Naseej for Technology Co delivered a strong top-line performance in QQ2 2025, reporting revenue of SAR 100.18 million, up approximately 93.5% year over year and showing robust quarter-over-quarter growth versus Q1 2025. Gross profit rose to SAR 22.996 million with a gross margin of about 23%, while EBITDA reached SAR 2.607 million and operating income SAR 2.238 million, signaling modest operating leverage at the margin level. Net income, however, remained minimal at SAR 0.113 million, yielding a net margin near 0.11%. The company also posted negative per-share cash flow metrics (operating cash flow per share of -SAR 3.43 and free cash flow per share of -SAR 3.44) despite a positive EBITDA, underscoring working-capital and cash-flow intensity in the current quarter.
From a liquidity and leverage perspective, Naseej shows a conservative balance sheet: current ratio of 1.769 and quick ratio of 1.622 indicate sturdier short-term liquidity, yet cash ratio is only 0.0801, highlighting limited cash buffers. The company faces a stretched working capital cycle, with days sales outstanding (DSO) at 167.38 days and a cash conversion cycle of 137.98 days, driven by extended receivables and modest inventory dynamics. Net debt remains modest (debt ratio ~0.085; debt-to-equity ~0.186), implying limited leverage and good capital resilience to support growth initiatives.
Strategically, Naseej is positioned to benefit from Saudi Arabia’s aggressive digital transformation agenda in education, government, and cultural sectors, where it has historically operated. Cross-sell opportunities across campus management, e-learning, library and information-resource solutions, and digitization projects could support revenue growth in the near to mid-term. However, near-term profitability is challenged by operating-expense intensity and cash-flow dynamics, with no dividend payout in QQ2 2025. Overall, the quarter demonstrates revenue momentum and stable gross margins but requires improvement in cash generation and working-capital efficiency to translate EBITDA gains into sustained net income and free cash flow.