Ataa Educational Co. announces its Interim Financial results for the Period Ending on 2025-10-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	165,225	171,429	-3.618	116,014	42.418
Gross Profit (Loss)	54,794	52,602	4.167	27,999	95.699
Operational Profit (Loss)	33,328	33,024	0.92	12,145	174.417
Net profit (Loss)	21,975	20,412	7.657	3,182	590.603
Total Comprehensive Income	21,975	20,412	7.657	-811	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	849,499	821,733	3.378
Profit (Loss) per Share	0.52	0.48
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The decrease in revenues is due to the following reasons:

1- The cessation of activities in the training and employment sectors starting from the beginning of the current quarter.

2- The positive impact of growth in educational sector revenues (tuition fees) has diminished due to the adjustment in the methodology for recognizing educational service revenues (tuition fees) in light of the directive issued by the Saudi Organization for Certified Public Accountants. This adjustment stipulates that these revenues should be recognized based on their distribution over the academic year period instead of the fiscal year. This methodology has been applied to the comparative figures for the periods under comparison, as current quarter revenues were recognized over 81 school days compared to 87 school days in the corresponding quarter of the previous year, which resulted from the difference in academic year start dates.The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The reason for the 8% increase in net profit during the current quarter compared to the same quarter of the previous year is due to the following reasons:

A decrease in operating costs and revenue, mainly due to the cessation of training and employment sector activities starting from the beginning of the current quarter, despite:

1- An increase in the provision for expected credit losses, resulting from a higher rate of older credit-aged receivables compared to the same quarter of the previous year.

2- An increase in financing expenses during the current quarter compared to the same quarter of the previous year, attributed to loans used to finance the construction of Al-Wasat complex and the development of Al-Izdehar complex.

3- A reduction in the positive impact of growth in educational sector revenues for the current quarter compared to the same quarter of the previous year due to a change in the methodology for recognizing educational service revenues (tuition fees).The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The 42% increase in revenues during the current quarter compared to the previous quarter is mainly due to an increase in fees in some of the company's complexes, in addition to the group's review of the method of recognizing educational service revenues during the current financial period, so that they are recognized over the academic year instead of the fiscal year, as revenues were recognized based on 81 school days in the current quarter compared to 57 school days in the previous quarter.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The increase in net profit during the current quarter by 18.8 million Saudi Riyals compared to the previous quarter is due to a 42% growth in revenues. This resulted from increased fees in some of the company's complexes and an adjustment in the method of recognizing educational service revenues and related costs, as revenues were recognized based on 81 school days in the current quarter versus 57 school days in the previous quarter, and related costs were re-calculated.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) We would like to draw attention to clarification number (16) of the clarifications regarding the condensed consolidated interim financial information, which explains in more detail the Group's review of the methodology for recognizing educational service revenues and related costs, so that they are recognized over the academic year instead of the fiscal year, in accordance with the directive issued by the Saudi Organization for Certified Public Accountants. This methodology has been applied to the comparative figures for the period under review, and our opinion regarding this matter has not been modified.Reclassification of Comparison Items There is noAdditional Information We would also like to point out that the impact of the change in the methodology for recognizing tuition fee revenue is limited to quarterly periods only in terms of the timing of revenue recognition, without having any impact on the company's annual financial results, as the total tuition fee revenue for the entire academic year and related costs are recognized without any change.

We would also like to draw the attention of our esteemed shareholders to the fact that the condensed consolidated financial statements for the period ended October 31, 2025, will be available on Ataa Educational Company's website,

ataa.sa at the following link

after being sent to the relevant authorities. The company would also like to draw the attention of financial analysts and investors to send their inquiries about the business results to the company's email

ir@ataa.sa

within 10 days from the date of publishing the financial statements. May God grant success.

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