Naseej for Technology Co (9538.SR) Q2 2024 Earnings Report

Naseej for Technology Co reported QQ2 2024 revenue of SAR 51.78 million, a 43% year-over-year decline and flat QoQ relative to QQ1 2024. The quarter delivered a positive EBITDA of SAR 1.52 million and operating income of SAR 1.14 million, but the company posted a net loss of SAR 0.48 million, yielding a negative net margin of -0.93% and an EPS of -0.10. The revenue mix and margins imply ongoing challenges in translate top-line activity into sustained profitability, even as the business maintains a solid liquidity position. The standout features in QQ2 2024 include a meaningful gross profit of SAR 10.94 million (gross margin 21.1%) and a high working-capital footprint that generated limited free cash flow, with negative free cash flow of SAR -3.64 million and net cash provided by operating activities of SAR 0.36 million after a sizable working-capital adjustment. The balance sheet remains cash-generative at a headline level (SAR 13.77 million cash and equivalents) but relies on deferred revenue (~SAR 37.65 million) and customer receivables to sustain activity, underscoring a conservative near-term liquidity profile despite a healthy current ratio (~2.24x). The QQ2 performance trails several technology services peers on profitability, though the company exhibits resilience in liquidity and a modest EBITDA buffer that could serve as a foundation for a turnaround if top-line growth resumes and working-capital efficiency improves.