Talabat reports robust Q2 growth, raises full-year guidance

GCC

Talabat reports robust Q2 growth, raises full-year guidance

COMMERCIAL NEWS

Aug 12, 2025 7:35 AM

Talabat Holding, a leading on-demand online ordering and delivery platform in the MENA region, has announced strong financial results for the second quarter of 2025, driven by solid performance across both GCC and non-GCC markets.

For the three-month period ending June 30, 2025, Talabat reported a 32% year-on-year increase in Gross Merchandise Value (GMV), reaching $2.4 billion. On a constant currency basis, GMV rose 33%. Revenue surged 35% to $982 million, while adjusted EBITDA grew 31% to $166 million, maintaining a margin of 6.8% of GMV. Net income climbed 33% to $119 million, or 4.9% of GMV.

The company attributed its performance to accelerated customer acquisition, increased order frequency, and strong adoption of its premium subscription service, talabat pro. Growth was particularly notable in non-GCC markets such as Egypt, Jordan, and Iraq, alongside continued strength in core GCC markets including the UAE and Kuwait.

Revised full-year guidance

Buoyed by its Q2 momentum, Talabat has raised its full-year outlook:

GMV growth: 27–29% (up from 17–18%)
Revenue growth: 29–32% (up from 18–20%)
Adjusted EBITDA margin: 6.5%
Net income margin: 5.0%
Adjusted Free Cash Flow: 6.0%

Key Highlights

GMV: $2.4 billion, up 32% YoY (33% at constant currency)
- GCC markets contributed 83% of GMV; non-GCC markets 17%
- Strong growth in both Food and Grocery & Retail verticals
Revenue: $982 million, up 35% YoY (36% at constant currency)
GMV-to-revenue conversion ratio improved to 40%
Adjusted EBITDA: $166 million, 6.8% of GMV
Net Income: $119 million, up 33% YoY
Adjusted Net Income: $116 million, up 25% YoY
Adjusted Free Cash Flow: $190 million, up 47% YoY.

Tomaso Rodriguez, CEO of Talabat, stated: " “We’ve delivered another strong quarter, driven by our focus on customer value, expansion in groceries and retail, and deepening loyalty. The uptake of talabat pro has been exceptional across all markets. Our largest market, the UAE, continues to grow in line with the Group, while Kuwait posted over 20% growth. With this momentum, we’re confident in our outlook and pleased to raise guidance across all metrics.” -TradeArabia News Service