Nakawe Reports 101.9% Profit Surge Driven by New Contracts and Revenue Growth to SAR 68.36 Million

Riyadh | EcoPulse24

Nakawe Information Technology Company has announced its preliminary financial results for the six-month period ended December 31, 2025, showing strong growth in both revenues and net profit, driven by an expanded client base and the signing of new projects across public and private sectors.

According to data published on Tadawul, sales and revenues for the period reached SAR 68,360,606, up from SAR 56,987,902 in the same period last year, representing a 19.96% increase. New clients accounted for 65% of total revenues, signaling a shift in revenue structure and a broader market share.

Net profit attributable to shareholders reached SAR 4,651,533, compared to SAR 2,302,993 for the comparable period, marking a 101.98% increase. This reflects a significant improvement in operational efficiency and gross margin quality.

Total equity, excluding non-controlling interests, rose to SAR 45,424,916 from SAR 41,085,480, a 10.56% increase. Earnings per share came in at SAR 0.31, up from SAR 0.18 in the previous period.

Share price: 23.5
Change: 0.2 (+0.86%)
Traded value: 171,414.42
Traded volume: 7,350

The company attributed the improved profitability to a SAR 2,002,211 increase in gross profit, supported by revenue growth and an improved gross margin of 13.80% versus 13.04% previously. Lower expected credit loss provisions (down SAR 272,624) and reduced financing costs (down SAR 502,526) also contributed, along with other income of SAR 43,544.

Conversely, general and administrative expenses increased by SAR 160,589, and zakat expenses rose by SAR 311,776, reflecting expanded operations and higher growth-related costs.

EcoPulse24 Analysis:
Nakawe's results reflect a clear shift in business momentum, with growth extending beyond revenues to improved margins and reduced financing costs, more than doubling net profit. The significant contribution from new clients highlights successful market expansion, crucial for future revenue sustainability. Despite higher operating and zakat expenses, improved operational efficiency and lower credit provisions demonstrate disciplined financial management, enhancing the company's ability to sustain growth in Saudi Arabia's IT sector.