Armah Sports Company announces its Interim Financial results for the Period Ended On 30 June 2026 (Six Months)

Armah Sports Company reported a 48.2% year-on-year increase in net profit for Q2 2026 to SAR 12.6 million, while H1 2026 net profit declined 11.6% to SAR 24.3 million due to the absence of a one-time gain recorded in the prior year.
Quarterly revenue grew 17.4% year-on-year to SAR 60 million, driven by a 15% increase in membership subscriptions and 34% growth in personal training revenue as the company benefited from club maturation and increased member activity following the Ramadan season.
The H1 net profit decline was primarily attributed to a non-recurring SAR 9.5 million gain from a sublease transaction in Q1 2025; excluding this item, normalized net profit for the first half of 2026 would have represented a 35% increase over the previous year.
Financial performance was further supported by a reduction in finance costs due to lower loan balances and a decrease in SIBOR, which helped offset the operational ramp-up costs associated with opening two new clubs during the second quarter.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	60	51.1	17.416	53.7	11.731
Gross Profit (Loss)	27.6	22.7	21.585	26.4	4.545
Operational Profit (Loss)	17.1	13.5	26.666	15.8	8.227
Net Profit (Loss) Attributable to Shareholders of the Issuer	12.6	8.5	48.235	11.6	8.62
Total Comprehensive Income Attributable to Shareholders of the Issuer	12.5	8.5	47.058	11.5	8.695
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	113.7	102.4	11.035
Gross Profit (Loss)	54	47.7	13.207
Operational Profit (Loss)	32.9	38.8	-15.206
Net Profit (Loss) Attributable to Shareholders of the Issuer	24.3	27.5	-11.636
Total Comprehensive Income Attributable to Shareholders of the Issuer	24	27.5	-12.727
Total Shareholders Equity (after Deducting Minority Equity)	576.5	498.4	15.67
Profit (Loss) per Share	0.74	0.84
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Armah Sports Company (the “Company” or “Armah”) delivered strong financial performance in second quarter of 2026, achieving continued revenue growth, with total revenue reaching SAR 60.0 million. This revenue increase is mainly attributable to the following factors: • Subscription and membership revenue growth of 15%, driven by membership growth, continued maturation of clubs, and growth in average revenue per member. • Personal Training revenue growth of 34%, supported by strong demand for high-quality training services. • Growth in ancillary revenue streams from clubs. Deferred revenue increased by 7% compared to the end of the second quarter of the previous year, reflecting strong membership renewals and sustained demand momentum, enhancing revenue visibility for future periods.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net Profit attributable to shareholders reached SAR 12.6 million, representing a 48% increase compared to second quarter of 2025. This was mainly attributable to: • Increase in revenues as a result of reasons mentioned above. • Decrease in finance costs as a result of lower loan balance and decrease in SIBOR.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenue increased by 12% in Q2 2026 compared to Q1 2026, primarily driven by the normalization of member activity after the seasonal impact of Ramadan and Eid in the first quarter of 2026, supported by an increase in active members.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Net profit increased by 9% in Q2 2026 compared to Q1 2026, primarily driven by higher revenue resulting from seasonal demand, partially offset by the ramp-up costs associated with the opening of two new clubs during Q2 2026.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Continued revenue growth, with total revenue reaching SAR 113.7 million. This revenue increase is mainly attributable to the following factors: • Subscription and membership revenue growth of 10%, driven by membership growth, continued maturation of clubs, and growth in average revenue per member. • Personal Training revenue growth of 21%, supported by strong demand for high-quality training services.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Net Profit attributable to shareholders reached SAR 24.3 million, representing a 12% decrease compared to first half of 2025. This was mainly attributable to: • The presence of a non-recurring item in first quarter of 2025 related to gain arising from a sublease transaction amounting to SAR 9.5 million. • Cost of revenue increased by 9%, driven mainly by opening of two new clubs during Q2 2026. This was despite decrease in Interest expenses reflecting financing and lease liabilities associated with the Company’s expansion activities. It is worth noting that, excluding the impact of the non-recurring item recognized during the first half of 2025, net profit attributable to shareholders would amount to SAR 18.0 million. Compared to the net profit attributable to shareholders for the first half of 2026, which amounted to SAR 24.3 million, this represents an increase of 35% compared to the first half of 2025.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	Certain comparative figures have been reclassified, wherever considered necessary for the purposes of comparison and better presentation. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia by the Saudi Organization for Chartered and Professional Accountants (SOCPA).
Additional Information	Armah continues to enhance shareholder value through disciplined expansion, improved operational efficiency, and the implementation of best practice governance practices. The Company also focuses on achieving sustainable growth, strengthening its revenue base, and maintaining a strong financial position to support its future expansion plans. Basic and diluted earnings per share are calculated by dividing the net profit attributable to the shareholders of the company for the period ended 30 June 2026, with the weighted average number of shares outstanding during the period.