Georgia Capital (CGEO) Q1 2026 earnings summary

Executive summary

• NAV per share was flat in GEL at 154.82 in Q1 but grew 2.1% q-o-q in GBP and over 9% year-to-date, driven by strong post-Q1 recovery in Lion Finance Group and exceptional performance of large portfolio companies.

• Portfolio companies delivered 13.7% top-line growth and 27% year-over-year EBITDA growth, with net operating cash flow up 29.8% y-o-y.

• Lion Finance Group was promoted to the FTSE 100 Index, enhancing visibility and market capitalization.

• Share buybacks continued, with $22 million spent in Q1, totaling over one-third of issued share capital repurchased since demerger.

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

Financial highlights

• Year-to-date NAV per share growth reached 9.2% in GEL terms as of 27 April 2026.

• Five-year and three-year NAV per share CAGR stand at 27% and 32% in GEL, with since inception CAGR at 19%.

• IFRS net income for 1Q26 was GEL 26.0 million; net income down 91% y-o-y to GEL 29.9 million due to lower fair value changes.

• Portfolio value at GEL 5 billion as of 31 March 2026, with 96% externally valued.

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

Outlook and guidance

• Expectation of continued strong growth in 2026, with dividend inflows projected to exceed GEL 200 million.

• Capital return program of GEL 700 million nearly complete; new program to be announced.

• HoldCo debt targeted to be fully retired within the year; maintaining Net Capital Commitment ratio below 10%.

• Strategic focus on expanding in Armenia and maintaining a defensively positioned, capital-efficient portfolio.

• NAV discount narrowed to a record low of 16.2% as of 31 March 2026, with continued buybacks seen as attractive.