Al Masar Reports 31.7% Nine-Month Profit Jump

Riyadh, Saudi Arabia — Al Masar Al Shamil Education Co. posted a nine-month net profit of 93.3 million SAR for the period ending September 30, 2026 — a 31.7% increase from 70.9 million SAR in the same period last year. Revenue climbed 20.7% to 405.5 million SAR, driven by enrollment growth across all business units. The result signals sustained momentum in both higher education and special needs education segments.

Quarterly Snapshot: Seasonal Loss Widens

Q3 2026 tells a different story. Al Masar reported a net loss of 25.3 million SAR for the quarter, up 29.5% from a 19.6 million SAR loss in Q3 2025. Revenue for the quarter rose 13.8% year-on-year to 54.5 million SAR. However, it fell 66.6% from the prior quarter’s 163.4 million SAR. The swing reflects the summer academic break, which suppresses tuition revenue recognition in the third quarter. Gross profit collapsed to 208,000 SAR from 80.1 million SAR in Q2 2026, underscoring how heavily results depend on academic-year timing.

Key Drivers

• Nine-month revenue grew 20.7% to 405.5 million SAR on strong enrollment at all units
• Gross profit for the nine-month period rose 28.2% to 169.7 million SAR
• Operating profit jumped 38.7% to 122.5 million SAR year-to-date
• Earnings per share reached 0.91 SAR, up from 0.69 SAR a year ago
• Shareholders’ equity grew 6.3% to 1.31 billion SAR
• Q3 loss widened partly due to 4.5 million SAR in acquisition-related expenses
• Higher income from NEMA Group contributed to the nine-month profit increase

What This Means for Investors

• The nine-month results confirm a structurally improving business — revenue, gross profit, and operating profit all accelerated faster than the prior year
• The Q3 seasonal loss is not a warning sign — it repeats annually and reflects tuition timing, not operational deterioration
• Acquisition-related costs of 4.5 million SAR during Q3 suggest Al Masar is actively pursuing inorganic growth, which could reshape future earnings
• With earnings per share at 0.91 SAR through nine months, full-year profitability looks well ahead of last year’s pace

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THE SAUDI STANDARD’S VIEW: AL MASAR’S EDUCATION GROWTH STORY IS STRUCTURALLY SOUND

Al Masar Al Shamil Education Co. is delivering one of the more compelling earnings trajectories on Tadawul’s education sector roster. With nine-month operating profit accelerating at 38.7% — outpacing both revenue and gross profit growth — the company is demonstrating genuine operating leverage, not merely top-line expansion. Investors should read these numbers carefully, because the full picture rewards those who look beyond the quarterly headline.

• SEASONAL MECHANICS MUST BE UNDERSTOOD, NOT FEARED

The Q3 net loss is an artifact of academic-year revenue recognition, not a reflection of weakening fundamentals. Tuition income concentrates in semesters, making summer quarters structurally loss-making across the private education sector. Investors who benchmark Al Masar on cumulative nine-month performance rather than isolated quarterly snapshots will draw far more accurate conclusions about the company’s underlying health.

• OPERATING LEVERAGE IS THE REAL STORY

When operating profit grows at nearly twice the rate of revenue, margin expansion is compounding — a hallmark of a maturing, scalable education platform. Nine-month gross profit rising 28.2% on 20.7% revenue growth confirms that cost discipline is holding even as enrollment scales. This dynamic typically attracts institutional attention and re-rating potential on the exchange.

• INORGANIC GROWTH SIGNALS STRATEGIC AMBITION

The 4.5 million SAR in acquisition-related charges absorbed during Q3 indicates management is actively deploying capital toward portfolio expansion beyond organic enrollment gains. NEMA Group’s contribution to profitability demonstrates that prior acquisitions are already generating returns. If the current acquisition pipeline converts, Al Masar’s earnings base could widen materially within the next two to three fiscal years.

• EQUITY BASE PROVIDES ACQUISITION HEADROOM

Shareholders’ equity of 1.31 billion SAR gives Al Masar a solid balance sheet foundation from which to finance further consolidation without compromising financial stability. With earnings per share already at 0.91 SAR through nine months, the company enters the seasonally strong Q4 semester period from a position of strength. Full-year return on equity metrics are likely to improve meaningfully over the prior year.

Al Masar’s performance sits squarely within the Vision 2030 imperative to develop a world-class private education sector capable of meeting the Kingdom’s human capital ambitions. As Saudi Arabia works to reduce reliance on expatriate labor and elevate domestic workforce skills, companies that can scale quality education infrastructure — including specialized segments such as special needs education — are not peripheral players but strategic national assets. Al Masar’s combination of enrollment-driven organic growth and disciplined acquisition activity positions it as a direct beneficiary of the Kingdom’s long-term investment in its people.