Jahez 2Q26 First Take: Earnings miss driven by ongoing investments in growth

Research evidence excerpt

J P M O R G A N

CEEMEA Equity Research

10 August 2026

Jahez

2Q26 First Take: Earnings miss driven by ongoing

investments in growth

Our Take: Jahez’s 2Q26 EBITDA fell 38% y/y, missing our forecast by 48% with

EBITDA of the KSA platform business contracting 75% y/y amidst investment in

market share re-gain. This investment, however, does not seem to have generated

a consumer response as KSA GMV and revenues fell 5.5% and 13% y/y, with

improved commission monetization offsetting the impact of lower delivery fees.

Jahez has stepped up investment in other GCC markets and at this stage growth of

Snoonu seems on track. Our take on the results is negative: we expect downward

Consensus revisions for Jahez as not only did it miss our and consensus

expectations on 2Q26 earnings, but more importantly as the core business in Saudi

seems to be eroding deeper than we thought.

Noteworthy Areas: (1) Consolidated 2Q26 GMV +40.4% (3% below JPMe),

Revenues +34.5% y/y (10% below JPMe), Adj. EBITDA -37.4% y/y (48%

below JPMe), adj. Net Loss at SAR17.4 mn (vs. JPMe SAR17 mn expected Net

Profit). (2) In KSA GMV rose 11.7% q/q however declined 5.5% y/y. Jahez

continued to rebalance its revenue mix away from delivery fees toward

commissions and other monetization streams which resulted in Revenues

declining 13% y/y and coupled with the company stepping up marketing

investment to defend and reclaim market share in a highly competitive

environment, KSA EBITDA and Net Profit fell 75% y/y. (3) International

delivery platforms revenue surged 5x on consolidation of Snoonu with

EBITDA in modest positive territory (SAR7 mn vs. JPMe SAR17 mn),

moderating vs. 1Q26 owing to investment and launch-phase costs associated

with Snoonu’s expansion in Kuwait and Oman.

Likely changes to consensus: We expect downward Consensus revisions for

Jahez as not only did it miss our and consensus expectations on 2Q26 earnings,

but more importantly as the core business in Saudi seems to be eroding deeper

than we thought.

Valuation: Jahez trades at a hefty 2026 P/E of 31x and 2027 P/E of 21x and is

prone to continue de-rating, in our view, as the earnings outlook is likely to be

re-assess by the market.

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