Talabat raised its full-year 2026 guidance across all key financial metrics after second-quarter revenue increased 16 per cent year-on-year to $1.14 billion, supported by a growing customer base and stronger grocery and retail activity.
Gross merchandise value, or GMV, reached $2.92 billion, up 11 per cent on a reported basis and 12 per cent at constant currency. Adjusting for the earlier timing of Eid Al Fitr, underlying GMV growth was about 15 per cent.
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The company said first-half performance came in ahead of its previous full-year expectations, prompting it to raise guidance for GMV growth, revenue, adjusted EBITDA, net income and free cash flow.
Full-year forecasts raised
Talabat now expects full-year GMV growth of 13 to 15 per cent at constant currency, compared with its previous forecast of 11 to 14 per cent.
Revenue growth is now forecast at 16 to 18 per cent, up from 14 to 17 per cent.
Adjusted EBITDA guidance was increased to $535 million to $565 million, from $510 million to $540 million, while net income is now expected at $325 million to $355 million, compared with $300 million to $330 million previously.
Free cash flow guidance was raised to $400 million to $430 million, from $370 million to $400 million. The company maintained its dividend policy at 90 per cent of net income.
Investment weighs on quarterly profit
Second-quarter adjusted EBITDA declined 13 per cent to $147 million, equivalent to 5 per cent of GMV, compared with 6.4 per cent a year earlier.
Net income fell 18 per cent to $100 million, reflecting the impact of Talabat’s investment programme on profitability.
The company said lower gross profit margins were mainly due to spending aimed at strengthening its food delivery position and investment in its broader “everyday app” ecosystem.
Talabat has allocated $120 million in 2026 to expand Talabat Mart, strengthen its Talabat Pro subscription programme and develop new retail and adjacent services.
About $58 million had been deployed across operating, capital and lease expenses during the first half.
Non-GCC markets grow 41%
GMV in the GCC rose 5 per cent to $2.27 billion during the quarter, accounting for 78 per cent of the total.
Non-GCC GMV, covering Egypt, Jordan and Iraq, jumped 41 per cent to $642 million, increasing its share of total GMV to 22 per cent from 17 per cent a year earlier.
Revenue growth outpaced GMV, driven mainly by a higher share of Talabat Mart grocery revenue and expansion in advertising margins.
Active partners increased 14 per cent to around 97,000, while the active rider network grew 25 per cent to about 189,000.
Talabat Pro accounted for 51 per cent of GMV on the Talabat platform, with more than one in four active customers subscribed.
Buyback underway, dividend expected in September
Talabat generated $162 million in free cash flow during the quarter and $266 million in the first half.
The company also continued its share buyback programme, with 108.1 million shares repurchased for around $35 million as of August 12, representing 0.46 per cent of issued capital.
Its 90 per cent dividend payout policy remains unchanged, with an interim dividend on first-half earnings expected to be declared in September and paid in October.
Source: Khaleej Times