NCLE profits rise 3% to SAR 100.6M in H1 2025/26; Q2 at SAR 65.1M

National Company for Learning & Education (NCLE) reported net profit growth of 3% to SAR 100.6 million in the first half ending January 2026, compared with SAR 98 million in the same period a year earlier.

The company attributed the profit increase to higher revenues, supported by a 10% growth in student enrollment, rising from 31,900 students in H1 2025 to 35,100 students in H1 2026. At the same time, government grants and subsidies decreased due to lower wage support from the Human Resources Development Fund (HRDF), while marketing and advertising expenses increased, reflecting a focus on campaigns in August for the current academic year compared with campaigns spread across July and August in the previous year.

Provisions for expected credit losses were established due to higher aging receivables, while financing expenses increased due to loans used to partially fund land acquisitions in Riyadh (Al-Rabiea) and Jeddah (North Obhur), along with the impact of the land lease for the ongoing Dhahra Lubn project in Riyadh.

In Q2, net profit growth was supported by a 15% increase in revenues, driven by the 10% rise in student enrollment, while financing expenses rose for the same reasons as in H1, and revenue recognition for the quarter was based on 90 days of the 314-day 2025/2026 academic year, compared with 90 days of 321 days in the same quarter last year.

Sequentially, net profit increased compared with the previous quarter, supported by higher revenue recognition over 90 days versus 79 days in the prior quarter, while marketing and advertising expenses declined after last quarter’s enrollment campaigns.

Shareholders’ equity (excluding minority interest) amounted to SAR 853.90 million for the current period, compared to SAR 801.06 million at the end of the corresponding period of the previous year.

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