Elm’s Q3 net profit rises 39.2% year on year to 778 million riyals
Key Facts
Elm posted net profit of 778 million riyals in the third quarter of 2026, up 39.2% year on year from 559 million riyals in the same period of 2025, according to Argaam data. The result exceeded the average analyst estimate of 571.67 million riyals, the same data showed. Quarterly revenue rose to 2,791 million riyals from 2,535 million a year earlier, an increase of 10.1%. Net profit therefore grew faster than revenue during the quarter. Profit also rose from the second quarter of 2026, when it stood at 513 million riyals, marking quarterly growth of 51.7%.
The improvement extended to other profitability measures: gross profit reached 1,207 million riyals, up 18.3% year on year, while operating profit rose to 783 million riyals, up 34.1% from the third quarter of 2025. Argaam data reported a decline in operating expenses during the quarter, alongside lower administrative expenses and expected credit losses. These measures place expanding profit margins at the center of the results, alongside revenue growth. The previous draft’s description of performance as “strong” was broad; the comparison shows differing growth rates in revenue, operating profit and net profit. The amount of the decline in operating expenses was not provided here as a figure that could be included.
Revenue growth was uneven across the company’s businesses. Digital business revenue grew 19.90% year on year in the third quarter, according to Argaam. By contrast, business process outsourcing revenue fell 14.16%, and professional services revenue declined 2.13%. The company said growth in digital business was offset by lower revenue in the other two activities. The comparison shows that overall revenue growth came alongside divergent segment trends, with digital business leading the cited sources of growth.
For the nine months ended September 30, 2026, net profit rose to 1,947 million riyals from 1,644 million in the comparable period of 2025, an increase of 18.4%. Cumulative revenue increased to 7,788 million riyals from 6,657 million, up 17.0%. Earnings per share for the nine months reached 24.34 riyals, compared with 20.55 riyals in the prior period, according to Argaam data. These figures show revenue and profit continuing to grow since the start of the year, although cumulative net profit growth was below the quarterly increase recorded in the third quarter. Cumulative revenue growth was also 17.0%, compared with year-on-year growth of 10.1% in the quarter alone.
The nine-month results included a non-recurring gain of 59 million riyals from remeasuring the fair value of the company’s previously held stake in an associate after acquiring a controlling interest, according to Argaam. The gain relates to the cumulative period, not the third quarter alone. Nine-month net profit growth should therefore be read with this item in mind, alongside revenue and operating profit growth. In its results for the first half of 2026, Elm reported that revenue had risen 21.2% to 4,997 million riyals, while net profit increased 7.5% to 1,166 million riyals, according to a company statement. The first-half results provide an earlier comparison within the same year, before year-on-year net profit growth accelerated in the third quarter.
Chief Executive Mohammed Al Omair said in a first-half results statement that the company had strengthened its strategic partnerships with government entities and expanded partnership-based business models. He added that Elm was working to increase its investment in artificial intelligence and develop more flexible business models as part of its strategic priorities. The remarks provide context on the company’s plans announced midyear, while the third-quarter results reflect improved profit and revenue and mixed performance across activities. The statement did not specify a later date for implementing these priorities. Nor did the available data provide a subsequent financial date that could be attributed to the company.