Talabat (TALABAT) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results with GMV up 33% year-over-year (excluding Instashop), revenue up 38%, and adjusted EBITDA of USD 140 million (6.7% of GMV), reflecting margin expansion.

• Adjusted net income grew 24% year-over-year, reaching USD 99 million (4.8% of GMV).

• Shareholders approved a USD 110 million dividend for Q4 2024, to be paid in May, and a minimum USD 400 million dividend is targeted for 2025.

• Instashop acquisition completed, adding a leading grocery and retail delivery platform with limited customer overlap and strong fundamentals.

• Talabat Holding PLC consolidated MENA operations under Delivery Hero SE, culminating in an IPO and DFM listing in December 2024.

Financial highlights

• GMV grew 33% year-over-year on a constant currency basis to USD 2.1 billion, with management revenue up 38% to USD 846 million (excluding Instashop).

• Adjusted EBITDA margin expanded to 6.7% of GMV; adjusted net income margin was 4.8%, slightly down due to higher corporate tax.

• Adjusted free cash flow conversion was robust at 96%, or USD 135 million, up 39% year-over-year.

• Instashop GMV grew 16% year-over-year, with a 2% adjusted EBITDA margin and positive net income.

• Revenue since inception to 31 March 2025 reached USD 1.63 billion; net profit for the period was USD 241.2 million.

Outlook and guidance

• Full-year 2025 guidance (excluding Instashop): GMV growth of 17-18%, management revenue growth of 18-20%, adjusted EBITDA margin of 6.5-7%, and minimum USD 400 million in dividends.

• Q1 performance is mid-range, with potential for upward revision if trends persist.

• Board intends to declare a USD 110 million dividend for Q4 2024, pending shareholder approval.

• Group structure and acquisitions position the company for continued growth in the MENA online delivery market.