Edarat Communication and Information Technology Co. (EDARAT) announces its Interim Financial Results for the Period Ending on 2026-06-30 (Six Months).

Edarat reported a 29.8% year-on-year increase in net profit to SAR 19.8 million for the first half of 2026, driven by a 22% rise in total revenue to SAR 91.6 million.
Revenue growth was supported by both core business segments, with Data Center Engineering Services growing 27% to SAR 56 million on new contracts and Cloud Services increasing 15% to SAR 35.6 million due to expanded colocation capacity.
The company achieved a net profit margin of 21.6%, benefiting from a rise in gross profit to SAR 33.8 million and improved operational efficiencies that optimized the overall cost structure.
Total shareholders' equity surged 51% to SAR 115.2 million following a June 2026 capital increase to SAR 75.6 million via bonus shares, which also resulted in a restated earnings per share of SAR 2.62.

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	91,639,061	75,152,675	21.937
Net Profit (Loss) Attributable to Shareholders of the Issuer	19,785,831	15,243,000	29.802
Total Shareholders Equity (after Deducting Minority Equity)	115,174,064	76,282,528	50.983
Profit (Loss) per Share	2.62	2.02
All figures are in (Actual) Saudi Arabia, Riyals

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

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Revenue increased by 22% to SAR 91.6 million in H1 2026 compared to SAR 75.2 million in H1 2025. This growth was driven by the continued expansion across both business segments: Data Center Engineering Services revenue grew by 27% to SAR 56 million, supported by new contracts and higher projects value. Cloud Services revenue increased by 15% to SAR 35.6 million, reflecting the expansion of colocation capacity.
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 increased by 30% to SAR 19.8 million in H1 2026 compared to SAR 15.2 million in H1 2025, yielding a net profit margin of 21.6%. The increase is mainly attributable to: Higher revenue across both business segments Improved gross profit, which rose to SAR 33.8 million compared to SAR 27.9 million in the prior period Enhanced operational efficiency and optimized cost structure These factors collectively contributed to the improvement in net profit for the period.
Statement of the type of external auditor's report	Unmodified conclusion
Reclassification of Comparison Items	An amount of SAR 3,160,966 was reclassified from general and administrative expenses to selling and marketing expenses in the comparative figures, with no impact on net profit or shareholders' equity.
Additional Information	On 14/6/2026 G, the General Assembly approved increasing the Company's capital from SAR 50.4 million to SAR 75.6 million through bonus shares issued from retained earnings. Earnings per share have been calculated based on the new number of shares, and the comparative figure has been restated accordingly. For inquiries, please contact the Investor Relations Department during official working hours at: Phone: +966581822902 Email: IR@edaratgroup.com