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Tamara Finance Company, the SAMA-licensed Saudi subsidiary of BNPL operator Tamara, reported a 210% rise in revenue and a near-fivefold increase in net profit in the first quarter, driven by the scaling of its new Islamic financing product.
Revenue reached SAR 670 million ($179 million) in the three months to 31 March, up from SAR 216 million a year earlier, according to consolidated interim financial information reviewed by PwC. Net profit was SAR 123 million ($33 million), up 378% from SAR 26 million.
Islamic financing revenue contributed SAR 182 million ($49 million) in the quarter and now accounts for 27% of the top line. The product, structured under murabaha principles and only enabled by a SAMA consumer financing licence granted in February 2025, didn’t exist in Q1 2025. The single-quarter contribution exceeded the SAR 118 million the line generated across the whole of FY2025.
Merchant network revenue, the commission line that funded Tamara's earlier growth, also rose sharply, up 135% to SAR 421 million.
The gross consumer loan book grew 33% in the quarter to SAR 5.59 billion ($1.49 billion). Islamic financing receivables now account for 42% of that book, up from 34% at year-end, while pay-in-instalments receivables grew a more modest 17%.
Tamara's senior funding facility, backed by Goldman Sachs, Citi and Apollo and closed at Money 20/20 Middle East in September 2025, was upsized to SAR 5.79 billion ($1.54 billion) during the quarter from SAR 4.45 billion at year-end, with most tranches repriced down by roughly 70 basis points. The facility matures in August 2029.
Net expected credit losses rose to SAR 167 million, against a net SAR 11 million release in Q1 2025, reflecting the rapid expansion of the loan book and the seasoning of newly originated receivables. The share of the book classified as Stage 3, defined as more than 90 days past due, rose to 1.71% at quarter-end from 1.03% at year-end. Write-offs in the quarter totalled SAR 104 million.
In a standalone note added to its accounts, Tamara said the regional security environment has deteriorated significantly since 28 February 2026, affecting "several countries in the Middle East including Kingdom of Saudi Arabia, causing disruption to some business and economic activities." The company said it was "too early for any potential credit impairment to be reflected" in its staging criteria or macroeconomic assumptions and that it would continue to reassess.
Operating expenses rose 39% to SAR 124 million, with service charges to Tamara FZE, the Dubai-based affiliate that houses the group's technology stack, rising to SAR 27 million from SAR 22 million.
The numbers come in the same week as Tabby Financing Company CJSC, Tamara's nearest competitor and the Saudi subsidiary of MENA's most valuable venture-backed fintech, posted comparatively muted Q1 figures, with revenue up 34% and profit up just 4%. Tamara's top line is now 57% larger than Tabby's and its net profit approximately 1.8x larger. FWDstart understands both companies have shelved Tadawul listing plans for the time being due to the current regional geopolitical situation.
The interim financial information was authorised for issue by Tamara's management on 28 April 2026.
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