Tabby profit jumps 360% to SAR 90.4M in H1 2025; Q2 at SAR 25.1M

Tabby, a Saudi Arabia-based buy now, pay later (BNPL) company, reported a net profit of SAR 90.4 million in the first six months of 2025, surging 360%, compared to SAR 19.6 million in the year-earlier period.

The higher year-on-year (YoY) profit was supported by increased net financing income and lower credit loss provisions, despite rising operating and tax expenses.

Merchant commission income rose 43% YoY to SAR 592.8 million in H1 2025, with customer extension fee income jumping136% YoY to SAR 37.3 million. Other income also increased.

Meanwhile, franchise fees fell 21% YoY to SAR 54.3 million, after a royalty and service fee structure change. A new deal was signed with Tabby Technology Ltd., a related party, to charge 2% of total revenue for IP rights and a 6% service margin. This replaced a prior 25% flat fee paid to FZ LLC, a related party.

Credit loss provisions dropped 15% to SAR 78.7 million in H1 2025 from SAR 93.1 million in H1 2024, due to fewer overdue and impaired loans. Selling and marketing expenses also declined YoY.

The company recorded no late payment fee income during the period, compared to SAR 22.9 million a year earlier, as it ceased applying such charges in December 2023 to align with Shariah-compliant practices, replacing the prior year’s revenue that reflected transactions completed before the policy change.

Financing commission expenses rose 49% YoY to SAR 369.1 million in H1 2025. Additionally, general and administrative expenses, as well as staff costs, increased.

Income tax rose to SAR 22.6 million in H1 2025 from SAR 4.9 million a year ago, due to the absence of a SAR 13.7 million deferred tax credit recorded in the comparable period.

Q2 2025 net profit rose 161% to SAR 25.13 million, compared to SAR 9.63 million in the year-earlier period.

On a sequential basis, net earnings declined 61.5% from SAR 65.25 million in Q1 2025.

Total shareholders’ equity, no minority interest, rose to SAR 523.79 million by June 30, 2025, compared to SAR 189.26 million in the year-earlier period.