Talabat reported a mixed performance in the first quarter of 2026. Net income fell even as revenue and order activity continued to grow. Demand stayed strong across key markets, but profitability came under pressure during the period.
Net income stood at $87 million, down 18% year-on-year, and revenue rose 23% to $1 billion. The GMV-to-revenue conversion ratio came in at 39%. Gross merchandise value increased 19% to $2.7 billion. Growth was driven by higher-order volumes and stronger customer acquisition across the platform.
GCC GMV grew 12% to $2.1 billion. Non-GCC markets rose faster with a 52% jump to $563 million. The company linked this performance to stronger seasonal demand during Ramadan and Eid. Multi-vertical services also supported higher platform usage.
Talabat operations were impacted by a volatile environment linked to regional conflict and uncertainty. This led to work-from-home setups and distance learning in several markets.
CEO Toon Gyssels said, “During the quarter, our teams operated in a dynamic environment of heightened uncertainty and remained focused on what matters most: ensuring continuity of service while prioritizing the safety of our people, riders, and partners. This is where the resilience of our operating model and the dedication of our teams truly stand out.”
The company invested nearly $25 million during the quarter across operations, capital expenditure, and leasing. Marketing and pricing spend was moderated by stronger demand and reduced competition pressure.
Talabat raised its full-year net income guidance to $300 million–$330 million. GMV growth outlook remains at 11%–14%, while revenue growth is projected at 14%–17%. Adjusted EBITDA is expected to be between $510 million and $540 million, and free cash flow is forecast at $370 million–$400 million.
The results highlight a clear gap between revenue growth and profit performance. Demand remains strong across all regions, supported by seasonal activity and rising digital adoption. However, higher costs and ongoing investments continue to weigh on earnings, showing pressure on margins despite steady expansion.
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