Good morning and good afternoon, everyone. This is Omar Meher from ESG RMS. I'd like to welcome everyone to Presight's 3Q2025 Results Conference call. The call will begin with a discussion of the key highlights of the period, and this will be followed by a Q&A session. I will now hand the call over to Roger Tijuani, Senior Director of Investor Relations at Presight. Thank you.
Thank you, Omar. Good morning, good afternoon, ladies and gentlemen, and thank you for joining us on today's call covering Presight's third quarter 2025 results. As Omar mentioned, the call today will comprise a short presentation of the strategic and financial highlights of the period, hosted by Presight's CEO and CFO, and it will be followed by a Q&A session. The investor presentation you're about to see is already available on the investor sections of Presight's website, and please note that the contents of this call may contain forward-looking statements, which should be considered in conjunction with the disclaimer included in the presentation. I'll now hand you over to our CEO, Thomas.
Thanks, Roger. Hi, good afternoon and good morning, everyone. Once again, thank you for joining us today as we go into our third quarter reporting. The third quarter has been another period of solid growth operationally and financially for us as a group. We've secured AED 700 million of new orders, including new contracts with the Abu Dhabi Department of Government Enablement and Economic Development. We've now taken our year-to-date order book to AED 2.4 billion, and together with recent agreements with the Abu Dhabi Police, the Federal Civil Defense Authority, the UAE Public Prosecution Office, and the Ministry of Industry and Advanced Technology, as well as the UAE Central Bank, these have now reinforced our position as the trusted AI and digital transformation partner for the U.A.E.'s federal and state-owned institution.
We've also strengthened our position as the region's leading exporter by signing four new agreements in Central Asia, South Caucasus, and the Middle East, and with nearly half of our Q3 revenue coming from the international markets. In September, we launched Presight NewsPass, an AI-powered news intelligence engine on the Microsoft Azure Marketplace, making it one of the first SaaS that is globally accessible to organizations of all sizes. You've been aware that our accelerator program is gaining traction as our first cohort has now generated over 70 qualified leads across the government and enterprise ecosystem, with several of them now in advanced partnership and contract discussions. In the same space, we've joined investment firm Shuruk and launched a AED 100 million fund that will give portfolio companies the strategic and financial capital they need to scale quickly and responsibly.
Further out, in our regional HQ in Kazakhstan, we helped launch the country's first supercomputer. They broke ground on our first data center and opened our intelligence R&D lab within Alyam.ai , the National AI Center. Last but not least, following the launch of Jordan’s First Digital Healthcare Center , connecting five remote hospitals to a central command center as part of our $100 million national healthcare digital transformation deployment there, we have now opened our second regional office in Amman to support our growing pipeline of turnkey projects within Jordan and the wider Middle East. Let me take it down one notch and unpack this a little bit more. In our whole market, we continue to build momentum with several strategic wins. We signed a contract with the Abu Dhabi Department of Government Enablement to deliver scalable data and AI services, including system integration.
This is a programming master service agreement with multiple projects that Presight will serve the Department of Government Enablement in their implementation of AI services across the government in the pursuit of creating an AI-native government. We've also partnered with the Department of Economic Development to support and enhance their procurement support digital platform, which is an important part of Abu Dhabi's SMEs enablement. DED has been a client for the past year and a half, and this is an extension of the contracts we have in place. With the Abu Dhabi Police, we entered into a strategic partnership to modernize law enforcement using our AI Policing Suite to enable proactive crime prevention, real-time threat detection, and predictive analytics.
We signed a collaboration agreement with Abu Dhabi Police for the first time in the early part of the quarter and received our first contract with them towards the end of the quarter. This is a foundation contract for us to be able to build on AI policing for the whole of Abu Dhabi. At the recent GITEX, there were several high-impact agreements signed between key federal and state entities, including the Abu Dhabi Civil Defense Authority, to enhance emergency responses, safety inspection, and disaster prevention using AI and cognitive safety technologies. You've been familiar that we have been the national platform supporting the National Emergency Crisis Management Agency. Now the platform is extending to Abu Dhabi Civil Defense Authority, building up first responder responses with a lot more AI and cognitive safety algorithms.
Our collaboration with the UAE Ministry of Industry and Advanced Technology to support startups to develop AI-driven industrial solutions and energy efficiency, smart manufacturing, and sustainable practice. This is aligned with the U.A.E.'s national strategy for the industry and for the Make It in the Emirates initiative and is an extension of the Global Accelerator Program that we've launched. With the UAE Public Prosecution Office, we have partnered now with them to develop a first domain-specific judiciary large language model for the legal and judicial sector, leveraging our current Vitruvian platform to enable effective communication against all parties in 45 languages during investigations. Some of the domestic entities that we've signed with is one with CASNA to deploy an AI-powered command control platform to optimize energy use, reduce downtime, and enhance operational continuity across their 30 data centers.
This is similar to the MASTA Enterprise Asset Management platform that we have signed with MASTA as a joint collaboration, and now this has gone into a production and client-facing application. With the Dubai Taxi Company, our first Dubai commercial company, we signed a contract with them to develop AI solutions that enhance fleet efficiency, that looks at elevating customer experience and reducing emissions as they roll out their EV network. With a Dubai-based AlphaX company, we have also established a high-computing AI data center innovation hub to look at deploying our Intelli Platform for smart city and public safety solutions. With AlphaX together, if you recall, we signed an agreement with Uganda to drive digital transformation in the country.
In the same quarter, we received our first contract from the government of Uganda to develop the base foundation of their smart city project, which is the start of a data center infrastructure in-country. We're making good progress in the three partnerships of financial services vertical. With the central bank, we have launched a joint venture, and now we're developing an AI strategy framework on identifying practical use across the central bank's operations, including deploying key projects for financial infrastructure, central bank digital currency, and cross-border payment network. The joint venture now has about 40 staff on hand and a couple of national projects that will continue to be developed towards the end of the year and into FY 2026. With Dow Jones Factiva, we have set out to develop the first set of agentic solutions that will be piloted with several of the financial institutions in-country.
These solutions aim to operationalize Factiva's data within live compliance and intelligence environments. With the Emirates Institute of Finance, we have entered the initial use case discovery phase, collaborating with HSBC to validate high-value applications of agentic AI and applied intelligence framework that will enhance sovereign investment oversight, risk intelligence, and data-driven decision-making across the broader financial ecosystem. We are expecting more announcements around the financial services as we move into Abu Dhabi Finance Week. Right now, we have secured and yet to be announced FAB HSBC collaboration, as well as the work we're doing with Central Bank. Collectively, these initiatives continue to underscore our progress in embedding agentic AI into regulated financial workflows. It strengthens our position as the trusted sovereign AI partner for risk and compliance alongside our joint venture with the Central Bank across the financial markets in the U.A.E. and within the GCC.
AIQ, our subsidiary, continues to drive AI innovations in the domestic energy sector, working with the Emirates Nuclear Energy Company to explore AI solutions. This is interesting. AIQ and Presight both are now supporting the Emirates Nuclear Energy Company in two separate ways. Presight is supporting Emirates Nuclear Energy Company in their enterprise AI rollout, and AIQ supports them in the U.A.E.'s clean energy goals. Moving on internationally, we're seeing strong traction. We've signed four agreements within the quarter spanning Central Asia, South Caucasus, and the Middle East. Tajikistan, we're working closely with the Ministry of Industry and New Technologies to pilot AI solutions across smart cities, energy, and critical infrastructure. We expect to see contracts accretive to us within Q1 of 2026 for Tajikistan.
In Azerbaijan, we have signed two MoUs, one with the Ministry of Digital and Transport, the other with the Ministry of Science and Education, supporting AI-driven government transformation and deployment of AI-powered solutions across. With the Ministry of Science and Education, we have now launched the Digital School Initiative as of October. It's a platform that features digital student and digital teaching assistant that uses AI to personalize and hyper-personalize learning and streamline teaching processes, enhancing education quality, inclusivity, and accessibility across Azerbaijan. We expect the rollout to be in a steady state of 700,000 students across the country. Closer to home, we signed an MoU with the NSSA Center for Science and Technology in the Kingdom of Bahrain to drive and accelerate AI adoption.
You'll be familiar that Bahrain is an existing client over the past three years, and this is an extension of that to bring more AI solutions into the kingdom. On the note of AIQ, they have made good inroads in international signing agreements with Waverity, an Azerbaijani company that specializes in seismic technology, serving both BP and SOCAR to co-develop AI solutions to enhance subsurface analysis and improve energy exploration and production. With the ADNOC Group and the Society of Petroleum Engineers, AIQ secured the access to SPE's OnePetrol Data Library, comprising of 120,000 technical papers, and these give access to AIQ's energy AI agentic model. With SLB, we signed an agreement to co-develop agentic AI solutions for ADNOC subsurface operations, integrating SLB's proprietary technologies with AI solutions developed by AIQ that will be then field tested in the ADNOC upstream operations.
A quick look specific to broadening our portfolio of best-in-class AI solutions and products. In the third quarter, we launched NewsPass, an AI-driven news and business analytics platform. It is available globally now via the Microsoft Azure platform. It processes over 500,000 articles daily over 100 languages, delivering real-time executive-rated insights using large language models for conversational intelligence, a RAC model, a retrieval augmented generation model for clear and accurate structuring, and a GDAL integration for near real-time coverage across a host of countless and cited sources. It has features like voice interaction, predictive reporting, the ability to white label, empowering faster and smarter decisions for organizations of any sizes. This is a SaaS and subscription-based model that we're working with Microsoft and through their partners' network to onsale around the world. Moving on, in the field of Kazakhstan, innovation has played a big part of our commitment.
In Kazakhstan, there are three key milestones that are notable. One, we've launched with the Kazakhstan government the country's first national supercomputer. It's a major initiative in Kazakhstan's ambition to become a regional hub for AI and cloud computing. Kazakhstan now has the largest and the highest processing power of an AI cluster within Central Asia, and Presight, together with the Ministry of Digital, will continue to build applications on top of that. We've launched our AI R&D labs with the government to give a platform for both startups and government to invent, test, and scale transformative solutions. Within the Smart Astana project that you're familiar with, we broke ground on a 2.4-megawatt data center designed to strengthen the country's digital center. At the same time, we're honored to be named as the best AI-driven company in the AIFC Awards for our contribution towards Kazakhstan's digital transformation.
We've reported this quite strongly before. Kazakhstan now is a strong regional HQ. We have 55 staff in hand. We have a strong pipeline out of the country. We expect to go live with the Smart Astana Smart City project. In terms of international revenue, Kazakhstan is now a key contributor into the mix of international revenues. Moving on, switching out to what we're doing with the IP enablement, we are deeply committed to building up our own AI ecosystem. Following the launch of the inaugural Global Accelerator Bootcamp, we now support the first cohort of 10 global startups that were selected from 120 companies applied across 17 countries. The program gives access to expert mentorship, access to U.A.E. government leaders and ecosystem players, including Microsoft, HUB21, ADNOC, the Abu Dhabi government.
When the bootcamp was launched, the 10 companies generated over 70 qualified leads across the Abu Dhabi government and enterprise sectors, several of which are converting to commercial partnerships, and many of these are accretive to Presight as they sell up or sell through expansion of the current project. As a partner network, we have expanded by signing two new agreements, one with the UAE Cybersecurity Council, integrating its Cyber E71 program, which is an accelerator program for cybersecurity startups with ours. With the Dubai World Trade Center, we have amplified our engagement with them through the accelerator program by leveraging the center's global innovation platforms. These partnerships will further support startups with their mentorship, infrastructure, market access, and policy alignment.
More importantly, this program allows Presight to be able to access strong IPs that are applicable to the portfolio that we now have, accretive to the four sectors that we operate in: government, public services, energy, financial services, and smart infrastructure. It gives us the ability to pick IP that is accretive to us, the ability to try before we buy if we were to make any investments into this. Moving on, in September, we partnered with Shuruk. Shuruk is one of the Middle East's top venture capital, ADGM-based, to start a Shuruk Presight $100 million fund aimed at targeting and investing into early-stage startups that are accretive to the sectors that Presight is in, namely smart cities, energy, fintech, AR/VR, and deep tech. What sets this fund apart is really its integrated value proposition.
The portfolio company gains access not just to capital, but also compute infrastructure within the G42 ecosystem. At the same time, they benefit from an international distribution network through Presight and Shuruk's extensive network of partners, mentors, and markets across MENA and Asia. Before I hand over to Ram, this week, we announced the Global Advisory Board that will govern and sit and mentor this fund and the accelerator program on the board itself, chaired by His Excellency Mansoor Al-Mansouri, our Vice Chairman, Member of Executive Council, as well as Jack Selby. Jack runs AZVC. He manages Peter Thiel's foundation, Peter Thiel's private offices, and is a strong tech investor from the Bay Area. Alongside with him, we have MX Corp. MX is part of the Corp family in Malaysia, manages a $10 billion venture fund focusing on both Bay Area and Southeast Asia investments.
You would see with the Advisory Board, the fund and the accelerator, we are looking at a deal flow that looks at IP coming from the Bay Area, the Middle East GCC, as well as Southeast Asia. Right, with that, let me hand the time over to Ram to take you through the financial performance.
Thank you, Thomas, and good afternoon, everyone. It's a pleasure to be here today to share the third quarter performance and the momentum we are building across our businesses. We have delivered another strong quarter with year-on-year growth rates for revenue, EBITDA, and organic profit before tax all considerably higher than the same quarter of 2024. Our like-for-like growth maintained its strong trajectory following a stellar first half, including a record growth in quarterly EBITDA.
Our international expansion continued at pace, with international revenue growing four-fold year- over- year and accounting for almost half of our total revenue in the third quarter. New contracts in Q3, comprising of new domestic wins, repeat international orders, brought the year-to-date order value to AED 2.44 billion, with a backlog at the end of September maintained at June levels despite a very strong revenue conversion. We maintain a very strong balance sheet and no debt, AED 1.9 billion of cash, giving us flexibility to invest organically and pursue selective value-enhancing opportunities. With six weeks left in the financial year, we anticipate growth in full-year revenue, EBITDA, profit after tax to be between the mid- to upper end of analyst expectations. Next, please.
Now, turning to the third quarter numbers, group revenue grew at approximately 6x the rate of growth in Q3 last year, driven by good backlog execution, continued international momentum, and deployment of AIQ's energy AI platform. Organic revenue grew 14.2% year-on-year, supported by multi-year deployments in Angola, Kazakhstan, and Jordan, and a one-off services deployment, which we concluded successfully in Q3. The solid Q3 performance resulted in a 49% revenue growth for the first nine months, approximately 5x the rate of growth achieved in the same period last year, with organic growth rates in each quarter of 2025 significantly above the respective periods of 2024. Group EBITDA grew at approximately 2.5x the rate of growth in Q3 last year and was broadly in line with the revenue growth, despite a lower software contribution in AIQ's revenue mix.
Organic EBITDA in the third quarter increased by 37.2% year-on-year, the highest quarterly growth rate to date, driven by a favorable revenue mix and a one-off services deployment. For the first nine months, growth in group EBITDA was approximately 2.5x the rate of growth in the comparable period of the prior year, driven by strong organic EBITDA growth relative to the revenue and the full nine-month consolidation of AIQ. Organic EBITDA growth in the first nine months was 30.6% and significantly ahead of the respective growth rates in 2023 and 2024, reflecting strong top-line performance across the quarters and positive margin mix in Q3. Group EBITDA margin for Q3 was consistent with last year, with a 360 basis points of organic margin accretion offset by AIQ's deployment mix and investment in growth.
Q3 group profit before tax increased by 9.8% year-on-year, with 27% growth in organic pre-tax profit, which is around 3x the growth rate in the first two quarters of 2025. For the first nine months, group profit before tax increased 20.2%, with organic growth of 14.9%, which was significantly above the growth rates in prior years, despite an adverse AED 17.4 million swing in finance income from lower interest rates. Q3 group pre-taxes declined 101 basis points year-on-year, reflecting a mix and an amortization charges at AIQ and a lower interest income. Q3 2025 organic pre-taxes margin, however, increased by 238 basis points year-on-year. Next slide. Now, as previously discussed, we began applying a higher corporate tax rate from January 2025, in line with the OECD's pillar two global anti-base erosion rules. This impacts comparability with the prior periods.
To help illustrate this, the slide here compares our Q3 and nine-month profit after tax, pre and post minority interest, applying the new 15% corporate tax rate and the previous 9% rate, with Q3 group profit after tax increasing by 1.1% to AED 110.3 million, or by 9.8% incorporating the 9% tax rate. Q3 group post-tax margin was 16.9% or 18.4%, applying the 9% rate. Q3 organic post-tax margin was 19.8% or 21.5%, an increase of 278 basis points year-on-year, applying a 9% tax rate. Now, touching on some key performance indicators that we tracked, approximately half of our revenue in the third quarter came from backlog, lower than the 74% in Q3 of last year. This is due to a stronger order book in the current quarter compared to 2024.
The proportion of revenue from multi-year contracts was down year-on-year due to one-off services deployment that we completed successfully in Q3. We continued to see strong growth from international markets, with almost half of the revenue in the third quarter coming from non-domestic projects. International revenue reached AED 300 million in Q3, approximately 4x higher than the same quarter last year and around 5x higher year-on-year for the first nine months. For 2025, we expect the proportion of international revenue to be between 35%-40% of the total revenue. Okay, before I hand it back to Thomas for closing remarks, I want to highlight some of our expectations for 2025. We remain confident in our trajectory and anticipate full-year growth in revenue, EBITDA, and profit after tax to be between the mid to upper end of the analyst expectations.
With that, I will hand it back to Thomas before we open up the lines for questions and answers. Over to you, Thomas.
Hi, thanks, Ram. Sorry, I was on mute. Thank you, everyone, for sitting through that. No, it's been another great quarter for Presight as we close out our 11th growth quarter since we list. Our twin engines of growth and our partnerships, our strategy with U.A.E. federal entities and expanding our international footprint is continuing to deliver sustained and profitable performance, now evident in the total results that we're seeing in Q3, but more evidently where it's trending towards. We said FY 2024, we trended towards 23% of international. This year, we see international contributing towards 35%. Back in the U.A.E., we continued, we recognize as a trusted AI and digital transformation partner, not just in the partnerships, but also in the joint ventures with CBOE.
We see that as a path towards a second AIQ type of domain-specific AI-driven business supporting sovereign AI applications at the national level. We now still continue to drive AI and digital services across the Middle East. Central Asia is becoming a strong market for us through Kazakhstan, overseeing Uzbekistan, Tajikistan, and Azerbaijan, and Africa continues to grow. We want to continue to scale responsibly and also deliver this solution that remains creating lasting value for communities, industries, and society at large. Today, in one of the key interviews I had with CNBC, one of the topics we talked about in justifying the AI expenditure today has to be done through creating lasting value. You see that has been done from what AIQ has done for ADNOC, announced by Dr. Salthar Jabbar at the ADAPAC 2026.
We continue to see the same outcomes-driven analysis and value creation with what we're doing in the Abu Dhabi government, U.A.E. government. With that, thank you for listening to the analysis for Q3. I'll hand it back to the host, and we'll open up the line for Q&A. Thank you.
Thank you, gentlemen, for the presentation. We'll move to Q&A. If anyone would like to ask questions, you can either use the raise hand function to ask your question verbally or put it in writing in the Slido application. The first question is from Evgeny Anenkov. Please go ahead.
Hi, it's Evgeny from Jefferies. Thank you so much for the presentation. I have three questions, if I may. First would be on your outlook. I see it now implies quite a wide range for Q4, if I calculate correctly, 7%-25% growth.
Can you please explain what stands behind such a wide range? What are the main parameters of landing in the low end or in the high end? Is it subject to international contracts or maybe AIQ? That would be my first question. My second question, please, is on AIQ margins. For nine months, it was around 13% on net income level, which is trailing around 40% last year. Can you please give more color on this shift, revenue mix maybe, or incremental investments in R&D? What trajectory should we expect for AIQ margins in the next quarters? I mean, net margins of AIQ. Lastly, sorry for asking all three simultaneously, it would be a broader question on the competition. In the past months, there have been two announcements, which I found quite interesting in the U.A.E.
First is a deal between Google and Dubai Land Department, and the second is a JV between Palantir and Dubai Holding. Would you agree that the domestic market is becoming more competitive? Can we see more competition in Abu Dhabi as well? It would be good to hear your thoughts and strategy, how we can address this higher competition. Thank you.
In terms of guidance, maybe Thomas, I'll take the first two, and then you can probably comment on the Palantir's question. Evgeny, just to make sure I understood, your question was about the Q4, what do we expect for generally Q4 guidance? Yeah. Firstly, going back to the guidance we proposed, look, we remain very confident about the landing between the mid to upper end of the analyst expectations.
That gives you a very good indication of the strong performance for the year. This also means Q4 three metrics, which are EBITDA and PAT, we will continue to show growth. Just to make you aware, if you recall, last Q4 2024 was a pretty stellar quarter with incredible growth over the corresponding Q4 2023. Despite that, we remain confident that we will continue to show growth on Q4, thereby leading to an overall guidance in the mid to upper end of the analyst expectations. In so far as AIQ net margins, the Q3 suppression of margins was essentially due to a timing issue on our software mix. We remain confident that that would be accomplished in Q4, showing up the profitability metrics for AIQ. Look, AIQ has transformed its business or expanded its revenue streams in multiple ways.
It typically used to be APC-driven, AI-enabled solutions across ADNOC's upstream operations. What we have done since Q4 of 2024, it has now started implementing ADNOC pan-ADNOC upstream operations, agentic AI platforms. We signed a contract, AED 340 million last year Q4, and they are now starting to deploy it. We continue to see the growth in the existing older generation products of AIQ, plus now it has added another engine to drive the growth in terms of energy eyes. We remain confident about its value accretion to Presight in the long term. I now hand it over to Thomas for the last question, please.
Thanks for that. I just want to add on to Ram's point, Evgeny. If you look at a track record, Q4 has always been the buster quarter. It's not something; it's always been a big quarter for us, right?
We do want to even it out. Crossing AED 1.74 billion revenue in Q3, it is still a record for us, and we'll continue to see that. We see strong uptake in both the Abu Dhabi local government. We've just recently won the contracts in the federal government just to show that the demand in the U.A.E. is not stopping. We see large national contracts renewing towards Q4, and that will be accretive, and you'll see that in the final Q4 numbers. That's one. On AIQ, not just are they shifting their mix from the initial Gen 1 to Gen 3 project hardware, EPC type of jobs to software. You have also noticed that AIQ is signing agreements internationally. They sign with SKK Migas in Indonesia, with SOCAR in Azerbaijan, with Ecopetrol in Colombia. That's you're familiar with.
AIQ's ability to follow the path of exporting Abu Dhabi-based ADNOC-proven solutions is something that we see accurative into the quarter and into FY 2026. On your last questions about competition, and this is something, if you take a step back, it's not just what's happening in the U.A.E.. You see something in Saudi, what Humane is doing. You'll see Palantir's announcement with Dubai Holding, specifically taking what the work they've done in Dubai, targeting a commercial AI optimization within the Dubai Holding portfolio. This is still very much a Dubai conversation that is there. Presight, in this space, Presight remains the sovereign AI partner, not just because as a company, but the whole ecosystem stack that we have from the Stargate UAE conversation to the Microsoft sovereign AI framework. We remain the sovereign AI partner across federal and Abu Dhabi government agencies. That's the second piece.
We will continue to see big names come in, just as you see Microsoft increasing their investment into U.A.E. to the tune of AED 15.9 billion, where another AED 7.9 billion will be anchored into data center infrastructure investments with G42, the rest into lifting up talent ecosystems. The Elevate program by Microsoft is to train talent, as well as increasing the operational portfolio. OpenAI continues to invest. You see us signing deals with Cisco, with Oracle. What I believe now, U.A.E. has become a main platform, the third voice in the AI race between the U.S. and China, and we will continue to see these brands come in. What you need to differentiate is this: a company like Humane, a company like ITER, which is the joint venture between Palantir and Dubai Holding, they all have been established within the year.
Whereas the G42 ecosystem started in 2018, in its portfolio companies, including Presight, we manage everything from sovereign infrastructure to sovereign national platforms, which what Presight does mainly for the government sector. We are partners to the National Oil Company. We are partners to the Central Bank. We are the leading partners of the AI-native government strategy across the country. While I believe that the tide rises, all ships rise along with it, Presight will continue to dominate as the sovereign AI partner, as you have seen in the partnerships that were formed. More importantly, Presight remains the largest MRT solution company that has technology deployed and active projects deployed in 14 markets in the region, in Central Asia, and we have new markets to up that's coming up. I think this is a collection or reflection of the ecosystem that is growing. It's fantastic.
We continue to grow locally in the U.A.E., and we'll continue to grow internationally across the markets that we're already in over the past three years.
Thank you, Thomas and Ram, for your detailed answers. That's very helpful. Thank you so much.
Thank you.
Thank you. Next, we have a question from Abdulaziz Al-Hebeshi.
Hi, am I audible?
Yes.
Yes.
Yeah.
Thank you for taking the question. My question is on the quick turn. We have seen now for two consecutive quarters that the quick turn have contributed sizably on the revenue. Now, could you please shed more color on that? Is that a large contract that you signed earlier this year and expected to be sort of concluded also this year? Or is this a new trend that we should expect given the infrastructure and the platform that has been built within Presight?
Yeah, shedding the light on that would be extremely helpful. Also, looking at the cohort, we sort of get some color on that front as well. That's still mysterious a little bit.
Let me take that. Yes, the answer is the quick turn has shown a pretty positive contribution this year because it's largely coming from our deployments in Kazakhstan. If you recall, we signed a large deal of almost $200 million in Q1 of 2025 that we are now in full swing in terms of deployment. That's largely driving the quick turn. At any point in time, our revenue streams would be composed of about 50-55% of revenues coming from backlog and the remaining coming from quick turn. This mix is very key as we continue to execute on firm backlog contracts.
We are also ensuring that we are signing new contracts and that we are able to execute within the year as well. Both components are very important, and a quick turn will continue to play a pretty solid role in our revenue growth projections.
If you allow me to follow up, Ram, on this specific. When you sign a new contract, such as the one in Kazakhstan, do you have a leeway on executing your backlog? You sort of push more of realizing that backlog toward the quarters where you do not have quick turns?
No, I think it is just the contracts have clear deployment and project implementation plans that are agreed. We continue to deploy each contract as it is an independent deployment, and we continue to execute operationally on those contracts.
At the end of the day, like I said, at any point in time in a quarter, our revenues, profits is an aggregation of various projects being deployed. Within those projects, they could be in different phases. The initial phases constitute more of infrastructure. It is a faster revenue accrual. Some of the later stages contract is more into platform deployments, which is lower revenues accretion, but then higher margin mix. That is the underpinning in so far as how the contract revenues are accrued within the quarter.
Very clear. Thank you and good luck.
Abdulaziz, can I just add one more point to that? There is also a change in our revenue mix. I know the community has always asked for that. We are learning to deliver quicker revenues, so a quicker quick turn, something we win in the year and deliver in the same year.
Because we're now developing, especially in the U.A.E., a lot more AI-based algorithm solutions. Especially in the U.A.E., as we win the contracts, the infrastructure is in place. We spend a lot more time in delivering the software. I'll give you one example. The Abu Dhabi Police, for instance, when they signed up our AI Policing Suite, which is an agentic AI platform for investigation, it's no longer about setting up a data center in Abu Dhabi. It's immediate deployment of the software and services that run into that. I think it's a healthy trend that we're looking at where we're deploying more software, which is what we wanted to do as part of the strategy to move away from large EPC to deliver more platform-based solutions. The increased investment in infrastructure in the U.A.E. is allowing us to do that in two folds.
Let me unpack that just for the on the call. One, in the U.A.E., we said this before, we don't deploy infrastructure, so we go straight into software deployment where you see quick turn and software margins and services come in. Two, the U.A.E. has invested in this infrastructure so that we could extend AI infrastructure and compute to the other markets that we serve, which means if today I go into Tanzania, Tanzania can use the sovereign infrastructure in the U.A.E. before they set up their own data center. Presight is able to develop and deploy our AI national platform solutions in the infrastructure in U.A.E., serving out to a country that doesn't have the infrastructure. These are going to be some of the drivers you would see in the coming financial years.
As U.A.E.'s infrastructure is not built just for the U.A.E., that's quite a common statement that the government has made. It is for the region around the U.A.E. can serve.
Very clear, Thomas. If you allow me just for a small follow-up on this front. When you deploy the technology initially in the U.A.E., you book all the costs there. When you go to a new market, you sell it at much cheaper tickets. That's why we're seeing a similar margin profile.
The software revenue is a higher value item without the infrastructure cost. As you know, the Presight business always has three types of business, right? Three types of revenue model. One is the infrastructure piece, which is cost-plus, professional services, which is the services we deploy either with our own staff or third-party, and software.
When we can do it without the infrastructure, you may lose a bulk of a revenue quantum at a much lower margin, but you're able to deploy solutions much faster in the country itself, especially for international markets.
Thank you.
Thank you. We'll take a question from the Slido. It's an anonymous question. Its first part is, can you give us color on the backlog? Why has it remained flat QoQ? Are you expecting a pickup in the backlog in the fourth quarter? The second part of the question says, are you on track to deliver 7-12% net profit CAGR? Can we expect this to be on the upper end of the range?
I'll take this one up. Thank you for the question. The backlog has remained flat. I would encourage to look at two parameters.
Number one, we have earned AED 2.44 billion worth of orders this year, which is a very strong performance comparatively. Within the quarter, we have also grown revenues at AED 650 million worth of revenue, which is also a strong Q3 growth at the top line. Keeping these two parameters in picture, the backlog has remained consistent. We do expect a very strong backlog growth quarter- on- quarter as we finish the year. We also have the opportunities to conclude the engagements, which are in pretty advanced stages during the Q4 period. In so far as the net profit CAGR of 7-12%, as we guided before in this call, we remain confident in our trajectory. We anticipate full year growth in revenue, EBITDA, and profit after tax to be between the mid to upper end of the analyst expectations.
That would provide a clear indication of where we're going to land.
Thank you, Ram. Next, we have a question from Alawi. Please go ahead, Alawi.
For the call and for the presentation. Two questions from my side. The first question, just a follow-up in terms of the competitive landscape. Just to clarify, in terms of the sovereign part of the business and also Abu Dhabi, are you facing more competition or you almost have majority exclusivity there? That's the first question. The second question, going forward, are you still on target that you expect that 2026, 2027, which you see more acceleration in terms of growth given the investments that you're making now?
I'll take this one. Yes, we are the dominant player in Abu Dhabi for certain, right?
One, because as part of the G42 ecosystem, we are a full stack from infrastructure to solutions. The solutions here, Presight remains a sovereign AI platform used by key Abu Dhabi government agencies. We support not just in the public safety government services. We are part of the central bank now. We're part of ADNOC. In Abu Dhabi, yes, we are going to be dominant. The recent announcement with Palantir in Dubai, Palantir has been in Dubai for the last decade. They have been serving the Dubai market. Presight has been always moving towards gaining market share in the Northern Emirates, which we have.
The announcement of Dubai Taxi Company as a win, the announcement of the General Secretary of the Cabinet, which is the federal cabinet in Dubai, and you will expect to see more of federal Dubai government wins that we can announce over time. In Abu Dhabi, we're strong. We're solid in our position as a company and as a group. In Dubai and the Northern Emirates, we continue to gain momentum. Your second question was, in 2026, 2027, do we expect to see the investments made now return? It will. It will return. I'll give you two parts to that, and Ram can jump on. One, we'll continue to shift our operating efficiencies and bases across Kazakhstan, Jordan. This is really a key part because manpower and talent has been a critical component, a core component to the business.
We have always informed the market that we expect post-2026 operation efficiencies to be accretive to profitability. That one. Second, the investment into the Global Accelerator Program , we are seeing companies that are accretive to us. The venture capital arm that we have now set up with Shuruk will give us access to IP, not just from the Bay Area, but in the region. They will allow us to bring this IP and apply AI solutions into our distribution channels. I have echoed this before. Presight, being the largest net exporter of Emirati-based solution, has created a 14-market distribution channel where once we land, like Kazakhstan, once we establish the base infrastructure, we can continue to develop and push through other applied AI solutions. Very much the land expand approach has been taken, but at a country level.
Yes, I expect the investment that we've taken in 2025, the base foundation work that we've done in Kazakhstan, Azerbaijan, Uganda to become channels where we develop and push through other AI solutions through 2026, 2027, 2028, as per our midterm strategy and guidance shows.
Thank you. Thank you very much. Thank you. Next, we have a written question from Pandit Durai. It says, what will be the revenue growth for 3Q 2025, excluding the impact of one-offs?
Yes, I'll take that one. The revenue, if you back out the on a comparative basis, you back out the one-offs in last year compared to this year, we would be shrinking by about 8%. However, what's also important is our gross profit percentage has also increased 12%.
While the one-offs, without the one-offs, the growth has remained at the low, shrunk by 8, but the gross profit margins have increased by 12%.
Thank you. Next, we have another written question from Akshishetty. It says, what drove the significant increase in revenue from hardware and software license sales rising from AED 30 million in 3Q 2024 to AED 102 million in 3Q 2025? Can we expect such high growth in this segment going forward?
Essentially, again, at this point in time, our revenue is always going to be a collection of the three segments, which Thomas also alluded to. At any point in time, depending on the program project implementations, that portion of revenue continues to contribute to a greater level. Yes, we do expect.
The key thing is, as we build out the finish of the year and we shore up our backlogs going forward, we expect, and we continue to guide at the overall level, not within each project segment, but then we expect both the software and the integration, the infrastructure pieces of our business continue to show very strong growth.
Thank you. Next is a question from Ahmed Ishaqi. And it says, are you able to get any contracts in KSA with their increased focus on AI?
I'll take this one. I think KSA has always been a high potential lucrative market. We are looking extensively into how we can establish business in KSA. As a group, as part of G42, we have an offshoot called Nisma in Jazat that is there. They do about, I think, about $100 million now in managed services.
There are complexities in bidding for tier one government projects as an MRT company, but we're actively looking at KSA. In fact, we just hired a KSA country manager that's in-country looking at the opportunities. We will partner, perhaps not opening a Presight KSA office, but we will partner with the likes of SAMI and other established companies there to provide some of the top-of-class AI solutions. KSA is one, but if you see our Middle East strategy, Jordan is a big key foothold that we're taking. We believe there's potential there. Bahrain is growing. We will continue this push, but KSA has its complexities, and we'll work through partners most likely, and you'll see that probably in 2026 as we do that. Then we'll decide if establishing a Presight KSA is a viable option.
The rules in KSA have also been changing quite rapidly outside of the establishment of Humane, foreign ownership into the land itself, the requirements to set up company, branch offices. I think that rule is changing. Those rules are changing, and I think that will settle in in 2026, and we can give a better view of that. Right now, what's very clear to us is Central Asia is a growth sector. We have a strong pipeline. We're delivering in the country and recognized as the top AI partner. Uzbekistan, Tajikistan, Azerbaijan, it's continued to be that. We want to focus on these growth markets for in-year equitation of revenue. Hope that answers the question.
Thank you, Thomas.
We have another question in writing from Dominic, and it says, once again, on one-offs, if revenues would have contracted without the one-off, is this because of an unexpected lumpiness in revenues from quarter to quarter?
Not really. At any point in time, there is a continuum of projects that we continue to deploy. The longer-term one-offs are any project within the 12-month period, which we earn within the contract, and we deliver it within the period. It is always, it's not that the one-off is a surprise as we enter the year. We always have forecasted earlier in the year as a part of our numbers that the one-off is going to be playing a role. The idea is to then complete those one-off contracts and earn the revenue.
Essentially, I would go back to the overall model that our revenues and margins on each quarter is a combination of several projects. There is a clearly laid-out deployment plan that we all kind of follow based on the contract commitments. We forecast based on that deployment plan, making sure operationally we have a high level of excellence.
Thank you, Ram. One last reminder in case anyone would like to ask questions before we wrap up the call. We have one follow-up from Evgeny. Please go ahead.
Thank you so much for taking my follow-up. Just a question, please, on the contract with SOCAR. Can you give some update on fees, and when can it become a part of your backlog? Thank you.
Thomas, you want to take that, or do you want me to?
No, I can't take that. Sorry. I'm on mute.
Yeah. Azerbaijan is a key market right now. In fact, I'm going to be in the country tomorrow. There are multiple national projects that are happening with SOCAR as well as the Ministry of Science and Digital and Transportation. SOCAR is a key client. We will continue to work on the extension of the multi-year project with them. We will report in once the completion of the discussions, not just on SOCAR, but also on the whole Azerbaijan multi-year contracts that we're securing in-country.
Thank you.
Thank you. We have one last follow-up from Dominic. It says, EBITDA margins have remained below medium-term guidance. Should we expect current margins going forward?
No, our expectation is our EBITDA margins would continue to be between 25%-30% range.
We believe as we go ahead and finish the year, that's around 25%-30% is what we expect our EBITDA margins to land up with.
Thank you, Ram. Those are all the questions for today. Back to you, gentlemen, in case you'd like to make any concluding remarks before we wrap up.
I think one, I'll let Ram take the final words. One, thank you for everybody for the continual interest and understanding of the Presight business. The Presight business is one that is year-long. That's why we've always said that within the quarter itself, the different stages of our projects give an attribution to different parts of the revenue, whether it's hardware, software, infrastructure.
Like I always repeated on any of the calls, if you look at us holistically, in every country that we've worked and distributed, sorry, that has deployed a project, it continues to be at a few levels that clear. One, it's a national platform that is built on national infrastructure. Two, it's an extremely sticky solution that will be embedded in national government usage and the work that we're doing. It really provides the ability for us to scale, to learn, expand, and scale other solutions in. When you look at the local business, even with the competition that is coming in, and I do understand that with the Palantir announcement, with what Humane is doing, there are questions around competitiveness, about size of the market.
You must understand, for one thing, sovereign AI solutions, one, in the U.A.E. space with the establishment of Dubai Holding and Palantir's ITER, sovereign AI solutions and infrastructure is not based on equity partners. It is based on if the solution is developed in-country on sovereign AI infrastructure. A very simple question that we ask ourselves is, should the Dubai government or should the federal government say, "I need your source codes to be posted here with us"? I don't believe many of the international brands will be able to answer that question. It's a question that only Presight can answer. It's a question that only the G42 growth companies can answer. That is a moat that is around the U.A.E. business itself. In the international space, similarly, these are the markets that traditionally the US-based companies have had a challenge entering.
If you look at the scan in the last three, four years, the only company in the region that has successfully penetrated the growth markets and earned its buck and earned revenue from it has been Presight. I ask that, I've always asked this at the record, that when you look at a country, look at a quarter, please also zoom out and see how we are moving the deployment, the counterparties we are engaged with, and the stickiness and longevity and sustainability of this project and revenue across those countries. That will be my closing ask. Ram, if there's anything you want to add to that.
Yeah, very quickly, a couple of points. Look, we are very excited with our growth story. We continue to grow sectorally, diversify sectorally and geographically. That has proven a great strategy thus far, and we'll continue to reinforce that.
Also, just a brief mention of our very strong balance sheet. We have AED 1.9 billion of cash with no debt, provides us with an enormous amount of flexibility. We are looking at some very exciting possibilities of acquisitions, and M&A is clearly on top of mind when it comes to capital allocation strategies. I just wanted to end with that.
Thank you very much, Tom, Ram, and Roger. And thank you, everyone, for your participation today. This concludes the call, and have a good evening. Thank you, everyone. Thank you. Thank you so much.