Elm (7203) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached SAR 1.877 billion, up 14.52% year-over-year, with net profit rising 44% to SAR 495.7 million, driven by strong digital business growth and strategic execution.

• Gross profit increased to SAR 773 million, a 23.9% rise year-over-year, and EPS rose to SAR 6.38 (basic).

• Digital business remained the largest segment, contributing SAR 1.38 billion in revenue.

• Completed the acquisition of 100% of Thiqah Company for SAR 3.4 billion, enhancing ICT sector leadership and digital service integration.

• Strategic initiatives aligned with Saudi Vision 2030, focusing on digital transformation and customer experience.

Financial highlights

• Gross margin improved to 41.2% from 38% year-over-year.

• Operating profit (EBIT) grew 41.02% to SAR 471.9 million, with a margin of 25.1%.

• Net profit margin increased to 26.4% (up 5.32 percentage points year-over-year).

• Cash and cash equivalents stood at SAR 3.07 billion as of March 31, 2025.

• Total assets reached SAR 9.67 billion, with equity at SAR 5.49 billion.

Outlook and guidance

• 2025 revenue growth guidance remains at 14–16%, with operational profit margin (EBIT) at 21–23%.

• Cash flow from operating activities as a percentage of net income guided at 80–90%.

• Depreciation and amortization expense expected to decrease by SAR 38.9 million for the full year due to revised asset useful lives.

• Guidance does not include the impact of the Thiqah acquisition.

• Continued investment in digital infrastructure and expansion into new strategic markets.