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- Robust margins[3] with Adjusted EBITDA at 4.8% and net income at 3.2% of GMV
- Investment programme[4] focused on building the “Everyday App” substantially on track
- Full year guidance increased by USD 20 million for net income to USD 300-330 million and reaffirmed for remaining metrics: 11-14% y/y GMV growth, 14-17% y/y Revenue growth, Adjusted EBITDA of USD 510-540 million, and Free Cash Flow of USD 370-400 million
- Expects to commence recently-approved share buyback programme soon after results
Dubai, UAE: Talabat Holding plc (“talabat” or the “Company”), the leading on-demand online ordering and delivery platform in the MENA region, today reported a strong set of results for the first quarter, ended 31 March 2026. Results came ahead of full-year guidance across key metrics, with continued growth momentum, robust margins, and strong free cash flow generation. During this quarter, the company operated through a dynamic environment across several markets, maintaining full operational continuity, while prioritising the safety of its people and partners.
Performance reflected disciplined execution of talabat’s competitive strategy and its previously announced 2026 investment programme, focused on building the “Everyday App”. The Company's ability to adapt swiftly to evolving market conditions underpins its confidence in raising net income guidance, while reaffirming its outlook for all other key metrics.
talabat continues to enjoy a strong financial position, underpinned by robust free cash flow generation. The Company’s capital allocation framework balances disciplined investment in growth with shareholder returns, including a 90% dividend payout ratio and the recently approved share buyback programme of up to 5% of issued share capital over two years. The Company expects to commence share repurchases soon after today’s results announcement and will disclose purchases on a daily basis, as applicable.
Highlights for the period
- GMV of USD 2.7 billion, up 19% year-on-year (18% on a constant currency basis), driven by robust order volume growth supported by strong customer acquisition. Key contributors included improved Ramadan operations, favourable Eid seasonality[5] and the platform's positioning as a reliable, multi-vertical service provider amid the ongoing regional conflict. This environment gave rise to increased "eat-at-home" consumption patterns across most of our markets as employers adopted more flexible work-from-home arrangements and schools shifted to distance learning across most of our markets.
- Revenue of USD 1.0 billion, up 23% year-on-year, representing a GMV-to-revenue conversion ratio of 39% (prior year: 38%).
- The higher conversion ratio mainly reflected a higher share of talabat mart revenue that more than offset lower commission rates (which were lower due to the higher G&R share of GMV) and increased incentives to retain medium and high-value customers.
- Adjusted EBITDA of USD 130 million, USD 13 million or 9% lower year-on-year and equivalent to 4.8% of GMV (prior year: 6.3%).
- This mainly reflected lower Gross Profit margins, driven by an ongoing shift in GMV product mix and deliberate margin investments to strengthen competitive positioning and build the “Everyday App”.
- Net income of USD 87 million, 18% lower than the prior year and equivalent to 3.2% of GMV (prior year: 4.7%). This reflected the impact of the Company’s 2026 strategy and investment plan on Adjusted EBITDA coupled with stable non-operating cost margins.
- Free Cash Flow of USD 104 million, 7% higher year-on-year, and equivalent to 3.9% of GMV (prior year: 4.3%), reflecting stable capital expenditure and lease payment margins offset by net working capital fluctuations related to timing of vendor payments and receivables. This was equivalent to a Cash Conversion Ratio of 81% (prior year: 68%).
“Everyday App” investments substantially on track
The Company earlier this year announced a disciplined investment plan for 2026, allocating USD 120 million across three areas:
- First, scaling grocery integrated vertical (talabat mart) by increasing store density to reinforce the speed-led value proposition and build capacity for future growth, expanding supply chain infrastructure to enhance assortment and availability, and improving affordability to accelerate customer adoption.
- Second, strengthening talabat pro as a multi-vertical engagement engine, building on its core free delivery offering with more exclusive benefits such as discounts across food and grocery verticals, on-time guarantee and priority customer support, dine-out discounts and content-streaming and ride-hailing partner services.
- Finally, building out new offerings in the retail space and additional services to our customers to cover their everyday needs.
During the quarter, the Company advanced its investment programme, deploying close to USD 25 million in operating, capital and lease expenses across the above focus areas. Planned margin investments in marketing and pricing were tempered by stronger demand and a less aggressive competitive environment.
Toon Gyssels, talabat’s Chief Executive Officer, commented: “We delivered a strong start to the year, with performance ahead of expectations, underpinned by disciplined execution and the strength of our multi-vertical model.
“During the quarter, our teams operated in a dynamic environment of heightened uncertainty, and remained focused on what matters most: ensuring continuity of service while prioritising the safety of our people, riders and partners. This is where the resilience of our operating model and the dedication of our teams truly stand out.
“Our strategy remains clear and we are fully committed to progressing with our investment plan announced earlier this year. We are confident in our ability to be the app that consumers rely on every day, and one that, in the process, also delivers sustainable growth and attractive returns for shareholders.”
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talabat Q1 2026 and pro forma Q1 2025 financial information[8]
| USD millions | Q1 2026 | Q1 2025 | %Δ y/y |
| GMV[9] | 2,685 | 2,257 | 19% |
| o/w GCC | 2,122 | 1,887 | 12% |
| o/w non-GCC | 563 | 370 | 52% |
| GMV (cFX) | 2,668 | 2,257 | 18% |
| Revenue | 1,048 | 853 | 23% |
| margin (% of GMV) | 39% | 38% | 1.2pp |
| o/w Commissions | 12.8% | 13.4% | -0.6pp |
| o/w Delivery fees | 6.1% | 6.9% | -0.8pp |
| o/w Service fees | 2.2% | 2.1% | 0.1pp |
| o/w Subscription fees | 1.0% | 0.5% | 0.4pp |
| o/w Own grocery & other income | 15.2% | 12.6% | 2.6pp |
| o/w Advertising and listing fees | 3.4% | 3.3% | 0.1pp |
| o/w Vouchers & other discounts | -1.7% | -1.0% | -0.7pp |
| Revenue (cFX) | 1,041 | 853 | 22% |
| Gross Profit | 264 | 264 | -0.1% |
| margin (% of GMV) | 9.8% | 11.7% | -1.9pp |
| Adjusted EBITDA[10] | 130 | 143 | -9% |
| margin (% of GMV) | 4.8% | 6.3% | -1.5pp |
| Net income | 87 | 106 | -18% |
| margin (% of GMV) | 3.2% | 4.7% | -1.5pp |
| Free Cash Flow[11] | 104 | 98 | 7% |
| margin (% of GMV) | 3.9% | 4.3% | -0.4pp |
| Cash Conversion Ratio[12] | 81% | 68% | 12.2pp |
The full set of disclosures today can be found within the Investor Relations section on talabat’s website.
Note: The comparative financial information referenced in this press release has been prepared on a pro forma basis, as if the acquisition of instashop, effective as of 25 February 2025, was completed on 1 January 2025. This enables like-for-like comparability of the combined Company with prior year periods.
For investor enquiries, please contact ir@talabat.com, and for media enquiries, press@talabat.com.
About talabat
talabat is the leading on-demand delivery platform in the Middle East and North Africa (MENA) region, offering customers a convenient and personalized way to order food, groceries, and other convenience products from a wide selection of restaurants and retailers. Founded in Kuwait in 2004, talabat has expanded its operations to cover the United Arab Emirates, Kuwait, Qatar, Egypt, Bahrain, Oman, Jordan and Iraq, serving over seven and a half million active customers as of December 2025. talabat is headquartered in Dubai, the United Arab Emirates and in December 2024, successfully completed its initial public offering on the Dubai Financial Market (DFM). As a subsidiary of Delivery Hero SE, talabat leverages global expertise to strengthen its market position and drive innovation in the on-demand delivery sector, focusing on expanding its product offerings and increasing market penetration across its operating regions. With a robust network of over thousands of partners and riders, talabat continues to solidify its leadership in the MENA region's on-demand delivery market, connecting customers, partners, and riders through its advanced technology platform.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking statements with respect to the Company. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.
Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "will", "goal", "believe", "aim", "may", "would", "could" or "should" or other words of similar meaning or the negative thereof. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. The Company does not accept any responsibility for the accuracy or fairness of forward-looking statements and expressly disclaims any obligation to update any such forward looking statement, except as required pursuant to applicable law and regulation.
Neither this announcement nor anything contained herein constitutes a financial promotion, or an invitation or inducement to acquire or sell securities in any jurisdiction.
[1] Financial and operational performance referenced in this press release includes instashop, which is consolidated in talabat’s reported financial results as of 25 February 2025. See also Editors’ Note below. Capitalised terms used in this press release are defined in the footnotes on page 4.
[2] On a “constant currency basis” or ”cFX” whereby current period figures are restated using prior-period foreign exchange rates, to neutralise currency variations.
[3] Margins calculated as a percentage of GMV unless otherwise specified.
[4] Previously announced investment programme of USD 120 million earmarked for 2026 to scale grocery integrated vertical (talabat mart) and enhance the loyalty subscription programme (talabat pro) and new ventures. This figure encompasses margin investments (operating expenses to be incurred) as well as capital and lease expenditures.
[5] The Eid Al-Fitr holiday, based on the Islamic lunar calendar, occurred in the first quarter of this year, in contrast to the comparison period when it fell in the second quarter.
[6] GCC segment comprises the UAE, Kuwait, Qatar, Bahrain and Oman.
[7] Non-GCC segment comprises Egypt, Jordan and Iraq.
[8] Numbers have been rounded off to the nearest whole figures, while percentages are calculated on the actual numbers. Differences expressed in percentage points are presented to one decimal place.
[9] Gross Merchandise Value, the total value (including VAT) paid by end customers for goods and services sold through the platform (excluding rider tips and subscription fees paid by customers).
[10] Adjusted EBITDA is defined as net income before current income tax expenses, net finance costs, net foreign exchange loss, depreciation of property and equipment, other non-income tax and non-operating earnings effects. Non-operating earnings effects include, in particular: (i) expenses from share-based compensation, and (ii) other adjustments.
[11] Free Cash Flow is calculated as cash flow from operating activities as stated in the IFRS Cash Flow statement less net capital expenditures, and payment of lease liabilities. Free Cash Flow excludes interest paid or received.
[12] Cash Conversion Ratio is defined as Free Cash Flow divided by Adjusted EBITDA.
