LM PAY S.A., a Polish fintech provider of embedded finance solutions for healthcare and insurance, reported preliminary financial results for the fiscal year 2025, showcasing robust revenue growth alongside a net loss and a setback in its international expansion plans. The company's total revenue surged 48.5% year-over-year to PLN 37.8 million (approx. EUR 8.9 million), driven by expansion of its partner network, rising consumer demand in beauty and healthcare, and growth in vehicle insurance premium financing. Earnings Before Interest and Tax (EBIT) increased by over half to PLN 10.8 million (approx. EUR 2.6 million). However, the net result was a loss of PLN -1.9 million (approx. EUR -0.4 million), attributed to deferred tax adjustments—a non-operational, timing-related accounting item. The company also reported a gross profit of PLN 1.2 million, demonstrating underlying operational strength.
In the first quarter of 2026, sales growth continued at PLN 7.5 million, a 3.8% increase over the same quarter last year, though EBIT fell 24.6% to PLN 1.6 million due to development costs for product expansion and new sales partnerships in the insurance sector. Customer acquisition rose 6.4%, and the returning customer share remained high at 34%. The company's financial reports for FY 2025 will be released upon completion of the external audit cycle.
On the international front, LM PAY's expansion into Romania has been suspended for the current fiscal year after the National Bank of Romania (NBR) refused to approve the registration of its Romanian branch. The denial was based on the company's inability to provide detailed documentation concerning minority shareholders, a requirement that LM PAY argues is impractical given the volatility of its share registry due to exchange trading. All other compliance and transparency mandates were satisfied, according to the company. As a result, LM PAY will focus on strategic partnerships and market expansion in Poland.
The company's accounting policy update in 2025 now presents early loan repayments and customer withdrawals as a cost rather than a reduction in revenue, a presentation-only change that does not affect operating profit. Early repayments totaled PLN 5.97 million in 2025, up from PLN 2.71 million in 2024. One-off costs related to a change of refinancing partner also impacted results. LM PAY will host 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.
The company's ability to maintain operational momentum despite regulatory hurdles and accounting adjustments will be key for investors. With a focus on its core Polish market and a robust plan for the current year, LM PAY aims to achieve ambitious goals, though the Romania setback underscores the challenges of international expansion in a highly regulated sector.
