Talabat has increased its full-year 2026 financial outlook after reporting a 16% year-on-year rise in second-quarter revenue, reaching $1.14 billion. This growth was supported by an expanding customer base and increased activity in grocery and retail sectors.

The company’s gross merchandise value (GMV) climbed to $2.92 billion, marking an 11% increase on a reported basis and 12% at constant currency. When adjusted for the earlier timing of Eid Al Fitr, underlying GMV growth was approximately 15%. Talabat’s first-half results surpassed previous expectations, prompting upward revisions in forecasts for GMV growth, revenue, adjusted EBITDA, net income, and free cash flow.

Revised Full-Year Projections

• GMV growth is now anticipated to be between 13% and 15% at constant currency, up from the prior estimate of 11% to 14%.
• Revenue growth forecasts have been raised to 16% to 18%, compared with the earlier range of 14% to 17%.
• Adjusted EBITDA guidance has been increased to a range of $535 million to $565 million, up from $510 million to $540 million.
• Net income is expected to reach $325 million to $355 million, higher than the previous forecast of $300 million to $330 million.
• Free cash flow guidance has been lifted to between $400 million and $430 million, from $370 million to $400 million.

The company confirmed it will maintain its dividend policy of distributing 90% of net income.

Impact of Investments on Profitability

Despite revenue growth, second-quarter adjusted EBITDA declined by 13% to $147 million, representing 5% of GMV, down from 6.4% a year earlier. Net income decreased by 18% to $100 million, reflecting the effects of Talabat’s investment initiatives on profitability.

The reduction in gross profit margins was largely attributed to expenditures aimed at strengthening Talabat’s food delivery market position and expanding its "everyday app" ecosystem. The company has allocated $120 million for 2026 to develop Talabat Mart, enhance the Talabat Pro subscription service, and introduce new retail and adjacent offerings. Approximately $58 million was spent on operating, capital, and lease expenses during the first half of the year.

Regional Growth and Platform Expansion

GMV in the Gulf Cooperation Council (GCC) countries increased by 5% to $2.27 billion in the quarter, accounting for 78% of total GMV. Meanwhile, GMV in non-GCC markets, including Egypt, Jordan, and Iraq, surged 41% to $642 million, raising their share of total GMV from 17% to 22% year-on-year.

Revenue growth outpaced GMV growth, driven primarily by a higher contribution from Talabat Mart grocery sales and expanded advertising margins. The number of active partners grew 14% to approximately 97,000, and the active rider network expanded 25% to about 189,000.

Talabat Pro now represents 51% of GMV on the platform, with over one in four active customers subscribed to the service.

Cash Flow and Share Buyback

During the quarter, Talabat generated $162 million in free cash flow, totaling $266 million in the first half of the year. The company continued its share repurchase program, acquiring 108.1 million shares for roughly $35 million as of August 12, representing 0.46% of issued capital.

The 90% dividend payout policy remains in place, with an interim dividend based on first-half earnings expected to be declared in September and paid in October.