Saudi-based Buy Now, Pay Later (BNPL) giant Tabby has reported strong top-line growth in its Saudi Arabian operations for the first quarter of 2026, according to its preliminary financial statements. The fintech firm’s total fee and commission income surged by 33.6% to SAR 426.7 million, up from SAR 319.4 million in the same period last year. However, this aggressive expansion is accompanied by a significant spike in credit losses and financing costs, painting a complex picture of the company’s path to sustainable profitability.
Quick Facts
- Total Q1 revenue grew 33.6% to SAR 426.7 million.
- Net credit losses jumped over 159% to SAR 47.9 million.
- Total debt exceeded the regulatory cap by SAR 519.8 million.
Growth Fueled by Merchant and Customer Fees
Tabby’s revenue growth was driven by both its merchant network and direct customer fees. Income from merchant networks accounted for the majority, reaching SAR 354.4 million. More notably, revenue from customer fees skyrocketed from SAR 18 million to SAR 68 million year-over-year, indicating a growing reliance on consumer-facing charges.
Despite the revenue jump, net profit grew more modestly, climbing to SAR 68.1 million from SAR 65.2 million in Q1 2025. This slower profit growth highlights the increasing costs associated with scaling its operations.
Expanding Loan Book, Rising Risk
The company’s lending activities have accelerated sharply. The loans receivable portfolio grew to SAR 3.66 billion by the end of March 2026, an increase of over SAR 478 million in just three months. This rapid expansion has also amplified the inherent risks in consumer credit.
Net expected credit losses for the quarter surged to SAR 47.9 million, a more than 159% increase from the SAR 18.4 million recorded in the same period last year. The total provision for expected credit losses now stands at SAR 253.5 million. Loans non-performing for over 90 days reached SAR 302.9 million, reflecting the challenges of managing a rapidly growing consumer base.
Cost of Capital and Cash Flow Pressures
Fueling this growth requires significant capital. Tabby’s financing costs rose to SAR 95.1 million in Q1 2026, up from SAR 67.4 million the previous year, primarily driven by Murabaha financing facilities which totaled SAR 3.74 billion.
This aggressive financing has also strained the company’s liquidity. Cash and cash equivalents dropped to SAR 526.4 million from SAR 737.2 million at the end of 2025. The company reported a negative net operating cash flow of SAR 361.4 million for the quarter, which it attributes to the rapid creation of new receivables outpacing cash collections from customers.
Navigating Regulatory Hurdles
The financial statements also revealed that Tabby’s net debt of SAR 2.58 billion has surpassed the SAR 2.06 billion maximum limit set by the Saudi Central Bank (SAMA). The company noted it is in the process of obtaining approval from SAMA to raise this debt ceiling.
Management expressed confidence in its financial position, citing an equity base of SAR 708 million and continued financial support from the Tabby Group. The results underscore a critical transition for Saudi Arabia’s fintech sector, moving from a phase of pure growth to one focused on balancing expansion with rigorous risk management and operational sustainability.
About Tabby
Tabby is a leading fintech company in the Middle East and North Africa (MENA) that provides Buy Now, Pay Later (BNPL) solutions. It allows customers to shop at thousands of retailers online and in-store and pay for their purchases in interest-free installments. The company aims to empower consumers with financial flexibility and provide merchants with a tool to increase sales and customer loyalty.
Source: Jawlah
