Presight AI stock dips despite solid fourth-quarter results

Published 11/02/2025, 11:04
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Investing.com -- Shares of Presight AI (NASDAQ:AI) edged down 0.5% despite the company reporting solid fourth-quarter results that exceeded expectations. Presight AI announced revenue of AED1,043 million, surpassing consensus estimates by 1.9% and exhibiting a significant year-over-year (YoY) surge of 46.2% from the previous year’s fourth quarter.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at AED366 million, outperforming consensus by 19.8% and reflecting a robust EBITDA margin of 35.1%. This figure, despite being lower by 360 basis points YoY, outdid expectations due to a favorable deployment mix, a higher-than-anticipated share of AIQ revenue in the mix, and contained marketing expenses.

Net income before minorities was reported at AED327 million, which is 6.8% above consensus, with a YoY growth of 8.9%. This contrasts with a more modest net income after minorities, primarily due to higher depreciation and amortization, lower financial income, and significantly higher AIQ minority interests.

Presight AI’s operating cash flow notably surged to AED748 million in the fourth quarter, a considerable improvement from the negative cash flow reported in the same period the previous year. The company also boasted a strong cash position at the quarter’s end, providing ample resources for future growth.

The backlog, an indicator of future revenue, reached AED2.99 billion, with a pro-forma backlog of approximately AED4.76 billion when including a preliminary agreement with SOCAR expected to be concluded in the first quarter of 2025.

In light of these results, Presight AI has upgraded its mid-term guidance. The company now anticipates revenue growth between 19-25% and EBITDA growth of 16-21%. However, it has adjusted its net income before minorities guidance to 6-11%, accounting for a newly applied 15% effective tax rate.

Jefferies analysts have commented on the company’s performance, stating, "We deem 4Q update has been solid and should increase investor appeal."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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