Talabat’s Q4 GMV hits US$2.5B as US$100M investment plan targets grocery, subscriptions

MENA – Talabat Holding plc has delivered robust fourth-quarter results, with Gross Merchandise Value jumping 21% to US$2.5 billion and revenue climbing 26% to US$1.0 billion.

The MENA region’s leading delivery platform also unveiled a bold US$100 million+ investment plan for 2026, prioritizing grocery vertical expansion and subscription growth—even if it temporarily trims those industry-leading margins.

Grocery Rocket Ship Lifts Non-Food to Nearly One-Third of GMV

The quarter’s standout performer was Grocery & Retail, which saw GMV surge 45% to US$788 million, now representing 32% of total GMV, up sharply from 27% a year ago.

Non-GCC markets grew even faster at 57%, proving Talabat’s regional diversification strategy is paying off. Food delivery GMV grew a healthy 12% to US$1.7 billion.

Adjusted EBITDA reached US$156 million (6.3% of GMV), up 13% year-on-year. Net income of US$123 million was 11% lower, largely reflecting new 15% corporate tax rates in GCC markets and prior-year deferred tax benefits that didn’t repeat.

Adjusted free cash flow came in at US$134 million with an 86% cash conversion ratio.

Full-Year Feast and a Generous Shareholder Dividend

For full-year 2025, Talabat served up US$9.5 billion in GMV (up 28%), US$3.9 billion in revenue (up 33%), and US$615 million in Adjusted EBITDA, all meeting upgraded guidance.

Net income reached US$464 million.

The Board recommended a final dividend of US$219 million, bringing total 2025 dividends to US$421 million, a 90% payout ratio exceeding prior guidance of US$400 million.

US$100 Million Bet on Grocery Density and Subscription Stickiness

Talabat is channeling more than US$100 million into two strategic pillars for 2026.

First, scaling talabat mart through improved affordability, increased store density, and expanded supply chain infrastructure.

Second, strengthening talabat pro, its multi-vertical subscription engine now live in all eight markets, with enhanced value for customers and vendors.

Newly-appointed CEO Toon Gyssels acknowledged the investment will “weigh on near-term margins” but expressed confidence it’s “the right strategy to maximize shareholder value in the medium and longer term.”

2026 Guidance: Moderating Growth, Intentional Investment

Talabat expects GMV growth of 11-14% at constant currency, with Adjusted EBITDA of US$510-540 million and net income of US$280-310 million.

The guidance now incorporates instashop’s expected performance. The dividend policy remains unchanged at a 90% payout ratio. Talabat is deliberately trading a few points of margin today for a significantly larger, stickier customer base tomorrow.

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