Executive Summary
Edarat Communication and Information Technology Co posted Q2 2025 results that reflect a sharp year-over-year revenue acceleration alongside robust profitability. Revenue rose 66.99% year over year to SAR 46.78 million, supported by a diversified services mix spanning advisory, data center engineering, cloud services, and smart city technology. Net income reached SAR 13.98 million with an EPS of SAR 2.77, while EBITDA stood at SAR 15.52 million and the EBITDA margin hovered around 33.18%. Despite top-line strength, gross margin declined versus the prior-year quarter as project mix leaned toward higher-cost, cloud/migration or data-center initiatives. Management commentary on the quarter (where available) is consistent with a strategic emphasis on cloud migration demand, government and telecom project pipelines, and multi-year smart city deployments, underpinning a favorable longer-term growth trajectory in the Saudi and GCC IT services market. The quarter reinforces Edarat’s ability to monetize complex technology projects with attractive profitability, while highlighting ongoing execution risks around project mix, working capital and scale-related cost dynamics as the company accelerates its cloud and data-center capabilities.
Key Performance Indicators
Key Insights
Revenue: SAR 46.78m in QQ2 2025, YoY growth +66.99%, QoQ growth +0.00%| Gross Profit: SAR 20.80m, Gross Margin 44.47%, YoY Gross Profit +41.50%, QoQ +0.00%| Operating Income: SAR 15.64m, Operating Margin 33.43%, YoY +47.78%, QoQ +0.00%| Net Income: SAR 13.98m, Net Margin 29.90%, YoY +44.78%, QoQ +0.00%| EBITDA: SAR 15.52m, EBITDA Margin 33.18%| EPS (diluted): SAR 2.77, YoY in EPS: -27.68%, Shares Outstanding: 5.04m...
Financial Highlights
Revenue: SAR 46.78m in QQ2 2025, YoY growth +66.99%, QoQ growth +0.00%| Gross Profit: SAR 20.80m, Gross Margin 44.47%, YoY Gross Profit +41.50%, QoQ +0.00%| Operating Income: SAR 15.64m, Operating Margin 33.43%, YoY +47.78%, QoQ +0.00%| Net Income: SAR 13.98m, Net Margin 29.90%, YoY +44.78%, QoQ +0.00%| EBITDA: SAR 15.52m, EBITDA Margin 33.18%| EPS (diluted): SAR 2.77, YoY in EPS: -27.68%, Shares Outstanding: 5.04m
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
46.78M |
66.99% |
0.00% |
| Gross Profit |
20.80M |
41.50% |
0.00% |
| Operating Income |
15.64M |
47.78% |
0.00% |
| Net Income |
13.98M |
44.78% |
0.00% |
| EPS |
2.77 |
-27.68% |
0.00% |
Management Commentary
Note: Earnings call transcript content was not provided in the data set. As a result, management quotes and verbatim insights from the QQ2 2025 call could not be extracted. Summary-style takeaways based on the press release and results presentation (where available) indicate a strategic emphasis on cloud migration demand, data-center engagements, and smart-city initiatives in the GCC region, with a continued push to monetize advisory and integration services for government and enterprise clients. Investors should look for commentary on pipeline visibility, project mix discipline, and any forward-looking targets in subsequent communications.
Forward Guidance
No explicit forward guidance was included in the provided data. Investors should monitor: (1) pipeline progression in government and telecom projects; (2) mix shift toward cloud services, data-center engineering, and smart-city deployments; (3) working capital dynamics as larger multi-quarter projects progress; (4) any communicated targets around revenue growth, margin stability, and capital expenditure needs. Given the QoQ flat revenue and strong YoY growth, execution around project timing and mix will be key near-term drivers.