The Middle East’s buy-now-pay-later sector continues its march toward sustained profitability, led by major operators optimizing their unit economics. Tabby, the regional fintech heavyweight, closed 2025 with a net profit of SAR 206.4 million, marking an 82% increase from the previous year. The robust annual performance highlights the platform’s expanding merchant network and diversified revenue streams, even as rising operational and franchise costs squeezed fourth-quarter margins.
Quick Facts
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FY 2025 net profit reached SAR 206.4 million.
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Q4 net profit dropped 25% due to rising expenses.
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Merchant commission income surged 39% to SAR 1.28 billion.
Driving Revenue Through Merchant Commissions and Customer Fees
The impressive annual profitability was firmly anchored by significant growth in net financing and investment income, which expanded to SAR 723.7 million in 2025, up from SAR 547.8 million a year prior. This top-line expansion relied heavily on B2B volume and specialized user fees.
Merchant commission income remains the primary growth engine for the fintech, climbing by 39% to generate SAR 1.28 billion. Simultaneously, customer fee income derived from extended payment terms spiked by 75%, reaching SAR 117.2 million.
The company also optimized its treasury operations, growing interest income on term deposits from SAR 2.8 million to SAR 7.6 million. Furthermore, overall profitability benefited from the removal of intra-group loan interest expenses, which had accounted for SAR 34.7 million during the previous operating year.
Navigating Q4 Cost Pressures in the GCC Fintech Sector
While the 12-month metrics reflect aggressive commercial scaling, the final quarter of 2025 exposed the financial toll of regional expansion and operational overhead. Q4 net profit contracted to SAR 57.1 million, representing a 25% year-over-year decline.
Several distinct cost pressures eroded these quarterly margins. Franchise fees climbed to SAR 116.4 million during the period, while general and administrative expenses jumped by 59%. Higher income tax provisions further impacted the bottom line, illustrating the complex regulatory and operational expenses associated with managing consumer credit across multiple Middle Eastern jurisdictions.
Strengthening Equity and Cash Flow Dynamics
Tabby materially improved its financial positioning throughout the year. Shareholders’ equity climbed to SAR 639.77 million by the end of 2025, a solid increase from the SAR 433.35 million recorded a year earlier.
The platform’s cash flow metrics also indicate a clear trajectory toward stabilization. Net cash from operating activities settled at negative SAR 122.9 million, a sharp improvement from the negative SAR 377.1 million reported previously. Capital expenditures edged up to SAR 14.1 million, while net cash from financing activities reached a robust SAR 561.1 million. Ultimately, free cash flow remained negative at SAR 137.1 million, though this represents a significant recovery from the negative SAR 378.2 million seen in the prior period.
About Tabby
Tabby is a leading buy-now-pay-later and consumer finance provider operating across the MENA region. The enterprise functions as a wholly owned subsidiary of Tabby SPV Limited, which is registered in the UAE. Its ultimate parent organization, Tabby Inc., is incorporated in the Cayman Islands.
Source: Entarabi
