Talabat raises 2026 forecast after Q2 profit beats estimates

Talabat on Monday lifted its 2026 revenue and earnings guidance after reporting a second-quarter profit that exceeded analyst estimates, driven by rising order volumes and improved operational efficiency.

The Dubai-based food delivery platform said adjusted net income rose to $42 million in Q2 from a loss of $12 million in the same period last year. Revenue increased 28% year-over-year to $312 million, outpacing the 22% growth forecast by Refinitiv.

Talabat attributed the performance to a 35% increase in active users and a 22% rise in average order value, supported by expanded merchant partnerships and targeted marketing campaigns. The company also highlighted cost reductions in logistics and customer acquisition as key drivers of profitability.

Management raised its 2026 revenue target to between $1.8 billion and $2.0 billion, up from a prior range of $1.5 billion to $1.7 billion, and set adjusted EBITDA guidance at $200 million to $250 million, compared with the previous $150 million to $200 million.

Analysts at JPMorgan and Morgan Stanley noted that Talabat’s improved outlook reflects broader recovery trends in the Middle East’s food delivery sector, though they warned that competition and regulatory pressures remain risks.

Shares of Delivery Hero, Talabat’s parent company, were little changed in pre-market trading on Monday, having gained 12% year-to-date.