Jahez International Company for Information Systems Technology (Jahez) announced its preliminary consolidated financial results for the period ending June 30, 2026 (six months). The company recorded a net loss of SAR 26.6 million in the first half of 2026, compared with a net profit of SAR 58.9 million during the same period of the previous year.

Regarding the second quarter of 2026, the company recorded a net loss of SAR 17.4 million, compared with a net profit of SAR 23.6 million in the second quarter of 2025.

Meanwhile, the group's net revenue grew by 34.5% to reach SAR 763.0 million in the second quarter, supported by a 33.2% increase in commission revenue and 122.1% growth in advertising and marketing revenue, alongside a 40.4% increase in gross merchandise value (GMV) to SAR 2.5 billion, driven by a 26.5% rise in orders to 36.4 million orders.

The net loss was attributable to continued measured investment in acquiring, retaining, and reactivating customers in the Saudi market to support momentum and regain market share, in addition to investments related to launching and expanding Snoonu operations outside the Qatari market.

Al Yamamah University students discussed the implications of these financial results, the cost of regaining market share, and Snoonu's international expansion as follows:


Balancing market-share recovery with maintaining profitability

Student @فيصل القحطاني explained his view, saying: “I believe Jahez is currently facing a difficult equation. Competition in the Saudi market is intense, and continuously engaging in a price war may help it maintain its market share, but at the same time it puts pressure on margins and affects profitability.

In my view, the better approach is to focus on service quality and improve operational and technological efficiency, while using promotions selectively to target important customers instead of engaging in open-ended discounts with competitors. If Jahez can retain customers through delivery speed, user experience, and a diverse range of options, maintaining market share may prove more sustainable.

As for expansion through Snoonu, I see it as a sound strategic step if the group can leverage its scale and operational experience and turn revenue growth into profits and cash flows. It is true that acquisitions and expansion put pressure on profits initially, but the success of the strategy will become evident when the international business begins making a clear contribution to profitability, rather than merely increasing revenue.

Overall, I believe the real challenge facing Jahez in the coming period is striking a balance between regaining market share and maintaining profitability, because growth at any cost is not considered a success if it comes at the expense of margins and cash flows.”

Turning international expansion into actual profitability

Student "ريماس المشعلي" @Rimas Almashali believes Jahez is going through a period of significant expansion and investment, saying: "I believe Jahez is going through a period of significant expansion and investment, as evidenced by revenue growth and Snoonu's increased contribution, but the continuation of losses shows that current growth remains costly.

In my view, the priority in the coming period should be improving spending efficiency and regaining market share in a more sustainable way, with a focus on turning international expansion into actual profitability rather than relying solely on revenue growth."

The cost of growth and testing the sustainability of market share

For her part, student "غاده الوعلان" @Ghadah Alwallan focused on the cost of growth, saying: "What stood out to me most in the results is that Jahez's challenge does not appear to be its ability to achieve growth. GMV increased by 40.4% and revenue grew by 34.5%; rather, the challenge lies in the cost of this growth and converting it into profitability.

In my view, the success of the market-share recovery strategy will not be measured solely by the increase in orders, but by the company's subsequent ability to retain these customers once promotions and marketing spending are reduced. Therefore, I believe that improving profit margins while maintaining growth will be one of the most important indicators for assessing the success and sustainability of this strategy."

Expansion through Snoonu and the opportunity to diversify revenue sources

Student @شهد المحيسن believes that local competition represents one of the challenges facing the company, saying: "In my view, Jahez's results reflect the fact that competition in the local market is intense and costly, particularly with increased spending on promotions and marketing to regain market share, which has clearly affected profitability.

At the same time, expansion through Snoonu gives the company an opportunity to diversify its revenue sources and enter new markets. As operational efficiency improves and the company succeeds in controlling acquisition and marketing costs, this expansion could shift from being a current burden on profits to a powerful driver of future growth and profitability."

Focusing on profitability instead of continuous price competition

Student "جمانة الشهري" @Jumana Alshehri believes Jahez needs to place greater emphasis on profitability, saying: "In my view, Jahez needs to focus more on profitability instead of entering a price war, because excessive promotions and marketing put pressure on profits. It would be better to improve service quality and technology in order to retain customers at a lower cost.

As for the acquisition of Snoonu, I see it as a good step toward expansion and increasing revenue, but acquisition and expansion costs have affected profits for now. True success will come if Jahez can turn this growth into profits in the future.

Regarding local competition, it is clearly intense, and the decline in delivery revenue indicates that regaining market share is costly. Marketing spending may therefore be beneficial, but only if it brings the company customers and recurring revenue, rather than merely temporary orders."

Turning business-volume growth into sustainable profitability

Student "محمد الغيهب" @Mohammad Alghaihab noted that the results reflect a phase of expansion more than one of profit maximization, saying: "In my view, Jahez's results reflect a clear expansion phase rather than a phase of profit maximization, particularly with revenue growth of 36.1% during the first half, alongside the net result turning into a loss of SAR 26.6 million.

This means the company is succeeding in increasing its business volume, but the cost of regaining market share, international expansion, and acquiring Snoonu continues to pressure margins.

I believe the real challenge facing management now is turning this growth into sustainable profitability, rather than continuing to increase revenue at any cost. If Jahez can achieve savings from international expansion and improve operational and marketing efficiency, Snoonu could shift from being a source of pressure on profits to a driver of growth and profitability for the group.

Continuing to compete through marketing spending and price wars may preserve market share, but it could weaken earnings quality over the long term."


Losses continue despite revenue reaching a record level

Expert Professor عبدالعزيز خريص commented on the results, saying: "Jahez continued its negative results for the third consecutive quarter, recording losses of SAR 17.4 million in the second quarter of 2026.

Despite revenue rising to a record SAR 763 million for the quarter, the company clearly acknowledged that competition had affected it. In a statement on the Tadawul website, the company said the losses were attributable to the impact of competition in the market, along with continued strategic investments aimed at enhancing customer retention and reactivation in the Saudi market to maintain momentum.

The company indicated that revenue distribution was as follows:

Delivery platforms within the Kingdom of Saudi Arabia: SAR 415.5 million, down 13.1% compared with the second quarter of 2025.

International delivery platforms: SAR 328.7 million, compared with SAR 65.3 million. The increase was attributable to the consolidation of Snoonu's results after completing its acquisition in the fourth quarter of 2025, in addition to continued strong growth in Qatar.

Side note: The group's gross merchandise value (GMV) rose 40.4% year over year to reach SAR 2.5 billion".

Local competition challenges and operating-margin pressures

In an analytical review of the company's performance, financial and economic analyst "حمد السعيد" @Hamad Alsaeed explains, saying: Jahez's results highlight a sharp disconnect between revenue growth and earnings quality. While net revenue jumped 36.1% to SAR 1,488 million, operating income turned into a loss of SAR 31.5 million, and net income recorded a loss of SAR 26.6 million compared with a profit of SAR 58.9 million. Gross income margin declined from 22.4% to 20.6%, indicating that this growth has been purchased rather than being natural, sustainable growth.

Locally, revenue from the Saudi platforms fell 13.1% year over year in the second quarter to SAR 415.5 million, despite commission growth. This decline resulted from pressure caused by reduced delivery fees and inflated promotional spending to defend a market share eroding in the face of heavyweight competitors, specifically Keeta, backed by Meituan, which captured approximately 10% to 12% of the market within just a few months, alongside HungerStation, backed by Delivery Hero's capital.

Nevertheless, Jahez's balance sheet remains structurally sound, with equity of SAR 1,319 million. However, the true recovery path depends on the return of the local operating margin, not merely on pursuing GMV volume. We believe that balancing marketing expansion with a focus on research and development to reduce operating costs is the differentiator the company needs at this stage to support its future growth.

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Disclaimer: This material was prepared under the supervision of a “Yamamah Insights” editor and with the assistance of artificial intelligence tools for financial education purposes. It does not constitute a recommendation to buy, sell, or hold any security, and expresses the views of its authors, not those of the platform.