GMV grew 33%[1], reflecting continued momentum from the previous quarter
Revenue grew 36%2, Adjusted EBITDA 31% and Adjusted Net Income 25%
Adjusted EBITDA margin[2] of 6.8%, maintaining last year’s strong operational efficiency
Adjusted Net Income margin of 4.8%, absorbing the impact of higher corporate income tax
Full year guidance raised: GMV growth of 27-29%2, revenue growth of 29-32%2, Adjusted EBITDA margin of 6.5%, net income margin of 5.0% and Adjusted Free Cash Flow of 6.0%
Dubai : Talabat Holding plc (“talabat” or the “Company”), the leading on-demand online ordering and delivery platform in the MENA region, today announces its pro forma financial results for the three-month and six-month period ended 30 June 2025.
GMV grew 32% for the period versus the prior year to reach USD 2.4 billion. On a constant currency basis, GMV grew at a faster rate of 33%. Revenue grew 35% to reach USD 982 million for the period and, at constant currency, grew 36%. Adjusted EBITDA grew 31% to USD 166 million, or 6.8% of GMV, and net income grew 33% to USD 119 million or 4.9% of GMV. On a normalised basis, adjusting for material non-recurring items to allow for a like-for-like comparison, net income grew 25% to USD 116 million or 4.8% of GMV.
This strong performance was driven by top line growth across both GCC markets (UAE, Kuwait, Qatar, Bahrain and Oman) and non-GCC markets (Egypt, Jordan and Iraq) as well as across both the Food and Grocery & Retail (“G&R”)[3] verticals. Demand growth reflected accelerated customer acquisition and increased average order frequency. The strong results were supported by the unwind of Ramadan’s impact seen in the first quarter versus the prior-year comparison period. Looking ahead, the Company is confident of continued growth and has revised guidance upwards for the full year. GMV growth is now expected to be in the 27-29% range on a constant currency basis (previously 17-18%), revenue growth of 29-32% on a constant currency basis (previously 18-20%), Adjusted EBITDA margin of 6.5% (previously 6.5%-7.0%), net income margin at 5.0% (previously 5.0-5.5%) and Adjusted Free Cash Flow at 6.0% (previously 6.0-6.5%).
Highlights for the period include:
- GMV of USD 2.4 billion, up 32% year-on-year and 33% at constant currency.
- Strong double digit growth in the core GCC segment and Food vertical, and even faster growth in non-GCC markets and the G&R vertical, albeit from a lower base.
- Driven by customer acquisition and increased order frequency with a surge in talabat pro[4]
- GMV geographical mix was 83% GCC and 17% non-GCC (prior year: 86% and 14%).
- Management Revenue of USD 982 million, up 35% year-on-year and 36% at constant currency, representing a GMV-to-revenue conversion ratio of 40% (prior year: 39%).
- The higher conversion ratio mainly reflected a higher share of tMart and subscription revenues that more than offset lower commission rates (which were lower due to the higher G&R share of GMV).
- Adjusted EBITDA of USD 166 million, up 31% year-on-year and equivalent to 6.8% of GMV (prior year: 6.8%).
- This mainly reflected lower gross profit margins, driven by the ongoing shift in the GMV product mix, that were offset by improved cost margins.
- Net income of USD 119 million, 33% higher than the prior year and equivalent to 4.9% of GMV (prior year: 4.9%), absorbing the impact of increased corporate income tax rates of 15% in the GCC markets.
- Adjusted Net Income of USD 116 million, up 25% year-on-year and equivalent to 4.8% of GMV (prior year: 5.0%), when neutralising the effects of net finance costs and foreign currency impacts.
- Strong cash generation with Adjusted Free Cash Flow of USD 190 million, up 47% year-on-year, and equivalent to 7.8% of GMV (prior year: 7.0%) and a Cash Conversion Ratio of 115% (prior year: 103%).
Tomaso Rodriguez, Chief Executive Officer of talabat, commented: “We have achieved another strong quarter of financial and operational results, fueled by significant customer acquisition and increased order frequency. Our ongoing commitment to enhancing the consumer value proposition, expanding our Groceries and Retail vertical and fostering deeper customer loyalty is clearly yielding results. We are particularly pleased with the strong uptake of talabat pro, our premium subscription loyalty programme, across all markets, alongside strong growth in demand within our non-GCC markets.
“This growth complements the continued strength of our core GCC markets and the strong performance of our Food vertical. The UAE, our largest market, maintained its robust growth trajectory in line with the overall pace of the Group. Kuwait, our most established market, delivered impressive growth of over 20% for both the quarter and the first half of the year. Likewise, our Food vertical grew more than 20% year-on-year, reinforcing its strong contribution to our overall growth. With this momentum, we are confident in our outlook and are pleased to raise our full-year guidance across all metrics.”
Q2 and H1 2025 pro forma financial information[5]:
| USD millions | Q2 2025 | Q2 2024 | %Δ y/y | 6M 2025 | 6M 2024 | %Δ y/y |
| GMV[6] | 2,439 | 1,852 | 32% | 4,523 | 3,455 | 31% |
| o/w GCC | 2,024 | 1,601 | 26% | 3,775 | 2,978 | 27% |
| o/w non-GCC | 415 | 251 | 66% | 749 | 477 | 57% |
| GMV at cFX | 2,461 | 1,852 | 33% | 4,591 | 3,455 | 33% |
| Management Revenue[7] | 982 | 727 | 35% | 1,828 | 1,360 | 34% |
| Management Revenue at cFX | 986 | 727 | 36% | 1,859 | 1,360 | 37% |
| Adjusted EBITDA[8] | 166 | 126 | 31% | 305 | 231 | 32% |
| margin (% of GMV) | 6.8% | 6.8% | -0.03pp | 6.8% | 6.7% | 0.1pp |
| Net income | 119 | 90 | 33% | 222 | 117 | 90% |
| margin (% of GMV) | 4.9% | 4.9% | 0.04pp | 4.9% | 3.4% | 1.5pp |
| Adjusted Net Income[9] | 116 | 93 | 25% | 215 | 173 | 24% |
| margin (% of GMV) | 4.8% | 5.0% | -0.3pp | 4.8% | 5.0% | -0.3pp |
| Adjusted Free Cash Flow[10] | 190 | 129 | 47% | 325 | 226 | 44% |
| margin (% of GMV) | 7.8% | 7.0% | 0.8pp | 7.2% | 6.5% | 0.6pp |
| Cash Conversion Ratio[11] | 115% | 103% | 12pp | 106% | 98% | 8pp |
The full set of disclosures today can be found within the Investor Relations section on talabat’s website.
[1] On a “constant currency basis” or ”cFX” whereby current period figures are restated using prior-period foreign exchange rates, to neutralise currency variations.
[2] Margins calculated as a percentage of GMV unless otherwise specified.
[3] G&R segment comprises our first party vendor model (“tMart” dark stores) and our third party vendors (“Local Shops”).
[4] talabat’s premium subscription loyalty programme
[5] Numbers have been rounded off to the nearest decimal figures, while percentages are calculated on the actual numbers
[6] 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).
[7] Management reporting revenue, defined as IFRS revenue before deducting vouchers/discounts issued by talabat to customers.
[8] 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.
[9] Adjusted Net Income is defined as net income excluding (i) foreign exchange income (loss) (mainly related to non-cash unrealised foreign exchange loss from shareholder loan liability in Delivery Hero Egypt SAE); and (ii) and interest expense on loans and interest income (mainly related to shareholder loans and deposits that were capitalised prior to the IPO).
[10] Adjusted Free Cash Flow is defined as Adjusted EBITDA minus change in working capital (change in working capital excludes receivables from payment service providers and restaurant liabilities and other non trade related balances) minus capex minus IFRS 16 lease payments minus tax.
[11] Cash Conversion Ratio is defined as Adjusted Free Cash Flow divided by Adjusted EBITDA.
