Digital Research Posts SAR 7.39M Net Loss in the Six Months 2026
DRC 9621.SA | 0.00 |
On 2026-08-25 15:44:36 (Saudi Time), Digital Research Company announced its Interim financial results for the six months ended on June 30, 2026.
| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 12,619,841 | 23,386,978 | -46.039 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -7,389,312 | -3,467,966 | 113.073 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 24,183,363 | 33,873,335 | -28.606 | ||
| Profit (Loss) per Share | -2.72 | -1.28 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 5,558,023 | 18.82 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is |
The Company experienced a 46.04% decrease in revenue during the first half of 2026 compared with the first half of 2025.
The revenue is mainly decreased from the Government sector by 13.18 million (60.27%), primarily due to the completion of certain Government projects and a lower level of Government project activity during the first half of 2026.
However, the revenue from the private sector increased by 2.41 million (159.48%) as compared to the same period last year. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is |
The Company recorded a net loss of SR 7.39 million during the current period, compared with a net loss of SR 3.47 million in the same period of the prior year.
The increase in net loss is mainly due to decrease in revenue by SR 10.77 million (46.04%) as explained above. This decrease partially offset by decrease in cost of revenue of 5.77 million (29.34%) reflecting the Company's cost optimization measures during the period.
Due to decrease in revenue, the gross results moved from a gross profit of 3.70 million to a gross loss of 1.29 million.
and decrease in other income by SR 0.18 million (40.07%)
However, the following items positively contributed during the period: – Decrease in general and administrative expenses by SR 0.59 million (10.12%) where company optimized the G&A cost during the period. – Decrease in selling and marketing expenses by SR 0.17 million (57.00%). – Decrease in expected credit loss (ECL) allowance by SR 0.21 million (35.60%). – Decrease in finance cost by SR 0.09 million (22.93%). – Decrease in zakat by SR 0.16 million (33.53%). |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform with the current period's presentation. For more information refer to note (23) of the interim financial statements for the period ended 30 June 2026. |
| Additional Information |
For additional context, based on the Company's internal management accounts. Revenue for Q1 2026 amounted to approximately SR 5.6 million, with a net loss of approximately SR 5.9 million. During Q2 2026, revenue increased to approximately SR 7.0 million, while the net loss narrowed to approximately SR 1.5 million due to increase in revenue and company's cost optimization measures during the Q2 2026.
These standalone quarterly figures have not been separately reviewed by the Company's external auditor and are provided as supplementary information only. The reviewed financial results of the Company relate to the six-month period ended 30 June 2026. |
Year-on-Year Performance Drivers
Sales declined 46.039% YoY from SAR 23.39 million to SAR 12.62 million (converted from Actual: 23,386,978/1,000,000 = SAR 23.39 million; 12,619,841/1,000,000 = SAR 12.62 million), primarily driven by a SAR 13.18 million (60.27%) decrease in Government sector revenue due to the completion of certain Government projects and reduced Government project activity in H1 2026, partially offset by a SAR 2.41 million (159.48%) increase in private sector revenue. Net loss widened by 113.073% YoY from SAR 3.47 million to SAR 7.39 million, mainly attributable to the SAR 10.77 million (46.04%) revenue decline which caused gross results to shift from a gross profit of SAR 3.70 million to a gross loss of SAR 1.29 million, compounded by a SAR 0.18 million (40.07%) decrease in other income. These negative impacts were partially mitigated by cost optimization measures, including a SAR 5.77 million (29.34%) reduction in cost of revenue, a SAR 0.59 million (10.12%) decrease in G&A expenses, a SAR 0.17 million (57.00%) reduction in selling and marketing expenses, a SAR 0.21 million (35.60%) decrease in ECL allowance, a SAR 0.09 million (22.93%) reduction in finance costs, and a SAR 0.16 million (33.53%) decrease in zakat.
Quarter-on-Quarter Performance Drivers
QoQ revenue improved from approximately SAR 5.6 million in Q1 2026 to approximately SAR 7.0 million in Q2 2026, driven by increased project activity. The net loss narrowed significantly from approximately SAR 5.9 million in Q1 2026 to approximately SAR 1.5 million in Q2 2026, primarily due to the revenue increase combined with the company's cost optimization measures implemented during Q2 2026. Note that these standalone quarterly figures are unaudited and provided as supplementary information only.
Other Items
The external auditor issued an unmodified conclusion on the interim financial statements for the six-month period ended June 30, 2026. Total shareholders' equity (after deducting minority equity) stood at SAR 24,183,363, compared to SAR 33,873,335 in the same period of the prior year, reflecting a decline of 28.606%. Loss per share was SAR -2.72, compared to SAR -1.28 in the same period of the prior year. Accumulated losses amounted to SAR 5,558,023, representing 18.82% of capital. Certain comparative figures have been reclassified to conform with the current period's presentation, as referenced in note (23) of the interim financial statements for the period ended June 30, 2026.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97781&anCat=1&cs=9621&locale=arNote: The original announcement does not explicitly specify a currency unit. Figures above are reproduced as-is. Please refer to the original announcement for details.
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