Talabat delivers strong q3 performance, reaffirms full-year outlook

11/11/2025 01:22 AST

Talabat Holding plc, the leading on-demand delivery platform in the Middle East and North Africa, reported robust financial results for the third quarter of 2025, driven by strong growth across both its food and grocery segments and continued expansion in non-GCC markets.

Gross merchandise value (GMV) rose by 26 per cent year-on-year to $2.4 billion (Dh8.8 billion), with growth accelerating to 27 per cent on a constant currency basis. Revenue climbed 31 per cent to $1 billion (Dh3.67 billion), while adjusted Ebitda increased 21 per cent to $154 million (Dh565 million), representing 6.4 per cent of GMV. Net income surged 31 per cent to $119 million (Dh437 million), or 4.9 per cent of GMV.

Excluding non-operating items, adjusted net income stood at $112 million (Dh411 million), up 15 per cent year-on-year, with a margin of 4.6 per cent. The company's adjusted free cash flow for the quarter was $99 million (Dh363 million), down 16 per cent from the previous year due to new tax payments and a reversal of strong working capital flows from Q2.

Talabat's performance was underpinned by growth across both GCC markets, including the UAE, Kuwait, Qatar, Bahrain, and Oman, and non-GCC markets such as Egypt, Jordan, and Iraq. The company noted particularly strong momentum in its Grocery and Retail vertical, which grew over 40 per cent year-on-year, compared to nearly 20 per cent growth in its core Food segment.

Customer engagement also reached new highs, with more than one in three users ordering from multiple verticals. Over a quarter of monthly active users are now talabat pro subscribers, contributing nearly half of total GMV. The company's highest-value customers are placing more than 30 orders per month, with usage continuing to rise.

CEO Tomaso Rodriguez credited the company's ecosystem expansion for the strong results. "With over 80,000 vendors and a fleet of more than 160,000 riders, talabat continues to set the standard for customer experience in the region," he said. "More than $560 million in partner-funded savings were availed by customers over the past year."

Rodriguez also highlighted the company's advertising technology solutions, which now contribute more than half of adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda). The UAE, talabat's largest market, is growing in line with the group average, while Kuwait, its most established market, continues to post double-digit growth.

Talabat reaffirmed its full-year guidance, which had been revised upwards earlier in 2025. The company expects GMV growth of 27 to 29 per cent and revenue growth of 29 to 32 per cent on a constant currency basis. Adjusted Ebitda margin is projected at 6.5 per cent, with net income margin at 5 per cent and adjusted free cash flow at 6 per cent. A minimum dividend payout of $400 million (Dh1.47 billion) is also anticipated.

The company's financials were prepared on a pro forma basis to reflect its post-IPO structure, excluding Instashop, which was consolidated from February 2025. Talabat completed its IPO on the Dubai Financial Market in December 2024.

With strong financials and growing customer engagement, talabat appears well-positioned to continue scaling its operations and delivering profitable growth across the region.

Khaleej Times