Prosus N.V. (PROSY) Q4 2025 Results: A Strategic Triumph in Capital Allocation Amid E-Commerce Surge

Prosus N.V. (PROSY) has delivered a landmark quarter, with its Q4 2025 results showcasing a rare combination of operational excellence, disciplined capital allocation, and strategic foresight. The company's e-commerce ecosystem generated a 12-fold surge in Adjusted EBIT (aEBIT) to $443 million, while its dividend policy and buyback programs have positioned it to unlock significant shareholder value. This report dissects how Prosus is leveraging its financial strength to narrow its NAV discount and cement its status as a global e-commerce leader.

The E-Commerce Engine: Growth at Scale

Prosus's e-commerce division is the bedrock of its success. The $443 million aEBIT for FY2025 represents a staggering leap from $38 million in 2024, driven by three core pillars:

1. iFood: The Latin American food delivery giant reported a 178% EBIT jump to $226 million, fueled by a 30% revenue increase, expanded GMV (up 32%), and synergies from its loyalty program. Notably, iFood's food delivery segment saw aEBIT grow 71% to $306 million, with groceries and credit businesses contributing 34% revenue growth.
2. OLX Group: Classifieds leader OLX delivered a 61% EBIT rise to $270 million, with margins expanding to 35% through improved monetization in motors and real estate verticals.
3. eMAG: The Romanian e-commerce platform achieved full-year profitability in 2025, with aEBIT improving to $14 million—a $40 million turnaround from 2024—despite one-off costs in Hungary.

These gains are not merely top-line driven: Food Delivery margins hit 27%, while OLX's margins expanded by 10 percentage points. Such margin improvements suggest Prosus has mastered scaling without sacrificing profitability—a critical differentiator in a competitive space.

Capital Allocation: Dividends, Buybacks, and NAV Accretion

Prosus's capital allocation strategy is as compelling as its operational performance. The doubling of dividends to €0.20 per share marks a pivotal shift toward rewarding shareholders. Combined with buybacks—$50 billion returned since 2020, reducing the free-float by 25%—the company is systematically narrowing its 20% NAV discount.

The stock's valuation gap is now narrowing due to positive free cash flow for the first time in its history ($513 million improvement vs. 2024). This milestone underscores Prosus's transition to a self-sustaining model, free from reliance on Tencent dividends (though its 28% stake in Tencent remains a key asset).

Strategic Acquisitions and Ecosystem Synergies

Prosus's acquisitions are not mere bolt-ons but ecosystem integrations designed to amplify its core strengths:
- Despegar: Acquired in May 1Q25, its travel products are now embedded in iFood's Clube membership, creating cross-selling opportunities.
- Just Eat Takeaway.com: A proposed €4.1 billion deal aims to create an AI-driven European food delivery powerhouse, leveraging iFood's technology.
- PayU Fintech: A planned IPO targeting a $1.3 billion valuation, capitalizing on its 19 million merchants and cross-border commerce potential.

These moves align with Prosus's $7.8 billion AI investment program, which has boosted operational efficiency—e.g., Delivery Hero's AI-driven route optimization cut costs by 15%, and iFood's AI-enhanced order accuracy rose 20%.

Risks and Considerations

Despite its strengths, Prosus faces challenges:
1. Integration Risks: The Just Eat Takeaway.com deal and Despegar integration could strain execution.
2. Geopolitical Exposure: U.S.-China tensions may impact its Tencent stake, though Prosus has hedged risks by diversifying into AI and regional ecosystems.
3. Fintech Competition: PayU's India division faces pricing pressures, though its global scale and merchant base offer resilience.

Investment Thesis: Buy with a Long-Term Lens

Prosus's NAV convergence story is its strongest tailwind. With a $18 billion cash buffer, a 15% NAV accretion from buybacks, and free cash flow turning positive, the stock is primed to close its valuation gap. Analysts' "Buy" ratings and the company's $100 billion long-term value target suggest upside potential.

Recommendation: Prosus is a compelling buy for investors willing to overlook short-term geopolitical noise. Monitor the Just Eat integration and NAV discount trends, but the company's operational turnaround and shareholder-friendly policies make it a rare value play in tech.

In a sector rife with hype and overvaluation, Prosus stands out for its profitability, cash flow, and strategic discipline. The Q4 results are not just a quarter's win—they signal a new era for this e-commerce powerhouse.