Talabat (TALABAT) Q2 2026 earnings summary

Executive summary

• Q2 and H1 2026 delivered strong results, with GMV up 12% year-over-year in Q2 and 15% for H1 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 net profit declining 17% to $186.2 million compared to the same period last year.

• Strategic investments in grocery infrastructure, delivery speed, and platform expansion reduced delivery times and improved customer perception, supporting leadership in food and grocery.

• Share buyback program commenced, with 108 million shares repurchased ($35 million), and dividend policy maintained at 90% payout.

• The group continues to expand in the GCC, Egypt, and non-GCC regions, with the GCC contributing the majority of revenue and profit.

Financial highlights

• H1 GMV grew 15% year-over-year on a constant currency basis to $5.6 billion; Q2 GMV reached $2.9 billion, up 12% year-over-year.

• Revenue for H1 2026 was $2.19 billion, up from $1.81 billion in H1 2025; Q2 revenue grew 16% year-over-year to $1.1 billion.

• Adjusted EBITDA for Q2 was $147 million (5.0% of GMV), net income margin at 3.4% ($100 million), and free cash flow at $162 million.

• Gross profit margin declined to 9.8% in Q2 from 11.2% a year ago; gross profit for H1 was $554.2 million.

• Free cash flow conversion exceeded 100% in H1 2026.

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.

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

• Guidance reflects strong demand, resilient multi-vertical model, and regulatory impacts, especially in Kuwait.

• Management continues to focus on resilience and operational efficiency amid evolving market conditions.

• Investments program on track, with 0.7% of GMV to be deployed by year-end.