Unifin Financiera (UNIFIN A) Q2 2025 earnings summary

Executive summary

• Achieved significant progress on strategic roadmap, with strong governance and compliance oversight from the Board and committees.

• Origination volumes accelerated 30-40% month-over-month in Q2, with over 70% from new clients; NPL ratio at 0% for new originations since January 2025.

• Collections on legacy portfolio remained above 90% monthly; continued restructuring and settlements with large debtors.

• Cost discipline led to expenses running below budget, despite stable headcount and increased business activity.

• Successfully met post-closing commitments under the Concurso Plan, including debt service and collaboration with NAFIN/Bancomext.

Financial highlights

• Q2 2025 total income decreased 20% year-over-year to $578M MXN; H1 2025 income down 23% to $1,188M MXN.

• Gross margin for Q2 2025 was -$23M MXN, down from $148M MXN in Q2 2024; H1 2025 gross margin down 59% year-over-year.

• Net loss for Q2 2025 was $270M MXN, a 92% improvement from $3,401M MXN loss in Q2 2024; H1 2025 net loss was $1,204M MXN, down 83% year-over-year.

• Operating expenses in Q2 2025 were $660M MXN, down 13% year-over-year; H1 2025 operating expenses down 17%.

• Allowance for loan and lease losses in Q2 2025 was $548M MXN, down 81% year-over-year due to reserve methodology changes.

• Extraordinary income of $718M MXN in Q2 2025 from liability reduction related to unsecured creditors and FCFR asset monetization.

Outlook and guidance

• Strong pipeline for Q3 2025 with continued growth in pre-approved and approved lines.

• Reinvestment in technology platforms planned for H2 2025 to enhance client experience and operational efficiency.

• Management expects to maintain positive business momentum and further strengthen fundamentals.