Elm (7203) Q2 2026 earnings summary

Executive summary

• Achieved strong revenue and profit growth in H1 2026, with continued momentum across strategic priorities and government platforms.

• Integration with Thiqah drove major contract wins and revenue synergies, while project growth moderated due to government spending patterns.

• Digital business and BPO segments were primary growth drivers, with new product launches and expanded service offerings.

Financial highlights

• H1 2026 revenue reached 4,997 million, up 21.2% year-over-year; gross profit was 2,079 million, up 23.1%.

• EBIT grew 15.5% to 1,138 million; net profit increased 7.5% to 1,166 million.

• Q2 2026 revenue rose 12% YoY; gross profit up 12%, EBIT up 3%, but net profit declined 13% due to zakat expense and absence of prior period reversal.

• Gross profit margin improved by 0.6 percentage points to 41.6% in H1 2026.

• Thiqah contributed 664 million to revenue and 155 million to gross profit; Madar contributed 14 million to revenue.

Outlook and guidance

• 2026 revenue growth guidance remains at 17–19%, with H1 2026 actual at 21%.

• EBIT margin guidance unchanged at 21–23%, with H1 2026 actual at 23%.

• Cash flow from operating activities as a percentage of net income guided at 85–95%, but H1 2026 actual was 35%.