Jahez, a Saudi information technology company, reported a sharp decline in its net profits by 61%, amounting to 73 million SAR ($19.4 million) in 2025, down from 188 million SAR ($50 million) in 2024. This decline reflects the financial pressures faced by the company amid rising operational costs.
In an official statement published on the Saudi stock market (Tadawul), Jahez attributed this decline to an increase in operational expenses, which reached 469 million SAR ($125 million). The company explained that this increase was a result of intensive marketing investments aimed at maintaining its market share in current markets, in addition to the inclusion of costs from the acquisition of the company Sanuno starting from the fourth quarter of 2025.
Event Details
Despite the overall decline in profits, the delivery platforms sector in Saudi Arabia maintained its profitability, recording a net profit of 214.8 million SAR ($57 million) with an adjusted profit margin before interest, taxes, depreciation, and amortization of 11.9%. However, revenues fell by 8.6% year-on-year, as Jahez responded to market changes by adjusting delivery fees to enhance competitiveness and increasing its focus on generating revenue through commissions.
On the other hand, the sector of platforms outside Saudi Arabia witnessed strong growth, with net revenues rising by 118.7% year-on-year to reach 462.4 million SAR ($123 million). The acquisition of Sanuno contributed to this performance, as its results were consolidated into the financial statements starting from the fourth quarter of 2025, increasing the size of the group's international business portfolio.
Background & Context
Jahez was established in 2016 and is one of the leading companies providing food delivery services in Saudi Arabia. The company has seen significant growth over the past years, making it one of the prominent names in this sector. However, economic challenges and intense competition in the market have greatly affected its financial performance.
In recent years, companies in the delivery sector have faced multiple challenges, including rising operational costs and price pressures. These factors have led to a reevaluation of pricing and marketing strategies, which have impacted overall profitability.
Impact & Consequences
The decline in Jahez's profits is an indicator of the challenges facing the delivery sector in Saudi Arabia, requiring companies to rethink their strategies to cope with increasing competition. These results are expected to affect investor confidence in the market, potentially leading to fluctuations in stock prices.
Moreover, changes in pricing strategies may impact customer experience, as many consumers seek competitively priced services. This could lead to changes in consumer behavior, necessitating companies to adapt to these variables.
Regional Significance
Jahez serves as a model in the delivery sector in the Arab world, where its results can influence other companies in the region. With the increasing reliance on delivery services, companies across the region must leverage the lessons learned from Jahez's experience.
In light of the current economic challenges, Arab companies may need to reassess their strategies to ensure their sustainability in the market. Additionally, innovation in services and providing unique customer experiences will be crucial for staying competitive.
In conclusion, the decline in Jahez's profits serves as a call to rethink how to improve performance amid changing economic conditions. Companies in this sector must be flexible and capable of adapting to new challenges to ensure their success in the future.