Talabat (TALABAT) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 growth with GMV up 19% year-over-year to $2.7 billion (18% constant currency), and revenue rising 23%–26% year-over-year to $1.05 billion, driven by robust order volumes, customer acquisition, and favorable seasonality.

• Adjusted EBITDA reached $130 million (4.8% of GMV), and net income was $87 million (3.2% of GMV), both lower than prior year due to margin investments and higher expenses.

• Free cash flow increased to $104 million, with an 81% cash conversion ratio, reflecting strong cash generation and an asset-light model.

• Continued execution of investment programs for the Everyday App and strategic initiatives, with share buybacks and dividends (90% payout ratio) ongoing.

• Completed major restructuring, acquisitions, and an IPO in 2024–2025 to consolidate MENA operations.

Financial highlights

• GMV grew 19% year-over-year (18% constant currency), with GCC up 12% and non-GCC up 52%.

• Revenue increased 23%–26% year-over-year, with take rate/conversion ratio rising to 39%.

• Adjusted EBITDA margin compressed to 4.8% of GMV (down from 6.3% prior year), reflecting increased investments.

• Net income margin decreased to 3.2% of GMV (from 4.7% prior year), primarily due to lower EBITDA margins.

• Free cash flow reached $104 million (3.9% of GMV), with an 81% cash conversion ratio.

Outlook and guidance

• Full-year GMV growth expected at 11%–14% (constant currency), with revenue growth of 14%–17%.

• Adjusted EBITDA guidance maintained at $510–540 million; free cash flow $370–400 million.

• Net income guidance raised by $20 million to $300–330 million, reflecting favorable tax, depreciation, and share-based compensation developments.

• Guidance incorporates risks from fuel costs, Egyptian pound depreciation, macro headwinds, and competitive intensity.

• Share buyback program of up to 5% of issued share capital to commence.