Edarat Reports SAR 36.34M Net Profit in Year 2025
EDARAT 9557.SA | 360.00 | +1.41% |
On 2026-02-09 08:02:08 (Saudi Time), Edarat Communication and Information Technology Co. announced its Annual financial results for the twelve months ended on December 31, 2025.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 192,359,664 | 104,566,253 | 83.96 | ||
| Gross Profit (Loss) | 62,187,112 | 45,309,545 | 37.25 | ||
| Operational Profit (Loss) | 40,549,905 | 27,751,123 | 46.12 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 36,341,336 | 24,663,264 | 47.35 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 33,844,065 | 23,982,466 | 41.12 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 95,081,550 | 62,881,702 | 51.21 | ||
| Profit (Loss) per Share | 7.22 | 4.9 | |||
| 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 | - | - | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year |
Revenue for the year ended 31 December 2025 increased to SAR 192.36m (2024: SAR 104.57m), an increase of 83.96%. Growth drivers were:
Data Center Engineering Services including Facility Managment of Data Centers, rose to SAR 116.2m (2024: SAR 55.63m).
Cloud Services including EdaratCloud and the introduction of the new Colocation services, rose to SAR 76.16m (2024: SAR 48.94m), supported by the expansion of EdaratCloud Infrastructure, increased subscription volumes and new service offerings.
Strategic partnerships and increased commercial activity across both segments contributed materially to the revenue uplift. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
37.25% increase in gross profit (SAR 62.19m) and 46.12% in operating profit (SAR 40.55m).
Improved operating leverage: General and Administrative expenses decreased materially as a percentage of revenue (2025: 7.39% ; 2024: 12.35%), reflecting operating efficiencies and cost discipline
As a result of the above, Net profit for 2025 increased by 47.35% to reach SAR 36.34m (2024: SAR 24.66m) |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items |
Reclassification from General and Administrative expenses to Selling and Marketing expenses for SAR 4,557,360.
Reclassification from Trade Receivables to Due from Related parties for SAR 542,124.
Reclassification from Contract Liabilities to Due from Related Parties for SAR 56,441. |
| Additional Information |
Share capital increase: On 28 May 2025 the Extraordinary General Assembly approved a capital increase by capitalization from retained earnings from SAR 25.2m to SAR 50.4 (resulting in 5,040,000 shares of SAR 10 each).
Employee Stock Ownership Program (ESOP): The Company granted 8,384 shares under ESOP on 11 September 2025 at cost of SAR 2,282,614 which was transferred from Treasury Shares to Employee Stock ownership plan (ESOP shares). ESOP related expense of SAR 197.96K are recorded and a reserve is created for the same amount in statement of changes in equity.
Loans and financing: The Company obtained long-term financing (36 months) during 2025 to finance CAPEX related to the expansion of cloud infrastructure (net long-term loan balance SAR 6.59m at year end). |
Year-on-Year Performance Drivers
Sales increased 83.96% YoY to SAR 192.36 million, driven by significant growth in Data Center Engineering Services (including facility management) which rose to SAR 116.2 million, and Cloud Services (including EdaratCloud and new Colocation services) which increased to SAR 76.16 million, supported by infrastructure expansion and strategic partnerships. Net profit surged 47.35% to SAR 36.34 million, benefiting from improved operating leverage as General and Administrative expenses decreased materially as a percentage of revenue from 12.35% to 7.39%, reflecting enhanced operational efficiencies and cost discipline alongside the strong revenue growth.
Other Items
The auditors issued an unmodified opinion with no additional comments or qualifications noted. The company completed a share capital increase on May 28, 2025, doubling capital from SAR 25.2 million to SAR 50.4 million through capitalization of retained earnings, resulting in 5,040,000 shares of SAR 10 each. An Employee Stock Ownership Program granted 8,384 shares in September 2025 at a cost of SAR 2,282,614 with related expenses of SAR 197,960. The company obtained 36-month long-term financing during 2025 for cloud infrastructure expansion with a net loan balance of SAR 6.59 million at year-end. Several reclassifications were made including SAR 4,557,360 from General and Administrative to Selling and Marketing expenses, and adjustments between Trade Receivables and Related Party balances.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=93021&anCat=1&cs=9557&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.