GMV grew 18%[2] y/y driven by an expanded customer base
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,May 2026: 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.
— GCC[6] GMV grew to USD 2.1 billion, up 12% and representing 79% of total (prior year: 84%)
— Non-GCC[7] GMV grew faster to USD 563 million, up 52% and 21% of total (prior year: 16%)
- 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.”
