Delivery Hero (ETR:DHER) executives said the company ended 2025 with improving momentum across growth, profitability and cash generation, while reiterating plans to “lean in” with higher investments in 2026—particularly in the Middle East, South Korea and integrated verticals.
On the call, CEO Niklas Östberg described 2025 as “a challenging year with tough competition, FX headwind, and regulatory uncertainties,” but said the company delivered on several priorities, including a return to growth in Korea, completion of rider model changes in Spain and Italy, and accelerated growth in Saudi Arabia late in the year. CFO Marie-Anne Popp said Q4 showed “further improvements in our three main focus areas: top-line growth, profitability, and cash generation.”
Quick Commerce grows faster than food delivery
Management said Quick Commerce is “currently outpacing food delivery,” citing GMV growth of more than 30%. Within Quick Commerce, the company highlighted momentum in non-grocery categories: health and beauty was said to be growing more than 50% year over year, while non-grocery overall represented 20% of Quick Commerce volume.
The company said Quick Commerce GMV surpassed EUR 7.5 billion in 2025 and reiterated a target of around EUR 10 billion in 2026.
AdTech nears prior revenue ambition; AI seen as a tailwind
Östberg said Delivery Hero came “very close” to its previously stated ambition for AdTech to reach more than EUR 1.5 billion of revenue in 2025, noting that results were held back by a slower rollout in South Korea. He said AdTech revenue as a share of GMV reached 3.0% in 2025, and 3.2% in Q4, with “very attractive adjusted EBITDA margins.”
He also highlighted product and targeting improvements, including a personalized ad ranking system using neural networks and machine-learning-based automated bidding and pacing. Management said return on ad spending improved from 3.9x to 6x between 2022 and 2025, which they said helped unlock additional vendor investment.
Looking ahead, the company reiterated a long-term ambition for AdTech revenue to exceed 4% of GMV, identifying Woowa, Global, and PedidosYa as key drivers because they remain below the group average but are “growing strongly.” In the Q&A, Östberg said most AdTech revenue increasingly drops to the bottom line as the business moves from sales-led to more automated, self-service tools supported by AI.
More broadly, Östberg positioned AI as a benefit to Delivery Hero, arguing the company’s physical operations—logistics, merchant integrations, Dmarts, and kitchens—represent a structural moat that is harder to disrupt than purely digital products.
Q4 and full-year financial highlights
Popp reported that Q4 GMV increased 8% year over year on a like-for-like basis (excluding hyperinflation and FX effects), up from 7% in Q3, driven by improved momentum in Asia. Revenue rose 21% year over year on a like-for-like basis, again growing faster than GMV. The group’s gross profit margin expanded to a record 8.3% of GMV in Q4.
For full-year 2025, management reported:
- GMV growth of 9% year over year (like-for-like), after earlier guidance of 8%-10%.
- Total segment revenues up 23.1% year over year, within the 22%-24% guidance range.
- Adjusted EBITDA of more than EUR 900 million, within the EUR 900 million to EUR 940 million guidance range.
- Free cash flow of more than EUR 200 million, above guidance of more than EUR 120 million, attributed to improved working capital efficiency and lower tax payments.
Popp noted FX was a headwind in 2025, citing “particularly strong” impacts from the U.S. dollar and Korean won. In a Q&A exchange, she said FX reduced adjusted EBITDA by roughly EUR 100 million over 2025 (and free cash flow by about EUR 90 million), while adding that 2026 guidance commentary is based on current FX visibility and assumes a smaller, though still potential, headwind.
Regional performance: Europe transitions, MENA accelerates, Asia returns to growth
In Europe, management said GMV growth softened temporarily in the second half of 2025 as the company optimized operations after transitioning Spain’s rider fleet to an employment-based model. Popp said this will still affect the top line in the first half before growth is expected to re-accelerate in the second half of 2026. Europe’s own-delivery share reached 82% in Q4, and segment revenues grew 34% year over year, helped by the Spain rider-model change and revenue recognition, plus AdTech and higher basket sizes. Adjusted EBITDA in Europe was close to break-even in Q4, and the company expects to be around break-even for full-year 2026.
Popp also said Delivery Hero exited Finland as of mid-February after concluding that reaching category leadership would require “prolonged and disproportionate investment relative to the long-term returns.”
In MENA, management said the region delivered robust GMV growth despite tough comparables, and highlighted the rollout of “fair competition regulations” across Saudi Arabia, the UAE, Kuwait, and Qatar. Talabat posted 20% GMV growth in Q4 2025, which management said came despite exceptionally strong prior-year comparables. In Saudi Arabia, Popp said order growth picked up in December and continued through January and early February, supported by a stronger subscription offering, with half of Saudi GMV coming from subscribers.
In response to questions on Saudi regulation and market share, Östberg declined to provide share figures, arguing the company focuses on sustainable growth rather than “voucher-driven” volume. He said Saudi growth accelerated to above 15% in December and continued into 2026 without a “material downgrade to profitability,” adding that the company expects to grow profitability in Saudi this year.
In Asia, Popp said GMV returned to growth like-for-like in Q4 across the segment, supported by share gains since May and rising orders in South Korea. She cited 31% year-over-year growth in South Korea Quick Commerce. The “rest of Asia” delivered 11% GMV growth in Q4, and management said momentum should accelerate through 2026. Asia’s own-delivery share increased to 76%, while profitability declined due to investments in product and customer experience.
In the Americas, order growth accelerated to 24% in Q4, reaching 1 million average daily orders. GMV grew 17% year over year, with management noting hyperinflation accounting impacts from Argentina in the company’s EUR reporting framework. The company said Quick Commerce, subscriptions and AdTech supported growth, and adjusted EBITDA improved materially in 2025 despite macro headwinds.
Integrated verticals: profitability achieved; more investment planned
Popp said integrated verticals GMV rose 25% year over year and that adjusted EBITDA reached break-even for full-year 2025. She attributed the improvement to efforts including assortment expansion and pricing strategies. For 2026, the company expects a “small positive” adjusted EBITDA for integrated verticals, even as it invests in Dmarts expansion.
In Q&A, Östberg said the plan is to take integrated verticals to profitability and “maintain it there,” reinvesting incremental profit contribution into growth. Popp added that additional Dmarts investments—especially in the Middle East—should result in higher CapEx and an increased lease footprint as the store network expands.
The company said it will publish its 2025 annual report and full-year earnings release on March 26, when it will also provide formal 2026 guidance. Until then, it reiterated prior commentary that 2026 adjusted EBITDA growth is expected to be “up to a mid-single-digit %” as investments rise, while free cash flow is expected to be slightly above EUR 200 million.
Management also said a strategic review is ongoing, with executives declining to share interim details. Delivery Hero announced that Andrea Ferraz will join from Klarna in March as VP of Investor Relations and Corporate Communications.
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.
