Business Context and Reporting Period
Company: Anghami Inc.
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Anghami is a leading multimedia streaming platform in the Middle East and North Africa (MENA) region, offering music streaming (Anghami) and premium video streaming (OSN+). The company operates on a freemium model with ad-supported tiers and paid subscriptions. Following the acquisition of OSN+ assets in April 2024, the company now consolidates a full year of video streaming operations in 2025.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (USD) | 2024 (USD) | Change |
|---|---|---|---|
| Total Revenue | 99,304,526 | 78,093,405 | +27.2% |
| Cost of Revenue | (124,557,665) | (102,116,216) | +22.0% |
| Gross Profit (Loss) | (25,253,139) | (24,022,811) | -5.1% |
| Operating Loss | (87,373,360) | (62,139,512) | -40.6% |
| Net Loss | (89,571,559) | (63,592,548) | -40.9% |
| Adjusted EBITDA | (64,985,471) | (56,328,504) | -15.4% |
| Cash and Cash Equivalents | 22,248,279 | 14,140,792 | +57.3% |
| Subscribers (Year-End) | 3,520,603 | 3,372,028 | +4.4% |
| Active Users (Year-End) | 27,466,780 | 22,432,801 | +22.4% |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $21.2 million (27.2%), driven primarily by a $24.2 million increase in subscription revenue. This growth reflects the consolidation of a full year of OSN+ video streaming revenue compared to nine months in 2024.
- Margin Compression: The company reported a negative gross margin of -25.4% in 2025, an improvement from -30.8% in 2024, though still negative. The subscription segment specifically recorded a gross loss of $30.1 million due to high fixed content costs associated with the OSN+ video license.
- Impairment Charge: A non-cash impairment charge of $15 million was recognized in 2025 related to the OSN+ brand intangible asset, reducing its carrying value to $61 million based on a third-party valuation.
- Convertible Note Conversion: In December 2025, the company converted a $55 million senior unsecured convertible note (plus accrued interest) held by OSN Streaming Ltd. into 2,376,171 ordinary shares. This transaction eliminated the convertible note liability and increased OSN Streaming's ownership stake to approximately 67%.
- Advertising Revenue Decline: Advertising revenue decreased by $2.9 million (25.6%) year-over-year, largely due to a significant reduction in barter transaction revenue ($2.5 million in 2024 vs. $0.25 million in 2025) and macroeconomic headwinds.
Guidance, Outlook, Risks, and Unusual Items
- Outlook & Strategy: Management focuses on scaling the OSN+ video segment to achieve operating leverage against fixed content costs. Strategies include growing the ad-tier on OSN+, expanding live TV channels, and leveraging bundled offerings with partners like Shahid and Disney.
- Liquidity & Going Concern: The filing includes a "Going Concern" note. The company incurred significant losses and has negative working capital. Management relies on continued financial support from its parent company, OSN Streaming Ltd., and a new $20 million senior loan facility secured in April 2026 to meet obligations.
- Material Weaknesses in Internal Controls: The company disclosed material weaknesses in internal controls over financial reporting related to skilled personnel, entity-level controls, and IT general controls. While remediation is underway (including ERP implementation), management concluded controls were not effective as of December 31, 2025.
- Key Risks:
- Content Costs: Fixed-cost nature of video content obligations creates structural margin risk if subscriber growth underperforms.
- Geopolitical Instability: Operations in the MENA region face risks from regional conflicts, currency devaluation (specifically Egyptian Pound and Lebanese Pound), and piracy.
- AI-Generated Content: Risks regarding AI-generated music flooding the platform, distorting royalty pools, and damaging label relationships.
- Competition: Intense competition from global players (Spotify, Netflix, YouTube) and piracy in the region.
Important Facts for Investor Verification
- Parent Company Dependence: Verify the terms and sustainability of financial support from OSN Streaming Ltd. (67% owner) and the new $20 million loan from UBC Ventures W.L.L. (ultimate parent affiliate).
- OSN+ Unit Economics: Assess the timeline for the OSN+ video segment to reach profitability given the fixed-cost structure and the recent $15 million brand impairment.
- Internal Control Remediation: Monitor progress on remediation of material weaknesses in internal controls, specifically the implementation of the Microsoft Dynamics 365 ERP system.
- Currency Exposure: Review the impact of Egyptian Pound (EGP) volatility on revenue and costs, as Egypt is a primary market.
- Warrant Liability: Note the outstanding public and private warrants (approx. 24.1 million total) which may dilute shareholders if exercised, though they are currently out-of-the-money.