inability to furnish requisite detailed documentation concerning minority shareholders. The company noted that its share registry, subject to volatility through exchange trading, prevents it from acquiring identity documents or criminal records for every minority shareholder. All other compliance and transparency mandates set by NBR were satisfied.

LM PAY will focus on achieving its ambitious goals for the current year through strategic partnerships and market expansion in Poland. The management will present current business figures and the 2026 outlook during an earnings call on July 7 at 2 p.m. CEST, with registration available at https://research-hub.de/events/registration/2026-07-07-14-00/Y00-GR.