Talabat Holding plc, the leading on-demand ordering and delivery platform in the Middle East and North Africa, has posted strong Q2 2025 results. The growth was powered by rising customer demand, higher order frequency, and surging adoption of its premium subscription service talabat pro.
Strong Growth Across All Markets
Gross Merchandise Value (GMV) rose 32% year-on-year to $2.4 billion (33% at constant currency). Both GCC markets, UAE, Kuwait, Qatar, Bahrain, Oman, and non-GCC markets, Egypt, Jordan, Iraq, posted solid gains.
- ✅ 83% of GMV came from GCC countries
- ✅ 17% of GMV from non-GCC markets, showing robust diversification
The company also saw over 20% growth in the Food vertical, with Kuwait delivering growth above that same mark.
Revenue and Profitability
Revenue surged 35% to $982 million (36% constant currency), driven by:
- Stronger GMV-to-revenue conversion at 40%
- Higher contributions from tMart and subscription revenues
- A greater share of Grocery & Retail, partially offset by lower commission rates
Adjusted EBITDA grew 31% year-on-year to $166 million, equal to 6.8% of GMV. Net income increased 33% to $119 million (4.9% of GMV) despite higher GCC corporate tax rates at 15%. On a normalized basis, adjusted net income rose 25% to $116 million.
Cash Flow Strength
Talabat delivered exceptional cash generation:
- Adjusted Free Cash Flow of $190 million, up 47% year-on-year
- Cash Conversion Ratio of 115%
- Free Cash Flow equivalent to 7.8% of GMV
CEO Insights
“We delivered another strong quarter, fueled by significant customer acquisition and increased order frequency,” said Tomaso Rodriguez, CEO of Talabat.
He highlighted:
- ✅ Strong adoption of talabat pro in all markets
- ✅ Solid growth in the UAE
- ✅ Kuwait’s standout performance at 20%+ growth
- ✅ More than 20% year-on-year growth in the Food vertical
“Our commitment to improving the consumer value proposition, expanding verticals, and boosting loyalty is paying off,” Rodriguez said. “With this momentum, we are confident in our outlook and pleased to raise our full-year guidance across all metrics.”
Outlook
The company’s decision to raise its 2025 full-year guidance reflects confidence in:
- Sustained demand in core GCC markets
- Continued penetration in non-GCC territories
- Ongoing traction for its grocery, retail, and subscription services
With strong market positioning, growing customer loyalty, and healthy financial fundamentals, Talabat is well on track to maintain its leadership in the region’s highly competitive on-demand delivery sector.