eXtra: Q2 2026 earnings flash reaction

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eXtra: Q2 2026 earnings flash reaction

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eXtra

Q2 2026 earnings flash reaction

Maintain Rating: BUY | PO: 129.00 SAR | Price: 69.35 SAR

Topline softness translates to double-digit profit miss 09 July 2026

eXtra released certain key financial line items Wednesday morning, July 8. The company Equity

missed BofAae/consensus respectively (3.3%)/(0.9%) on revenue, which translated into a

Mohsen Ameeri >>

(31.8%)/(12.2%) miss on net income. While gross margin of 21.1% was in line with BofA Research Analyst

expectations, operating and net margins were (130) bps and (192) bps below, with both Merrill Lynch KSA Company +966 112 993 741

operating and net profit down vs. prior year. Our estimates and PO remain unchanged mohsen.ameeri@bofa.com

pending release of the full financials. Michael Jacks, CFA >>

Research Analyst

What we’d like to understand Merrill+27 113Lynch055 (South158 Africa)

Our thesis, as outlined in our July 2 reinstatement report, remains that the fair value of michael.jacks@bofa.com

eXtra’s retail business is significantly higher than the total market cap of the company, JameelResearchBakhsh,Analyst CFA >>

including both retail and the Tas’heel consumer finance business. Barring an extreme Merrill Lynch (DIFC)

liquidity stress scenario at Tas’heel, our paradigm remains that the cashflows of the +971jameel.bakhsh@bofa.com4 425 8252

retail business should represent over 80% of the value to eXtra shareholders, and as

such we focus our analysis there. Our key questions are:

• Performance of televisions. Our modelling attributes 1.1% point of a total 4.5% Stock Data

point revenue growth in 2026E to television sales spurred by the World Cup.

Price 69.35 SAR

Weakness in this category could affect our overall growth outlook.

Price Objective 129.00 SAR