Cian Q1 2025: Muted Revenue Growth as Primary Market Headwinds Persist

Cian's transaction revenue dropped 25% and EBITDA margin narrowed due to rising costs, according to the Russian marketplace's latest financial reporting.

Highlights include:

• Revenue grew 5% year-on-year to RUB 3.3 billion (USD 41.1 million).
• Adjusted EBITDA decreased 21% year-on-year to RUB 754 million (USD 9.4 million).
• Adjusted EBITDA margin fell to 22.8%, down by 7.7% compared to Q1 2024.
• Profit during the reporting period amounted to RUB 217 million (USD 2.7 million).
• Cash holdings amounted to RUB 9.5 billion (USD 118.3 million), with no significant debt.

Cian, the leading real estate marketplace in Russia, posted a 5% year-on-year revenue increase to RUB 3.3 billion ($41.4 million) in Q1 2025, driven by gains in its core advertising and lead generation business. However, slowing growth in the primary property market and macroeconomic pressures weighed on profitability and transaction revenue.

Revenue from Cian’s core business—ad placement, media advertising, and lead generation—rose 7% year-on-year to RUB 3.2 billion (USD 39.9 million). The company cited the secondary and commercial segments as the main growth drivers. In contrast, the new-build segment contributed to a deceleration in growth, reflecting a cooling market and a high prior-year comparison base tied to the end of a subsidised mortgage program.

Transactional revenue fell 25% to RUB 137 million (USD 1.71 million) as Russia’s mortgage market came under pressure from record-high interest rates and stricter terms on government-backed lending schemes.

Net profit for Q1 2025 dropped sharply to RUB 217 million (USD 2.7 million), from RUB 741 million last year. Cian attributed the decline to the revenue slowdown and a foreign exchange loss of RUB 575 million (USD 7.16 million). The company said all cash has now been converted to ruble accounts, and it does not expect further foreign exchange rate-related revaluation losses.

Adjusted EBITDA margin narrowed to 22.8%, driven by a 15% increase to rising operating expenses to RUB 2.7 billion (USD 22.7 million). Cian attributed this to higher personnel, IT, and general operating costs.

Despite the subdued quarter, CEO Dmitry Grigoryev said the company expects full-year revenue growth of 14–18% and an adjusted EBITDA margin above 20%.

He said:

"In the first quarter, we were able to show revenue growth, despite ongoing challenges in the Russian real estate market, as well as last year’s relatively high base, which was due to the desire to make transactions before the cancellation of a mass preferential mortgage program on 1 July 2024. At the same time, in the second quarter, we returned to double-digit revenue growth rates against the backdrop of a gradual adaptation of the market to current conditions and successful spring monetization.

"The difficult situation on the market continues to contribute to the formation of deferred demand, which could become a powerful driver of growth after the normalization of mortgage rates. In these conditions, zero debt and a strong cash position allow Cian’s business to feel comfortable and profitably invest available cash under the current macroeconomic situation.

"Given the Company’s current key performance figures, we expect that this year’s revenue will increase 14-18% compared to 2024, while our adjusted EBITDA margin will exceed 20%."

On 30 April, Cian PLC shareholders approved a proposal to redomicile the Cyprus-registered company to Russia. The relocation requires a certificate from Cyprus’ Registrar of Companies, which the company said may take at least six months to secure. Following completion, management plans to present a proposal to the board for a special dividend of RUB 100 (USD 1.25) per share.