Tabby Reports $55M Profit in Saudi Arabia as IPO Speculation Grows

Data from audited financial statements, as reported by FWDstart, shows Tabby’s Saudi subsidiary generated $378 million in revenue and $55 million in net profit in 2025. The figures mark the company’s second consecutive year of profitability in the Kingdom, reinforcing a shift from growth-focused expansion to a more sustainable financial model.

The results relate specifically to Tabby Financing Company, the entity licensed by the Saudi Central Bank to operate buy now, pay later (BNPL) services in Saudi Arabia. As the most tightly regulated and largest component of Tabby’s business, the Saudi unit is widely viewed as the clearest indicator of the company’s overall financial health.

Revenue growth remains a key highlight. The Saudi division recorded a 42% increase in revenue compared to 2024, while net income surged 82% year-on-year, underscoring accelerating adoption of BNPL services across the Kingdom’s fast-growing e-commerce sector.

What makes these figures particularly significant is that they come from the company’s first full-year independently audited accounts, reviewed by Ernst & Young. In a regional fintech ecosystem where many companies remain privately held and disclose limited financial data, audited profitability offers a rare level of transparency for investors and market observers.

Growth Momentum Driven by BNPL Adoption

Saudi Arabia has become a central battleground for BNPL providers, driven by a young population, rising digital payments adoption, and strong retail activity. For Tabby, the market is not just another geography, it is the core operating base where regulatory oversight is highest and where the company’s lending model is most fully deployed.

The company’s BNPL model, which allows consumers to split payments over time, continues to gain traction beyond its early use in small-ticket online purchases. Increasingly, the platform is being used for higher-value transactions and in physical retail environments, signaling a shift in both consumer behavior and the company’s growth strategy.

This expansion into larger purchases could significantly reshape Tabby’s revenue profile, but it also introduces new layers of risk, particularly around credit exposure and funding requirements.

That tension is already visible in the company’s balance sheet. The audited filings show that Tabby’s Saudi unit reported net debt of approximately $689 million, exceeding a regulatory ceiling set by the Saudi Central Bank by about $139 million. The company is currently seeking approval to raise this limit, a move that could become a focal point for regulators and potential investors alike.

The debt position highlights a broader dynamic shaping the BNPL sector globally: rapid growth often requires substantial financing, and maintaining that balance between expansion and risk management is critical.

IPO Speculation and Rising Financial Pressure

At the same time, the timing of these audited disclosures is drawing attention. Market reports suggest that Tabby may be preparing for a potential public listing on Saudi Arabia’s stock exchange, Tadawul, with major international banks said to be advising on the process.

Audited financial statements are often a prerequisite for companies considering public markets, providing investors with a clearer view of performance and governance standards.

Tabby’s most recent valuation, reportedly around $4.5 billion following a secondary share sale in 2025, places it among the most valuable fintech companies in the Middle East. A potential listing would not only test investor appetite for fintech in the region but could also serve as a benchmark for other high-growth startups considering similar moves.

Beyond the numbers, the company’s trajectory reflects a broader shift in the MENA fintech landscape. Early-stage growth driven by user acquisition and transaction volume is gradually giving way to a stronger emphasis on profitability, regulatory compliance, and long-term sustainability.

Saudi Arabia, in particular, has positioned itself as a key hub for this transition. With increasing oversight from regulators and a growing focus on financial stability, fintech companies operating in the Kingdom are being pushed to demonstrate not just scale, but resilience.

Tabby’s latest results suggest the model is maturing, but not without challenges. Continued expansion into new segments, rising leverage, and the demands of a potential public listing all point to a more complex next phase.