Summary
Talabat, the Dubai-headquartered online food delivery company, has reported a significant surge in profitability for the first quarter of 2025, with a near fourfold increase in net income to $103m. The company’s strong performance is attributed to rising consumer demand for digital convenience and its ability to diversify beyond restaurant orders.
Strong Q1 Performance
Talabat’s quarterly results demonstrate the company’s resilience and adaptability in a competitive market. With a 30% year-on-year increase in gross merchandise value (GMV) to $2.1bn, the company has solidified its position as a leading player in the MENA region. Revenue rose 34% to $846m, while adjusted EBITDA climbed 34% to $140m, representing a margin of 6.7%. Adjusted net income, which excludes volatile items such as foreign exchange effects and shareholder loan interest, came in at $99m, up 24% from the same period last year.
Regional Expansion and Diversification
Talabat’s success can be attributed to its ability to expand beyond food delivery into adjacent markets. The company’s acquisition of InstaShop, a leading grocery delivery marketplace, has enabled Talabat to tap into the growing demand for online groceries and convenience services. This move is expected to drive further growth and "meaningful cost synergies" in the coming quarters.
Grocery and Convenience Segment
The grocery and convenience segment is emerging as a key driver of growth for Talabat. Non-GCC markets such as Egypt, Jordan, and Iraq are gaining share, driven by increasing order frequency and the rollout of subscription service talabat pro. This segment contributed approximately one-third of GMV in the quarter, reinforcing the opportunity to scale this vertical further.
Operational Leverage
Talabat’s ability to generate significant cash flow is a testament to its operational efficiency. Adjusted free cash flow rose 39% to $135m, with a cash conversion ratio of 96%. This underscores the leverage in the business and supports the company’s continued investment in growth initiatives.
Listing on Dubai Financial Market
Talabat’s listing on the Dubai Financial Market (DFM) in December 2024 marked a significant milestone for the company. With a market capitalisation of around $10bn at the time, Talabat became one of the largest technology sector IPOs globally last year. As of May 9th, 2025, the company’s market capitalisation stands at approximately $8.75bn.
Conclusion
Talabat’s strong Q1 performance is a testament to its ability to adapt and innovate in a rapidly changing market. With a near fourfold increase in net income and significant growth across key metrics, the company is well-positioned for continued success. As Talabat continues to expand into new markets and diversify its offerings, investors and customers alike can expect further growth and innovation from this pioneering online food delivery company.
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