Keo Capital (KEOC) Q3 2025 earnings summary

Executive summary

• Completed a strategic shift from oil and gas to fintech, divesting Brava Energia for $78 million and Illinois Basin assets for $3.5 million plus up to $0.6 million earnout, and initiated a business combination with Keo World to acquire credit operations and technology, pending shareholder and regulatory approvals.

• Ended the quarter with a strong cash position of over $108 million and $52 million in approved credit lines at an 18% annualized yield, supporting robust liquidity and future growth.

• Significant reduction in recurring G&A expenses by 35% year-over-year and 18% quarter-over-quarter, with further efficiency measures ongoing.

• Business combination and capital raise of up to $35 million planned, with $27 million at closing and additional tranches before U.S. relisting.

• Share buy-back program initiated, with 2,812,922 shares held as treasury stock at quarter-end.

Financial highlights

• Achieved a net income of approximately $4 million for the quarter, aided by a $6.92 million realized gain on Brava shares.

• EBITDA remained negative at around -$3 million, mainly due to reduced revenues and non-cash expenses.

• G&A expenses decreased 35% year-over-year and 18% sequentially from the previous quarter.

• Cash and cash equivalents (including restricted cash) totaled $108.7 million at quarter-end, with pro forma cash and credit at $97.3 million after subsequent events.

• Free cash flow for the nine months was $56.1 million, a significant improvement from negative $52.3 million in the prior year period.

Outlook and guidance

• Expect to conclude the business combination and $27 million capital raise by year-end, with an additional $80 million tranche and U.S. listing targeted for next year.

• Nasdaq relisting and dual U.S. listing anticipated between Q2 and Q3 next year, following AGM approval.

• Focus remains on expanding Keo's credit portfolio, leveraging high-yield opportunities in Latin America and North America, and scaling fintech operations.

• Additional senior debt funding is planned to leverage credit operations while maintaining a strong capital structure.