Letter from the President of the Management Board of PragmaGO S.A.
This document is a translation of the original document written in Polish.
In case of any discrepancies, doubts, or interpretation issues, the Polish version shall prevail and be considered binding.
Dear Shareholders and Stakeholders,
We are pleased to present to you the annual report of PragmaGO S.A. for 2025. We are consistently implementing our international
expansion strategy — following the balance sheet date, we launched operations in Spain and Croatia. The results achieved provide
a solid foundation for further growth. In 2026, we will celebrate our 30th anniversary – three decades of operations both commit
and motivate us to continue our development.
In 2025, PragmaGO achieved standalone revenue of PLN 139.7 million (+36.3% year-on-year, with operating costs rising by only
18.3%), which translated into an operating profit of PLN 66.6 million (+41.2% year-on-year) and enabled a net profit of PLN 14.2
million, compared to a net profit of PLN 7.8 million for 2024 (+80.7%). At Group level, net profit amounted to PLN 22.8 million
(+105.9% y/y).
We are maintaining our growth momentum this year. Following a 3.5% increase in the first quarter of 2025, revenue grew by 17.2%,
6.3% and 9.0% respectively in the subsequent quarters compared with the previous quarter. The scalability of the business model
is confirmed by the growing operating leverage: operating costs are rising significantly more slowly than revenue and reduced
their ratio to revenue to 31.0% for the four quarters of 2025. The ratio of risk costs to revenue increased by 1.8 percentage points,
remaining at a controlled level. We attribute these results to a significant increase in the scale of our operations: assets as at 31
December 2025 rose to PLN 714.7 million, compared to PLN 530.5 million as of 31 December 2024 (+34.7% y/y). This growth was
achieved thanks to the increasing number of customers using our services (25,3 thousand, +22.1% y/y), which is a result of
growing awareness of the PragmaGO brand, the attractiveness of its products and the effectiveness of its distribution channels,
and in particular the effectiveness of our Embedded Finance model and its Merchant Cash Advance and PragmaPay deferred
payment products for businesses purchasing via e-commerce (BNPL B2B), in which we are the clear market leader in Poland.
Despite its growing scale, the Company maintains a safe level of debt for the financial services sector – net financial debt as of
31 December 2025 stood at 319% of equity, with a level of 400% permitted under the financial covenants applicable at the
consolidated level. The Company’s assets are characterised by high liquidity: total cash inflows from financial assets amounted
to PLN 2,505.3 million in 2025, which represents a very high cash flow figure given the net financial debt at the end of the period
of PLN 520.3 million.
In 2025, the Company raised PLN 130 million from a bond issue, maintaining stable investor interest. The Company’s steadily
strengthened creditworthiness enables the diversification of funding sources through cooperation with leading banks in Poland
and international financial institutions. This includes both long-standing, ongoing relationships and new initiatives, which form a
solid foundation for further growth and ensure liquidity security for both the entity and the Capital Group.
In the coming periods, we expect further growth in turnover and portfolio size, as well as the continuation of activities designed
to enable the Company’s international expansion, which, as expected, will translate into increasing profitability of the Company’s
operations. We would like to thank our investors for the trust they have placed in us.
Yours faithfully,
Tomasz Boduszek,
President of the Management
Board of PragmaGO S.A.
