Tamara Strengthens Revenue and Profitability in H1 2026 Amid Rapid Financing Growth and Rising Credit Risk
Tamara’s financial statements for the first half of 2026 showed strong growth in revenue and profitability alongside rapid expansion in financing activity, with revenue reaching approximately $366.9 million, compared with $132.2 million in the same period of 2025. Net profit also rose to $55.3 million, up from $17.1 million a year earlier.
The growth was accompanied by a significant shift in the company’s revenue mix. Merchant network revenue increased to $226.1 million, compared with $108.2 million, while Islamic financing income surged to $109.4 million, compared with approximately $0.6 million in the first half of the previous year. This reflects the growing importance of consumer financing within Tamara’s business model.
In the second quarter alone, Tamara generated $22.4 million in net profit, compared with $10.3 million a year earlier, while quarterly revenue increased to $188.4 million from $74.6 million. Although total operating expenses rose to $76.6 million from $45.9 million, operating expenses as a percentage of revenue declined, pointing to economies of scale and emerging operating leverage as activity expanded.
Financing Expansion Reshapes the Economics The first-half results highlight the increasing weight of financing activity, with Islamic financing income reaching $109.4 million, while financing costs climbed to $50.9 million, compared with $24.6 million in the same period of 2025.
At the end of June 2026, loans and financing increased to approximately $1.55 billion, compared with $1.00 billion at the end of 2025. Financing available through the Sharia-compliant securitization structure also increased to approximately $1.54 billion, compared with $1.00 billion at year-end.
The expansion demonstrates how financing has become increasingly central to Tamara’s growth model, while also increasing the importance of funding costs and portfolio quality.
Credit Loss Provisions Rise Sharply Portfolio quality emerged as one of the key indicators in the first-half results. Expected credit loss provisions increased to $95.3 million, compared with only $4.8 million a year earlier. Total impairment allowance before recoveries also increased to $122.5 million, compared with $27.1 million.
At the same time, gross consumer receivables increased to approximately $1.73 billion, compared with $1.11 billion at the end of 2025, while net receivables reached approximately $1.68 billion.
The increase in provisions comes alongside the substantial expansion of the financing portfolio, making the quality of growth increasingly important as the portfolio expands and the company’s financial performance becomes more closely linked to credit-asset performance.
Islamic Financing Gains Greater Weight Portfolio data also shows a clear shift in the product mix. Buy-now-pay-later receivables reached approximately $896 million at the end of June, while receivables generated through Islamic financing reached approximately $837.3 million.
At the end of 2025, BNPL receivables stood at $736 million, compared with $381.3 million for Islamic financing. The shift helps explain the significant increase in financing income during the first half of 2026.
Profitability Does Not Equal Strong Operating Cash Flow Despite recording $55.3 million in net profit, Tamara generated an operating cash outflow of approximately $525.3 million during the first half. The largest portion of this pressure was linked to the increase in consumer receivables, which consumed approximately $693.3 million in operating cash flow.
As financing activity expanded, Tamara relied more heavily on external funding, securing $573.3 million in new loans during the period, which helped offset a substantial portion of the operating cash outflow.
Balance Sheet Expansion Tamara’s total assets increased to approximately $1.96 billion in June 2026, compared with $1.33 billion at the end of 2025, while shareholders’ equity increased to $207.3 million from $148.2 million.
The expansion reflects the scale of Tamara’s growth in the consumer financing market, while also increasing the importance of funding costs, asset quality and the company’s ability to recycle capital through collections and continued financing.
The Next Stage of Growth Tamara’s first-half 2026 results present a picture that extends beyond earnings growth, combining strong revenue growth, improved profitability and emerging operating leverage with rapid portfolio expansion, higher funding costs, a significant increase in credit loss provisions and substantial operating cash-flow pressure.
The next stage will therefore place greater emphasis on the quality of growth rather than growth alone, with the sustainability of operating leverage depending on Tamara’s ability to maintain financing growth while managing funding costs and portfolio quality.
