Talabat lowered its 2026 profit outlook and planned $150m in investments, pushing Delivery Hero shares down over 8% as margin pressure grows.
Talabat cut its 2026 outlook and flagged heavier spending.
Delivery Hero shares fell more than 8% after Talabat guided for lower profitability in 2026.
Talabat plans about $150 million in investments, with more focus on dark stores and subscriptions.
Talabat, the majority-owned unit of Delivery Hero, published 2026 guidance that points to tighter margins and higher investment needs.
The company said it will set aside about $150 million for investments in 2026. Around $50 million is for its food business, and about $100 million is for expanding dark stores and its subscription program.
Dark stores are small warehouses built for fast delivery, like mini supermarkets that serve online orders only. Talabat’s “talabat mart” is its dark store and quick commerce unit.
Talabat guided 2026 adjusted EBITDA at about $510 million to $540 million. Adjusted EBITDA is a profit metric that strips out some costs to show operating performance. The guidance implies adjusted EBITDA margins of 4.4% to 4.8%, down from 6.5% in 2025.
It also projected GMV growth of 11% to 14% and revenue growth of 14% to 17% year over year. GMV, or gross merchandise value, is the total value of orders processed on the platform.
Morgan Stanley said Talabat’s Q4 results were in line with expectations, but noted the 2026 guidance was below consensus forecasts. The bank also flagged intensifying competition in the UAE, Qatar, and Kuwait, and the possibility of new rules that stop platforms from charging below cost.
Talabat’s guidance is a reminder that food delivery and quick commerce often trade profitability for growth.
More spend on dark stores and loyalty subscriptions can lift revenue, but it can also compress margins if delivery density and basket sizes do not improve fast enough.
For operators in similar markets, the message is clear. Unit economics, meaning profit per order after delivery and discounts, is back in focus as competition tightens and regulators consider pricing rules.
Related: talabat, Glovo, and Bolt Food also compete in food delivery and on-demand commerce across multiple regions.
Primary Source: Investing.com
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