Dubai-based Talabat reported USD 3.0 billion in third-quarter gross merchandise value and raised its full-year guidance for the second time this year.
Dubai-based Talabat Holding plc said on Friday that third-quarter net income fell 15% to USD 102 million while gross merchandise value (GMV) rose 16% to USD 3.0 billion, and it raised full-year guidance for the second time this year.
The company reported results for the quarter and the nine months ended September 30, 2026. GMV, the total value customers paid for goods and services sold on the platform, rose 17% at constant currency.
Revenue was USD 1.2 billion, up 18%, or 19% at constant currency. Revenue equalled 40% of GMV, against 39% a year earlier.
Adjusted EBITDA was USD 150 million, 3% lower than a year earlier and equal to 5.0% of GMV, down from 6.0%. Talabat said the squeeze came from lower gross profit margins after deliberate investment in Food and in Grocery & Retail.
Net income was equal to 3.4% of GMV, against 4.7% a year earlier. Free cash flow rose 41% to USD 141 million, with a cash conversion ratio of 94%, against 65% a year earlier.
Talabat said results also benefited from about USD 9 million of customer incentives in Food that did not need to be spent because competition was less intense than budgeted.
Toon Gyssels, talabat’s chief executive officer, said growth accelerated in both Food and Grocery & Retail and across its markets. “We expect it to accelerate further in the fourth quarter,” he said.
GCC GMV rises 9% while non-GCC jumps 43%
The company’s five Gulf markets, the UAE, Kuwait, Qatar, Bahrain and Oman, produced USD 2.3 billion of GMV, up 9%. That was 75% of the total, down from 80% a year earlier.
Egypt, Jordan and Iraq contributed USD 736 million, up 43%, or 25% of the total.
Revenue grew faster than GMV, led by a higher share of revenue from talabat mart, the company’s own grocery dark stores. That was partly offset by lower commission rates, more customer incentives and lower fees as more customers joined the talabat pro subscription programme.
Talabat said its Board-approved USD 120 million strategic investment programme, which focuses on building out the Everyday App, remains on track and is already speeding adoption in Grocery & Retail. That category covers groceries, pharmacy items, health and beauty products, small electronics, flowers and pet supplies.
Guidance raised on all five metrics, GMV growth to about 16%
The company now expects GMV growth of about 16% at constant currency and revenue growth of about 19%. The table sets the new ranges against those it gave on August 12.
| Metric (full year 2026) | New guidance | Previous guidance |
|---|---|---|
| GMV growth (constant currency) | about 16% | 13-15% |
| Revenue growth (constant currency) | about 19% | 16-18% |
| Adjusted EBITDA | USD 560-570 million | USD 535-565 million |
| Net income | USD 360-370 million | USD 325-355 million |
| Free cash flow | USD 440-450 million | USD 400-430 million |
The dividend policy is unchanged at 90% of net income.
For the nine months, GMV was USD 8.6 billion, up 15%, and revenue was USD 3.4 billion, up 19%. Adjusted EBITDA was USD 427 million, down 8%, and net income was USD 289 million, down 17%. Free cash flow was USD 407 million, down 14%.
Comparisons with 2025 are on a pro forma basis, treating the acquisition of instashop, effective February 25, 2025, as if it had completed on January 1, 2025.
Balance sheet shows USD 711 million net cash
Talabat reported a net cash position of USD 711 million. Gross debt was USD 209 million, all of it lease liabilities.
The share buyback has repurchased 225 million shares, or 0.97% of issued capital, for USD 69 million. The average price was AED 1.125 a share.
When the company reported second-quarter results on August 12, 108.1 million shares had been bought at an average of AED 1.182.
On that date, Talabat said second-quarter GMV had grown 11%, or 12% at constant currency, and it raised its earlier guidance of 11-14% GMV growth to 13-15%. The third-quarter figures show growth of 16%, against 15% in the first half.
