Tasheel Finance Reports Strong Year-on-Year Growth in Q1 2026 Results

Tasheel Finance announced its preliminary financial results for the first quarter of 2026, reporting strong year-on-year growth in both revenue and profitability, driven primarily by the expansion of its consumer financing portfolio.

The company recorded revenue of $54.7 million in Q1 2026, compared with $46.6 million in the same period of 2025, representing a 17.5% year-on-year increase. This performance was supported by the expansion of its financing portfolio, which reached $853 million, marking a 21% increase and reflecting rising demand for consumer finance products.

Revenue also showed a modest quarter-on-quarter increase of 1%, indicating continued operational momentum.

In terms of profitability, net profit rose to $17.1 million, compared with $15.4 million in Q1 2025, reflecting 11.3% year-on-year growth. Gross profit also increased to $48.2 million, up from $40.9 million, representing 17.6% growth.

However, the comparison with the previous quarter highlights operational pressures. Despite the slight rise in revenue, net profit declined by 13.6% quarter-on-quarter compared with Q4 2025.

This decline was mainly driven by two factors:

Higher operating expenses, reflecting the cost of expansion and growth initiatives.
An increase in expected credit loss provisions, a critical factor for finance companies that reflects higher risk levels as lending expands.

Meanwhile, operating profit reached $19.1 million, up from $17.3 million in the same quarter last year, representing 10.5% growth. On a quarterly basis, however, operating profit declined by 14.6% compared with $22.3 million in the previous quarter.

The results suggest that while the company’s expansion in consumer financing has driven revenue growth, it has also increased operating costs and credit risk exposure.

Despite these pressures, earnings per share rose to $0.68 compared with $0.62, while equity increased by nearly 25% to $389 million, reflecting the company’s strong financial position and its ability to support expansion without significant financing pressure.

Overall, the data indicates that the company’s current growth model relies heavily on lending expansion, which supports revenue growth but requires careful risk management to maintain a sustainable balance between growth and profitability.