Saudi Tadawul Group Holding (1111) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by a significant decline in profitability, with net profit after zakat down 53.9% year-over-year and 42.2% sequentially, mainly due to lower operating revenues and higher expenditures from strategic investments and increased depreciation.

• Diversification efforts advanced, with non-ADTV activities contributing 61.5% of revenue, and strategic initiatives included opening the main market to all foreign investors, launching advanced data and connectivity solutions, and introducing an ETF Market Making framework.

• Operational highlights featured new listings, expanded analytics, and international collaborations to strengthen market infrastructure.

• The Group remains focused on deepening liquidity, expanding product offerings, and leveraging technology for sustainable growth and global positioning.

Financial highlights

• Operating revenues fell 10.2% year-over-year to SAR 294.6M, mainly due to a 15.9% drop in average daily trading values.

• Net income after zakat dropped 53.9% year-over-year to SAR 55.6M; EBITDA margin compressed to 26.0%.

• Gross profit fell 26.2% year-over-year to SAR 140.7M; EBITDA dropped 40.9% to SAR 76.7M.

• Earnings per share declined to SAR 0.46, down from SAR 1.00 year-over-year.

• Free cash flow was negative at SAR (43.1)M, and cash flow from operating activities was negative SAR 36.1M, while investing activities generated SAR 257.5M.

Outlook and guidance

• Focus will shift from platform build-out to monetization, emphasizing revenue diversification, operating leverage, and sustainable returns.

• Strategic priorities include enhancing capital market services, promoting capital raising, nurturing SMEs, deepening international participation, and leveraging technology for long-term growth.

• Cost growth moderation and improved EBITDA margins are targeted for the mid to long term.