Investors face a thinner cash buffer after Legend Internet Plc reported a sharp collapse in profitability for the year ended July 31, 2026. The broadband and digital services provider posted a pre-tax profit of ₦13.21 million, down 92.35% from ₦172.66 million a year earlier, while profit for the period also fell 90.73% to ₦13.21 million from ₦142.46 million.

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The company’s results filed on the Nigerian Exchange show the decline was driven by a shrinking core revenue base, administrative expenses that rose almost ninefold, and finance costs that increased by more than ten times. Those operating pressures were masked by a one-off ₦672 million gain on disposal of assets recorded as other income, without which Legend would have recorded a substantial pre-tax loss.

On the balance sheet, total assets climbed 28.94% to ₦4.14 billion, supported by higher receivables, prepayments and other current assets. Total liabilities remained roughly flat at ₦371.48 million. The filing also records a change in ownership between May 19, 2025 and July 31, 2026, while issued share capital stayed at 2 billion shares and the company disclosed compliance with the Exchange’s Main Board free-float requirement.

There were positive shifts in the revenue mix. Wholesale bandwidth revenue jumped 331.4% to ₦162.58 million from ₦37.68 million, and customer premises equipment sales rose about 402% to ₦7.20 million from ₦1.44 million. Those gains improve diversification but did not offset higher costs and the surge in financing expenses.

Legend closed trading on Tuesday, September 15, 2026 at ₦4.05 per share, up 1.2% from the prior close of ₦4.00. The stock began the year at ₦5.29 and has lost 23.4% year-to-date, ranking 113th on the Nigerian Exchange by YTD performance. Shares fell from a year-high of ₦7.98 on March 6, 2026 and have declined a further 7% since August 17.

Investors will be watching whether management can rein in administrative costs and refinance a high-interest bridge facility before its December 2026 maturity, given how thin the company’s cash position has become relative to outstanding borrowings.