Riyadh – Mubasher: Al Modawat Specialized Medical Company reported total revenues of SAR 34.90 million during the first quarter (Q1) of 2026, representing a 21.71% increase compared to the SAR 28.67 million recorded in the same quarter of the previous year.
The company attributed this revenue growth to higher utilization rates across its facilities, driven by recent expansions and a focused effort to enhance service quality, which successfully stimulated patient demand.
Gross profit also saw a modest rise of 6.40%, reaching SAR 14.45 million in Q1-26 when compared to SAR 13.58 million in the prior-year period, according to a bourse disclosure.
However, this growth in revenue did not translate to the bottom line. Net profit attributable to shareholders fell by 48.02% to SAR 2.87 million in January-March 2026 from SAR 5.52 million in Q1-25. This decline was primarily driven by a substantial increase in operating costs.
Al Modawat disclosed that it had implemented several operational initiatives aimed at accelerating growth, including the extension of outpatient clinic hours to 16 hours per day.
Subsequent internal evaluations revealed that this expansion did not achieve the targeted return on investment, as the majority of patients continued to prefer the standard eight-hour service window. The resulting mismatch between high operating costs and patient utilization led to a temporary squeeze on margins.
Operating profit consequently fell by 33.01% to SAR 3.94 million in Q1-26.
On a sequential basis, the company’s performance also reflected a downturn, with revenue and net profit declining by 6.15% and 42.69%, respectively, compared to Q4-25. Management noted that these figures were further influenced by seasonality, as the holy month of Ramadan and the Eid Al Fitr holiday fell entirely within the first quarter of 2026, typically a period of reduced clinical activity.
As of October 2025, the company adopted a new logo amid rebranding aimed to supporting its vision.
Meanwhile, earlier in 2026, Al Modawat offered SAR-denominated Sukuk under its SAR 30 million program.
