Company raises 2026 net income target to $355 million after stronger-than-expected first-half growth.
Dubai: talabat raised its full-year 2026 guidance across all key financial metrics after first-half growth exceeded expectations, despite an 18% decline in second-quarter profit as the company continued investing in groceries, loyalty and its broader everyday app strategy.
The delivery platform now expects full-year gross merchandise value (GMV) growth of 13–15%, up from its previous forecast of 11–14%.
Revenue growth is now expected to reach 16–18%, while adjusted EBITDA is projected at $535 million–$565 million. Net income is forecast at $325 million–$355 million, with free cash flow expected to come in at $400 million–$430 million.
The upgraded outlook follows a stronger-than-expected first half, with GMV rising 15% year on year at constant currency to $5.6 billion, putting the company ahead of the growth trajectory outlined in its original full-year guidance.
Q2 profit declines as talabat steps up investment
Second-quarter GMV rose 11% year-on-year on a reported basis to $2.9 billion, while growth at constant currency reached 12%. Excluding the impact of the earlier timing of Eid Al Fitr this year, underlying GMV growth was around 15%.
Revenue increased 16% to $1.1 billion, supported by stronger contributions from talabat mart and advertising, alongside continued growth in its customer base.
Profitability weakened during the quarter as talabat continued to invest under its $120 million strategic investment programme.
Adjusted EBITDA fell 13% year-on-year to $147 million, equivalent to 5% of GMV, down from 6.4% a year earlier. Net income declined 18% to $100 million, with net margin falling to 3.4% of GMV from 4.6% in the same period last year.
Groceries and multi-vertical usage drive growth
talabat maintained the strong momentum seen at the start of the year, delivering 15% GMV growth and 19% revenue growth in the first half of 2026, while achieving an adjusted EBITDA margin of 4.9%, ahead of its full-year expectations, according to CEO Toon Gyssels.
Growth was increasingly driven by customers using talabat across multiple categories. Multi-vertical customers accounted for 75% of GMV during the quarter, up four percentage points from a year earlier.
More than one in four active customers were subscribed to talabat pro, with subscribers generating 51% of GMV on the platform.
The company had around 97,000 active partners at the end of the quarter, representing 14% year-on-year growth. Grocery and retail businesses made up nearly a quarter of its partner base, while the active rider network expanded 25% to approximately 189,000.
talabat said its partners funded a record $404 million in customer savings during the first half, marking a 30% increase from a year earlier.
The company also invested nearly $58 million in the first half across operating, capital and lease expenses related to its everyday app expansion, including talabat mart, talabat pro and new retail services.
“Our strategic investment programme to build the everyday app continued to advance, already delivering encouraging initial results,” Gyssels said. “Supported by this performance, we are confidently raising our full-year outlook across all performance metrics.”
Non-GCC markets outpace growth
The GCC remained talabat’s largest market, generating $2.3 billion in GMV during the second quarter, up 5% year-on-year and accounting for 78% of the group’s total GMV.
Non-GCC markets, comprising Egypt, Jordan and Iraq, recorded significantly stronger growth, with GMV surging 41% to $642 million. Their share of total GMV rose to 22%, up from 17% a year earlier.
Free cash flow stood at $162 million in the second quarter, down 41% year-on-year, while first-half free cash flow reached $266 million.
talabat attributed the quarterly decline to the timing of working capital movements, which had benefited the comparable period a year earlier.
Buyback underway, dividend policy unchanged
The company has begun its shareholder-approved share buyback programme, repurchasing 108.1 million shares as of August 12 at an average price of Dh1.18 each.
The purchases totalled around $35 million, equivalent to 0.46% of talabat’s issued share capital.
talabat’s dividend policy remains unchanged, with a 90% payout ratio. An interim dividend based on first-half 2026 earnings is expected to be declared in September and paid in October.
