Saudi Tadawul Group’s Q2 Profit Falls 4% on Higher Operating Expenses

RIYADH: Saudi Tadawul Group’s net profit declined more than 4 percent year on year in the second quarter of 2026 to SR92 million ($24.5 million), although it exceeded analysts’ expectations of SR90 million. 

In a statement published on its website on July 27, Tadawul said the decline in net profit was due to a 4.7 percent increase in operating expenses, driven by higher depreciation and amortization costs, Al-Eqtisadiah reported.

This marks the sixth consecutive quarterly decline in the group’s profits on a year-on-year basis, a trend that began around a year and a half ago, despite the results continuing to exceed analysts’ estimates in the second quarter. 

Meanwhile, the group’s quarterly revenues rose by more than 1 percent to SR323 million. The increase was driven by the continued implementation of the group’s growth and revenue diversification strategy, which boosted revenue from technology and data services by 13.7 percent and non-trading services by 4.2 percent. 

At its most recent meeting, the General Assembly approved the group’s purchase of 1.22 million treasury shares for allocation under its employee incentive program. The transaction was financed from internal resources, and the group will hold the purchased shares for six years before allocating them to eligible employees.

Tadawul, established in 2007, is the leading provider of trading, clearing and settlement services for securities in Saudi Arabia through its subsidiaries.

 The group is a key contributor to Saudi Arabia’s financial sector and supports Vision 2030 and the Financial Sector Development Program by helping develop an advanced and integrated capital market. The group has a market capitalization of SR14.4 billion, with the Public Investment Fund holding a 60 percent stake.