Marti Technologies, Inc. (MRT) Q2 2025 Earnings Call Transcript

Marti Technologies (NYSE:MRT) reported robust first-half 2025 results, with revenue increasing 70% to $14.3 million and Adjusted EBITDA improving to negative $6 million, primarily driven by the strategic monetization and expansion of its ride-hailing services. The company achieved significant operational growth, with unique ride-hailing riders surging 107% to 2.3 million and registered drivers up 92% to 327,000, as it expanded its footprint to 10 cities across Türkiye. Marti projects 2025 revenue to nearly double to $34 million, capitalizing on its market leadership, multi-modal platform, and the substantial upside from current high single-digit ride-hailing take rates within Türkiye's estimated $3 billion annual ride-hailing market opportunity.

Analysis

Marti Technologies reported a strong first half of 2025, demonstrating successful execution of its strategic pivot to ride-hailing. Revenue surged 70% year-over-year to $14.3 million, driven by the monetization of this new segment, while adjusted EBITDA improved significantly from a loss of $11.3 million to a loss of $6.0 million. This financial improvement was underpinned by a 25% reduction in cost of revenues and a 49% enhancement in gross profit margin, reflecting a shift to the higher-margin ride-hailing business and efficiency gains in the legacy two-wheeler operations. Operationally, the company is scaling rapidly, with unique ride-hailing riders growing 107% to 2.3 million and registered drivers increasing 92% to 327,000. This growth is fueled by an aggressive expansion from four to ten cities, although the six new cities are not yet being monetized as the company prioritizes market share capture. Management reiterated its full-year 2025 guidance to nearly double revenue to $34 million and projects a path to profitability by leveraging its market leadership and the substantial upside from its current 'high single-digit' take rate, which is well below the 30% global benchmark. The company's capital position appears secure for its immediate growth plans, following a $23 million convertible note financing in April 2025.

Key Decisions for Investors

• Investors should view Marti as a high-growth play, focusing on its ability to execute its 'land-and-expand' strategy in Türkiye’s large, underpenetrated ride-hailing market where it currently holds a first-mover advantage.
• The primary valuation catalyst to monitor is the future increase of the ride-hailing take rate from its current high single-digit level, which management is strategically deferring to prioritize user growth but represents significant latent margin expansion potential.
• While the company is funded for the next 12 months, it is prudent to track cash burn against the aggressive expansion into unmonetized cities and the timeline for these new markets to become contribution-positive.
• Acknowledge the strategic value of the multi-modal ecosystem, where the legacy two-wheeler business serves as a cost-effective user acquisition channel for the more lucrative ride-hailing segment, creating a competitive moat.