Jahez Reports Strong Q1 2025: Net Income Up 185% - EBITDA Up 128%

Jahez International Company for Information System Technology (“Jahez”, or the “Group”; TASI: 6017) has announced its financial results for the first quarter of 2025, showing solid growth across all regions and business segments. The company delivered strong year-on-year (YoY) improvements in Gross Merchandise Value (GMV), revenue, and profitability.

Ghassab Bin Salman Bin Mandeel, CEO of Jahez Group, said:

“We’ve had a strong start to 2025, staying focused on the fundamentals, profitable growth, operational efficiency and building a strong ecosystem for merchants and users. Our core market in Saudi continues to perform well and we’re seeing encouraging progress in Kuwait and Bahrain where we’ve significantly improved our financial position while maintaining market share. What’s especially promising is the traction we’re seeing in our newer verticals which are starting to scale meaningfully. These are important parts of our core strategy to leverage our unique and diversified ecosystem as we create a broader tech-enabled commerce platform. As we look ahead, we’ll keep investing where it matters which are products, people and platform, while staying disciplined on execution. The focus remains on delivering value across the ecosystem and growing in a sustainable way.”

Double-Digit Growth in GMV Across KSA and International Markets

In Q1 2025, GMV rose by 10.9% YoY to SAR 1.6 billion, with like-for-like (LFL) growth at 15%. International markets recorded a 15% YoY increase in GMV (17% LFL), while KSA platforms posted a 10% gain (13% LFL), reflecting continued market momentum and expansion.

Revenue and Advertising Streams Drive Top-Line Growth

Net revenue climbed to SAR 526.0 million in Q1 2025, up 9.4% from SAR 480.9 million in the same period last year. This was supported by a rise in total orders, higher average order values, and a significant surge in advertising and other revenue streams.

Profitability Surges on Improved Operational Efficiencies

Adjusted EBITDA soared by 128.1% YoY to SAR 51.1 million, representing 9.7% of net revenue, up from 4.7% in Q1 2024. Net income attributable to shareholders reached SAR 35.3 million, up 184.7% from SAR 12.4 million, driven by strong cost controls and enhanced revenue generation.

KSA Platform Hits Order Volume Milestone with Strong Margins

Jahez’s operations in Saudi Arabia achieved record-high monthly order volumes during the quarter. The platform maintained a robust adjusted EBITDA margin of 11.9%, reflecting ongoing efforts to optimize operational costs and scale sustainably.

International Units Narrow Losses While Retaining Market Position

The Group’s non-KSA platforms showed substantial financial improvement, reducing EBITDA losses to SAR 1.9 million in Q1 2025, compared to SAR 26.5 million in Q1 2024. These platforms maintained their market share while improving cost efficiency.

Logistics Arm Expands Workforce and Strengthens Compliance

Logi, Jahez’s logistics subsidiary, more than doubled its driver base to 4,260 in Q1 2025 (up from 1,684 in Q1 2024). The division also ensured full regulatory compliance within Saudi Arabia, supporting Jahez’s last-mile delivery capabilities.

Advertising Revenue Nearly Doubles on New Product Rollouts

Advertising revenue rose 93% YoY, fuelled by new in-app features and strong merchant adoption. Enhancements such as the "Explore" and "Fawasel" (Reels) functionalities, coupled with better geo-targeting, significantly boosted ad engagement and monetization potential.

Diversified Revenue Streams Continue to Expand

Other Revenues—comprising verticals such as Sol, Co, Marn, and Blu Store Direct Sales—grew 55.5% YoY. These segments are becoming increasingly significant to Jahez’s revenue mix and strategic diversification.

Gross Revenue and Margins Continue Upward Trajectory

Gross revenue reached SAR 575.5 million, marking a 12% YoY increase. This growth was underpinned by higher commissions, increased advertising income, and contributions from newly developed verticals. Gross profit margin improved to 24.0%, up from 19.9% in Q1 2024, thanks to operational efficiencies and revenue growth.

Improved Order Metrics and User Engagement Fuel Growth

Total orders increased by 7.3% YoY (12% LFL), with active users growing 10.5% during the same period. The average order value rose to SAR 63.1 (from SAR 61.0 in Q1 2024), supported by seasonal promotions and consumer behaviour during Ramadan.

Strong Profitability Anchored by Strategic Execution

Jahez’s net profit attributable to shareholders surged to SAR 35.3 million in Q1 2025, a 184.7% YoY increase. The result reflects the Group’s focused execution on growth, cost discipline, and revenue diversification across both domestic and international operations.