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Tabby Financing Company CJSC, the SAMA-licensed Saudi subsidiary of BNPL operator Tabby, posted net profit growth of just 4% in the first quarter against a 34% rise in revenue, as a build-out of in-Kingdom operations drove a 73% jump in operating expenses and net expected credit losses rose 2.6x on a larger loan book.
Revenue reached SAR 427 million ($114 million) in the three months to 31 March, up 34% from SAR 319 million a year earlier, according to interim financial statements reviewed by EY. Net profit was SAR 68 million ($18 million), up just 4% from SAR 65 million.
Consumer fee revenue rose 276% year on year to SAR 68 million, accounting for 16% of total revenue against 5.7% in Q1 2025. The line captures charges from Tabby's "snooze" feature, which lets customers defer an instalment by up to a week for a fee, alongside other consumer-side processing charges. Merchant network revenue, the commission Tabby earns at checkout, grew 19% to SAR 354 million.
Consumer fee revenue had already grown 75% in the FY2025 audited accounts, even as the core split-payment product remained free at checkout.
Net debt stood at SAR 2.58 billion ($689 million) at quarter-end, SAR 520 million ($139 million) above the threshold set by the Saudi Central Bank and the same excess reported at year-end. EY repeated the Emphasis of Matter paragraph it included in the FY2025 audit, drawing attention to the breach.
Tabby drew no new Murabaha funding from Flow Finance I DAC, its Ireland-based bankruptcy-remote funding vehicle, during the quarter, and said it "remains in the process of securing SAMA approval for an increase in its permitted debt ceiling."
The gross consumer loan book grew 15% in the quarter to SAR 3.92 billion ($1.05 billion), crossing $1 billion for the first time. Cash and cash equivalents fell by SAR 211 million to SAR 526 million, with net intercompany financing inflows of SAR 156 million covering the balance of the funding need.
Other general and administrative expenses rose 175% year on year to SAR 68 million. IT and infrastructure costs rose 168% to SAR 26 million, customer support and service centre expenses rose more than ninefold to SAR 25 million, and employee benefits costs grew 78% to SAR 11.5 million.
Tabby attributed the increase in a footnote to a "continuing build-out of in-Kingdom operational, technology and customer-facing capabilities," adding that "functions and infrastructure previously procured from affiliate entities under intercompany service arrangements are progressively being delivered through directly incurred costs."
Royalty and service charges paid to Tabby Technology Ltd, the affiliate that has historically housed the group's intellectual property, fell to SAR 25 million from SAR 26 million a year earlier.
Net expected credit losses charged to the income statement rose 2.6x to SAR 48 million from SAR 18 million, reflecting the larger loan book and ongoing stage migration. Gross ECL charges of SAR 61 million were partly offset by SAR 13 million in recoveries on previously written-off receivables.
Asset quality metrics improved marginally. The share of the loan book classified as Stage 3, defined as more than 90 days past due, fell to 7.72% from 8.07% at year-end. Coverage on the most distressed bucket rose to 56.58% from 56.21%. Total write-offs in the quarter were SAR 33 million.
Tweeq International Financial Company, the SAMA-licensed digital wallet Tabby acquired in September 2024 and suspended in December 2025, remains dormant within the group. The related-party receivable fell to SAR 22 thousand from SAR 41 thousand at year-end. The only transactions in the quarter were a SAR 114 thousand service charge accrual and a SAR 133 thousand settlement.
The interim financial statements were authorised for issue by Tabby's board on 27 April 2026.
Figures converted at SAR 3.75 = $1. Based on Tabby Financing Company CJSC's reviewed condensed interim IFRS financial statements for the three months ended 31 March 2026.
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