Hoist Finance (HOFI) Q1 2026 earnings summary

Executive summary

• Profit before tax grew 32% year-over-year on a currency-adjusted basis, reaching SEK 394m, with net profit at SEK 337m, up 30%, and return on equity at 19.5%.

• Portfolio value increased 19% year-over-year to SEK 34.4bn, with strong collection performance at 105%.

• Acquisition of Azzurro Associates in the UK for GBP 200m (SEK 2.5bn) will strengthen presence in Europe's largest credit market and increase SME exposure, pending regulatory approval.

• Qualified as a Specialized Debt Restructurer (SDR), increasing investment flexibility and removing NPL backstop regulation constraints.

• High investment activity and robust financial results, with significant portfolio acquisitions and profit growth.

Financial highlights

• Portfolio acquisitions reached SEK 2.0bn in Q1, with SEK 5bn secured up to summer, and SEK 500m signed post-quarter.

• Total operating income increased 13% year-over-year to SEK 1,168m; net interest income rose to SEK 998m.

• EPS improved to SEK 3.57, up 53% year-over-year.

• Cash EBITDA for the quarter was SEK 2,037m, up from SEK 1,664m in Q1 2025.

• Operating expenses increased to SEK 774m, mainly due to higher collection costs and SEK 20–25m in one-off Azzurro acquisition costs.

Outlook and guidance

• Market remains active with strong primary and secondary NPL flows; favorable conditions expected for portfolio acquisitions throughout 2026.

• Management expects continued portfolio growth, with M&A as an additive strategy and operational excellence initiatives to sustain strong collection performance.

• Capital Markets Day scheduled for September 2026 to present growth strategy through 2028.

• Target ROE remains above 15%, with current underlying ROE at 18.4%.