Talabat net profit drops 18% YoY in Q1 2026
Adjusted EBITDA fell 9% to $130m, or 4.8% of GMV.
Talabat Holding plc reported net income of $87m, down 18% year-on-year (YoY), equal to 3.2% of GMV in the first quarter (Q1) ended 31 March 2026.
The decline was attributed to the company’s 2026 strategy and investment programme, which weighed on adjusted EBITDA, whilst non-operating cost margins stayed broadly stable.
GMV reached $2.7b, up 19% YoY (18% in constant currency), driven by stronger order volumes and customer acquisition.
Growth was supported by improved Ramadan performance and Eid seasonality, alongside increased demand for delivery services amid regional instability.
The company also pointed to more “eat-at-home” behaviour as remote work and distance learning remained common in several markets.
In the GCC, GMV rose 12% to $2.1b, accounting for 79% of total GMV, down from 84% a year earlier.
Non-GCC GMV increased 52% to $563m, lifting its share to 21% from 16%.
Revenue increased 23% YoY to $1b, with GMV-to-revenue conversion rising slightly to 39%.
The improvement was mainly driven by a higher contribution from Talabat Mart, which offset lower commission rates and higher customer incentives aimed at retaining medium- and high-value users.
Adjusted EBITDA fell 9% to $130m, or 4.8% of GMV, compared with 6.3% a year earlier.
The decline was mainly due to lower gross profit margins, reflecting a shift in product mix and increased investment to strengthen competitiveness and support its “Everyday App” strategy.
