Delivery Hero Q1 Earnings Call Highlights

Key Points

• Delivery Hero accelerated Q1 growth with group GMV up 8.8% like‑for‑like and orders up 10%, while quick commerce now accounts for 18% of group GMV and grew 30% in the quarter.
• Management reiterated confidence in hitting the upper end of its 2026 adjusted EBITDA guidance (EUR 910–960m) and expects free cash flow comfortably above EUR 200m, and said a share buyback is not planned as it preserves liquidity and optionality.
• The strategic review remains a priority: Delivery Hero has agreed to sell Taiwan for $600 million, expects to close in H2 with an update by early June, and will operate the tech platform for up to one year post‑close.

Delivery Hero ETR: DHER reported an acceleration in group growth and reiterated confidence in reaching the upper end of its 2026 profitability guidance, as management highlighted progress in quick commerce, subscriptions, and artificial intelligence initiatives during its Q1 2026 trading update.

Growth accelerates as quick commerce expands

CEO Niklas Östberg said the quarter delivered “three key messages,” led by faster growth. Group GMV grew 8.8% like-for-like in Q1, up from 7.9% in Q4, while group order growth accelerated to 10% from 9% in Q4, according to CFO Marie-Anne Popp. Östberg also pointed to quick commerce as a core driver, noting it now accounts for 18% of group GMV and grew 30% in the quarter.

Östberg framed the performance as evidence that the company’s “Everyday App” strategy is working, aimed at expanding beyond restaurant delivery into groceries and broader retail categories. He said Delivery Hero’s platform includes 1.5 million vendors, 60 million monthly active users, and more than 80 fulfillment centers.

Among the engagement metrics highlighted, Östberg said 55% of GMV is generated by customers engaging across multiple verticals, while 43% of group GMV comes from subscribers. He also said Delivery Hero delivers “as fast or faster than our competitors” in 96% of markets, and cited an 8% reduction in rider waiting times at restaurants and 50% year-over-year growth in priority deliveries.

Management confidence in 2026 guidance strengthens

Östberg said the company’s recent investments are supporting “higher profitable growth,” and that Delivery Hero is confident it can achieve adjusted EBITDA “in the upper end” of its EUR 910 million to EUR 960 million guidance range, with free cash flow “comfortably above EUR 200 million” for 2026. Popp echoed the outlook, saying the strong start to the year and positive results from investments in MENA, Asia, and quick commerce support delivery in the “upper half” of the adjusted EBITDA range.

Asked why confidence improved shortly after the annual results, Östberg said the company has gained more visibility into returns from investments—particularly in quick commerce in the Middle East and in South Korea—compared with what it could observe earlier in the year. Popp added that the company is seeing how growth in Q1 is translating into profitability.

On capital returns, Popp said a share buyback is not currently planned. She emphasized the importance of maintaining “flexibility” and “optionality” in liquidity and capital structure, and noted the company has recently bought back convertible bonds to address debt maturities and extend visibility “all the way into 2028.”

Strategic review: Taiwan sale agreed; update planned by early June

Östberg said the strategic review remains the top priority for the supervisory board and management board. He reiterated that Delivery Hero has agreed to sell Taiwan for $600 million and remains on track to close the transaction in the second half of the year.

He said the review is designed to help the company “go deeper, not broader,” by tightening its geographic footprint, sharpening focus on leading geographies, and strengthening the balance sheet while optimizing capital structure. Östberg said advisors have been engaged to evaluate specific assets, alongside work on operational efficiencies, organizational improvements, and a capital allocation framework. Management intends to share an update by early June.

However, Östberg cautioned that any asset disposals or M&A announcements would be communicated “as they come,” and should not be expected to coincide with the strategic review update. Responding to follow-up questions on timing, he said he could not comment further.

On the operational implications of the Taiwan divestment, Östberg said Delivery Hero will run the tech platform for up to one year after the deal closes and will be compensated for providing that service to the buyer, Grab. He added that Taiwan represents a “small portion” of the unified platform used by brands including those in APAC, Turkey, and Europe/foodora.

Regional performance: MENA strength, Korea returns to growth, Europe transitions

Popp said Q1 revenue rose 18%, outpacing order and GMV growth, driven by the scaling of Delivery Hero’s own delivery logistics—particularly in South Korea—as well as contributions from AdTech, subscription programs, and the company’s Dmarts business.

MENA: Popp said the region re-accelerated versus Q4, with broad-based strength across HungerStation and talabat markets and particularly strong quick commerce growth. Saudi Arabia recorded the group’s highest subscriber penetration, with subscriptions at 61% of GMV, and “talabat is following suit,” she said, while reiterating that talabat will report separately. She added that talabat saw healthy GMV growth in January and February, and that March conflict conditions shifted consumption toward eating at home and heightened grocery demand, with support from the timing of Eid. Popp said the company is monitoring geopolitics closely.

Östberg also discussed Saudi Arabia’s competitive environment, where a discount-driven competitor entered in September 2024. He said Delivery Hero focused on customer experience rather than discounting, strengthening subscriptions, expanding vendor selection including quick commerce and dark kitchens, and increasing vendor-funded deals. He said vendor-funded deals rose 8 percentage points year-over-year, improving affordability “at no additional cost for us.” He added that growth accelerated after the annualization of the competitor’s entry and that margin impact has been limited, with category share gains versus Q4 2025.

Östberg clarified that the Iran conflict provided an “extra high single-digit” uplift to orders in March, but said GMV growth in Saudi Arabia was above 20% even prior to the conflict. Later in the call, he said the conflict-related uplift did not persist: April saw a brief headwind in the first half of the month, but trends returned to “back to normal” in the last couple of weeks, with “near no impact” at the time of the call.

Asia: Popp said South Korea returned to positive order and GMV growth in Q1 after two years of rebuilding the operating model, and investments have started to pay off. Delivery Hero continued rolling out its own delivery logistics, lifting own-delivery share in Asia by 12 percentage points to 77%. She also said 50% of GMV in South Korea was attributable to subscribers in Q1. Quick commerce GMV in Asia grew 27% year-over-year, driven by campaigns, inventory growth, and expansion of local shops.

On investment timing, Östberg said returns are typically compounding rather than immediate, especially for customer acquisition, and contrasted this with short-term voucher-driven growth that he said does not drive repeat behavior. He also described opportunities in Korea from increased vendor funding, logistics efficiencies, and AdTech, while noting the market is “not fully integrated into global tech stack,” which he said is a disadvantage for growth and profitability.

Europe: Popp said the shift to an employment-based rider model in Spain, completed in July 2025, created transitory headwinds and moderated GMV growth temporarily. She said growth gains are already emerging in Spain through improved execution and customer experience, and she expects accelerated top line growth in the second half as the effects annualize. Subscription penetration in Europe remained lower than other regions, with 22% of GMV from subscribers, while quick commerce reached a record high in active users in March. Popp added that Europe’s AdTech business posted 34% revenue growth, with rapid scaling of AdTech integration within Glovo.

Americas: Popp said order growth accelerated to 25% in Q1, with 13 of 15 markets growing above 20% year-over-year. Quick commerce in the region grew 34% year-over-year, and subscription reached 37% of total orders. Revenue growth surpassed 20%, and AdTech revenue rose 33%, with Popp also pointing to scaling fintech as a complementary growth engine.

AI and advertising: operational automation and retail media ramp

Östberg said Delivery Hero is accelerating AI initiatives, including automating 85% of first-line service contacts, rolling out AI agents for sales and support, and launching conversational ordering. He also highlighted “Herogen,” an autonomous AI coding agent that he said can handle the full software development lifecycle, with an annual output equivalent to 130 engineers and growing at “double digits per week.”

On advertising, Östberg said Delivery Hero has prioritized AdTech on the restaurant side and views grocery and retail advertising as “much more early stage.” He cited annualized retail media revenues of over EUR 100 million in integrated verticals and said the company expects faster growth as it reallocates focus toward non-restaurant advertisers, including CPG companies.

In Q&A, Popp said there were no new updates beyond prior disclosures regarding judicial matters in Italy and legal challenges in Spain.

About Delivery Hero ETR: DHER

Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.