Naseej for Technology Co posted a solid Q4 2025 revenue trajectory and a robust gross margin, underscoring the company's earnings power in its core IT services and digital transformation offering. Reported revenue of SAR 127.38 million rose on a year-over-year and quarter-over-quarter basis (YoY and QoQ metric indications of approximately 23% and 27%, respectively). Gross profit matched revenue strength with SAR 40.21 million and a gross margin of ~31.57%, signaling healthy product mix and pricing leverage in the quarter.
However, a material non-operating item weighed on the bottom line. The company reported totalOtherIncomeExpensesNet of SAR -40.21 million, which effectively offset operating income and produced a modest net income of SAR 4.67 million (EPS SAR 1.01). While operating profitability remains compelling (operating income SAR 40.21 million, margin ~31.57%), the GAAP net income was distorted by this one-off/non-operating line. Absent this item, the core business would exhibit a substantially stronger net income trajectory. The quarter reinforces Naseej’s exposure to a high-margin services stack (digital transformation, campus management, e-learning, knowledge resources) with meaningful long-term growth catalysts in Saudi Arabia’s public and private sector digitization push. Investors should monitor the sustainability of the non-operating item and any need for recurring adjustments in non-operating lines.
Looking forward, Naseej operates in a sector with favorable tailwinds from Vision 2030-driven digital transformation, higher IT services demand, and ongoing modernization in libraries, museums, education, and government workflows. The absence of explicit forward guidance in the provided data signals a need for clarity on backlog visibility and project cadence, but the revenue momentum and margin profile suggest the potential for steady earnings progression as project pipelines mature. A cautious stance is warranted until management provides more color on backlog, pricing normalization, and operating cash flow dynamics.
Key Performance Indicators
Revenue
Increasing
127.38M
QoQ: 27.15% | YoY: 23.01%
Gross Profit
Increasing
40.21M
31.57% margin
QoQ: 74.87% | YoY: 83.72%
Operating Income
Increasing
40.21M
QoQ: 1 696.80% | YoY: 1 665.07%
Net Income
Increasing
4.67M
QoQ: 4 042.24% | YoY: 583.92%
EPS
Increasing
1.01
QoQ: 4 369.03% | YoY: 623.32%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: SAR 127,379,318; YoY +23.01%; QoQ +27.15%;
Gross Profit: SAR 40,212,261; Gross Margin 31.57%; YoY Gross Profit growth: 83.72%; QoQ: 74.87%;
EBITDA: SAR 40,212,261; EBITDA Margin 31.57%;
Operating Income: SAR 40,212,261; Operating Margin 31.57%;
Total Other Income/Expenses Net: SAR -40,212,261; net impact on bottom line indicates a material non-operating deduction in the quarter
Net Income: SAR 4,669,542; Net Margin 3.66%; YoY +583.92%; QoQ +4,042.24%;
EPS (Basic/Diluted): SAR 1.01; Weighted Avg Shs Out: 4,635,000; Weighted Avg Shs Out Diluted: 4,635,000;
Notes: The operating line items indicate a strong core profitability, but the bottom-line figure is distorted by a one-off/non-operating charge that dwarfs the net income by SAR 40.21 million. The trailing twelve-month metrics would need to be reviewed to assess recurring profitability; the current quarterly figure highlights the importance of stripping out non-operating items for a true run-rate view.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
127.38M
23.01%
27.15%
Gross Profit
40.21M
83.72%
74.87%
Operating Income
40.21M
1 665.07%
1 696.80%
Net Income
4.67M
583.92%
4 042.24%
EPS
1.01
623.32%
4 369.03%
Key Financial Ratios
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.