20-F: Anghami Revenue Hits $99M Amid Widening Losses

Anghami Inc. reports a 27% revenue surge following the OSN+ integration but faces a $89.6 million net loss and ongoing regional volatility.

Summary

• Total revenue reached $99.3 million for the fiscal year 2025, driven by the full-year consolidation of OSN+ video streaming services.
• Net loss widened significantly to $89.6 million, compared to a $63.6 million loss in the previous fiscal year.
• The subscriber base grew to 3.52 million users, while Average Revenue Per User (ARPU) increased slightly to $2.16.
• A $15 million impairment charge was recognized against the OSN+ brand value during the period.
• Operating losses were heavily impacted by $100.8 million in content acquisition and royalty costs.
• Negative working capital of $43.3 million led to the inclusion of a going concern warning.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk profile where strong top-line growth is completely offset by massive structural losses, brand impairments, and a precarious liquidity position.

Positives

• Subscription revenue grew 37% year-over-year to $89.2 million.
• OSN Streaming Ltd converted $55 million in convertible notes into equity, significantly increasing its stake to 67.01%.
• Secured a new $20 million senior unsecured loan from UBC Ventures in April 2026 to support working capital.
• ARPU improved to $2.16, reflecting successful price adjustments in key markets like Egypt and the GCC.
• Technology infrastructure costs decreased by 17% due to the absence of one-off integration expenses from the prior year.

Negatives

• Net loss increased by 40.8% year-over-year, reaching nearly $90 million.
• Recognized a $15 million impairment on the OSN+ brand, indicating the recoverable value is lower than the initial acquisition carrying amount.
• Material weaknesses in internal controls over financial reporting and IT systems remain unresolved.
• Total liabilities exceed total assets by $26.0 million as of December 31, 2025.
• Advertising revenue declined by 25.6% to $8.4 million, partly due to a reduction in barter transactions.

Risks

• Geopolitical instability and armed conflicts in the MENA region, particularly in Gaza and Lebanon, threaten business operations.
• Significant exposure to currency devaluation in Egypt and Lebanon continues to impact revenue when translated to USD.
• High rates of video and music piracy in the Middle East represent a persistent competitive threat to premium subscriptions.
• The fixed-cost nature of video content licenses with OSN Group creates margin compression if subscriber growth fails to meet targets.
• AI-generated content could dilute royalty pools and distort recommendation algorithms, damaging relationships with major music labels.

Future Outlook

The company is focused on driving subscription growth through localized content and strategic B2B partnerships with telecommunications providers. While management expects to leverage synergies between the music and video platforms to improve margins, the path to profitability remains contingent on scaling the user base to offset high fixed content costs and navigating regional economic volatility.

Management Comments

• The OSN+ transaction strengthened the position as a go-to destination for premium video and music in the MENA region.
• Management has undertaken comprehensive remediation measures to address control deficiencies identified in previous audits.
• Strategic prioritization of sustainable revenue growth and margin improvement is being pursued through price adjustments and cost optimization.

Industry Context

StockSavvy.ai notes that Anghami is operating in one of the world's fastest-growing regions for digital streaming, yet it faces a unique set of challenges including extreme currency volatility and a fragmented copyright landscape that differs significantly from Western markets.

Comparison to Industry Standards

• Anghami's ARPU of $2.16 remains well below global leaders like Spotify, which averages over $4.50, highlighting the pricing constraints in emerging markets.
• The 97.5% streaming share of recorded music revenue in the MENA region is higher than the global average, indicating a highly digitized but under-monetized market.
• Unlike global competitors, Anghami relies heavily on telco-integrated billing (35% of revenue) due to low credit card penetration in its core territories.

Management Changes

Corporate Governance

Legal Proceedings

• SACEM filed a lawsuit in Lebanon claiming $500,000 in unpaid rights; a court hearing is set for June 18, 2026.
• Ongoing trademark opposition appeal in the UAE regarding the Anghami mark against Vividville Inc.

Related Party Transactions

• $50.3 million is due to OSN Group, primarily for video content costs invoiced under the license agreement.
• $55 million in convertible notes from OSN Streaming Ltd were converted into equity in December 2025.
• A $20 million loan was provided by UBC Ventures W.L.L., an entity owned by the ultimate shareholder, in April 2026.

Stakeholder Impact

• Shareholders were impacted by a 1-for-10 reverse stock split in August 2025.
• Minority shareholders have reduced influence due to the concentrated 67% ownership by OSN Streaming Ltd.
• Creditors face increased risk as the company relies on parent support to meet going concern requirements.

Next Steps

• Complete the remediation of material weaknesses in internal controls over financial reporting.
• Finalize the implementation of the Microsoft Dynamics 365 ERP system.
• Execute on the $20 million loan facility to fund 2026 operations.

Key Dates

Recommendation

While revenue is growing, the widening net losses, brand impairment, and substantial doubt about the company's ability to continue as a going concern without emergency loans suggest a highly unstable financial position that outweighs the growth potential of the MENA streaming market.

Keywords

Music Streaming, Video Streaming, MENA Region, OSN+, Digital Entertainment, Subscription Revenue, Currency Devaluation, Nasdaq ANGH