talabat reports resilient results for Q4 2025[1], announcesdisciplined investment cycle to drive long-term growth
- GMV grew 21%[1] y/y driven by sustained order volume growth across all markets
- Robust margins[2] with Adjusted EBITDA at 6.3% and net income at 5.0%
- Full year 2025 performance in line with guidance across GMV, Revenue and Adjusted EBITDA; net income and Adjusted FCF near guidance
- Board recommends USD 421 million in total dividends for 2025, exceeding guidance
- New 2026 guidance of 11-14% y/y GMV growth, Adjusted EBITDA of USD 510-540 million, net income of USD 280-310 million and Free Cash Flow of USD 370-400 million
- More than USD 100 million of investments[3] earmarked for 2026 to scale grocery integrated vertical (talabat mart) and enhance the loyalty subscription programme (talabat pro)
TalabatHolding plc (“talabat” or the “Company”), the leading on-demand online ordering and delivery platform in the MENA region, has announced its pro forma financial results for the three-month and full-year period ended 31 December 2025.
The results demonstrate continued growth momentum despite a dynamic operating environment, with resilient profitability and cash generation. The Company is also setting out a clear investment plan for 2026, with the full support of the Board, to drive long-term growth.
GMV grew 21% for the fourth quarter versus the prior year, and at the same rate on a constant currency basis, to reach USD 2.5 billion. Revenue grew 26% nominally and at constant currency, to reach USD 1.0 billion for the period.
Adjusted EBITDA grew 13% to USD 156 million, or 6.3% of GMV, and net income was 11% lower at USD 123 million or 5.0% of GMV. On an adjusted basis, excluding non-operating items to allow for a more like-for-like comparison, net income was stable at USD 124 million or 5.0% of GMV.
For the full year, GMV grew 28% to USD 9.5 billion and revenue 33% to USD 3.9 billion, both at constant currency. Adjusted EBITDA reached USD 615 million or 6.5% of GMV. All three metrics achieved the Company’s guidance, which was previously revised upwards during the year following strong first-half performance.
Net income reached USD 464 million, or 4.9% of GMV and the Company generated Adjusted Free Cash Flow of USD 559 million, or 5.9% of GMV, both figures landing near guidance.
Highlights for the period
- GMV of USD 2.5 billion, up 21% year-on-year, reflecting robust order volume growth (customer acquisition and higher order frequency) across all markets, with a surge in talabat pro adoption.
- GCC[4] GMV grew to USD 2.0 billion, up 15% and representing 80% of total (prior year: 84%)
- Non-GCC[5] GMV grew faster to USD 501 million, up 57% and 20% of total (prior year: 16%)
- Food GMV grew to USD 1.7 billion, up 12% and 68% of total (prior year: 73%)
- G&R[6] GMV grew faster to USD 788 million, up 45% and 32% of total (prior year: 27%)
- Management Revenue of USD 1.0 billion, up 26% year-on-year, representing a GMV-to-revenue conversion ratio of 42% (prior year: 40%).
- The higher conversion ratio mainly reflected a higher share of talabat mart 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 156 million, up 13% year-on-year and equivalent to 6.3% 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 partly offset by improved operating cost margins.
- Net income of USD 123 million, 11% lower than the prior year and equivalent to 5.0% of GMV (prior year: 6.7%). This reflected increased corporate income tax rates of 15% in the GCC markets and base effects, including deferred tax income in the prior year.
- Adjusted Net Income of USD 124 million, up 1% year-on-year and equivalent to 5.0% of GMV (prior year: 6.0%), when excluding net finance income, deferred tax income and foreign currency impacts in the current and comparison periods.
- Adjusted Free Cash Flow of USD 134 million, 14% higher year-on-year, and equivalent to 5.4% of GMV (prior year: 5.8%), reflecting higher capital expenditure partly offset by positive net working capital changes. This was equivalent to a Cash Conversion Ratio of 86% (prior year: 85%).
Dividends
Following the Company’s strong performance in 2025, the Board of Directors has recommended a final dividend of USD 219 million to bring total dividends for the year to USD 421 million. This represents a payout of 90% of reported net income and exceeds the Company’s previous guidance of USD 400 million.
This recommendation reflects the Company’s robust cash position and the Board’s confidence in the outlook for the business. Both the interim dividend previously paid and the proposed final dividend remain subject to shareholder approval at the Annual General Meeting.
Announcing a disciplined investment cycle to drive long-term growth
Building on its strong foundation, the Company is launching a disciplined, Board-approved investment plan for 2026, allocating more than USD 100 million to two key areas:
- First, scaling grocery integrated vertical (talabat mart) by improving affordability to accelerate customer adoption, increasing store density to reinforce the speed-led value proposition and build capacity for future growth, and expanding supply chain infrastructure to enhance assortment and availability. These investments are expected to be offset over the long-term through higher adtech or non-merchandising revenue, with strong early traction already demonstrated in the best performing talabat mart markets.
- Second, strengthening talabat pro as a multi-vertical engagement engine. Building on its core free delivery offering, the subscription programme already delivers exclusive benefits such as booster discounts on best sellers within the Food vertical, discounts on hundreds of key value items within talabat mart, on-time guarantee and priority customer support, dine-out discounts and partner services such as streaming and ride-hailing. The programme is now also available in all eight markets following successful launches in Egypt and Iraq in 2025. Incremental investments will focus on enhancing value for both customers and participating vendors.
While these investments are expected to weigh on near-term margins, the Board and management are aligned that this disciplined approach will strengthen competitive positioning, build capacity for future growth and maximise long-term shareholder value.
For 2026, the Company expects GMV growth of 11-14% at constant currency, Adjusted EBITDA of USD 510-540 million, net income of 280-310 million and Free Cash Flow of 370-400 million. This guidance now incorporates instashop’s expected performance. The dividend policy remains unchanged, with a payout ratio of 90% of net income[7].
Toon Gyssels, talabat’s newly-appointed Chief Executive Officer, commented: “I am very pleased to report that in 2025, we demonstrated the strength and scalability of our business model by delivering robust growth and profitability despite a dynamic operating environment.
We achieved GMV growth of 28% at constant currency with an Adjusted EBITDA margin of 6.5% and an net income margin of 4.9%, amongst the highest in the industry. In dollar terms, our performance met most of our targets and exceeded or hit the top-end of original guidance for the year.
“As we enter 2026, we are now taking a deliberate step to invest more in our business with the full support of our Board. We have earmarked more than USD 100 million in ecosystem investments for 2026 as we aim to expand our multi-vertical subscriber base by enhancing the value proposition of our talabat pro loyalty subscription programme and scaling talabat mart, our grocery integrated vertical.
While this will weigh on near-term margins, we are confident this is the right strategy to maximize shareholder value in the medium and longer term.”
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talabat Q4 and FY 2025 pro forma financial information[8]
| USD millions | Q4 2025 | Q4 2024 | %Δ y/y | FY 2025 | FY 2024 | %Δ y/y |
| GMV[9] | 2,476 | 2,044 | 21% | 9,421 | 7,428 | 27% |
| o/w GCC | 1,974 | 1,724 | 15% | 7,702 | 6,332 | 22% |
| o/w non-GCC | 501 | 320 | 57% | 1,719 | 1,096 | 57% |
| o/w Food | 1,687 | 1,500 | 12% | 6,652 | 5,542 | 20% |
| o/w G&R | 788 | 544 | 45% | 2,768 | 1,886 | 47% |
| GMV (cFX) | 2,475 | 2,044 | 21% | 9,512 | 7,428 | 28% |
| Management Revenue[10] | 1,039 | 824 | 26% | 3,876 | 2,956 | 31% |
| margin (% of GMV) | 42% | 40% | 1.7pp | 41% | 40% | 1.3pp |
| o/w Commission fees | 329 | 290 | 13% | 1,297 | 1,062 | 22% |
| o/w Subscription fee & Other Income | 402 | 276 | 46% | 1,397 | 952 | 47% |
| o/w Delivery & Service Fees | 221 | 191 | 16% | 859 | 696 | 24% |
| o/w Advertising and listing fees | 87 | 67 | 30% | 323 | 246 | 32% |
| Management Revenue (cFX) | 1,038 | 824 | 26% | 3,917 | 2,956 | 33% |
| Gross profit | 288 | 255 | 13% | 1,124 | 915 | 23% |
| margin (% of GMV) | 11.6% | 12.5% | -0.8pp | 11.9% | 12.3% | -0.4pp |
| Adjusted EBITDA[11] | 156 | 139 | 13% | 615 | 497 | 24% |
| margin (% of GMV) | 6.3% | 6.8% | -0.5pp | 6.5% | 6.7% | -0.2pp |
| Net income | 123 | 138 | -11% | 464 | 346 | 34% |
| margin (% of GMV) | 5.0% | 6.7% | -1.8pp | 4.9% | 4.7% | 0.3pp |
| Adjusted Net Income[12] | 124 | 122 | 1% | 451 | 393 | 15% |
| margin (% of GMV) | 5.0% | 6.0% | -1.0pp | 4.8% | 5.3% | -0.5pp |
| Adjusted Free Cash Flow[13] | 134 | 118 | 14% | 559 | 462 | 21% |
| margin (% of GMV) | 5.4% | 5.8% | -0.3pp | 5.9% | 6.2% | -0.3pp |
| Cash Conversion Ratio[14] | 86% | 85% | 1.1pp | 91% | 93% | -2.3pp |
