Earnings release
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Saudi Exchange - Issuer announcement Elm Company announces its interim consolidated financial results for the period ended 30-09-2026 (Nine Months) 7203 | ELM Published 01/11/2026 08:00:23 (Saudi time, UTC+3) Hijri 1448/05/21 Open the original on saudiexchange.sa (announcement 98842) Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change Sales/Revenue 2,791 2,535 10.098 2,525 10.534 Gross Profit (Loss) 1,207 1,020 18.333 1,030 17.184 Operational Profit (Loss) 783 584 34.075 526 48.859 Net Profit (Loss) Attributable to Shareholders of the Issuer 778 559 39.177 513 51.656 Total Comprehensive Income Attributable to Shareholders of the Issuer 773 556 39.028 516 49.806 All figures are in (Millions) Saudi Arabia, Riyals Element List Current Period Similar period for previous year %Change Sales/Revenue 7,788 6,657 16.989 Gross Profit (Loss) 3,286 2,709 21.299 Operational Profit (Loss) 1,921 1,568 22.512 Net Profit (Loss) Attributable to Shareholders of the Issuer 1,947 1,644 18.43 Total Comprehensive Income Attributable to Shareholders of the Issuer 1,928 1,609 19.825 Total Shareholders Equity (after Deducting Minority Equity) 4,857 3,176 52.928 Profit (Loss) per Share 24.99 21.13 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 Revenue increased by 10.10% (SAR 256 million), the increase in revenue resulted from an increase in Digital Business revenue by 19.90%. This was offset with a decrease in Business Process Outsourcing revenue by 14.16%, and a decrease in Professional Services revenue by 2.13%. The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The Company achieved a net profit after Zakat of SAR 778 million for the period ended 30 September 2026, with an increase by 39.18% (SAR 219 million) compared to the comparative quarter from prior year, as a result of the following: Increase in revenue by 10.10% (SAR 256 million), which led to an increase in gross profit by 18.33% (SAR 187 million). Source: saudiexchange.sa (announcement 98842) Page 1 of 3
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Element List Explanation Operating expenses decreased by 2.75% (SAR 12 million), mainly due to a decrease in general and administrative expenses by SAR 21 million, a decrease in expected credit loss expenses by SAR 18 million, and a decrease in research and development expenses by SAR 7 million. This was offset by an increase in selling and marketing expenses by SAR 24 million, and an increase in depreciation and amortization expenses by SAR 10 million. In relation to the other items impacting net profit, income from Murabaha deposits increased by SAR 11 million, the share of results from associates and joint ventures increased by SAR 10 million, reflecting a profit of SAR 4 million in the current quarter compared to a loss of SAR 6 million in the corresponding quarter of the previous year, and a decrease in finance costs by SAR 4 million. This was offset by a decrease in the fair value gains from revaluation of investments through profit or loss by SAR 5 million, and a decrease in other income by SAR 1 million. Furthermore, the Zakat expense increased by SAR 4 million. The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is Revenue increased by 10.53% (SAR 266 million), the increase in revenue resulted from an increase in Digital Business revenue by 15.26%, and an increase in Professional Services revenue by 21.05%. This was offset by a decrease in Business Process Outsourcing revenue by 4.15%. The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The Company achieved a net profit after Zakat of SAR 778 million for the period ended 30 September 2026, with an increase of 51.66% (SAR 265 million) compared to the prior quarter, as a result of the following: Revenue increased by 10.53% (SAR 266 million), which led to an increase in gross profit by 17.18% (SAR 177 million). Additionally, operating expenses decreased by 15.87% (SAR 80 million), as a result of the decrease in general and administrative expenses by SAR 38 million, a decrease in expected credit loss expenses by SAR 38 million, a decrease in selling and marketing expenses by SAR 4 million, and a decrease in research and development expenses by SAR 1 million. This was offset by an increase in depreciation and amortization expenses by SAR 1 million. In relation to the other items impacting net profit, an increase in income from Murabaha deposits by SAR 7 million, and a decrease in finance costs by SAR 1 million. This was offset by a decrease in other income by SAR 3 million. 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 16.99% (SAR 1,131 million), the increase in revenue resulted from an increase in Digital Business revenue by 21.43%, an increase in Business Process Outsourcing revenue by 5.77%, and an increase in Professional Services revenue by 7.41%. The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The Company achieved a net profit after Zakat of SAR 1,947 million for the period ended 30 September 2026, with an increase of 18.42% (SAR 303 million) compared to the comparative period from prior year, as a result of the following: Increase in revenue by 16.99% (SAR 1,131 million), which led to an increase in gross profit by 21.30% (SAR 577 million). Operating expenses increased by 19.63% (SAR 224 million), mainly due to an increase in general and administrative expenses by SAR 78 million, an increase in selling and marketing expenses by SAR 74 million, an increase in depreciation and amortization expenses by SAR 70 million, and an increase in expected credit loss expenses by SAR 16 million. This was offset by a decrease in research and development expenses by SAR 12 million, and a decrease in impairment of non-current assets by SAR 2 million. In relation to the other items impacting net profit, the Company recognized non-recurring gain amounting to SAR 59 million, arising from the remeasurement at fair value of its previously held interest in an associate, as a result of completing the acquisition of a controlling interest during the period, an increase in the income from Murabaha deposits by SAR 14 million, and the share from results of associates and joint ventures increased by SAR 13 million, reflecting a profit of SAR 5 million in the current period compared to a loss of SAR 8 million in the corresponding period of the previous year. This was offset by an increase in finance costs by SAR 28 million, a decrease in the fair Source: saudiexchange.sa (announcement 98842) Page 2 of 3
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Element List Explanation value gains from revaluation of investments through profit or loss by SAR 10 million, and a decrease in other income by SAR 7 million. Furthermore, the Zakat expense increased by SAR 99 million as a result of the prior year's provision reversal amounting to SAR 69 million in comparative period from prior year. 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) Not applicable Reclassification of Comparison Items Certain comparative figures have been reclassified and restated to conform to the current presentation period. For more information, please refer to note 23 to the interim condensed consolidated financial statements for the period ended 30 September 2026. Additional Information - Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the period ended 30 September 2026 amounted to SAR 2,172 million, with an increase of 24.19% compared to the comparative period from prior year. The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate. Source: saudiexchange.sa (announcement 98842) Page 3 of 3