Kaspi.kz Earnings Call: Growth Surges, Margins Strain

Kaspi.kz JSC Sponsored ADR RegS ((KSPI)) has held its Q1 earnings call. Read on for the main highlights of the call.

Kaspi.kz’s latest earnings call painted a picture of strong growth paired with manageable growing pains. Management highlighted robust revenue expansion across e‑commerce, payments and fintech, supported by rising engagement and value‑added services. At the same time, they acknowledged near‑term pressure on margins and net income from higher funding costs and heavier investments, particularly in Turkey.

Strong consolidated revenue momentum

Consolidated revenue climbed 31% year-on-year in the first quarter of 2026, underscoring the strength of Kaspi.kz’s multi‑product ecosystem. Adjusted EBITDA rose 9% over the same period, a slower pace than revenue, but still reflecting healthy underlying operating leverage as new investments flow through the income statement.

E‑commerce growth accelerates with rising engagement

E‑commerce was the standout performer, with GMV up 41% year-on-year on a constant currency, pro forma basis and transactions up 43%. Quarterly purchase frequency increased by 15 percentage points, a 44% jump, helping e‑commerce revenue surge 58% and lifting the segment’s take rate by 90 basis points to 15.8%.

Value‑added services deepen monetization

Revenue from value‑added services such as advertising and delivery grew about 73% year-on-year, outpacing overall GMV. This mix shift is boosting monetization, helping e‑commerce revenue grow faster than volumes and supporting higher overall take rates, as Kaspi.kz moves more of its economics toward higher‑margin, service‑driven lines.

Marketplace scale and Turkish integration

Marketplace GMV increased 19% year-on-year on a constant currency, pro forma basis as Kaspi.kz continued to scale its platform. Hepsiburada’s consolidation for a full three months, versus about two months a year ago, means Kazakhstan and Turkey now each generate roughly half of group GMV, with Hepsi’s third‑party marketplace contributing around a third of its GMV.

Payments growth with strategic engagement role

Payments total payment volume rose 14% year-on-year, supported by continued adoption across consumer and merchant channels. Interest revenue, which is excluded from EBITDA, accounted for roughly a quarter of payments revenue and expanded about 26%, as management reiterated that payments remain strategically important for ecosystem engagement and data.

Fintech portfolio expansion with stable yields

Kaspi.kz’s average net loan portfolio grew 23% year-on-year as the company shifted toward longer‑duration products. Portfolio duration lengthened from seven to 9.3 months, yet fintech revenue still grew about 25% and adjusted EBITDA climbed around 12%, with fintech yield steady at roughly 6% despite the changing mix.

Resilient credit quality and cost of risk

Credit metrics remained solid, with first‑payment defaults at 0.9% and second‑payment defaults at 0.4%, indicating strong borrower performance. Overall delinquency stood at 2.2%, while cost of risk was broadly stable at about 0.7%, just 10 basis points higher year-on-year and consistent with the longer‑dated loan portfolio.

Capital returns and strategic capital raise

The board recommended a dividend of 850 per share, implying a payout ratio of about 64% and underscoring confidence in cash generation. The company also raised $600 million at a 5.9% interest rate for general corporate purposes, and management described a minority stake from Tencent as primarily a financial and strategic investment rather than a controlling move.

Revenue growth outpaces profitability

Despite booming revenue, profitability grew more slowly, with adjusted EBITDA up only 9% year-on-year versus 31% top‑line growth. Management pointed to the full three‑month consolidation of Hepsiburada and the timing of incremental investments as key reasons why EBITDA is currently trailing the revenue trajectory.

Flat net income amid higher funding costs

Reported net income was essentially flat, dipping around 1% year-on-year as higher interest expense weighed on the bottom line. Elevated funding costs in Kazakhstan, along with higher cost of goods sold from the Hepsiburada consolidation, offset operational gains and muted the translation of revenue growth into net profit.

Payments take‑rate pressure and flat profitability

In the payments segment, revenue growth lagged TPV as take rates compressed due to a mix shift toward lower‑take‑rate products such as Kaspi QR and B2B payments. As a result, payments EBITDA was broadly flat year-on-year, underlining how strategic volume growth in lower‑priced services can temporarily cap profitability.

Deliberate contraction in total financed exposure

Total financed exposure declined about 2% year-on-year, falling short of Kaspi.kz’s earlier goal of roughly 5% growth. Management stressed this was intentional as they prioritized longer‑duration, higher‑revenue loans over short‑term buy‑now‑pay‑later originations, accepting slower TFE growth in favor of richer unit economics.

Higher funding costs pressure fintech margins

Management cited a materially higher funding‑cost environment following last year’s rate moves, referencing an impact of around 220 basis points on profitability trends. Funding costs in Kazakhstan alone rose about 20 basis points year-on-year, driving up interest expense and weighing on fintech EBITDA growth even as loan volumes expanded.

Turkey investments and cash consumption

Hepsiburada’s integration is proving capital intensive as Kaspi.kz steps up marketing, delivery and working capital in Turkey. Management acknowledged seasonal working capital outflows and near‑term cash consumption, framing these investments as necessary to improve service levels and customer engagement in a strategically important market.

NPL ratio and coverage shaped by mix shift

The non‑performing loan ratio increased, but management argued this reflects a shift toward secured, lower‑risk products rather than a deterioration in credit quality. They also emphasized that retaining more NPLs on balance sheet, along with timing and mix effects on coverage, is influencing headline ratios without signaling a material change in underlying risk.

Steady guidance despite first‑quarter beat

Even with first‑quarter revenue and EBITDA ahead of internal expectations, management chose not to raise full‑year guidance. They highlighted planned heavier investments, especially in Turkey, and normal seasonality, signaling that growth is likely to slow in later quarters as spending catches up with early‑year performance.

Unchanged guidance anchored by early momentum

Kaspi.kz kept its full‑year outlook intact, targeting marketplace GMV growth of about 20%, TPV growth near 15% and total financed exposure around 5%, even though TFE is currently tracking below that level. Adjusted EBITDA is guided to grow roughly 5% for the year, with management assuming no interest‑rate cuts and pointing to Q1’s 31% revenue growth and strong e‑commerce metrics as validation of these targets.

Kaspi.kz’s earnings call showcased a fast‑growing platform willing to absorb near‑term margin pressure to build scale and deepen engagement. Strong e‑commerce and fintech expansion, stable credit metrics and generous dividends underline the long‑term story, while investors will be watching how quickly Turkey investments and higher funding costs translate into improved profitability.