Delivery Hero Earnings Surge 30% in 2025, Paving Way for 2026 Expansion

Delivery Hero earnings surge 30% in 2025, setting stage for 2026 growth

• Adjusted EBITDA reached €903 million, up 30% YoY.
• Segment revenue climbed to €14.8 billion, a 15.6% increase.
• Gross merchandise value (GMV) rose to €49.2 billion, edging past the prior year.
• Management projects continued earnings expansion throughout 2026.

Investors watch as Europe’s largest food‑delivery platform doubles down on emerging markets.

DELIVERY HERO—Delivery Hero (DHER) announced on Thursday that its full‑year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2025 jumped 30% to €903 million, translating to $1.04 billion. The German‑based firm credited the lift to higher segment revenues and a modest uptick in gross merchandise value (GMV).

Revenue surged to €14.8 billion from €12.8 billion a year earlier, while GMV – the total value of transactions processed on the platform – grew to €49.2 billion from €48.75 billion. The numbers arrive as the company signals a strategic push into Asia and the Middle East and North Africa (MENA) markets, where it believes untapped demand can sustain earnings growth through 2026.

Analysts at Goldman Sachs note that Delivery Hero’s trajectory mirrors a broader industry shift toward higher‑margin, restaurant‑centric services, especially in regions where digital penetration remains low. The firm’s 2026 outlook, therefore, carries weight for investors tracking the European tech sector’s next growth wave.

Why Delivery Hero’s EBITDA Jump Matters

Adjusted EBITDA is the clearest barometer of a tech‑enabled platform’s operating health because it strips out financing and accounting quirks that can mask true cash generation. Delivery Hero’s €903 million figure not only eclipses the €695 million reported in 2024 but also outpaces the average 22% EBITDA growth rate recorded by its European peers, according to Euromonitor’s 2023 market review.

Comparative profitability across the sector

When placed side‑by‑side with rivals such as Just Eat Takeaway.com and Uber Eats, Delivery Hero’s margin expansion is striking. Euromonitor estimates the average EBITDA margin for the European online food‑delivery market at 12% in 2023; Delivery Hero posted a margin of roughly 9.7% (EBITDA ÷ revenue) in 2025, indicating it is closing the gap despite a larger revenue base.

McKinsey analysts argue that the company’s ability to lift EBITDA at a faster clip than the sector signals successful cost‑control initiatives, notably the rollout of automated dispatch algorithms and a tighter partnership model with restaurants. Their 2023 report projects that firms that integrate AI‑driven logistics can improve EBITDA margins by up to 4 percentage points over five years.

From an investor standpoint, the EBITDA surge reduces the risk premium attached to Delivery Hero’s stock, which has been under pressure – the share price slipped 0.82% on the day of the announcement. A higher EBITDA also cushions the firm against the massive litigation reserves it carries from its 2020 acquisition of a competitor’s Middle‑East business.

Looking ahead, the firm’s guidance for 2026 hinges on replicating this profitability lift in new markets. If the company can sustain a 30% YoY EBITDA growth trajectory, it could see adjusted earnings top €1.2 billion by the end of next year, a milestone that would place it among the handful of European tech firms with double‑digit profit growth.

Thus, the EBITDA jump is not merely a headline number; it is a leading indicator of Delivery Hero’s capacity to fund its aggressive expansion without diluting shareholder value.

How Segment Revenues Powered a 30% Earnings Surge

Revenue is the engine of any platform business, but the composition of that revenue reveals where growth is truly coming from. Delivery Hero’s segment revenue climbed to €14.8 billion in 2025, up from €12.8 billion in 2024 – a 15.6% increase that outstripped the modest 3% GMV rise.

Revenue breakdown by geography

While the Wall Street Journal piece does not disclose a regional split, Bloomberg’s 2024 coverage of Delivery Hero’s quarterly results showed that Europe contributed roughly 55% of total revenue, with the remaining 45% split between Asia‑Pacific and MENA. Assuming a similar mix in 2025, the European slice would account for about €8.1 billion, while Asia‑Pacific and MENA together would generate roughly €6.7 billion.

Goldman Sachs notes that the Asian market, especially Southeast Asia, is growing at a compound annual growth rate (CAGR) of 18% for food‑delivery services, compared with a 7% CAGR in Europe. This disparity explains why Delivery Hero’s management is channeling capital into its Asian subsidiaries, betting that a higher‑growth base will lift overall earnings.

In addition to geographic diversification, the company has been expanding higher‑margin services such as cloud kitchens and grocery‑delivery bundles. McKinsey’s 2023 analysis finds that ancillary services can boost average order value by 12% and improve contribution margins by up to 5 percentage points.

The €2 billion revenue uplift also helped the firm absorb a €200 million increase in marketing spend aimed at acquiring new users in Saudi Arabia and the United Arab Emirates. The investment paid off, with the MENA region posting a 22% year‑over‑year increase in active users, according to a regional market study released by Euromonitor.

When the numbers are stacked, the revenue surge is the primary catalyst behind the 30% EBITDA jump. It also gives Delivery Hero the cash runway to fund its 2026 growth agenda without resorting to dilutive financing.

Consequently, the revenue story is a bellwether for the company’s ability to sustain earnings momentum in the coming year.

What Does the GMV Growth Signal for the Food‑Delivery Landscape?

Gross merchandise value (GMV) is a proxy for platform usage intensity. Delivery Hero’s GMV rose to €49.2 billion in 2025 from €48.75 billion in 2024 – a modest 0.9% increase that nonetheless represents over €500 million in additional transaction volume.

GMV versus order frequency

Analysts at McKinsey argue that GMV growth can stem from three levers: higher order frequency, larger basket sizes, or price inflation. In Delivery Hero’s case, Euromonitor data indicates that average order value in Europe held steady at €22 throughout 2025, suggesting that the GMV rise is driven chiefly by an increase in order frequency.

Goldman Sachs points out that the company’s recent partnership with several large restaurant chains in the Gulf region introduced “subscription‑based meal plans,” which encourage repeat orders. Early data from those pilots show a 13% lift in weekly order frequency among participating users.

While the GMV uptick appears modest, it is significant in a market where growth is increasingly hard‑won. The European online food‑delivery market grew at a 6% CAGR between 2020 and 2023, according to Euromonitor, and has begun to plateau. Delivery Hero’s ability to eke out incremental GMV growth signals operational resilience.

From a strategic perspective, the GMV increase validates the company’s investment in AI‑driven recommendation engines, which have been credited with boosting order frequency by 4% in test markets. McKinsey’s 2023 report on digital commerce notes that personalization technologies can lift GMV by 5‑10% over a two‑year horizon.

Looking forward, if Delivery Hero can replicate its subscription‑model success across more markets, GMV could accelerate to a double‑digit growth rate by 2026, providing a solid foundation for the earnings expansion the firm promises.

Thus, the GMV figure, though small in absolute terms, is a leading indicator of deeper engagement that could translate into higher margins and stronger earnings next year.

Can Expansion in Asia and MENA Sustain 2026 Earnings Targets?

Delivery Hero’s 2026 outlook hinges on two high‑growth regions: Asia‑Pacific and the Middle East‑North Africa (MENA) corridor. Both regions are characterized by rising smartphone penetration, urbanization, and a youthful demographic that favors on‑demand services.

Asia‑Pacific: a fast‑moving frontier

McKinsey’s 2023 food‑delivery outlook projects that the Asia‑Pacific market will expand at a 17% CAGR through 2026, dwarfing the 5% CAGR expected in Europe. Delivery Hero’s subsidiary in India, for example, reported a 28% YoY increase in order volume in Q4 2025, according to a Bloomberg brief.

Goldman Sachs estimates that a successful rollout of the company’s “Express Kitchen” model – a hybrid of cloud kitchen and quick‑service restaurant – could add €1.5 billion in incremental revenue across Asia by 2026. The model leverages shared kitchen infrastructure to reduce capital expenditure, a key advantage in price‑sensitive markets.

MENA, meanwhile, offers a different growth vector. Euromonitor’s 2023 MENA e‑commerce report notes that online food‑delivery penetration rose from 9% in 2020 to 18% in 2023, driven by high disposable incomes in the Gulf Cooperation Council (GCC) states. Delivery Hero’s recent acquisition of a Saudi‑based delivery startup gave it a foothold in Riyadh and Jeddah, cities that together account for 35% of the region’s total GMV.

Analysts caution, however, that regulatory headwinds could temper growth. Saudi Arabia’s new data‑localization rules require foreign tech firms to store user data on local servers, potentially increasing compliance costs. Delivery Hero has already earmarked €50 million for data‑center upgrades in the region.

Balancing these opportunities and challenges, the company’s management believes that a combined 12% revenue uplift from Asia and MENA is achievable in 2026, which would lift total revenue to roughly €16.6 billion.

If the firm can hit that target while preserving its EBITDA margin, the earnings outlook for 2026 will be markedly stronger than the modest 30% growth recorded in 2025.

What Risks Loom Over Delivery Hero’s Growth Path?

While the financials paint an optimistic picture, several risk vectors could derail Delivery Hero’s 2026 ambitions. The most salient include regulatory scrutiny, competitive pressure, and the lingering impact of legacy litigation reserves.

Regulatory and legal exposure

European Union regulators have intensified scrutiny of gig‑economy labor practices, and Delivery Hero’s courier contracts have been cited in recent policy discussions. A 2023 European Commission report warned that platforms relying on independent contractors could face fines up to 5% of annual turnover.

In addition, the company continues to carry a substantial litigation reserve tied to its 2020 acquisition of a competitor’s Middle‑East assets. The Wall Street Journal article notes a €2.5 billion reserve charge that widened the full‑year net loss. Should further lawsuits emerge, the reserve could swell, eroding profitability.

Competitive dynamics also pose a threat. Uber Eats, Just Eat Takeaway.com, and emerging local players are aggressively pricing delivery fees in both Asia and MENA. Goldman Sachs predicts that price wars could compress margins by up to 2 percentage points in the next two years if no differentiation strategy is adopted.

Supply‑chain disruptions, especially for cloud‑kitchen infrastructure, add another layer of uncertainty. A 2024 report by the International Foodservice Association highlighted that shortages of kitchen equipment in Southeast Asia delayed the rollout of new facilities by an average of three months.

Mitigation strategies outlined by Delivery Hero’s CFO include accelerating the shift to a subscription‑based model, which can lock in revenue, and investing in proprietary logistics software to reduce reliance on third‑party couriers.

In sum, while the earnings outlook is bright, the company must navigate a complex risk landscape to translate its growth projections into sustainable profitability.