Dallah Healthcare posts highest 9M revenues on record; net profit jumps 18%

Dallah Healthcare Co. announced its financial results for the period ended September 30, 2025, reporting the highest revenue on record in the nine-month period, and the second-highest ever quarterly revenue. This was driven by increased operational capacity across existing facilities and recent acquisitions, namely Dallah Al-Khobar Hospital (formerly Al Salam Hospital) and Dallah Al-Ahsa Hospital (formerly Al Ahsa Hospital). Both hospitals reported significant growth in patient numbers and revenue following the acquisition.

Q3 2025 Results

The Group’s revenue for Q3 2025 rose 25.2% to SAR 1.06 billion, from SAR 848 million in Q3 2024 — an increase of SAR 213 million. The two newly acquired hospitals contributed SAR 186 million, accounting for 87% of the total topline increase.

The new hospitals in Dallah’s portfolio — now totaling eight facilities including affiliates — saw an uptick of SAR 58 million, or 45%, in revenue year-on-year (YoY). Their full-year contribution is expected to exceed the previously announced SAR 500 million target (since acquisition on March 23, 2025), with strong growth anticipated to continue in coming years as utilization rates, particularly at Dallah Al-Khobar, increase.

Other existing facilities also saw revenue growth of SAR 41 million, supported by higher patient counts and broader service diversification across major and specialized medical fields.

Net profit attributable to shareholders rose 12.5% YoY to SAR 142 million in Q3 2025, compared to SAR 126 million in Q3 2024. Earnings per share (EPS) increased to SAR 1.40, from SAR 1.29 a year earlier, backed by a 17.8% rise in gross profit (SAR 58 million).

Following its acquisition of Al Salam Medical Services Co. (Dallah Al-Khobar Hospital), the company renegotiated the long-term Murabaha financing terms, lowering financing costs and recording remeasurement gains of SAR 29.5 million in Q3 2025. Operational efficiencies at Dallah Al-Khobar improved markedly, as the hospital trimmed net losses by 95% (SAR 44 million) YoY (excluding the positive impact of the financing revaluation) aided by increasing patient confidence and visits under the Dallah Healthcare brand.

EBITDA increased 9.7% (SAR 20 million) to SAR 223 million, compared to SAR 203 million in Q3 2024. Notably, Dallah Al-Khobar Hospital exceeded the breakeven point at the EBITDA level during the quarter and came close to achieving net profitability (excluding financing remeasurement gains).

Dallah Healthcare's revenues for the first nine months of 2025 increased by 23.3% (SAR 559 million) YoY to SAR 2.95 billion, from SAR 2.39 billion. Acquisitions contributed approximately SAR 375 million of this growth, representing 67% of the total increase in the company’s revenues. Existing medical facilities (prior to the acquisitions) also recorded revenue growth of SAR 191 million, while sales in the pharmaceutical distribution segment (a business separate from hospitals) declined by about SAR 7 million compared to the same period last year, due to the delay in awarding certain tenders during the current period.

Net profit attributable to shareholders rose by 18% (SAR 65 million) to SAR 422 million, compared to SAR 357 million in the same period of the previous year. As a result, earnings per share increased to SAR 4.22, up from SAR 3.66 a year earlier.

Gross profit grew by 15.3% (SAR 140 million) YoY to SAR 1.05 billion, from SAR 914 million. Operating profit also improved by 8.6% (SAR 39 million) YoY to SAR 490 million, from SAR 452 million.

Earnings before financing costs, Zakat, depreciation, and amortization increased by 17% (SAR 100 million) YoY to SAR 685 million, from SAR 585 million.

Chairman’s Statement and Outlook

Chairman Tarek Alkasabi commended the company’s achievements across operational, financial, and medical fronts. He emphasized that the company’s legacy—built on excellence and quality—has always been, and will remain, the main driver of growth. This was clearly reflected in the performance of Dallah Al Khobar and Dallah AlAhsa hospitals, both of which achieved significant revenue growth after being rebranded under the Dallah Healthcare name. Notably, Dallah Al Khobar Hospital achieved profitability for the first time in September, only six months after Dallah Healthcare assumed its management. Meanwhile, existing facilities continued their strong performance, recording revenue growth of SAR 191 million in the first nine months of 2025 compared to the same period of the previous year.

Alkasabi added that the group’s presence—spanning eight hospitals and four clinics, along with upcoming expansion projects such as Al Arid Hospital in northern Riyadh, several new clinics, and major expansion plans for Dallah Al Khobar Hospital—will enhance the company’s ability to attract top medical talent and invest in cutting-edge technologies. These efforts will further strengthen patient trust and improve access to Dallah’s high-quality healthcare services across the Kingdom.

He also expressed optimism that 2025 will be the best year in Dallah's history, in terms of revenues, profits, and medical achievements. The company’s facilities continue to earn local and international accreditations and awards, including three global awards in the current quarter for improving patient experience. Moreover, Dallah Al Nakheel Hospital became the first hospital in the world to receive accreditation under the new version of the International Consortium for Health Outcomes Measurement (ICHOM) standards—considered the world’s highest benchmark for outcomes-based healthcare quality.

Dallah Healthcare is listed on the Saudi Exchange (Tadawul) under the symbol 4004 and ISIN: SA135G51UI10.