RS2 plc – Interim Results
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
Financial Performance
On 26 August 2026, RS2 plc published its interim consolidated financial statements for the six-month period ended 30 June 2026.
Revenue rose by 37% to €24.1 million as ‘Processing solutions’ surged by 55% to €15.9 million and ‘Issuing and Acquiring solutions’ grew by 40% to €3.16 million, whilst ‘Software (Licensing) solutions’ was broadly unchanged at €5.00 million. RS2 attributed the growth in Processing solutions primarily to one-time implementation revenue alongside higher processing revenue, with the number of transactions processed rising by 17% during the period. During the period, RS2 concluded a number of major commercial agreements, including a multi-country processing mandate spanning the Caribbean, and continued onboarding clients under contracts secured in the final quarter of 2025.
General operating costs (excluding foreign exchange and other income) increased by 11.6% to €20.9 million, driven by higher cost of sales which rose by 14.4% to €16.1 million, whilst administrative, marketing and promotional expenses were largely unchanged at €4.65 million.
The Group registered a net foreign exchange gain on operating activities of €0.57 million compared to a loss of €1.67 million in the first half of 2025, partly offset by an impairment loss of €0.21 million on trade receivables and contract assets compared to a net release of €0.22 million a year earlier.
RS2 registered an operating profit of €3.63 million compared to an operating loss of €2.40 million in H1 2025. Excluding depreciation and amortisation charges of €1.90 million, EBITDA amounted to €5.52 million in contrast to a negative EBITDA of €0.98 million in the first half of 2025.The EBITDA margin amounted to 22.9%.
Net finance costs increased by 21.1% to €0.18 million.
RS2 recorded a pre-tax profit of €3.45 million compared to the loss of €2.55 million in the same period last year. After accounting for a tax charge of €2.17 million and losses attributable to non-controlling interests of €0.11 million, the net profit for the period attributable to shareholders amounted to €1.38 million compared to the loss of €2.56 million in the first half of 2025.
The Statement of Financial Position as at 30 June 2026, when compared to the corresponding figures as at 31 December 2025, shows that total assets increased by 6.2% (or €3.55 million) to €60.9 million. Intangible assets and goodwill stood at €26.1 million, whilst contract assets, which represent the Group’s right to consideration for work completed but not yet billed, stood at €8.54 million. Restricted cash held in trust accounts on behalf of merchants amounted to €7.52 million, and RS2’s cash balance amounted to €1.83 million.
Total liabilities rose by 6.9% (or €2.37 million) to €36.5 million, whilst total debt (including lease liabilities) declined to €7.79 million from €10.9 million as at the end of 2025, reflecting the reduction in bank borrowings to €6.07 million.
Shareholders’ funds increased by 5.0% (or €1.27 million) to €26.5 million.
Outlook
The Directors explained that for the remainder of 2026 management will remain focused on converting the implementation pipeline into live processing activity, scaling regulated issuing and acquiring operations, expanding the Group’s presence in the United States, and maintaining disciplined investment in platform capability, infrastructure, security and automation. Subject to successful implementation and client readiness, processing revenue from newly contracted clients is expected to commence progressively throughout 2027, with the timing of go-lives and revenue conversion dependent on the completion of implementation milestones, regulatory and scheme requirements and prevailing market conditions.
The Directors added that Software and Managed Services Solutions continue to deliver positive pre-tax contributions, whilst the Issuing and Acquiring Solutions segment (previously Merchant Solutions) is expected to progress towards profitability after 2028, subject to continued organic growth across direct merchants and partners.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.