Porto have started the season in great form, at least domestically, where they have won their first eight games in the league, though results have not been so impressive in the Champions League, as they have lost both games to date.
They had earned their return to Europe’s leading club tournament after they won the league last season under head coach Francesco Farioli, which followed a barren period by the club’s own exalted standards, as they had not finished top since 2021/22.
As André Villas-Boas said, “The national championship title eluded us for four years. For any Porto supporter, that absence of titles is a desert. Winning is part of Porto’s identity.”
The president was therefore happy to note, “The 2025/26 season was marked by a recovery in sporting competitiveness.”
This reflected a marked change in strategy, as the club chose to spend heavily on strengthening the squad and retain some of its talent, as opposed to its usual approach of selling players to balance the books.
Villas-Boas explained the rationale, “We entered this season with clear objectives: to restore our competitive edge, return to winning ways, and – simultaneously – continue building a more solid, modern, and sustainable FC Porto.”
Profit/(Loss) 2025/26
The “significant investment made to restore sporting competitiveness” clearly paid dividends in the league, but it was also reflected in Porto’s financials, as they swung from the club record pre-tax €45.0m profit to a €20.3m loss, a significant year-on-year deterioration of €65.3m.
Villas-Boas argued that this was a timing issue, “Had Rodrigo Mora’s transfer been completed before 30 June, this result would have been positive.”
However, it was rather more nuanced than that, as other factors came into play.
Revenue was basically flat at €150m, while there was a steep increase in operating expenses, which shot up €46.0m (25%) from €181.5m to €227.5m.
Furthermore, profit on player sales almost halved from €100.4m to €55.9m, though this was partially offset by €24.0m exceptional gains from asset sales.
It’s worth noting that Porto’s EBIT (Earnings Before Interest and Tax) was still positive at €2.6m, albeit significantly lower than the previous year’s €68.5m, but they then had €22.9m interest payable, which led to the €20.3m pre-tax loss.