Anghami, the first Arab tech startup to list on Nasdaq, will carry out a 1-for-10 reverse stock split this week to avoid delisting, after its shares slumped to $0.0117 despite delivering its first-ever half-year profit in late 2024.
Shareholders approved the move last week on the unanimous recommendation of the board. Trading will begin on a split-adjusted basis from August 4, with the par value of each ordinary share increasing from $0.0001 to $0.001. The company said the reverse split will not dilute existing shareholders’ proportional ownership.
Anghami needed the move to stay compliant with Nasdaq’s minimum $1 bid rule. Its stock is down 28% year-to-date.
In April, Anghami posted a $2.7 million profit for the second half of 2024 and achieved positive cash flow for the first time since going public, though it still recorded a full-year net loss of $2.6 million. That’s down from $6.6 million the previous year, driven by a 41 percent cut in operating expenses.
Annual revenue rose to $42.6 million, lifted by a 28% jump in subscription income and a 15 percent increase in paid users. Subscriptions now make up more than 90 percent of revenue in the second half of 2024. But advertising revenue dropped 14 percent and average revenue per user for free listeners fell 10%, as the company reported unsold ad inventory in key MENA markets.
Anghami has not published any 2025 financials as of July 30, leaving a seven-month reporting gap.
The company has raised $55 million in unsecured convertible notes from OSN, its majority shareholder, and cannot issue further debt without OSN’s consent. Its largest expense remains content licensing, accounting for 46% of revenue in 2024. According to SEC filings, the company holds no direct rights to any of its video content, which is all sublicensed from OSN+.
Anghami also warned that the rise of AI-generated music could threaten its business model by devaluing licensed content and straining ties with rights holders.
Founded in 2012 and often dubbed the “Spotify of the Middle East,” Anghami operates in 16 MENA countries and claims 120 million registered users and 3.5 million paid subscribers. It listed in 2022 via SPAC merger and continues to face pressure from rivals like MBC’s Shahid, YouTube Music, and Spotify, as well as new bundling strategies from OSN+.
