Element H1 2026: Revenue Decline Narrows but EBITDA Turns Negative

Element reported H1 2026 revenue of RUB 15,781mn, down 2.0% y/y, while EBITDA swung to a loss of RUB 1,053mn (from +3,592mn) and net profit fell to -RUB 2,960mn from +2,011mn. Revenue growth accelerated versus the previous half (H2 2025: -6.8% y/y), but EBITDA growth decelerated sharply (H2 2025: -75.4% y/y vs H1 2026: -129.3% y/y).

H1 2026 vs H1 2025: headline YoY change

What drove the result

The top line held up relatively well, with revenue down only 2.0% y/y to RUB 15,781mn, but profitability deteriorated sharply: EBITDA margin turned negative, and net loss reached RUB 2,960mn. The swing from H2 2025 (EBITDA +1,323mn) to H1 2026 (-1,053mn) implies a substantial margin compression, likely driven by cost inflation or one-off items, though the data does not break out segment drivers. Net debt fell in absolute terms, providing some balance-sheet relief.

Key figures

Outlook

The key question is whether the EBITDA loss is a trough or a new run-rate. Revenue trends are improving (H1 2026 -2.0% y/y vs H2 2025 -6.8% y/y), but the collapse in profitability suggests cost pressures or one-off charges that may persist. Investors should watch for any management commentary on margin recovery and cost control; without guidance in the release, the risk is that negative EBITDA extends into H2 2026.

Net debt declined, offering some cushion, but the earnings trajectory remains the focal point. The stock is likely to react to the EBITDA miss and the swing to net loss; a credible cost-cutting plan or a rebound in margins would be needed to restore confidence.