Edarat Communication and (9557.SR) Q2 2025 Earnings Report

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.