Kaspi (KSPI) Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Consolidated Revenue: Up 31% year-over-year.

Adjusted EBITDA: Increased by 9% year-over-year.

Net Income: Flat, down 1% year-over-year, attributed to higher interest expenses and costs of goods sold (COGS) from the inclusion of Hepsiburada.

E-commerce GMV: Grew 41% year-over-year on a constant currency basis, with transactions up 43%.

Marketplace GMV: Increased by 19% year-over-year.

Total Payment Volume (TPV): Up 14% year-over-year.

Average Loan Portfolio: Grew by 23%.

Dividend: Recommended at 850 per share, maintaining a 64% payout ratio.

2Strategic Updates and Business Highlights

Kaspi is focusing on enhancing its Super App capabilities, particularly in e-commerce and fintech, with significant growth in value-added services such as advertising and delivery, which rose 73% year-over-year.

The company is expanding its presence in Turkey, aiming for breakeven EBITDA and positive free cash flow while investing in marketing and technology to improve service quality.

The integration of Hepsiburada is ongoing, with efforts to enhance delivery and consumer experience in Turkey.

The management expressed optimism about future innovations and strategic partnerships, particularly with Tencent, which has acquired a minority stake.

3Forward Guidance and Outlook

GMV Growth: Expected to be around 20% for the full year, unchanged from previous guidance.

TPV Growth: Projected at 15%, also unchanged.

Total Financing Volume (TFV): Anticipated to trend towards 5% growth, although currently below this target.

EBITDA Growth: Guidance remains at around 5% for the year, with the first quarter exceeding this expectation, suggesting slower growth in subsequent quarters.

4Bad News, Challenges, or Points of Concern

Net Income Pressure: The flat net income is concerning due to rising interest expenses and COGS from Hepsiburada's integration.

Take Rate Compression: The payments segment is experiencing a decline in take rates, primarily due to a shift towards lower-margin products like Kaspi QR and B2B payments.

Consumer Financing Slowdown: There has been a deliberate slowdown in consumer financing activities in Turkey as the company enhances its risk management systems.

Economic and Geopolitical Risks: The ongoing geopolitical situation in the Middle East could impact supply chains, although the management noted no material disruptions so far.

5Notable Q&A Insights

Management clarified that the decline in payment take rates is a mechanical function of product mix rather than a result of external pressures.

The company is prioritizing longer-duration loans in its fintech segment, which could lead to improved revenue despite a decline in total financing volume.

Questions about the strategic partnership with Tencent highlighted the potential for knowledge sharing and innovation, although specifics on operational synergies were not disclosed.

The management emphasized that the focus on marketing in Turkey is aimed at building a sustainable consumer base rather than short-term traffic boosts. Overall, Kaspi reported strong growth in e-commerce and maintained a positive outlook, despite facing challenges related to net income and payment take rates. The strategic focus remains on enhancing user engagement and expanding into new markets.