Academy of Learning Swings to 3.4M SAR Profit

Riyadh, Saudi Arabia — Academy of Learning reported a net profit of 3.4 million SAR in the third quarter of fiscal 2026, reversing a net loss of 13 million SAR in the same period last year. Revenue surged 181.9% year-over-year, reaching 74.4 million SAR compared to 26.4 million SAR in the prior quarter. This growth was driven by a substantial increase in corporate contract work and the debut contribution from its new schools subsidiary.

However, the schools business added a net loss of 9.3 million SAR during its first operating quarter, consuming a significant portion of the profits. Upon excluding the schools subsidiary, the core training business reported a profit of 12.7 million SAR, achieving a net margin of 17.8%. Revenue in the current quarter increased compared to the previous quarter, but this decline was attributed to a typical summer slowdown in the training industry.

The company's gross profit surged to 36.8 million SAR, marking a significant improvement to a gross margin of 49.4%. Operating profit rose to 13.5 million SAR, from an operating loss of 6.3 million SAR a year earlier. Key factors contributing to this turnaround include a significant jump in corporate contract revenue to 51.5 million SAR, now accounting for 69.3% of quarterly revenue, up from 7.1% previously.

The schools subsidiary contributed 3 million SAR in revenue in its first operating quarter. A credit loss charge fell to 2.9 million SAR, and a remeasurement gain of 1.4 million SAR further boosted net profit. While the year-on-year profit swing is notable, distinguishing between the core training business and the newly established schools subsidiary remains crucial.

Corporate contract revenue is now the primary revenue driver, and its sustainability and renewal rates will be closely monitored. Investors should also consider the risks associated with the schools subsidiary's high costs and delayed revenue recognition. Despite the progress, the turnaround still requires patience as the schools business matures and reaches operational scale.