Georgia Capital (CGEO) Q1 2026 earnings summary

Executive summary

• NAV per share was flat in GEL at 154.82 in Q1 2026, up 2.1% q-o-q in GBP, and grew 9.2% YTD, driven by strong private portfolio company performance and Lion Finance Group's share price appreciation.

• Large portfolio companies delivered 13.7% top-line growth and 26.9% y-o-y EBITDA growth, with net operating cash flow up 29.8% y-o-y, despite a challenging geopolitical environment.

• Lion Finance Group was promoted to the FTSE 100 Index, enhancing its profile and visibility among global investors.

• Share buybacks continued, with 475,000 shares repurchased for $22 million in Q1 2026, totaling over $268 million and 33.9% of peak issued share capital since the demerger.

• Georgia's macroeconomic environment remains robust, with 8.4% GDP growth in early 2026 and record-high foreign exchange reserves.

Financial highlights

• Year-to-date NAV per share growth reached 9.2% in GEL, with a five-year CAGR of 27% and three-year CAGR of 31.7% in GEL; since inception, CAGR is 19%.

• IFRS net income for 1Q26 was GEL 26.0 million, with net income down 91.0% y-o-y due to lower fair value changes and non-recurring items in the prior year.

• Dividend income surged to GEL 39.6 million in 1Q26, reflecting timing differences and buyback dividends from Lion Finance Group.

• Portfolio value at GEL 5 billion as of 31 March 2026, with 96% externally valued and half in Lion Finance Group and half in private companies.

• NAV discount narrowed to a historic low of 16.2% as of 31 March 2026.

Outlook and guidance

• Expectation of continued strong growth in 2026, with ongoing share buybacks, capital return policy, and focus on NAV per share and sustainable EBITDA growth.

• Dividend inflows projected to exceed GEL 200 million in 2026, with GEL 39.6 million received in Q1.

• Plans to retire remaining $50 million HoldCo debt and reach zero leverage at the holding level.

• Strategic focus on expanding in Armenia and maintaining Net Capital Commitment ratio below 10%.

• Portfolio remains defensively positioned and capital-efficient, with strong operational momentum expected.