LM PAY Reports 48.5% Revenue Growth in FY 2025, Faces Hurdles in Romanian Expansion

LM PAY S.A., a Polish fintech provider specializing in embedded finance for healthcare and insurance, reported preliminary financial results for the fiscal year 2025, highlighting a 48.5% year-over-year increase in total revenue to PLN 37.8 million (approximately EUR 8.9 million). The company also disclosed that its international expansion into Romania has been suspended after the National Bank of Romania (NBR) refused to approve the registration of its branch.

The revenue growth was driven by expansion of the partner network, rising consumer demand in beauty and healthcare, and growth in the vehicle insurance premium financing segment. EBIT increased by over half to PLN 10.8 million (approximately EUR 2.6 million), up from PLN 7.0 million in the prior year. Customer loyalty strengthened, with returning clients rising to 32% of the total base, and the volume of services processed grew 12% year-over-year to 43,000 individuals.

Despite operational strength, the company reported a net loss of PLN -1.9 million (approximately EUR -0.4 million) for FY 2025, attributed to deferred tax adjustments, a non-operational timing-related accounting item. Gross profit stood at PLN 1.2 million, demonstrating solid core business performance. An accounting policy change, effective in 2025, reclassified early loan repayments and customer withdrawals as costs rather than revenue reductions, with early repayments totaling PLN 5.97 million in 2025 compared to PLN 2.71 million in 2024. This change is presentation-only and did not affect operating profit.

In the first quarter of 2026, sales continued to grow, reaching PLN 7.5 million, a 3.8% increase compared to the same quarter last year. However, EBIT fell by 24.6% to PLN 1.6 million due to development costs related to product expansion and new sales partnerships in insurance. Customer acquisition rose by 6.4% to 12,800 individuals, with returning customer share remaining high at 34%.

The company’s foreign expansion into Romania encountered a setback when the NBR denied the registration of its Romanian branch. The denial was based on the inability to provide detailed documentation concerning minority shareholders. LM PAY stated that due to the volatile nature of its share registry from exchange trading, it cannot obtain identity documents or criminal records for every minority shareholder. All other compliance and transparency mandates were satisfied. As a result, international expansion is suspended for the current fiscal year, and LM PAY will focus on strategic partnerships and market expansion in Poland.

LM PAY’s financial reports for FY 2025 will be released upon completion of the external audit. The management will discuss the results and 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.

This news story relied on content distributed by NewMediaWire. Blockchain Registration, Verification & Enhancement provided by NewsRamp. The source URL for this press release is LM PAY Reports 48.5% Revenue Growth in FY 2025, Faces Hurdles in Romanian Expansion.

The post LM PAY Reports 48.5% Revenue Growth in FY 2025, Faces Hurdles in Romanian Expansion appeared first on citybuzz.