talabat posts strong 2025 growth, plans $100m investment
For 2026, talabat has earmarked more than $100m for investments to scale grocery integrated vertical (talabat mart) and enhance the loyalty subscription programme
13 February, 2026
TT
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talabat, the MENA region’s leading on-demand delivery platform, has capped off a resilient 2025 with strong financial performance and an ambitious vision for the future, announcing more than $100m in strategic investments for 2026 to scale its grocery and loyalty subscription offerings.
The company reported full-year gross merchandise value (GMV) growth of 28 per cent at constant currency to reach $9.5bn, while revenue grew 33 per cent to $3.9bn.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) hit $615m, representing a 6.5 per cent margin, with net income reaching $464m — margins that CEO Toon Gyssels described as “amongst the highest in the industry”.
Scalability across dynamic markets
The fourth quarter showcased continued momentum, with GMV climbing 21 per cent year-on-year to $2.5bn, driven by robust order volume growth across all markets and surging adoption of talabat pro, the company’s loyalty subscription programme.
Revenue for the quarter reached $1bn, up 26 per cent, while adjusted EBITDA grew 13 per cent to $156m.
“I am very pleased to report that in 2025, we demonstrated the strength and scalability of our business model by delivering robust growth and profitability despite a dynamic operating environment,” said Gyssels. “We achieved GMV growth of 28 per cent at constant currency with an Adjusted EBITDA margin of 6.5 per cent and a net income margin of 4.9 per cent, amongst the highest in the industry.”
The company’s performance met or exceeded guidance across all key metrics, with adjusted free cash flow reaching $559m, equivalent to 5.9 per cent of GMV and representing a cash conversion ratio of 91 per cent.
Strategic growth drivers are gaining traction
talabat’s diversification strategy is yielding results, with its groceries and retail (G&R) segment significantly outpacing food delivery growth.
G&R GMV surged 45 per cent in Q4 to $788m, now representing 32 per cent of total GMV compared to 27 per cent a year earlier.
Non-GCC markets also demonstrated strong momentum, with GMV growth of 57 per cent reaching $501m for the quarter.
The company’s GMV-to-revenue conversion ratio improved to 42 per cent, up from 40 per cent in the prior year, reflecting higher contributions from talabat mart and subscription revenues.
Investment plan for 2026
With the full support of its board, talabat is launching a disciplined investment cycle for 2026, earmarking more than $100m for two strategic priorities: scaling talabat mart, its grocery integrated vertical, and enhancing talabat pro across all eight markets.
For talabat mart, investments will focus on improving affordability to accelerate customer adoption, increasing store density to reinforce its speed-led value proposition, and expanding supply chain infrastructure to enhance product assortment and availability. The company expects these investments to be offset over the long term through higher advertising and non-merchandising revenue, noting “strong early traction already demonstrated in the best performing talabat mart markets.”
The talabat pro subscription programme, now available across all eight markets following successful launches in Egypt and Iraq in 2025, will receive incremental investments to enhance value for both customers and vendors.
The programme already delivers benefits including free delivery, booster discounts, on-time guarantee, priority support, dine-out discounts, and partner services such as streaming and ride-hailing.
“As we enter 2026, we are now taking a deliberate step to invest more in our business with the full support of our Board,” Gyssels explained. “We have earmarked more than $100m in ecosystem investments for 2026 as we aim to expand our multi-vertical subscriber base by enhancing the value proposition of our talabat pro loyalty subscription programme and scaling talabat mart, our grocery integrated vertical. While this will weigh on near-term margins, we are confident this is the right strategy to maximise shareholder value in the medium and longer term.”
Final dividend
Reflecting robust cash generation and confidence in the business outlook, talabat‘s board has recommended a final dividend of $219m, bringing total dividends for 2025 to $421m, exceeding previous guidance of $400m. This represents a 90 per cent payout of reported net income, demonstrating the company’s commitment to shareholder returns alongside growth investments.
For 2026, talabat expects GMV growth of 11-14 per cent at constant currency, Adjusted EBITDA of $510-540m, net income of $280-310m, and free cash flow of $370-400m. The guidance incorporates instashop’s expected performance and reflects the near-term margin impact of strategic investments.
The board and management remain aligned that this disciplined approach will strengthen competitive positioning, build capacity for future growth, and maximise long-term shareholder value, while maintaining the dividend policy of 90 per cent of net income.
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