Delivery Hero ETR: DHER reported accelerating second-quarter growth and raised its full-year outlook across gross merchandise value, revenue, adjusted EBITDA and free cash flow, as the company said investments in its “Everyday App” strategy were supporting both customer engagement and profitability.
Chief Executive Officer Niklas Östberg said group GMV rose 11.3% on a like-for-like basis in the second quarter, accelerating from 8.8% growth in the first quarter. Adjusted EBITDA increased 4%, or 11% on a like-for-like basis, despite what the company described as a period of heightened investment.
For the first half, Delivery Hero reported GMV of €25.7 billion, up 10% like-for-like, while revenue rose 18% like-for-like to €7.8 billion. Adjusted EBITDA increased 4% year over year to €427 million. Free cash flow before extraordinary items reached €348 million, although the company said this result benefited from working-capital timing effects that are expected to reverse in the second half.
Guidance Raised After Strong First Half
Delivery Hero increased its 2026 outlook following the first-half performance. The company now expects:
- Like-for-like GMV growth of 9% to 11%, compared with prior guidance of 8% to 10%.
- Like-for-like revenue growth of 17% to 19%, up from 14% to 16%.
- Adjusted EBITDA of €960 million to €1 billion, compared with a previous range of €910 million to €960 million.
- Free cash flow before extraordinary items of more than €250 million, up from more than €200 million.
In the second quarter, orders grew 11% like-for-like to 981 million, while GMV reached €13.2 billion and revenue totaled €4 billion. Revenue growth outpaced GMV growth, which Chief Financial Officer Marie-Anne Popp attributed to the scaling of Quick Commerce, subscription and advertising offerings, and the expansion of the company’s own delivery operations.
Popp said the company expects free cash flow to be negative in the second half as working-capital benefits reverse, Dmart capital expenditures and lease payments increase, and tax payments rise.
Quick Commerce and Subscriptions Drive Engagement
Östberg said the Everyday App strategy is intended to broaden Delivery Hero’s offering beyond food delivery into grocery and non-grocery categories. Quick Commerce accounted for 18% of group GMV and grew 32% like-for-like during the quarter.
The company’s Dmarts, or grocery fulfillment centers, were a major contributor to that growth. Dmart orders increased 39% year over year in the second quarter, marking the sixth consecutive quarter of acceleration since the first quarter of 2025. Orders per store rose 28%, which Östberg said indicated growth was being driven by existing locations rather than store openings alone.
Subscribers represented 47% of group GMV, up 12 percentage points from a year earlier. In Saudi Arabia, subscribers accounted for 63% of GMV, the highest share in the group. Östberg said customers using multiple Quick Commerce verticals spend five times more than single-vertical customers.
The company also highlighted artificial-intelligence tools for merchants. Östberg said an AI assistant at Glovo helps restaurants identify opportunities such as underperforming dishes, unanswered reviews and promotional timing. Restaurants using the tool increased orders by 15%, he said. The tool currently supports more than 40,000 partners out of approximately 1.5 million on the platform.
Regional Results
In MENA, GMV increased 15% like-for-like to €2.4 billion, while segment revenue rose 14% to €1.08 billion. Saudi Arabia delivered further growth acceleration, according to Popp, with Quick Commerce growth exceeding 60%. MENA adjusted EBITDA was marginally softer in the first half as the business absorbed investments and Talabat shifted its mix toward groceries and retail.
Asia GMV grew 6% like-for-like, with the company citing an improving performance in South Korea. Segment revenue increased 11% like-for-like to €1.63 billion. Quick Commerce in South Korea grew 39% year over year, while the share of own delivery logistics in Asia rose five percentage points to 78%.
Responding to an analyst question, Östberg said foreign-exchange movements had weighed on reported results in South Korea, while like-for-like order and GMV growth were stronger. He characterized the market as mature but said Delivery Hero had seen a generally positive category-share trend over the past 12 to 18 months and expected continued Quick Commerce momentum.
Europe generated 8% like-for-like GMV growth to €2.6 billion and 8% revenue growth to €662 million. Advertising technology revenue in Europe grew 32% year over year, while the segment’s adjusted EBITDA-to-GMV margin improved by 70 basis points.
In the Americas, GMV grew 29% like-for-like to €1.35 billion, accelerating from 18% in the first quarter. Revenue increased 31% to €325 million. Adjusted EBITDA rose 52% year over year to €70.3 million in the first half.
Uber Offer and Asset Sales
Östberg also updated investors on Uber’s proposed public takeover offer for Delivery Hero shares it does not already own. Uber announced the proposed cash offer of €41.50 per share on July 16, which Delivery Hero said represented an approximate 35% premium to the three-month volume-weighted average share price before the announcement.
The management board and supervisory board unanimously support the offer and intend to recommend that shareholders tender their shares, subject to their review of Uber’s published offer document. The initial acceptance period began on the date of the call and is scheduled to end Nov. 5, 2026. Closing is expected in the second half of 2027, subject to customary conditions and regulatory approvals.
Delivery Hero also said it plans to sell businesses in 14 countries to SSW Partners for approximately €1.4 billion as part of the transaction structure. Separately, the company expects its previously announced $600 million sale of its Taiwan business to Grab to close in the fourth quarter.
Östberg said the company had evaluated a broad range of strategic alternatives and concluded that the Uber transaction was the best outcome for shareholder value. He said Delivery Hero had worked with antitrust advisers on the transaction structure and was confident the deal would receive approval, though he acknowledged the process could take time.
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.
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