What was Ataa Educational's net profit for the nine months of 2026?

Net profit reached SAR 88.61 million, up 11.1% year-on-year.

Why did Ataa Educational's revenue decline despite higher education revenues?

Revenue fell due to the suspension of training and recruitment sector activities from August 2025, which offset the 3% growth in education revenues.

What was the impact of the revenue recognition methodology change on results?

The change caused a 8.7% sequential revenue decline, as revenue was recognized based on 89 academic days versus 92 in the prior quarter.

Did the auditors issue a qualified opinion on the financial statements?

No, they issued an unqualified opinion with an emphasis of matter regarding the accounting methodology change, with restated comparatives.

Ataa Educational Posts SAR 88.6M Net Profit in Nine Months 2026

Ataa Educational Company (4292) announced its financial results for the nine months ended April 30, 2026, with net profit rising 11.1% YoY to SAR 88.61 million, while revenue edged down 0.7% to SAR 538.38 million.

Ataa Educational Company (4292) announced its interim financial results for the nine months ended April 30, 2026, reporting a net profit of SAR 88.61 million, up 11.1% year-on-year, despite a 0.7% decline in revenue to SAR 538.38 million. The profit growth was driven by improved profitability in the education segment and the elimination of losses from suspended non-core operations.

Key Financial Results

Item	Value (9M 2026)	YoY Change
Revenue	SAR 538.38M	-0.7%
Net Profit	SAR 88.61M	+11.1%
EPS	SAR 2.11	+11.6% (vs SAR 1.89)

Highlights from the Statement

Revenue decline of 0.7% was primarily due to the suspension of training and recruitment sector activities from August 2025, despite a 3% increase in education revenues from higher tuition fees.
Net profit increase of 11.1% was driven by the elimination of losses from suspended non-core operations and improved education sector profitability, partially offset by a 34% decline in other revenues compared to non-recurring settlement gains in the prior year.
Quarter-on-quarter, revenue fell 8.7% to SAR 178.05 million, and net profit dropped 21.6% to SAR 29.28 million, due to a change in the methodology for recognizing educational service revenues over the academic year instead of the fiscal year, in line with SOCPA guidance.
Auditors' note: The auditors issued a notice opinion drawing attention to the change in accounting methodology, with comparative figures restated, though the opinion was not modified.
Shareholders' equity decreased 0.8% to SAR 821.44 million.

Guidance

No specific guidance was provided.

Impact on Stock

The stock may react positively to the net profit growth, but the accounting methodology change could raise questions about revenue sustainability.

What This Means for Investors

Despite lower revenue, profit growth indicates improved operational efficiency in the core education business. However, investors should monitor the impact of the accounting change on future revenue recognition, especially given the sequential decline.