Neil Trinidad: Good afternoon, everyone, and welcome to Mynt's Q3 and nine-month 2026 earnings call. Thank you for joining us during our maiden briefing as a listed company. My name is Neil Trinidad, Chief Marketing Officer of Mynt. Joining me for today's sessions are Martha Sazon, our President and CEO of Mynt, Evelyn Ng, our Chief Finance Officer, Ren-Ren Reyes, our CEO of GXI, the payments company for GCash, and Tony Isidro, our CEO of FUSE, the financing company for GCash. They will walk you through our financial and business performance for the period. For the Q&A portion, we will also be joined by Pebbles Sy, our Chief Technology and Operations Officer, and Rowie Zamora, our Chief Strategy Officer. Now, before we proceed, a few meeting reminders. Our earnings release, which provides further details of Mynt's results, is available in our results center of our investor relations website.
Neil Trinidad: We invite you to refer to it alongside today's presentation. All participants will be in listen-only mode during the briefing. You may submit your questions at any point through the Q&A box on the webcast, and we will address them during the moderated Q&A session after the presentations. For each question, please indicate your name and company, followed by your question. For any questions we are unable to cover during today's session, the investor relations team will get back to you separately. I would also like to remind everyone that today's discussion will contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which Mynt will operate in the future.
Neil Trinidad: Many factors could make or cause the actual results, performance, or achievements to differ materially from those expressed or implied during this discussion. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described during this discussion. Mynt is under no obligation to update or revise any information provided today, whether as a result of new information, future events, or otherwise. This presentation contains financial information regarding the business, financial conditions, and results of operations of the company and its consolidated subsidiaries, which may not have been audited, reviewed, or verified by any independent accounting firm. Additionally, today's call will include a discussion of non-PFRS financial measures. Description of these non-PFRS measures is available in our quarterly report, which can be found on our investor relations website.
Neil Trinidad: Nothing in today's presentation or discussion is an offer, solicitation, or invitation to buy or subscribe for any securities of Mynt in any jurisdiction, nor is it a recommendation or financial, legal, or tax advice. It should not be relied on for any investment decision. Lastly, this session will be recorded. A copy of the presentation and recording will be made available in our investor relations website post this briefing. With that, let me turn the call over to Martha.
Martha Sazon: Good afternoon, everyone. Thank you for joining us at Mynt's maiden analyst briefing. This is a milestone period for Mynt. As we mark our listing as a public company, we are pleased to report record results across our business. At the heart of our growth is a clear vision, one that continues to shape everything we do. Our vision is simple: finance for all. We bring this vision to life by making financial services part of every Filipino's everyday life, for everyday payments and transfers, fair credit for all, affordable investments and insurance, and digital lifestyle solutions for Filipinos everywhere. This vision has shaped the business we are today, a business that has now reached a high historic milestone, built strong growth momentum, and continues to create meaningful impact. These are the three areas the team will be highlighting throughout the presentation. Let me start with Mynt's historic market debut.
Martha Sazon: Our IPO was more than a market milestone. It was meaningful for two reasons. First, it reflected the confidence investors have in Mynt's future and the trust of millions of Filipinos. Assuming full exercise of the over-allotment option, we raised PHP 60.9 billion, making it the largest IPO in Philippine history and the largest in Southeast Asia since 2021. We raised PHP 60.9 billion, making it the largest in Philippine history. With over 20 global and domestic cornerstone investors, Mynt emerged as the seventh-largest company on the Philippine Stock Exchange by market capitalization. In its first three weeks, our stock also accounted for approximately 14% of total market trading volume, helping drive activity in the local capital market. Depending on the over-allotment option, our public float will be in the range of 12% to 13.8% at option closing.
Martha Sazon: After the lockup expiry in April 2027, we expect our float to cross 15% under PSE rules. Second, the IPO enabled Filipinos to participate directly in the growth of Mynt. Making the offering accessible was extremely important to us. Through GStocks PH, we made it possible for Filipinos to invest in Mynt for as little as PHP 660, slightly more than $10. We saw strong interest in the offering with over 140,000 subscribers and registrations growing four times ahead of the IPO. Notably, 90% of our retail subscribers availed of shares worth PHP 10,000 or less. This reflects strong participation from small lot and first-time investors. For the millions of Filipinos who have made GCash part of their everyday lives, the IPO was an opportunity to become more than just customers. Many are now shareholders in a company built by Filipinos for Filipinos.
Martha Sazon: GCash stands as the number one finance super app in the Philippines, with customer engagement reaching new highs. In Q3 2026, we reached an all-time high of 42.1 million monthly active users, growing 9.7% year on year. More importantly, 89% of our users come from socioeconomic classes C2, D, and E. This reflects our continued reach among everyday Filipinos, particularly the underserved. Beyond the growth in our user base, we are also seeing deeper engagement across our platform. For the first nine months of 2026, we averaged 64.4 million transactions daily, up 16% year on year. These numbers demonstrate how deeply GCash has become embedded in the everyday financial activities of Filipinos. Beyond these milestones, we remain focused on creating greater value for the millions of Filipinos who use GCash every day.
Martha Sazon: This means finding more ways to give back to our customers, open up more financial opportunities, and continue to support the communities we serve. First, as we celebrated GCash's 22nd birthday, we introduced exclusive deals across the GCash ecosystem, including limited-time vouchers to avail of our partner offers for only PHP 10, like 10-peso chicken. This is our way of saying thank you to our customers for being part of the journey. Second, we added more ways Filipinos can grow their money through GInvest. This includes making government securities more accessible through our new RTB 32 offering in partnership with the Bureau of the Treasury. And introducing gold investing through GCrypto, with investments starting at just PHP 500. Lastly, we continue to work with the public sector to make financial assistance more accessible and efficient.
Martha Sazon: Through our partnerships with LTFRB and DOTr, we helped distribute fuel subsidies to more than 200,000 beneficiaries. This meant jeepney drivers receiving much-needed support amid rising fuel costs without having to sacrifice their day's earnings, or hindi kailangang mawalan ng isang araw na pasada. We are also supporting the DSWD's UPLIFT program to accelerate the nationwide disbursement of assistance. Beneficiaries can now receive aid directly on their phones without having to line up. This is especially meaningful in mountainous regions like CAR, or the Cordillera Administrative Region, where traveling to receive assistance can be difficult. As we continue to expand our ecosystem, we are committed to creating more ways for Filipinos to move forward. Our obsession with solving the everyday pain points of Filipinos has translated into strong business performance, as reflected in our financial and operating metrics.
Martha Sazon: We are pleased to share that for the first nine months of the year, our growth has accelerated across all core segments. Our revenue grew by 12.2%, while net income increased by 17.4% year on year. In Q3 alone, revenues and net income grew by 16.6% and 43.3% year on year, respectively. Payment solutions GTV grew 23.1% year on year, reaching PHP 15.1 trillion. This meant that on average, each monthly active user transacted over PHP 370,000 in the first nine months of the year alone. Our outstanding loans also increased by 43.3% year on year to PHP 79.3 billion. Through these loans, more unserved and underserved Filipinos now have access to fair lending. Many of them are re-availers who have received better loan terms as a result of their good credit behavior. With that, I will turn it over to Evelyn Ng to take us through the financials.
Evelyn Ng: Thank you, Martha. Good afternoon, everyone. Let's now take a deep dive on our financial results for this quarter, starting with revenues. As Martha mentioned, we have grown our year-to-date revenues to PHP 67.1 billion, which is 12.2% higher compared to last year. in Q3 alone, our revenues hit PHP 24 billion, with year-on-year growth rate accelerating to 16.6% compared to last quarter's 5.5%. Our strong revenue performance is attributable to our two main businesses, payment solutions and credit tech. Let's take a look at our payment solutions business first. The growth trajectory of the payment solutions business has been resilient in Q3 of the year, registering 3.4% growth compared to the previous quarter, largely in line with the quarter-on-quarter growth of our payment solutions GTV, which indicates a steady take rate.
Evelyn Ng: Consistent with our prior communications, we guide analysts to look at our payment solutions revenue growth on a quarter-on-quarter basis. That said, we are happy to share that with the year-ago comparisons resetting starting from mid-August, revenue growth has recovered from the prior quarter's dip to reach 3.3% year-on-year growth in Q3 2026. With the lapping of last year's high base effect in mid-August, year-on-year comparison of payment solutions revenues and total revenues will start to normalize in Q4. Our credit tech business continues its strong growth trajectory, now contributing to 43% of total revenues. For the first nine months, revenues reached PHP 28.6 billion, up by 39.5% year on year. In Q3, credit tech revenues reached PHP 10.6 billion, a 40.6% year-on-year increase, accelerating growth compared to last quarter's 31% year-on-year growth.
Evelyn Ng: We continue to grow our active borrower base and increase credit utilization of our borrower base. The increasing credit utilization is a result of continued deepening of credit limits for borrowers in good credit standing and further development of our data and algorithms. Our nano to larger loans are an example of this. Many people who started on nano loan transactions have since progressed to larger amounts. Beyond this expansion angle, our entry-level products are also very important to our inclusion agenda. This strategy has allowed us to grow our loan book at a rapid pace while maintaining asset quality. Our net income grew at a faster pace too this quarter. Net income for the first nine months of the year reached PHP 16.5 billion, up by 17% year on year, reflecting a higher 24.5% net income margin.
Evelyn Ng: For Q3, net income ended at PHP 5.6 billion, increasing by 43.3% year on year. The strong year-to-date net income performance is driven by strong top-line growth from our core businesses, paired with controlled costs. Provision for credit losses was outpaced by the growth of our credit tech revenues, driven by sustained good repayment behavior. This, along with stable transaction processing costs and low funding costs, allowed our gross profit to grow by 9.3% year on year. Our biggest operating expense remains to be on technology and operations. At the start of the year, we incurred upfront platform investments driven by continuous security maturity and tech upgrades to support new product launches. It has since normalized, which explains the slower growth in Q3. We are also deriving cost savings from using AI. Particularly, our customer experience costs have gone down this year, driven by our automation efforts.
Evelyn Ng: Finally, our interest income from deposits has increased by 42% year on year. That is driven by increasing wallet balances and larger user base. We expect our Q4 margin to be lower compared to the Q3 and end at high teens. As previously communicated, we typically experience a seasonally higher cost profile towards the end of the year, driven by various holiday campaigns and higher volumes. Additionally, there will be one-time IPO expenses that will only be recorded in the Q4. As such, we expect to end the year at a full-year margin that is similar to that of last year's. Moving on, finally, our balance sheet has remained strong as of September. Internally generated cash remained robust, with our corporate cash balance increasing to PHP 46.8 billion.
Evelyn Ng: Meanwhile, our notes payable as of September stood at PHP 28.8 billion, which is largely used to support our credit tech business. As of September, our loan book is 36% funded by debt, 55% funded by equity, and the remaining 8% funded by off-book solutions. We continue to be deliberate in our capital structure, deploying internally generated cash to businesses that would give us superior returns. Should we decide to increase our debt funding, we still have around PHP 47 billion of uncommitted short-term credit facilities to draw from as of September 2026. With that, let me now turn the call over to Ren-Ren.
Ren-Ren Reyes: Thank you, Evelyn, and good afternoon, everyone. Let me walk you through the performance of our payment solutions business, which remains core to our relationship with our customers. For years, payments has been the most familiar touchpoint for our consumers. It is where daily habits are formed and where fundamental customer trust has already been earned. In the Q3 2026, that foundation delivered outstanding gains across both reach and monetization. Our monthly active users reached 42.1 million, crossing the 42 million milestone. This represents a 9% growth year on year. The stronger signal, however, is the growth in transaction activity. For the first 9 months of 2026, the gross transaction value reached PHP 15.1 trillion, up 23.1% year on year, more than twice the rate of user growth. This demonstrates that we are not just driving new user acquisition.
Ren-Ren Reyes: We are seeing deeper engagement and higher transaction frequency across everyday use cases. We are capturing a significantly larger share of our users' everyday financial lives, driving higher frequency and expanding our average value per user, or AVPU. Through this, we continue to deepen daily engagement, building affinity and trust with our base that traditional institutions cannot easily replicate. Importantly, this operating momentum is translating into sustainable economics. Our take rate held steady at 0.25% quarter on quarter, demonstrating resilient monetization alongside rapid volume expansion. By pairing higher wallet share with disciplined unit economics, payment solutions serves two essential functions for Mynt. It delivers highly predictable transaction revenues while generating the high-frequency touchpoints that feed our broader ecosystem. These numbers represent something far more meaningful than operational scale. They reflect how deeply GCash has become ingrained in users' daily lives.
Ren-Ren Reyes: Therefore, we continue our focus in enabling everyday use cases for more Filipinos. As customers do more on GCash, we are making sure the wallet can support their day-to-day payments and transfers. First, we are unlocking meaningful capacity for life's bigger moments. To support this growing usage, we have increased our account limits. Fully verified users have doubled the maximum wallet limit from PHP 500,000 to PHP 1 million. These users already account for around 95% of our monthly active users. We also raised our inflow and outflow limits, giving customers more flexibility as their financial needs evolve. This means an ordinary family can pay for larger ticket items like school tuition or hospital deposits without hitting ceilings or needing to juggle multiple bank accounts. Second, we are expanding the ways customers can pay with GCash.
Ren-Ren Reyes: Users can now link Visa or Mastercard credit and debit cards to the app and use those cards for QR payments. Whether someone is buying groceries, dining out, or shopping at a neighborhood retail stall, they no longer need to worry about manual cash-ins or carrying physical cards. They get their credit flexibility of their traditional cards delivered through their familiar GCash QR experience that they already trust. Third, we are ensuring that as our ecosystem grows broader, it feels distinctly personal. We are making the GCash experience more relevant to each customer through AI-powered personalization. With our Just for You feed, we are connecting customers with products and services that match their interests and needs and offer them at the right time. Finally, we are bringing real excitement and personal resonance into everyday spend. Our BTS WORLD TOUR GCash Visa Card launched last July.
Ren-Ren Reyes: It brought a sense of personal affinity to routine transactions, allowing Filipinos to spend their hard-earned money in ways that feel genuinely special and deeply relevant to them. Since the card was launched, we issued over 135,000 cards in just three months. That is 13 times our average card sales. Through organic sign engagement and user-driven social campaigns, we are proving that payments can be both a practical utility and a deeply meaningful lifestyle brand. Overall, the objective is simple: to make GCash the app of choice for more Filipinos. Beyond individual consumers, the second pillar that is powering our growth is our flywheel on merchant digitization. By embedding GCash directly into the merchant point of sale, from neighborhood sari-sari stores to larger national retailers, we are building an entrenched two-sided payments network that compounds in value with every transaction.
Ren-Ren Reyes: Because merchant operational realities vary widely, we have avoided a one-size-fits-all model, rolling out tailored hardware and software suites segmented across every scale. For micro merchants, PocketPay instantly turns any smartphone into a zero-cost digital acceptance terminal. By removing hardware barriers entirely, we bring previously cash-only entrepreneurs into the digital economy. For small merchants, SoundPay provides faster and more reliable payment confirmation at the point of sale. As Don, one of our business partners, shared, real-time audio alerts remove the need to check screens or wait for transaction proof. Store staff know immediately when the payment is completed. For medium-sized businesses, SoundPay Plus with enhanced features designed to support higher transaction volumes and multi-counter retail operations. For large enterprises, EasyPOS provides integrated payment solutions that work with their existing checkout systems and business operations.
Ren-Ren Reyes: We are also strengthening this ecosystem through strategic integrations with partners such as Antom and 2C2P. These enable merchants to accept multiple payment channels through one unified platform. Our goal is straightforward: to make digital payments accessible and useful for businesses at every stage, from their first digital transaction to enterprise-scale operations. Our role in the everyday lives of Filipinos extends across borders and beyond the Philippines. We are making it easier for Filipinos overseas to stay financially connected while helping inbound travelers or foreign tourists transact more conveniently in our country. We are doing this through four key international plays. First, GCash Overseas allows overseas Filipinos to register and use GCash with an international SIM card. It is now available in 145 countries with large OFW communities, giving them a familiar way to pay to manage their transactions back home.
Ren-Ren Reyes: Second, GCash Remittance enables users to send and receive funds across more than 200 countries and territories. This supports remittances as an important part of how Filipino households manage their finances. For Filipinos traveling abroad, GCash Travel combines cashless payments, real-time foreign exchange conversion, and services such as tax refunds, all in one app. Another exciting innovation is GCash Tourist. This provides inbound visitors the chance to pay like a local digitally for 30 days upon registration. They simply need to link their foreign credit card or debit card to their GCash Tourist account to enjoy a more seamless and convenient experience during their visit to the Philippines. Taken together, these initiatives extend our network effects beyond domestic borders. We are keeping Filipinos financially connected no matter where they are in the world, while cementing GCash as the undisputed transaction layer for anyone doing business or traveling in the Philippines.
Ren-Ren Reyes: Ultimately, this expansive scale across payment solutions brings us back to where I started, the power of daily habits and fundamental customer trust. Unlike traditional financial institutions that have to build consumer relationships from the ground up, our consumers are already here, and they have a rich, multifaceted, everyday connection with GCash. This deep existing engagement completely differentiates our other businesses, like lending. Our strong payment foundation accelerates our credit tech business, and in return, credit tech strengthens our overall platform by empowering customers to tackle higher-value use cases. It is a mutually reinforcing cycle that allows us to expand our relationship with our users far beyond basic transactions. To walk you through the performance of our credit tech businesses and how this foundational trust is unlocking responsible lending at scale, I now hand it over to Tony.
Tony Isidro: Thank you, Ren. I am proud to take you through the strides we are making in the credit tech business. Our credit tech business continues to grow profitably, striking a good balance of credit expansion and asset quality amidst macroeconomic challenges. As of Q3 2026, our active borrowers reached 7.8 million, an increase of 5.1% versus last year. Our loan book saw a strong growth of 43.3% versus last year. It now stands at PHP 79.3 billion as of September 2026, and purposely remains primarily on our balance sheet. Diving deeper into our other metrics, our disbursements reached PHP 140.6 billion, up by 34.6%. Our unit economics and margins are stable and remain healthy. Net interest margin after losses stood at 25.5% as of September, higher compared to the 23.4% and 24.5% recorded in the first and second quarters of 2026, respectively.
Tony Isidro: Last but not the least, our portfolio quality has remained resilient amidst macroeconomic headwinds. NPL was at 4.8% as of the end of Q3, a slight improvement compared to the 4.9% recorded last quarter. Moreover, our loan loss coverage ratio of 285% provides us with sufficient buffer for possible changes in portfolio quality. That being said, we remain cautious and are actively monitoring leading credit indicators to adjust our underwriting and preserve portfolio health quality proactively. Further, given that our current NPL ratio is already at the lower end of the target band, we continue to grow our book with caution, though anticipate that NPL may tick up in the next quarters in a manageable way, similar to how it trended in prior periods of expansion.
Tony Isidro: Over the past months, we have continued extending the possibilities of technology-led lending with a goal not only of growing the business, but also, and more importantly, addressing the needs of our customers. Underpinned by dynamic yet cautious credit risk management, we have prudently opened up the base to new users and granted credit limit increases to select borrowers who have previously displayed good repayment behavior, mainly to retail customers, but increasingly so also to micro and small merchants. Alongside access, we remain committed to strengthening consumer confidence in digital lending. First, we launched Selfie Scan. This adds facial verification before a customer proceeds with a loan, helping verify identity at a very important point of the journey. This proactive security measure helps us to ensure the one borrowing is the legitimate user, reducing risk of identity theft, account takeovers, and unauthorized borrowing.
Tony Isidro: Second, we introduced GLoan Protect, a first in the market. This is free hospitalization allowance for all GLoan borrowers. In our country where medical expenses are still primarily borne out of pocket, and where a medical emergency can severely disrupt an entire family's financial situation, especially for those from the lower income classes. This offer provides our borrowers a sense of assurance that they will have additional financial resources in the event that they are hospitalized. And it has been quite heartwarming that our borrowers respond positively to our efforts. On a fairly regular basis, we hear actual stories from our own customers sharing how the loan they availed from us uplifted their lives in some manner. This includes Jill, a small neighborhood store owner and a GLoan borrower who was able to have access to much-needed capital.
Tony Isidro: Arvie, a school teacher who expressed appreciation for the peace of mind the free health insurance from GLoan brought her. One more such inspiring story is from a GLoan borrower named Sheila Gomez, who I had the pleasure of personally meeting a few months back. Hers is a story not just about borrowing. It is a story about how at times, dreams do not unfold exactly as planned, but how, with perseverance and responsible financial choices, second chances are possible and dreams can still come true. Let us watch this.
[Video Narrator]: Congratulations to the 2023 Bar passers.
[Video Narrator]: Minsan, may mga pangarap na hindi natutupad.
[Video Narrator]: Okay lang na. Tutal may matarong ka man nga obra.
[Video Narrator]: Excuse me.
[Video Narrator]: Manang.
[Video Narrator]: Salamat sa tanan nga buhi ka.
[Video Narrator]: Nanang, hindi ako Attorney.
[Video Narrator]: 0.2?? Konting kembot na lang pasado ka na. Sige, may chance ka pa. Bar exam kay handiwa.
[Video Narrator]: Kamahal, paano ko ni bayaran? Sa tingin mo, sis, din ko makuha sang pambayad.
[Video Narrator]: Try mo kaya mag-GLoan sa GCash? Natestingan ko na na.
[Video Narrator]: Salamat sa tanan nga buhi ka Tony.
[Video Narrator]: Mag-midnight pinakaaga.
[Video Narrator]: Bago lang din.
[Video Narrator]: Congratulations to the 2024 Bar passers.
[Video Narrator]: Minsan, may mga pangarap na hindi natutupad. Pero may mga pangarap na di sinutukan.
[Video Narrator]: Ako si Attorney Sheila, kag ini ang GCash story ko.
Tony Isidro: Attorney Sheila's story is just one of millions of stories that remind us why we do what we do. As we close a historic year for Mynt, marked by a record-breaking IPO and all-time high business performance, our commitment to financial inclusion has only grown stronger. But before we end, I would like to give you a sneak peek of something exciting coming soon. Recalling what we talked about during our IPO, we aim to bring financial services to the next 50% of Filipinos who are still unbanked. One of our priorities is to expand in areas where connectivity remains a challenge. We dared ask, what if you could pay with GCash even with weak or no signal or mobile data on your phone? That is why we are introducing No Signal Pay.
Tony Isidro: Powered by tokenization, No Signal Pay lets you pay even when your phone has weak or no signal or mobile data. Simply unlock your phone and tap on any NFC-enabled payment device. No need to log in or open the GCash app. You can also pay even when the app is experiencing downtime. Of course, you still need to have sufficient balance in your wallet to complete the transaction. Yes, you can finally enjoy that first bite of hotdog without worrying whether you will have a signal to pay. So whether you are buying your favorite merienda or commuting on the MRT, you can pay with GCash. No signal, no data, no problem with No Signal Pay. This is just one example of how we will continue pushing the boundaries of financial inclusion.
Martha Sazon: As we enter this new chapter, we look forward to delivering sustained growth while creating more opportunities for Filipinos. Thank you, everyone.
Neil Trinidad: Thank you, Martha. As a reminder, you can still proceed to ask your questions on the message box in the chat. Let's now begin with the Q&A segment of our call. As a reminder, you may submit your questions at any point to the Q&A box on the webcast. Please include your name and company so that we may address you appropriately. I will read out the questions received prior to this call and via the webcast Q&A. For any questions we are unable to cover during today's session, the investor relations team will get back to you after this call. Let's proceed with the first question. Our first question is from Hannes of Jefferies, and the question is, can you talk about the macro backdrop and how you expect the market dynamic to change with the rising costs and rate hikes? This question is for Martha.
Martha Sazon: Well, our business has been resilient despite the challenging macroeconomic conditions. Even as the war broke out early this year, our revenues and user engagement continued to grow at a healthy pace. This just goes to show the relevance of our products in the lives of everyday Filipinos, and the strength of our diversified across multiple categories and use cases, such that there is always a reason for customers to use the app, be it for everyday life, like buying load or commuting, during good times, like paying for their online purchases, investing in the stock market, or even during uncertain times, like receiving government aid after a calamity, taking out a loan to pay for an emergency. In fact, it was during the pandemic when the macro was at its worst when we actually rapidly grew.
Martha Sazon: We believe that it is a testament to the value we bring to our customers' lives.
Neil Trinidad: Thank you, Martha. Our next question is for Evelyn, and the question is from Markie of F. Yap Securities, Inc. The question is, while Q3 2026 net income increased 43% year-on-year, sequential operating profit growth remained relatively modest, with higher contributions from non-operating income. How much of the recent earnings improvement does management consider recurring?
Evelyn Ng: We view interest income from deposits as a durable source of income that is derived from our normal operations, although they are classified as non-operating income. The strong increase was driven by user growth, increase in wallet balances, and our optimization of placements. The high year-on-year growth is also coming from a lower base versus our already scaled total revenue from payment solutions and credit tech, which mathematically explains the higher growth rate.
Neil Trinidad: Thanks, Evelyn. The next question is again for Evelyn. It is a question from Hannes of Jefferies. Looking ahead into 2027, how do you see growth dynamics and net income margins evolving?
Evelyn Ng: As a general practice, we do not provide specific quantitative guidance. Having said that, we have shared consistently in the past our aspiration to be a Rule of 40 company, meaning the sum of our consolidated revenue growth and net income margins are at or better than 40%. We believe there is still significant growth runway ahead for our industry as we continue to convert cash transactions into digital and bring more Filipinos into the formal financial system.
Neil Trinidad: Thanks, Evelyn. Our next question are for Ren-Ren and Tony, and it is again from Hannes of Jefferies. The question is, what were the drivers of payment solution and credit tech growth in Q3? Let us start with Ren-Ren.
Ren-Ren Reyes: Let me talk about payments. The growth in payment solutions revenues in Q3 is driven by growing user base and deepening user engagement. MAUs, or monthly active users, grew by 9.7% year-on-year to 42.1 million, while payment solutions GTV in Q3 alone reached PHP 5.3 trillion, up by 24% year-on-year. This implies that on average, an active user transacted over PHP 125,000 via GCash in Q3 alone, higher by 13.1% year-on-year. We continue to intensify our user acquisition efforts by now targeting the next-tier cities and municipalities while increasing product adoption through strategic marketing campaigns. These are on top of our continuous product innovations to release everyday relevant products. Another factor driving growth for payment solutions business is lapping last year's high revenue base in mid-August of this year.
Ren-Ren Reyes: That means that starting mid-August of this year-on-year growth of our payment solutions business has already normalized, and you will be able to see the full effect of this normalization starting the next quarter.
Tony Isidro: On the credit tech side, the Q3 growth in revenues is largely driven by the increasing borrower base and the growth of the total loan book. Our active borrowers grew by 5.1% year-on-year to now 7.8 million, largely driven by increasing retail borrowers, but also promising uptake on MSME loans. Our loan portfolio also increased by 43.3% to PHP 79.3 billion as of September. This is largely driven by continuous re-availment of borrowers, at oftentimes higher credit utilization. Disbursements have also remained robust, reaching PHP 49.5 billion in Q3 alone, which is up by 34.6% year-on-year.
Neil Trinidad: Thanks, Tony, and thanks, Ren-Ren. The next question is again for Ren-Ren, and it is from Markie of F. Yap Securities. The question is, despite the 24% year-on-year growth in payment solutions GTV, adjusted revenues increased by only 3.3%. How much of this divergence is attributable to the discontinuation of gaming-related revenues versus changes in the transaction mix? Does management expect take rates to stabilize or recover in 2027?
Ren-Ren Reyes: Okay. This divergence is actually mainly due to the cessation of revenue streams, which were affected by the delinking last August. Since then, our take rate has actually normalized at 25 basis points, which is closer to the levels in 2023, and it is actually steady on a quarter-on-quarter basis already.
Neil Trinidad: Thanks, Ren-Ren. Our next question is for Tony, and it is a question from Markie of FIAP Securities. Given the 56% expansion on on-book loans, how sustainable are these improvements?
Tony Isidro: Our credit tech business is governed by a very disciplined balance across three vectors. First would be loan book growth, second, profitability, and third, asset quality. Growth this year has been driven by seasoned re-availers graduating into higher ticket sizes. With 7.8 million active borrowers representing approximately 18.6% of our total MAUs on the wallet side and 40% of adult Filipinos still relying on informal lending, there really remains a substantial structural job for us to be done in bringing underserved population into formal credit. That being said, historical growth rates such as our recent 56% expansion on book loans should not be viewed as a long-term guiding baseline. Growth in given period is an output of where we choose to operate within our credit cycle.
Tony Isidro: During expansion phases, we lean into top-line momentum, whereas during seasoning and optimization phases, we may prioritize portfolio quality and margin over volume. Ultimately, our focus is not solely on maximizing growth, but as I mentioned earlier, also sustaining high-quality, risk-adjusted returns and sustaining NIMAL margins across all these cycles.
Neil Trinidad: Thanks, Tony. We have a few more questions for you. The next question is from Rona of Maybank and Mika Ng of Papa Securities. The questions are, and there are two, what drove the improvement in NPLs to 4.8% despite the strong growth in the loan portfolio, and is this level sustainable going forward? And the related question is, what is driving the improvement in asset quality relative to the deterioration seen at some banks?
Tony Isidro: A big part of the improvement is driven by the maturity of established borrower base, as they continue to avail of our loan products and prove their creditworthiness through their repayments. From there, we are able to offer them better terms, such as lower rates, perhaps longer tenor, and higher credit lines, which all lead to higher credit utilization. Now, in terms of future outlook on our NPL, we do not really target just driving down NPL unilaterally, as we also recognize that doing so may shut out many deserving Filipinos from access to formal credit. In order to drive the inclusion agenda, we continue to develop our data and models to fuel and enable expansion. So for as long as our NPL is within the band we are comfortable in, we know we can manage the oscillations and the movements.
Tony Isidro: Now, in fact, given that it has already reached the lower band of our comfort band at our current NPL level, we do expect that our NPL ratio may increase in the next few quarters as we now expand our borrower base. It is through this continuous cycle that we continue to invest for future growth while we maintain the balance of quality and profitability.
Neil Trinidad: Thanks, Tony. I still have a few more questions for you, so hang on there. This question is from Rafa of Regis and Akash of UBS. The related questions, we will ask them sequentially. With slow economic growth and high inflation, are we seeing increase in past due rates? Related to this, what leading indicators would cause you to slow originations, particularly early delinquencies, roll rates, or borrower repeat behavior?
Tony Isidro: So far, our default rate has been manageable, and as you saw, our NPL ratio has largely stayed stable, with even a small improvement. Given that the deep base of up-to-date data we have on our users, we are able to look at many signals and indicators proactively to supplement our underwriting decisions. These indicators may include delayed bills payments or lower inbound remittances or shifts in their spending patterns in the wallet. The ability to look at these indicators provides us comfort and confidence to further deepen or scale back credit, as the case may be, for individual users that face varying effects from the challenging macro situation. We continue to closely monitor this practically real-time portfolio quality metrics and, of course, other indicators in order to flag and respond to quality concerns.
Tony Isidro: As in the past, if necessary, then we can make, and rather quickly, granular adjustments to credit policies, underwriting models, and product offers. We believe that, to some degree, the strong ubiquity of the GCash app and the brand as a whole also helps us drive positive borrowing behavior from our users, supporting this good asset quality.
Neil Trinidad: Thanks, Tony. I promise this is the last set of questions we are going to ask you before we move on to the next interviewee. This question, Tony, is from Rona of Maybank. How should investors think about a more normalized credit cost level over the medium term?
Tony Isidro: Well, similar to our NPL ratio, we do not really target a specific credit ratio as it may fluctuate from time to time, especially during times of expansion. But as long as it is within a manageable band, we view the fluctuation as really part and parcel of how we grow the lending business. We continue to strategically take incremental risk given headroom and growth opportunities we see, and as long as it ultimately provides us with superior returns, which it has, and as you would have seen from our NIMALs. As I mentioned earlier, the way we grow our credit tech business is by balancing those three growth vectors: growth, profitability, and asset quality.
Neil Trinidad: Thanks, Tony. I am going to give you a break right now, and I will ask Pebbles next. What are the opportunities and threats that you are seeing with AI?
Pebbles Sy: Thanks, Neil. We look at AI through two lenses: clear operational and customer opportunities and disciplined risk management. On the customer side, our AI assistant, Gigi, handles half of all customer inquiries, resolving roughly 90% without human intervention. We are also piloting agentic tools like Gabby or Gabay for everyday use cases like buying load. Internally, we embed AI directly into product development to ship features faster and use predictive operations to keep our unit costs down. As for risks, we manage them proactively. Real-time defenses have kept our fraud rate at a world-class 0.0012%, while our AI council and human oversight ensure strict model accuracy and safety. For us, AI is not hype or an experiment. It is an everyday operating discipline that protects our margins and enhances customer trust.
Neil Trinidad: Thanks, Pebbles. Our next question is for Rowie, and it is from Rafa of Regis. The question is, how does GCash intend to compete or differentiate against Wise and Revolut as both compete in the remittance space?
Rowie Zamora: We view our positioning differently from the global players you mentioned. First, it is important to understand that the Philippine market is predominantly an inbound remittance market, and as such, our core strategy is to be the account of choice to receive the inbound remittances. Also, we continuously partner with global remittance outfits to make sure that the inbound transfers remain seamless and provide the best experience for our users. In some instances, it means even partnering or working with our competitors. Our focus is really to build on the strengths of domestic ubiquity that GCash has as the main receiving channel for these remittances.
Neil Trinidad: Thanks, Rowie. For the next question, we will pass it back to Evelyn, and the question is from Akash of UBS. You have flagged IPO-related expenses and seasonally higher costs in Q4. Can you quantify the expected Q4 IPO one-offs and give us a range for full-year 2026 OPEX growth and indicate the underlying cost-to-income ratio excluding one-offs?
Evelyn Ng: We can provide more specifics on Q4 costs in our next briefing. In terms of margin, we expect our fourth quarter margins to end at high teens. This already factors the one-time IPO expenses as well as seasonal expenses. As mentioned during the prepared remarks earlier, we expect to end the full year 2026 at similar level of net income margin as prior year. So what this implies is roughly the same growth of revenues and total costs for fiscal year 2026.
Neil Trinidad: Thanks, Evelyn. With that, we conclude our Q&A session. On behalf of Martha, Evelyn, Renren, Tony, Pebbles, Rowie, and the entire GCash team, thank you so much for joining us for Mynt's Q3 and 9 Months 2026 Earnings Call. Have a pleasant day. Thank you.
Operator: Goodbye.
