The Saudi Telecom Company (STC) results report for the first half of 2026, published by "Yamama Insights" - as part of an academic project for the Principles of Finance course (FIN 202) - Dr. Rasha Al-Humaidhi -, provides a financial and operational analysis of the company’s performance in the first and second quarters and the first half of 2026 compared with 2025. It documents revenue growth to SAR 40,110 million, up 3.7%, and operating profit growth to SAR 7,771 million, up 7.8%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased by 5.5% to SAR 12,968 million, with a margin of 32.3%, supported by an improvement in the gross profit margin to 49.0%. By contrast, net profit declined slightly by 1.6% to SAR 7,495 million as a result of higher zakat and tax expenses and increased financing costs. This was offset by a strong improvement in liquidity, with operating cash flows surging by 80.5% to SAR 8,342 million and free cash flow rising to SAR 3,568 million. The company also maintained a solid financial position, with a cash balance of SAR 18,941 million, a current ratio of 1.63x, and a low debt-to-equity ratio of 0.29x, despite total debt increasing to SAR 25,795 million. The company faces promising expansion opportunities as well as challenges, including intensifying competition, satellite internet technologies, and rising financing costs.

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