Dallah Healthcare Co. announces its Annual Financial results for the period ending on 2025-12-31

The revenue growth was driven by increasing quarterly revenues for the third consecutive quarter. Revenues for Q4 2025 reached SR 1,110m, marking the highest quarterly revenues ever achieved by the Company. This reflects an increase of 37.3% (SR 302m) compared to the Q4 2024, and an increase of 4.6% (SR 49m) compared to the preceding quarter.

Revenue growth was also supported by an unprecedented increase in patient visits across the Group, particularly following the completion of the acquisitions of Dallah Al Khobar Hospital and Dallah Al Ahsa Hospital, in addition to the continued expansion of the Group’s other facilities. The total number of patient visits in 2025 reached approximately 3.8 million, compared to 2.8 million in 2024, representing an increase of approximately one million visits, or 35.7%. The acquisition of Dallah Al Khobar Hospital and Dallah Al Ahsa Hospital increased the Group’s capacity by 37% through the addition of 424 beds (274 beds at Dallah Al Ahsa Hospital and 150 operational beds at Dallah Al Khobar Hospital). This percentage is expected to increase to 65% upon the full operation of Dallah Al Khobar Hospital with a capacity of 475 beds, bringing the Group’s total capacity to more than 1,900 beds.

Total revenues generated by the two hospitals from the acquisition date on 23 March 2025 until 31 December 2025 amounted to approximately SR 572m, representing 66.4% of the total increase in the Group’s revenues. This exceeded prior revenue projections for the two hospitals, which were estimated at approximately SR 500m, by SR 72m, representing an outperformance of 14.4% versus expectations.

The twoacquired hospitals recorded a significant revenue increase in 2025, particularly after operating under the umbrella of Dallah Healthcare Company. Their revenues increased by approximately SR 210m, representing a growth rate of 44.7% compared to 2024 (noting that the hospitals’ revenues in the prior year were not included in Dallah Healthcare’s revenues as they preceded the acquisition date).

As for the Group’s existing medical facilities prior to the acquisition, they also achieved revenue growth during the current year compared to the previous year, with a revenue increase of SR 289m, representing 33.6% of the total revenue increase of the Group and a growth rate of 8.3%.

The increase in 2025 revenues led to a 20.3% rise in gross profit, reaching SR 1,452m compared to SR 1,207m in the previous year, an increase of SR 246m. Operating profit for 2025 also improved by 13.8% to reach SR 645m, compared to SR 567m in the previous year, an increase of SR 78m.

The increase in the Company’s share of results from associates amounted to approximately SR 9m.

In Q1 2025, the Company recognized gains of SR 51m from land contributed as an in-kind contribution to a real estate fund. In Q2 2025, the Company finalized the assessment years of its Zakat file up to 2023, resulting in the reversal of provisions amounting to SR 12.5m. In Q3 2025, following the acquisition of Dallah Al Khobar Hospital Company, the Company successfully renegotiated the terms of a long-term Murabaha financing facility and reduced the Murabaha cost, resulting in a remeasurement gain of SR 29.5m.

Regarding the performance of Dallah Al Khobar Hospital, leveraging Dallah Healthcare’s expertise in the healthcare sector, the Company significantly reduced the hospital’s losses following the acquisition. The hospital’s net loss for the year decreased by SR 127m, equivalent to a 72.2% reduction compared to 2024 (excluding the positive impact of the aforementioned loan remeasurement gain). The hospital also turned to profitability in Q4 2025, recording a net profit of SR 5m, compared to a net loss of SR 34m in the corresponding quarter of 2024. Accordingly, quarterly losses decreased by SR 39m, representing an improvement of 115%. The sharp turnaround in Dallah Al Khobar Hospital’s performance is attributable to substantial growth in patient visits and improved operational efficiency, noting that the hospital remains in its early stages of operation. (It should be noted that Dallah Al Khobar Hospital’s losses for 2024 were not included in Dallah Healthcare’s results as they preceded the acquisition date.)

The increase in net profit for 2025 was achieved despite the Company recording, in Q4 2025, white land fees related to the years 2023, 2024, and 2025 at Care Shield Company amounting to SR 12m. In addition, provisions and adjustments for perishable inventory and penalties were recorded at Dallah Pharma amounting to SR 17m.

Furthermore, net profit before financing costs, depreciation, amortization, and Zakat for the year increased by 22.8% to reach SR 922m, compared to SR 751m in the previous year, representing an increase of SR 171m.