Marti Technologies Q3 2026 Earnings Results & Report

Marti Technologies EPS Results

• Actual EPS: -$0.01
• Consensus EPS: -$0.04
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Marti Technologies Revenue Results

• Actual Revenue: $24.73 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Marti Technologies (NYSEAMERICAN:MRT) operates a technology-enabled urban mobility platform in Turkey. Through its mobile application, the company connects users with transportation options designed for short-distance travel and everyday urban journeys.

Marti’s services have included shared electric scooters, electric bicycles and mopeds, as well as ride-hailing services that connect passengers with drivers. The company’s platform is intended to provide convenient, app-based access to multiple mobility options within a single service.

Founded in 2018, Marti serves the Turkish market, with operations focused on major urban areas including Istanbul. The company was founded by Oğuz Alper Öktem, who has served as its chief executive officer. Marti Technologies became a publicly traded company on the NYSE American under the symbol MRT following its business combination with Galata Acquisition Corp.

Marti Technologies Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Marti reported record revenue of $24.7 million, up 128% year over year, and record gross margin of 81.5%. Adjusted EBITDA rose to $5.6 million, operating income turned positive for the first time at $2.7 million, and the company generated nearly $1 million of free cash flow for a second consecutive quarter.
• Positive Sentiment: The platform continued to expand: third-quarter trips grew 46% to 22 million and unique platform consumers rose 54% to 2.7 million. Marti entered 10 additional cities in October, bringing its footprint to 40 cities covering about 90% of Türkiye’s GDP, with 5.1 million all-time ride-hailing riders and 597,000 registered drivers at quarter-end.
• Negative Sentiment: Marti reaffirmed 2026 guidance of $85 million in revenue and $7 million in adjusted EBITDA, even though nine-month adjusted EBITDA was already $8 million. Management cited typical fourth-quarter seasonality and plans for increased marketing investment to support 2027 growth.
• Negative Sentiment: Ride-hailing monetization remains limited to roughly eight or nine cities out of 40, with no significant near-term increase in monetized cities or take rates expected. Management said new cities may take around two and a half years to reach the monetization stage.
• Negative Sentiment: The company said it will issue 5 million commitment shares this quarter under its convertible-note facility, which was extended through July 2028. Its management incentive plan covers 10% of fully diluted shares, creating potential dilution for existing shareholders.

Presentation

[Moderator]

Hello, everyone, and thank you for joining us for the Marti Technologies third quarter 2026 conference call. Before we begin, I would like to mention that today's earnings release and earnings presentation are available on Marti's investor relations website at ir.marti.tech, where you will also be able to find links to our SEC filings along with the other information about Marti. Joining me on the call today are Oğuz Alper Öktem, Marti's Founder and CEO, and Cankut Durgun, Marti's Co-Founder and President and COO. Before we begin, I would like to remind everyone that statements made on this call, as well as in today's earnings release and accompanying earnings presentation, contain forward-looking statements regarding our financial outlook, business plans, objectives, goals, and strategies, and other future events and developments, including statements about the market and about the development and deployment of autonomous vehicle technology and partnerships.

[Moderator]

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described in our filings with the SEC, today's earnings release, and the accompanying earnings presentation, and are based on current expectations and beliefs as of today, 9 November, 2026. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA, and margin, and free cash flow, which should be considered in addition to, not as a substitute for, our GAAP financial results. We use these non-GAAP measures in evaluating and managing Marti's business and believe they provide useful information for management and our investors. Beginning with the quarter ended 30 June, 2026, we revised our calculation on adjusted EBITDA, and prior period amounts have been revised to conform to the current presentation.

[Moderator]

Reconciliations of the non-GAAP measures to the corresponding GAAP measures, where appropriate, together with a description of the revision, can be found in today's earnings release and earnings presentation, as well as our filings with the SEC. With that, I will turn the call over to Alper.

[Oğuz Alper Öktem, Founder at Marti Technologies]

Thank you for joining us today for Marti's third quarter 2026 earnings call. The third quarter was a breakthrough quarter for Marti. We delivered record revenue, record gross profit margin, positive income from operations for the first time in our history, and our second consecutive quarter of positive free cash flow. Last quarter, we said that scale was increasingly translating into operating leverage. This quarter, that leverage carried through to our operating performance. As our platform scales, we are generating significantly more revenue without a corresponding increase in our cost base, allowing a growing proportion of our incremental revenue to flow through to profitability and cash generation. Our strategy remains straightforward. Build Türkiye's largest and most engaged mobility network, then leverage that network to expand into adjacent services and capture additional value from our existing consumer and driver relationships. The third quarter results demonstrate that this strategy is working.

[Oğuz Alper Öktem, Founder at Marti Technologies]

We are growing our nationwide presence, deepening engagement across our multi-service platform, and increasingly translating that growth into improved profitability. During the quarter, we continued to strengthen our nationwide presence. Ride-hailing delivered robust growth across our 30-city footprint, and in October, we launched ride-hailing in 10 additional cities. Today, Marti operates in 40 cities in total, covering approximately 90% of Türkiye's GDP. Our rider and driver networks continued to grow strongly. We exceeded our September 30 targets for both all-time unique ride-hailing riders and registered drivers, achieving our key milestones a month ahead of schedule. We also continued to advance our long-term growth initiatives. Following our partnership with Tensor, we extended our multi-partner autonomous mobility ecosystem in October with CalmCar, and the first CalmCar-equipped vehicle was already delivered and arrived in Türkiye. Continued operating leverage translated into exceptional financial results too.

[Oğuz Alper Öktem, Founder at Marti Technologies]

Revenue increased 128% year-over-year to a record $24.7 million, driven by increasing trip volumes and continued platform monetization. Gross profit increased 176% to $20.2 million, and gross profit margin reached a record 81.5%, reflecting improving unit economics and the operating leverage of our model. Our improving unit economics and disciplined cost management drove a significant improvement in profitability. Adjusted EBITDA reached $5.6 million, a 23% margin, nearly doubling from $2.9 million in the second quarter. Income from operations turned positive for the first time at $2.7 million, and our net loss narrowed to a near break-even of $1 million. With one quarter remaining, our nine-month adjusted EBITDA of $8 million already exceeds our full-year guidance of $7 million, and we are positioned to meet our Full Year 2026 guidance.

[Oğuz Alper Öktem, Founder at Marti Technologies]

We are the number one urban mobility app in Türkiye across both iOS and Android. Marti is also the only operator offering both car and motorcycle-hailing service at scale, which we complement with our two-wheeled electric vehicle fleet and our on-demand delivery services. Since launch, our platform has facilitated more than 217 million trips, serving 8.9 million unique consumers across our mobility and delivery services. Our ride-hailing marketplace continues to expand rapidly as well. As of September 30, we had reached 5.1 million all-time unique ride-hailing riders and built a network of 597,000 registered drivers. These metrics highlight the strength of our multi-service platform and our ability to scale both supply and demand at the same time. Martı has quickly emerged as Türkiye's leading urban mobility platform. Scale, brand recognition, and nationwide operations create meaningful competitive advantages as we continue expanding our services.

[Oğuz Alper Öktem, Founder at Marti Technologies]

Globally, mobility markets tend to be led by local champions with deep operational expertise, strong brand recognition, and an understanding of local consumer behavior. There is no exception in Türkiye. Our nationwide presence, established brand, and integrated platform position Martı to benefit from these dynamics. Following the launch of our ride-hailing in 10 new cities in October, Martı now operates in 40 of Türkiye's largest cities, representing approximately, as I've said, 90% of our GDP. This is up from 30 cities and approximately 85% of GDP at the end of the quarter. This footprint enables us to launch new services efficiently, deepen consumer engagement, and serve the large majority of the Turkish mobility market through a single integrated platform. Our operating metrics once again reflect the strength of our multi-service platform.

[Oğuz Alper Öktem, Founder at Marti Technologies]

During the third quarter, trips increased 46% year-over-year to 22 million, and the unique platform consumers grew 54% to 2.7 million. Since the first quarter of 2025, trips have grown 2.6x and unique platform consumers 2.5x. Trips per unique platform consumer were 8.2x compared to 8.6x in the prior year quarter. This modest decline reflects the increasing contribution of newly launched cities where consumer engagement is still developing. We expect engagement to strengthen as these markets mature. Our ride-hailing service continues to be the primary driver of platform growth and consumer acquisition. As of September 30th, all-time unique ride-hailing riders grew by 81% year-over-year from 2.8 million to 5.1 million, and all-time registered ride-hailing drivers grew 54% from 387,000 to 597,000.

[Oğuz Alper Öktem, Founder at Marti Technologies]

During the third quarter, we added a record 650,000 new riders and 53,000 new registered drivers, further strengthening the scale and liquidity of our marketplace. Once again, we exceeded our targets, which were 4.9 million riders and 580,000 drivers by the end of the third quarter. Our next milestone is to reach 5.65 million all-time unique ride-hailing riders and 630,000 registered drivers by 31st December, 2026. As our ride-hailing marketplace scales, multi-service engagement continues to strengthen and drive stronger platform economics. During the third quarter, multi-service consumers completed 3.2x more trips and generated 2.8x more revenue per consumer than single-service consumers. On the supply side, multi-service drivers completed significantly more trips than single-service drivers, 3.2x more for motorcycle drivers and 1.9x more for car drivers in Istanbul. Each new service we add strengthens utilization and deepens engagement on both sides of our marketplace.

[Oğuz Alper Öktem, Founder at Marti Technologies]

We continue to apply AI across our technology stack and operations to improve the efficiency of our marketplace. A good example of this is the core of our marketplace, our dynamic pricing and matching systems. Our teams continuously refine these AI models to better balance consumer demand and driver supply in real time, match each request with the most suitable driver, and improve trip completion rates. In the third quarter, we continued to work on our elasticity measurements, supply and demand forecasting, and batch matching algorithms. As our platform expands, the growing volume of transactions provide additional data to continuously refine these systems. We believe these capabilities will become increasingly important in helping us manage a larger marketplace more efficiently while maintaining a high-quality consumer and driver experience. On interesting news, we also made meaningful progress in autonomous mobility this quarter.

[Oğuz Alper Öktem, Founder at Marti Technologies]

As autonomous vehicle technology continues to develop, we believe the key to bringing it to Türkiye will be connecting technology providers with consumer demand and the infrastructure required to operate in each market. Our approach is to build a multi-partner autonomous mobility ecosystem in the country, working with multiple partners and selecting autonomous driving technologies best suited for Türkiye. Marti brings three things to this ecosystem: our leading mobility super app and the rider demand it aggregates, our established operational infrastructure, and our ability to engage with regulators and public sector stakeholders. Following our multi-year strategic partnership with Tensor in October, we expanded this ecosystem through a partnership with CalmCar, a provider of autonomous driving solutions. The first CalmCar-equipped vehicle has arrived in the country, and we expect to begin closed area testing in Istanbul, subject to obtaining the required test permits.

[Oğuz Alper Öktem, Founder at Marti Technologies]

We are also in discussions with additional autonomous vehicle partners. With that, I will turn the call over to my partner, Cankut, to discuss our financial results in greater detail.

[Cankut Durgun, Co-Founder at Marti Technologies]

Thank you, Alper. Our third quarter results demonstrate the significant operating leverage in Marti's business model. We continued to grow the platform rapidly while keeping cost growth well below revenue growth. This translated into record gross profitability, positive income from operations for the first time, and our second quarter of positive free cash flow. Let me now walk you through the financial results in more detail. Trips increased 46% year-over-year, and unique platform consumers grew 54%, driven by increasing ride-hailing usage in our existing cities and the launch of new cities. We ended the quarter with 5.1 million all-time unique ride-hailing riders and 597,000 registered drivers. As part of our two-wheeled electric vehicle fleet optimization strategy, we continued to gradually decommission our two-wheeled electric vehicles, which were first introduced on the field in 2021 and have therefore already been active for over five years.

[Cankut Durgun, Co-Founder at Marti Technologies]

We reduced average daily vehicles deployed from 22.3 thousand in the third quarter of 2025 to 20.8 thousand in the third quarter of 2026. On the financial side, revenue more than doubled, while cost of revenues and total operating expenses grew at a much slower pace. As a result, our gross profit margin reached a record 81%. Income from operations turned positive for the first time in our history, and adjusted EBITDA nearly doubled from the prior quarter's figure. Let me now walk you through some of these figures in a bit more detail. On the revenue side, quarterly revenue grew for the sixth consecutive quarter. Third-quarter revenue increased to a record $24.7 million, an increase of $13.9 million compared to the prior year quarter. Driven by increasing trip volumes and continued platform monetization, revenue has persistently more than doubled year-over-year in each quarter of 2026.

[Cankut Durgun, Co-Founder at Marti Technologies]

This growth comes with significant economies of scale. Since the first quarter of 2025, revenue has grown 4.1x, while cost of revenues has grown just 1.2x. As a result, our cost of revenues has fallen from 63% to 19% of revenue. Our Q3 gross profit of $20.2 million implies a record 81% gross profit margin. Our gross profit margin has expanded in every quarter since the beginning of 2025. Perhaps the most significant financial milestone we achieved this quarter was getting to positive income from operations for the first time in our history. Income from operations came in at $2.7 million. This is compared to a loss of $8.8 million in the prior year quarter and represents an improvement of $11.5 million.

[Cankut Durgun, Co-Founder at Marti Technologies]

Our operating margin improved from negative 81% in the third quarter of 2025 to positive 11% this quarter after a steady improvement each quarter this year. Adjusted EBITDA, which turned positive for the first time last quarter, reached $5.6 million in the third quarter, nearly doubling from $2.9 million in the second quarter and improving $9.2 million year-over-year. Adjusted EBITDA margin expanded to 23%. For the first nine months of 2026, adjusted EBITDA was $8 million. This compares to negative $9.6 million in the same period last year and represents a $17.6 million improvement in just one year. Our net loss narrowed 91% year-over-year to a near break-even $1 million. This is a $10.1 million improvement from an $11.2 million net loss in the third quarter of 2025.

[Cankut Durgun, Co-Founder at Marti Technologies]

Third quarter included $2.2 million of non-cash share-based compensation expense. Excluding this expense, we would have generated net income of $1.2 million in the quarter. Perhaps the most important validation of our improving business economics is that this operating leverage is now translating into cash generation. We generated $1 million of operating cash flow, and deducting property, plant, and equipment purchases from this figure, close to $1 million of free cash flow in the third quarter, marking our second consecutive quarter of positive free cash flow. Turning to our outlook for the year, we are reaffirming our fiscal year 2026 guidance of $85 million in revenue and $7 million in adjusted EBITDA. Our revenue of $60.1 million in the first nine months of 2026 already represents 71% of our full-year guidance.

[Cankut Durgun, Co-Founder at Marti Technologies]

By comparison, our revenue in the first nine months of 2025 represented 64% of our Full Year 2025 revenue. On adjusted EBITDA, with one quarter remaining, our nine-month figure of $8 million already exceeds our full-year guidance of $7 million. Taken all together, our third-quarter results demonstrate significant progress that we've made in scaling our platform and improving our financial performance. We've expanded our ride-hailing footprint to 40 cities, covering 90% of Türkiye's GDP. We've continued to grow our consumer and driver networks, and we've strengthened engagement across our multi-service platform. At the same time, we've reached important financial milestones, including record revenue and gross profit margin, positive income from operations for the first time, and a second consecutive quarter of positive free cash flow. We enter the final quarter of the year with strong momentum, and we remain focused on disciplined growth and continued margin improvement.

[Cankut Durgun, Co-Founder at Marti Technologies]

We believe that we're increasingly well-positioned to capitalize on the substantial opportunity in Türkiye's mobility market and adjacent markets while creating long-term value for our shareholders. We thank you for participating today, and we'd be glad to answer any questions you might have.

[Moderator]

Thank you. We'll now be conducting our question-and-answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment, please, while we pause for questions. Our first question is coming from Fawne Jiang from StoneX. Your line is now live.

[Fawne Jiang, Analyst at StoneX]

Yeah. Thanks for taking my question. First of all, congrats on a very strong quarter. I want to follow up on your guidance. Again, very strong performance year to date. I think if I calculate correctly, you already surpassed your full year EBITDA guidance of $7 million target. I guess the question here is, should we interpret that you did not reach your full year guidance? I guess the question here is, should we interpret that as conservatism, or are there any meaningful incremental investment or seasonal headwinds we should be factoring in for Q4? More importantly, how should we think about 2027?

[Cankut Durgun, Co-Founder at Marti Technologies]

In terms of the fourth quarter, seasonally, the fourth quarter is generally slower in our business than the second and third quarters. Historically, that's been as valid for our ride-hailing business as it has been for our two-wheeled electric vehicle business. As a result, we should expect continued strong performance in the fourth quarter, but not a major uplift, which is the reason for not revising the revenue guidance that we have placed for the full year. From an adjusted EBITDA perspective, you're right, Fawne. We did already surpass in the first nine months the full year figure, and the fourth quarter is going to be a quarter where we are going to be thinking heavily, as we already have been, about how to invest marketing in an effective way in order to position the company for the highest growth possible in 2027.

[Cankut Durgun, Co-Founder at Marti Technologies]

That's the reason why, together with a bit of conservatism on our side, you are right, but also together with increased marketing actions that we've started taking, that's why we haven't revised the adjusted EBITDA guidance for the Full Year 2026. We are going to be looking to see some of the returns on these marketing investments, which will inform the 2027 forecast, and we do foresee releasing that before the end of the year as well.

[Fawne Jiang, Analyst at StoneX]

That is fair. Thanks for the clarification. Second question regarding your monetization opportunities across your 40 cities, that is actually where you are operating right now. Last quarter, you mentioned that monetization was only on seven cities, given take, and effective take rates around 18%. Has that changed in this quarter? How should we think about the timing and the pace of monetization in the newer cities, particularly heading into 2027?

[Cankut Durgun, Co-Founder at Marti Technologies]

We still monetize, I believe it is eight or nine cities, so certainly less than 10, and the effective take rates have not changed. Most of the cities that we launched, right? So while we are active in 40 cities right now, the vast majority of those, I believe 20 of those were launched in the last four months or so, and there is another 16 which were launched in the last year and a half or so.

[Cankut Durgun, Co-Founder at Marti Technologies]

If you take Istanbul as a proxy, right, we only began monetizing Istanbul two years after the launch of the city. That is the reason why we do not foresee adding new cities to the monetization mix at a significant pace beyond waiting instead for them to reach their, let us say, two and a half year mark. So that is the reason why we haven't baked in any take rate increases either.

[Fawne Jiang, Analyst at StoneX]

Got you. Switching gears back to your operating leverage. Your gross margin reached 81.5% for the quarter, already above the 80% sustainable level, as we discussed last quarter. What drove the incremental improvement? More importantly, how should we think about the long-term gross margin fading? Given the structural, say, cost advantage in Türkiye, do you see the potential adjusted EBITDA margin eventually to get to 50%, 60% range when you scale?

[Cankut Durgun, Co-Founder at Marti Technologies]

The gross margin numbers as well as the adjusted EBITDA margin levels, as well as what they are going to be at steady state, I think we need to take them sort of quarter by quarter, because we do have analogies that we can look at in terms of international ride-hailing firms and what their gross margins are and what their adjusted EBITDA margins are. We do believe that we have specific structural advantage as a result of operating in Türkiye, whether that is in terms of insurance premiums, whether that is in terms of lower cost labor structures, that do give us the ability to achieve higher than international benchmark gross margin and adjusted EBITDA figures. I think we are beginning to demonstrate that, right?

[Cankut Durgun, Co-Founder at Marti Technologies]

The increase that you highlighted in the gross margin to 81%, as well as the increase in the adjusted EBITDA margin to 23%, those are supportive of the thesis that we laid out in, I believe it was last quarter's call for the first time. We are going to see where they end up. We are going to continue to track these on a quarter-by-quarter basis and see what the steady state numbers end up being.

[Fawne Jiang, Analyst at StoneX]

Hi, Mr. Congrats again on a very strong quarter.

[Cankut Durgun, Co-Founder at Marti Technologies]

Thank you.

[Moderator]

Thank you. Next question today is coming from Poe Fratt from Alliance Global Partners. Alliance, you are live.

[Poe Fratt, Analyst at Alliance Global Partners]

Hello, Cankut. Can you highlight the changes in the October 2029 Convertible Notes agreement? Would you also clarify the issuance of 5 million shares to Callaway? When would that occur?

[Cankut Durgun, Co-Founder at Marti Technologies]

The October 2029 Convertible Note agreement was originally an agreement, a financing agreement that we had the ability to draw down on until the end of 2026. It was an agreement that we did not need, we did not foresee needing the financing, but in the event of it becoming necessarily, primarily for potential competitive reasons, secondarily to further accelerate growth, we wanted to have that available. We decided to continue to have it available in 2027, actually through the mid-2028. We extended it through July 2028, and the commitment shares are as part of the financing agreement rewarded in order for the financing partner giving us the optionality to draw down on that $100 million facility should it become necessary.

[Poe Fratt, Analyst at Alliance Global Partners]

To clarify, when will those shares be issued as the notes are drawn down, Cankut, or will they be issued this quarter?

[Cankut Durgun, Co-Founder at Marti Technologies]

They will be issued this quarter.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. On the management incentive program, it looks like you have created RSUs, I think for the first time. Can you clarify that? With the new shares that you issued to Callaway and then the RSUs or the PSUs, I think they are RSUs, can you just give me an idea of where your diluted share count will be at the end of the year?

[Cankut Durgun, Co-Founder at Marti Technologies]

The details of the financing arrangement as well as the management incentive plan are fully in the filings that we shared, and the figures are there as well. The management incentive plan is in the amount of 10% of fully diluted outstanding shares, and part of it is being allocated currently, part of it will be allocated in the future, and that can be added to previous fully diluted share counts in order to arrive at the ultimate number. I would need to look up the specific filings to have a more concrete number that I can get back to you with after this call.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay, that would be great. I am sort of thinking more like 100 million diluted shares. Can you talk about rolling out into the 10 incremental cities that you announced in October, well in advance of when you think they will generate revenues, on top of the 10 you rolled out in the third quarter? Is that going to change your cost structure at all, looking at 2027?

[Oğuz Alper Öktem, Founder at Marti Technologies]

I guess I will answer this. We are looking to expand our business as fast as we can to as many cities as possible in the shortest amount of time. Thankfully, our business allows for us to launch these new cities without much investment locally. We operate out of Istanbul, this is where our HQ is, and whenever we are launching a new city, it is just switching the city on and doing marketing activities there. So the cost structure per city launch is not going to be much different than it has historically been. We also cover already 85%-90% of the GDP of the country, so the cities we are launching now are not as large as the ones we launched previously. As we are rolling out newer cities, we are reaching smaller and smaller and smaller markets as we go along.

[Oğuz Alper Öktem, Founder at Marti Technologies]

The real growth is coming from the growth of the cities that we launched earlier. I don't foresee any significant cost changes to our new city launches going forward. We actually will be reaping the benefits of the launches we've done over the past few years.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. Cankut, can you just Your gross margin was over 80%. I think on the last call, you sort of alluded to there being a hard cap at 80%. Can you just help me understand how you got above that? It looks like discounts dropped from 10% to a little under 9%, but can you just sort of give me a little more color on how you're thinking about that hard cap? Any color would be helpful.

[Cankut Durgun, Co-Founder at Marti Technologies]

I'm learning as we go along as well. This is uncharted territory, right? A ride-hailing firm with these margins. It's where that hard ceiling is, if there is a hard ceiling. What I referred to in the last quarterly call was that this isn't the SaaS business at the end of the day, right? We do have an offline service that we're delivering, and therefore there are certain cost items related to delivering what is ultimately an offline service that do exist, which don't exist for fully online digital services. Therefore, I was estimating that 80% would probably be a good ballpark for where our gross margin could head to. We have hit that number as early as the immediate quarter, so perhaps I wasn't optimistic enough about where this will be. This is going to be something that we'll continue to monitor on a quarterly basis.

[Poe Fratt, Analyst at Alliance Global Partners]

But I guess, would you think that the hard cap is, or the ceiling, as you put it, is closer to 85%, or you're not changing that sort of your view on the ceiling?

[Cankut Durgun, Co-Founder at Marti Technologies]

We're going to continue to monitor it on a quarterly basis.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay, great. Thanks for your time.

[Moderator]

Thank you. Our next question is coming from Rich Ryan from Oak Ridge Financial. Your line is now live.

[Rich Ryan, Analyst at Oak Ridge Financial]

Thank you. Alper, you had a nice, obviously, the legal win in the quarter at the appeals level. It certainly looks like that arena is changing because initially it was the lower court, then going up to the appeals court, back to the lower court. So now it looks like that dynamic is changing with the appeals ruling and then obviously going to a higher court at some point. Can you just kind of put in perspective where you're currently sitting, what your current thoughts are on the legal issue?

[Oğuz Alper Öktem, Founder at Marti Technologies]

Can, do you want to take this or?

[Cankut Durgun, Co-Founder at Marti Technologies]

You can go ahead.

[Oğuz Alper Öktem, Founder at Marti Technologies]

All right. The development of ride-hailing has never been easy in any country, let alone Türkiye. Türkiye is the one that's catching up with the rest of the world. It is a legal battle on all fronts, but our base case is strong, and that's why we're operating at scale without any impediment to our business. As you've very thoughtfully summarized, it was the first court of first instance that this started in. There were a few decisions that were made, and then the Court of Appeals sort of overturned them. But the final decision on the 14th Court of Appeals of the City of Istanbul is very indicative of how this business model is viewed nationally. It basically says, there is the freedom of enterprise and entrepreneurship in the Turkish constitution, and no service specifically banned by any law cannot be shut down by the courts.

[Oğuz Alper Öktem, Founder at Marti Technologies]

That is a more theoretical and overarching decision than the technicalities of ride-hailing itself. We see our court cases slowly disappearing into the background and becoming noise as we scale even further and extending our services to as many people as possible. This is obviously going to go to a higher court, but we know that our base case assumptions and base case legal position is very strong, and we will continue to operate while working on these court cases one by one. The tactic here is obviously by our opponent is to turn this into a war of attrition, or as many court cases as possible, just trying to overwhelm us with sheer volume. But that technique is clearly not working, and we're winning on all fronts, and we are growing very rapidly.

[Rich Ryan, Analyst at Oak Ridge Financial]

Thank you. Obviously, your results are impressive. What is the competition? I mean, is there any competition out there that you are seeing that are taking notice of your successes? Are you running into any issues, or are you anticipating any in the near term?

[Oğuz Alper Öktem, Founder at Marti Technologies]

I mean, right now we are 100% focused on our product, our services, and our expansion. Right now, there is no meaningful competition. I do not know if any will show up, but no market is ever monopoly for long, if it is correct to use the word here. But for now, I think we are basically selling water in the desert in the sense that Türkiye is parched when it comes to tech-enabled mobility services, especially ride-hailing. And wherever we are launching, we are getting good results, and we will continue to do so in the near future.

[Cankut Durgun, Co-Founder at Marti Technologies]

We do.

[Rich Ryan, Analyst at Oak Ridge Financial]

Great. Thanks for taking my question.

[Cankut Durgun, Co-Founder at Marti Technologies]

Look at the transportation

[Rich Ryan, Analyst at Oak Ridge Financial]

Go ahead. Sorry, Can.

[Cankut Durgun, Co-Founder at Marti Technologies]

Sorry, I was just going to add, I mean, if we look at the transportation space, right, the transportation space in Türkiye, while we are the market leader, it is competitive, right? So, whether it is car-based transportation, whether it is a public transportation, whether it is the two-wheeled electric vehicle category, the only area where we have a clear leadership position is in a sub-segment of the overall transportation space, which is specifically car-hailing and motorcycle-hailing. But that is a sub-segment which, relative to the sort of total volume of trips, right, we always share that the transportation space is one which, across the country, is going to be having close to 4 million daily trips, right? We shared, for example, as of the third quarter, that we completed the quarter with about 22 million. Right?

[Cankut Durgun, Co-Founder at Marti Technologies]

So, if you take 22 million and you annualize that figure, you're at sub 100 million trips in a market that we believe is going to carry 4 million daily, which on an annual basis, that would suggest over 1 billion trips. So, we're still very early, we believe.

[Rich Ryan, Analyst at Oak Ridge Financial]

Good perspective, Cankut. I appreciate it. Thanks for taking the questions, and congratulations on another impressive quarter.

[Cankut Durgun, Co-Founder at Marti Technologies]

Thank you.

[Moderator]

Thank you. Our next question is coming from Theodore O'Neill from Litchfield Hills Research. Your line is now live.

[Theodore R. O'Neill, Analyst at Litchfield Hills Research]

Hey, thanks, and congratulations on the great quarter. Cankut, I wonder if you could just give us some highlights of what we could expect to see on the autonomous vehicle front going forward, I'd say over the next 6-12 months, whether that has any operational expense or CapEx impact on the company.

[Cankut Durgun, Co-Founder at Marti Technologies]

The autonomous vehicle partnerships that my partner, Alper, highlighted are first, they're in pilot form. I believe the most advanced city globally has hundreds, if not thousands, of autonomous vehicles operating in it. These are pilot agreements with the goal of, in each case, deploying sub 10 vehicles over the next year. These are very early stage, and both due to their early stage as well as due to, as a result of their early stage, the financing vehicles in order to scale these fleets have yet to be determined.

[Cankut Durgun, Co-Founder at Marti Technologies]

Whether it's going to be Marti financing or third-party financing, at the current stage, they don't have a significant impact on our financials, either from a cost perspective or from a revenue perspective, because we don't anticipate that even when they are launched, when we have approaching 600,000 drivers offering ride-hailing service, having a few autonomous vehicles are not going to have a significant impact on the revenue side or on the cost side in the short term.

[Theodore R. O'Neill, Analyst at Litchfield Hills Research]

But it's important to be there strategically.

[Cankut Durgun, Co-Founder at Marti Technologies]

Exactly. That's the goal. What we believe is, we believe in bringing innovation, and especially tech-enabled urban transportation innovation to Türkiye. Just like we took the lead in the launch of two-wheeled electric vehicles, just like we are taking the lead in, hopefully, the introduction of ride-hailing at scale into Türkiye, we would like to be in a similar position for autonomous vehicles.

[Oğuz Alper Öktem, Founder at Marti Technologies]

Let me add something. Marti was originally, although it is a much smaller portion of our business now, we were originally a micro-mobility company, a two-wheeled electric vehicle sharing company. What that means is, we had maybe 30,000-40,000 vehicles on the street at some point, and that means charging and swapping batteries of 40,000 vehicles a day. That is 40,000 little deliveries every single day, charging stations, maintenance infrastructures, maintenance employees, spare parts, transportation, sourcing, efficient management of logistics of these vehicles, monitoring them online and on the field, theft and vandalism prevention. This was in 20 cities. Our core competency is on the field as operators. This autonomous vehicle angle comes to us so naturally, and our team is so easily able to handle this. I think we have a huge strategic and technical advantage because of our experience of doing so in the field.

[Oğuz Alper Öktem, Founder at Marti Technologies]

There is not much of a difference between. Now, obviously, it is two very different vehicles, I mean, electric mopeds and autonomous cars, but the logic of it, the logistics of it, the operations of it are very significant. There is a lot of stuff that translates into this AV business. I think as this thing scales, we will be better than literally anybody else in the market in managing it as efficiently and as effectively as possible, because we have the expertise, we have the teams in place, and we have been doing this nearly a decade now.

[Theodore R. O'Neill, Analyst at Litchfield Hills Research]

Okay. Great point. Thanks very much.

[Moderator]

Thank you. We reached the end of our question and answer session. Ladies and gentlemen, that does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Participants

Executives

• OÄŸuz Alper Öktem, Founder
• Cankut Durgun, Co-Founder

Analysts

• Moderator
• Fawne Jiang, Analyst at StoneX
• Poe Fratt, Analyst at Alliance Global Partners
• Rich Ryan, Analyst at Oak Ridge Financial
• Theodore R. O'Neill, Analyst at Litchfield Hills Research