0001213900-26-050335
SEC filingChallenging year with widening operating losses and a significant OSN+ brand impairment, offset by strategic progress including full OSN+ integration and debt-to-equity conversion.
The increase in ARPU in 2024 was primarily driven by the inclusion of OSN+, which carries a higher ARPU due to the premium pricing of video streaming compared to music streaming, as well as a higher concentration of OSN+ subscribers in higher-ARPU GCC countries. This trend continued in 2025 as the full-year consolidation of OSN+ contributed to subscription revenue growth.
In 2025, the gross profit margin for the Advertisement segment improved primarily due to a lower volume of barter agreements compared to 2024. Barter transaction cost decreased in 2025, primarily driven by a barter agreement with partners related to both music and video streaming. These factors helped mitigate the impact of fixed video content costs on overall gross margin.
OSN Streaming converted convertible notes into equity, increasing its ownership stake and eliminating debt. This strengthened the balance sheet and reduced interest expense going forward. Net cash used in operations reflected the operating loss, while financing activities were supported by convertible note drawdowns prior to conversion.