Speaker #1: We will first start the call with a quick update from management, and then we'll open the floor for the Q&A session. Mr. Bakhshi, please go ahead.
Speaker #2: Hello everybody. Welcome to the Humansoft Q3 2026 results conference call. I hope you and your loved ones are keeping safe. Thank you to the team at EFG for facilitating this call.
Speaker #2: I'm Mayank Bakhshi, Board Member at Humansoft, and along with our CFO, Mr. Anoop Dhand, together we would like to briefly mention some of the key highlights and then run through the Q3 2026 financial highlights. At the end, we will leave the floor open for questions and answers.
Speaker #2: At the outset, I would like to mention that any forward-looking statements or views discussed during this call are subject to risks and uncertainties that may cause the actual results to differ.
Speaker #2: Humansoft does not assume any obligation to update such views or statements, nor make any announcements regarding any revised circumstances. Both our institutions—AUM and ACM—continue to focus on enhancing students' overall development, preserving their academic achievements, and maintaining leadership in the market.
Speaker #2: Subsequent to our Q2 2026 results call, several events and achievements were made. September 2026 marked the beginning of the new academic year, at AUM and ACM.
Speaker #2: AUM and ACM combined enrolled a total of 3,371 new students in the fall of 2026, which is 6% higher compared to the new enrollments in the fall of 2025.
Speaker #2: AUM and ACM combined a total enrolled students at the beginning of fall 2026, which is 13,215, and this is 2% over the total number of students at the beginning of fall 2025.
Speaker #2: AUM continues to strengthen its research environment through a sustained commitment to excellence, innovation, impactful scholarly contributions. This commitment is reflected in the recognition of 16 AUM faculty members among the world's top 2 scientists in the Stanford, Elsevier 2026 database, compared with the 9 such members in the previous year.
Speaker #2: Highlighting the university's expanding research contributions and international visibility, AUM and ACM continue to remain the institutions of first choice in the measures offered by them. The top rankings enable them to attract dedicated students and strengthen their leadership position in the higher education sector.
Speaker #2: Now, I would invite Mr. Anoop Dhand, CFO of Humansoft, to give a brief about the Q3 2026 financial highlights.
Speaker #3: Thank you, Mr. Bakhshi. And a good afternoon to all the attendees. I'm Anoop Dhand, CFO of Humansoft, and I would like to present the financial highlight for 9 months 2026.
Speaker #3: Humansoft's 9 months 2026 revenue was KD 54.7 million, as compared with 9 months 2025 revenue of KD 57.2 million. Mainly due to recording revenue in the first 3 quarters of 2026 as net of the reduction in library internet and student activity fees for scholarship students and due to the change in the number of enrolled students.
Speaker #3: Nine months 2026 EBITDA was KD 26.5 million, in comparison with 9 months 2025 EBITDA of KD 28 million. Nine months 2026 net profit was KD 23.8 million, in comparison with 9 months 2025 net profit of KD 25.5 million, mainly due to AUM's one-time contribution of KD 2 million to Kuwait Emergency Response Fund in Q3 2026.
Speaker #3: Net profit margin for 9 months 2026 was 44%, and EBITDA margin for 9 months 2026 was 48%. The earning per share was 178 fills during 9 months 2026, as compared to 190 fills during 9 months 2025.
Speaker #3: Humansoft had a net cash position of KD 66.8 million as at 30 September 2026. Total equity was KD 97.7 million as at 30 September 2026, and the annualized return on average equity for the nine months of 2026 amounted to 31%.
Speaker #3: Total assets were KD 142.7 million as at 30 September 2026, and the annualized return on average assets for the 9 months of 2026 amounted to 23%.
Speaker #3: Humansoft's fortress balance sheet high return on average assets and high return on average equity provides protection and resilience, and enables Humansoft to remain robust.
Speaker #3: With this, we now open the floor for questions and answers. We request that you please introduce yourself with your name and the institution you represent when you have any questions.
Speaker #3: Thank you. Thank you, Minna. Over to you.
Speaker #4: Thank you. If you'd like to ask a question, please use the raise-hand function, or, if you prefer, you can type your question in the Q&A chat box.
Speaker #4: The first question in the chat is from Hassan Al-Mousa: How much was the contribution to the relief fund?
Speaker #2: As mentioned, it was KD 2 million.
Speaker #4: Thank you. Again, as a reminder to ask a question, please click on the raise-hand button or type your question in the Q&A chat box.
Speaker #4: We have another question in the chat from Elhamdur Rashid. Was the 2 million booked in Q3 2026?
Speaker #2: Yes, it was booked in Q3 2026.
Speaker #4: The next question in the chat from Tolol. What would be the reason for the rising student numbers this quarter?
Speaker #2: This quarter, there are a couple of things that I've facilitated. First of all, the AUM brand and AUM reputation in the market are enabling us to attract good quality students this year.
Speaker #2: We had introduced a new major: AI. This has been very successful. It has about 200-plus students and usually in the first year you see a little lesser number, but this was a very successful number.
Speaker #2: Apart from this, the number of students going abroad on foreign scholarships has also reduced this year. This means that we have been able to attract those students who otherwise would have been qualified to go abroad on foreign scholarships, or would have gotten into any other university.
Speaker #2: So these are the factors that we see have enabled us to attract a larger number of students.
Speaker #4: Thank you. We'll take the next question from Anchor Agarwal. Please unmute yourself.
Speaker #5: Hello. Thank you for the presentation. I think a couple of questions from my side, right? So if you can talk a bit about this texture of the enrollments.
Speaker #5: You mentioned that you were able to attract students who would have otherwise gone outside. But how is your market share shaping up in Kuwait?
Speaker #5: In the private university space, after these enrollment numbers, how should we think about it going forward? And secondly, I think—I mean, there was obviously news flow around visa revocations and everything else in Kuwait.
Speaker #5: Does it affect you at all?
Speaker #2: Okay. See, as far as the market share is concerned, as we have been saying, the majors that we offer attract the best and the highest number of students.
Speaker #2: Now, in terms of the enrollments in other private sector universities, there could be situation where there are universities where they offer majors which we may not be offering.
Speaker #2: So, that may not be the right way to evaluate the percentage. But in any case, let me tell you that our share of the enrollments of new students out in the private sector still continues to be the largest.
Speaker #2: And even with the bigger base our number has been growing. So that is a very comforting aspect. We are confident that AUM brand and AUM reputation is enabling us to attract these students.
Speaker #2: As far as the visa revocation, as we have disclosed, as of now, as we speak, we do not have a major impact or material impact on our financials.
Speaker #5: Okay. And can you talk a bit about the buyback which has been approved, and what are your thoughts in terms of how you will optimize liquidity and the signaling that there is value in the stock?
Speaker #2: Buyback, you mean to say the treasury shares that we take approval or is there anything new?
Speaker #5: Yeah, yeah.
Speaker #2: No, see, this treasury shares—
Speaker #5: Treasury shares.
Speaker #2: Yeah. No, see, treasury share approvals, we usually have to renew every 6 months or 1 year with CMA, and we keep it always approved.
Speaker #2: There is no other new change in our thinking.
Speaker #5: Okay, all right. But I mean, in terms of your balance sheet, and I think given the trajectory of growth, we still need to be a bit cautious about the dividend outlook for the business, right?
Speaker #5: Payout ratio and everything. Nothing which has changed really on that front.
Speaker #2: No. We are the largest payout ratio company. Almost every year last 3 or 4 years we are close to 100% or even sometimes more.
Speaker #2: So I think it may be wrong to say that we are not liberal in the payout.
Speaker #5: No, no, I didn't say that.
Speaker #2: No, no, as far as the cash—
Speaker #5: I meant, would you continue that?
Speaker #2: No, no. That is something which the management and the board will take a call on at the year-end. We need to reflect on the requirements going forward for our working capital or CapEx, and therefore, it may not be feasible at this point to give you any guidance on the dividend likely for the year-end.
Speaker #5: Okay, many thanks, sir. Thank you.
Speaker #2: Thank you.
Speaker #4: Thank you. The next question in the chat is also from Elhamdur Rashid: We noticed gross margin was stable or showed some growth in Q3, despite lower revenues.
Speaker #4: How did you manage the cost savings, and is the margin sustainable?
Speaker #2: Oh, see, normally Q3 is a summer quarter. July and August are summer months, and a lot of faculty take holidays. So the margin in Q3—that is, the cost of sales versus revenue—usually tends to be better.
Speaker #2: But the revenue, as such, will be lower than the other months because all these students do not have to take the summer classes. So this has been a regular trend in the summer months.
Speaker #2: You see normally a little reduction in the cost of activities.
Speaker #4: Thank you. We have another question in the chat on dividends. I think you've already covered this question, but it says, "Will you be able to maintain the same dividend payout for the coming years?"
Speaker #2: As I mentioned in the previous question, we will have to reflect the decision on dividends at the year-end, after factoring in our requirements for the coming years for working capital and CapEx.
Speaker #4: Thank you. The next question is: Was there a shift in the mix of students enrolled between AUM and ACM compared to last year?
Speaker #2: Yes, I think there is a little shift. AUM is 82%, and ACM is 18%.
Speaker #4: Thank you. Again, as a final reminder, if you'd like to ask a question, please use the raise hand function, or you can type your question in the Q&A chat box.
Speaker #4: There are no more questions at this stage, so I think we can conclude the call.
Speaker #2: Sure.
Speaker #4: Thank you. Thank you, everyone, for joining, and thank you, Humansoft's management, for your time.
Speaker #2: Thank you, everybody, for your participation and interest in the Humansoft annual call.
Speaker #5: Thank you, everyone.
