On 2026-08-10 08:02:14 (Saudi Time), Rasan Information Technology Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended 30 June 2026, sales/revenue surged 111.483% YoY to SAR 517.5 million (from SAR 244.7 million), driven by the launch of new products and their sustained contribution throughout the period, growth in insurance policies sold for existing products, acquisition of new customers, improved customer retention, and enhancements to the customer experience and after-sales services. Net profit attributable to shareholders rose 168.258% YoY to SAR 174.1 million (from SAR 64.9 million), primarily fueled by the strong 111% revenue growth and a significant 177.041% increase in operating profit, with the operating profit margin expanding to 35% from 27%, as revenue grew at a faster pace than costs, reflecting improved operating efficiency across the platforms.

Quarter-on-Quarter Performance Drivers

QoQ revenue dipped 1.724% to SAR 256.5 million (vs. SAR 261 million in the prior quarter), primarily due to seasonality and the annual economic cycle of certain sales, compounded by the Eid Al-Adha holiday, which was in line with the company's historical expectations. Net profit attributable to shareholders declined 4.269% QoQ to SAR 85.2 million, driven by stable sales between the two quarters and the impact of non-cash, non-recurring costs (notably share-based payment expenses); excluding these items, adjusted net profit actually rose from SAR 107 million to SAR 109 million, reflecting improved operating efficiency and product scalability. The growth in adjusted profitability was supported by newly launched products with different structures that contributed incremental profitability, partially offsetting the drag from a lower gross profit margin and continued investment in new product development.

Other Items

Rasan Information Technology Co.'s interim financial results for the six months ended 30 June 2026 received an unmodified conclusion from the external auditor, with no additional comments noted in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. Total shareholders' equity (after deducting minority equity) stood at SAR 965.1 million as of the current period, compared to SAR 516.1 million in the same period of the prior year, representing an increase of 86.998%. Earnings per share for the current period were SAR 2.27, up from SAR 0.86 in the prior year period. The company also disclosed comparative figure restatements under IAS 8, covering three items: (1) a change in the recognition pattern of non-cash Employee Share-Based Payment Plan (LTIP) expenses from straight-line to tranche-by-tranche vesting under IFRS 2, which reduced net profit for the six-month period ended 30 June 2025 by SAR 6 million and for the three-month period ended 30 June 2025 by SAR 5 million; (2) derecognition of receivables and payables related to lease-to-own motor vehicle insurance premiums held in an agency capacity, which increased net profit for the year ended 31 December 2025 by SAR 6 million and reduced total assets and total liabilities as at 31 December 2025 by SAR 372 million; and (3) reclassification of impairment losses on financial assets from general and administrative expenses to a separate line item per IAS 1, with no net profit impact. The combined effect of items 1 and 2 had no net impact on net profit for the full year ended 31 December 2025. Additionally, the company disclosed that adjusted net profit for the six-month period ended 30 June 2026, excluding non-cash LTIP expenses of SAR 42 million, amounted to SAR 216 million, compared to SAR 84 million for the corresponding period of 2025, representing growth of 158%.

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