Talabat (TALABAT) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 and H1 2026 results, with Q2 GMV up 12% year-over-year to $2.9 billion and H1 GMV up 15% at constant currency, driven by increased order volumes, customer acquisition, and multi-vertical engagement.

• Revenue for H1 2026 rose 21% year-over-year to $2.19 billion, with Q2 revenue up 17% to $1.1 billion, supported by growth in the GCC and expansion in Egypt and non-GCC regions.

• Strategic investments in grocery infrastructure, delivery speed, and platform expansion improved customer experience, accelerated growth, and supported leadership in food and grocery.

• Share buyback program commenced, with 108 million shares repurchased for $35 million at an average price of AED 1.182 per share; dividend policy maintained at 90% payout.

• Over 100,000 vendors served, 189,000 riders engaged, and more than 50% of GMV now from subscription customers, with 90% paying full price.

Financial highlights

• H1 2026 GMV grew 15% year-over-year to $5.6 billion; Q2 GMV reached $2.9 billion, up 12% year-over-year.

• Q2 adjusted EBITDA was $147 million (5.0% of GMV), net income $100 million (3.4% of GMV), and free cash flow $162 million, with conversion above 100%.

• Revenue conversion increased to 39% of GMV, driven by grocery growth; gross profit margin declined to 9.8% in Q2.

• Vendor/partner-funded deals at 7.2% of H1 GMV, totaling over $400 million.

• Basic and diluted EPS for H1 2026 was $0.008 per share.

Outlook and guidance

• Full-year 2026 guidance raised: GMV growth of 13%-15% ($11.4B-$11.6B), revenue growth of 16%-18%, adjusted EBITDA of $535M-$565M, net income of $325M-$355M, and free cash flow of $400M-$430M.

• Guidance reflects strong H1 performance, continued customer acquisition, resilience of the multi-vertical model, and regulatory impacts in key markets.

• Interim dividends on H1'26 earnings expected in October 2026, maintaining a 90% payout policy.

• Investment program for 2026 on track, with $120 million to $175 million planned, focused on food leadership and ecosystem expansion.

• Regulatory changes, especially in Kuwait, Qatar, and UAE, are factored into guidance.