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Talabat reports $87m Q1 net income, increases guidance
Robust order volume growth supported by strong customer acquisition helped the food delivery firm report solid performance during the January-March period
- PUBLISHED: Tue 12 May 2026, 7:12 AM
Talabat on Tuesday announced net income of $87 million (Dh319.29 million) for the first quarter of 2026, down 18 per cent compared to the same period last year.
The Dubai-listed company reported revenues of $1 billion during the January-March 2026 period, up 23 per cent year-on-year, representing a gross merchandise value (GMV)-to-revenue conversion ratio of 39 per cent.
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The food delivery company’s GMV grew 19 per cent year-on-year to $2.7 billion, driven by robust order volume growth supported by strong customer acquisition.
Key contributors included improved Ramadan operations, favourable Eid seasonality, and the platform’s positioning as a reliable multi-vertical service provider amid the ongoing regional conflict.
The company said this environment led to flexible work-from-home arrangements, while schools shifted to distance learning across most of its markets.
“During the quarter, our teams operated in a dynamic environment of heightened uncertainty and remained focused on what matters most: ensuring continuity of service while prioritising the safety of our people, riders and partners. This is where the resilience of our operating model and the dedication of our teams truly stand out,” said Toon Gyssels, chief executive officer of Talabat.
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“Our strategy remains clear and we are fully committed to progressing with our investment plan announced earlier this year. We are confident in our ability to be the app that consumers rely on every day and one that, in the process, also delivers sustainable growth and attractive returns for shareholders,” he said in the company’s quarterly results statement.
The company said its GMV in the GCC grew 12 per cent to $2.1 billion, while non-GCC GMV jumped 52 per cent to $563 million.
During the quarter, the company advanced its investment programme, deploying close to $25 million in operating, capital and lease expenses across the key focus areas. Planned margin investments in marketing and pricing were moderated by stronger demand and a less aggressive competitive environment.
Talabat raised its full-year net income guidance by $20 million to $300 million-$330 million. The company also reaffirmed its GMV growth forecast of 11-14 per cent year-on-year, revenue growth of 14-17 per cent, adjusted EBITDA of $510 million-$540 million, and free cash flow of $370 million-$400 million.
