Talabat Reports Soaring Q1 Profits as Grocery Segment Drives Growth

Online food delivery company Talabat has posted a significant surge in profitability in the first quarter of 2025, reporting a near fourfold increase in net income to $103 million, as the company expands beyond restaurant deliveries and deepens its presence across the MENA region.

Headquartered in Dubai and operating in eight markets — the UAE, Kuwait, Qatar, Bahrain, Oman, Egypt, Jordan, and Iraq — Talabat now serves over 6.5 million active users. The company’s performance underscores the rising demand for digital convenience in the region and its success in diversifying services.

For the quarter ending March 2025, Talabat reported a 30 percent year-on-year increase in gross merchandise value (GMV) to $2.1 billion. Revenue jumped 34 percent to $846 million, while adjusted EBITDA — a key measure of operating profitability — also rose 34 percent to $140 million, representing a margin of 6.7 percent.

Adjusted net income, which excludes foreign exchange fluctuations and shareholder loan interest, stood at $99 million — up 24 percent compared to the same period last year. The company highlighted this metric as a more accurate reflection of operational performance in a volatile sector.

CEO Tomaso Rodriguez credited the results to strong customer loyalty, the company’s expanding product mix, and the scale of its regional operations. “Our Groceries and Retail vertical contributed approximately one-third of GMV when including InstaShop for the full quarter,” Rodriguez said. “This reinforces the opportunity in scaling this vertical further.”

While restaurant delivery remains a core offering, Talabat’s grocery and convenience segment is now growing at a faster pace. Its recent acquisition of InstaShop, completed in February, is expected to yield significant cost savings in the coming quarters.

Markets outside the Gulf Cooperation Council (GCC), including Egypt, Jordan, and Iraq, are also gaining momentum due to increased order frequency and the rollout of the company’s subscription service, talabat pro.

Talabat also reported adjusted free cash flow of $135 million for the quarter, up 39 percent year-on-year, with a strong cash conversion ratio of 96 percent — a sign of healthy operational efficiency.

This was Talabat’s first full quarterly earnings report since listing on the Dubai Financial Market (DFM) in December 2024. The company’s IPO, which was the largest in the GCC and the global tech sector last year, initially valued the firm at around $10 billion. As of May 9, 2025, its market capitalization stood at approximately $8.75 billion.