talabat sees higher income in 2026 as spike in orders drive strong Q1 growth

Dubai: talabat raised its full-year net income guidance on Tuesday after reporting strong first-quarter growth driven by higher order volumes, customer expansion and increased demand across its grocery and multi-vertical delivery services.

The Dubai-based delivery platform said gross merchandise value (GMV) rose 19% year-on-year to $2.7 billion in the first quarter ended March 31, while revenue increased 23% to $1 billion.

talabat said growth was supported by stronger Ramadan trading, favourable Eid seasonality and higher “eat-at-home” demand patterns during ongoing regional tensions, which prompted more flexible work-from-home arrangements and distance learning in several markets.

The company increased its full-year net income forecast by $20 million to a range of $300 million to $330 million, while reaffirming guidance for all other key financial metrics.

Regional demand

talabat said GMV growth was driven by strong order volumes and customer acquisition across both Gulf and non-Gulf markets.

GMV in Gulf Cooperation Council markets rose 12% to $2.1 billion, accounting for 79% of total GMV, while non-GCC markets expanded 52% to $563 million.

The company said its positioning as a multi-vertical delivery platform helped support demand during the current regional environment, particularly as more consumers shifted toward home-based consumption patterns.

Revenue growth also benefited from a larger contribution from talabat mart, the company’s grocery delivery business, which increased the overall GMV-to-revenue conversion ratio to 39% from 38% a year earlier.

talabat said this offset lower commission rates and higher customer incentives aimed at retaining medium- and high-value users.

Margins decline

Adjusted EBITDA fell 9% year-on-year to $130 million, representing 4.8% of GMV compared with 6.3% a year earlier.

Net income declined 18% to $87 million, equivalent to 3.2% of GMV.

The company said profitability was affected by deliberate margin investments tied to its previously announced 2026 strategy focused on expanding its “Everyday App” ecosystem.

talabat earlier announced plans to invest around $120 million this year across grocery expansion, customer engagement initiatives and new retail-related services.

The company said close to $25 million had already been deployed during the first quarter through operating, capital and lease-related spending.

The investment programme includes expanding talabat mart store density, strengthening supply chain infrastructure and enhancing affordability to accelerate customer adoption.

Subscription focus

talabat also said it is continuing to expand talabat pro, its subscription-based offering, through additional benefits including discounts, priority customer support, dine-out offers and partnerships across streaming and ride-hailing services.

The company is also investing in new retail and service categories aimed at increasing customer engagement across everyday consumer spending.

Chief Executive Toon Gyssels said the company maintained operational continuity during a “dynamic environment of heightened uncertainty” while prioritising the safety of employees, riders and partners.

“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,” Gyssels said.

The company reaffirmed its full-year guidance for:

• GMV growth of 11% to 14%

• Revenue growth of 14% to 17%

• Adjusted EBITDA between $510 million and $540 million

• Free cash flow between $370 million and $400 million

talabat generated free cash flow of $104 million during the quarter, up 7% year-on-year.

The company also said it expects to begin its recently approved share buyback programme shortly after the earnings release. The programme allows repurchases of up to 5% of issued share capital over two years.

talabat said its capital allocation framework continues to balance investment spending with shareholder returns, including a 90% dividend payout ratio.