Online Reporter
Tapiwanashe Mangwiro
The Zimbabwe Stock Exchange Holdings posted a modest profit for the year to December 31, 2025, despite a sharp decline in revenue, demonstrating resilience in a challenging operating environment.
According to the group’s audited financial results, revenue declined by 15 percent to US$6,38 million, compared to US$7,55 million in 2024, reflecting lower activity across some segments of the capital market.
However, the group still delivered a profit after tax of US$116 182, a significant improvement from US$20 123 recorded in the prior year.
In a statement accompanying the results, chairperson Mrs Caroline Sandura said the performance demonstrated the exchange’s ability to remain stable despite market headwinds.
“The year under review was characterised by a challenging operating environment, which had an impact on revenue performance.
“Nonetheless, the group remained focused on maintaining operational resilience and strengthening the capital markets infrastructure,” she said.
The decline in revenue also weighed on operating profitability. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell sharply to US$649 415, down 65 percent from US$1,84 million in the previous year.
Despite the drop in operating earnings, Mrs Sandura said the group continued to prioritise efficiency and stability across its operations.
“Our focus during the period was on ensuring the sustainability of the exchange and continuing to provide reliable market infrastructure for investors, issuers and other stakeholders,” she said.
One of the notable aspects of the group’s performance was cash generation, which rose significantly to US$654 549 from US$187 287 in 2024.
The improvement in operating cash flow reflects stronger working capital management and the group’s efforts to maintain financial discipline during a period of declining revenue.
Mrs Sandura noted that maintaining liquidity and operational capacity remains central to the exchange’s long-term strategy.
“The group continues to place emphasis on sound financial management and operational efficiency as we position the exchange for future growth,” she said.
The value of total assets declined 14 percent to US$4,29 million from US$4,98 million recorded in the prior year. Non-current assets fell 19 percent to US$3,09 million, while current assets remained relatively stable at US$1,2 million.
The group’s equity position also softened, with net assets decreasing 16 percent to US$3,09 million. Total liabilities declined 9 percent to US$1,21 million, indicating a modest reduction in obligations during the year.
Despite the contraction in the balance sheet, Mrs Sandura said the company remains well-positioned to continue supporting the country’s capital markets.
“The Zimbabwe Stock Exchange remains a critical institution in the development of the national financial ecosystem, providing transparent and efficient platforms for capital formation,” she said.
Auditors highlighted revenue recognition as a key audit matter, noting that exchange revenues are generated from multiple streams, including transaction levies, listing fees, membership fees and document review charges, all of which involve high transaction volumes and complex information technology systems.
Looking ahead, Mrs Sandura said the group will continue strengthening market infrastructure while supporting the growth and development of Zimbabwe’s capital markets.
“The board remains committed to advancing initiatives that deepen the capital markets, enhance investor participation and improve the overall efficiency of the exchange,” she said.
Mrs Sandura added that the exchange will continue working closely with regulators, market participants and issuers to expand opportunities for capital raising and investment.
