Deliveroo Reports Growth In H1 Adj. EBITDA

Deliveroo reported a first-half loss of £20.7 million, primarily attributed to exceptional costs related to the DoorDash acquisition, yet demonstrated strong underlying operational performance with adjusted EBITDA increasing to £96.3 million and revenue reaching £1.05 billion, alongside 9% Gross Transaction Value (GTV) growth. The company also narrowed its 2025 adjusted EBITDA and GTV growth guidance to the upper half and top end of their respective previously-guided ranges, signaling confidence in sustained growth driven by resilient consumer demand.

Analysis

Deliveroo's first-half results present a nuanced picture where the headline net loss of £20.7 million, a reversal from last year's £8.0 million profit, is directly attributable to exceptional costs associated with the DoorDash, Inc. acquisition. When these one-off charges are excluded, the company generated an underlying profit of £31.8 million, indicating sound core operations. This underlying strength is further substantiated by a significant increase in adjusted EBITDA to £96.3 million from £66.2 million year-over-year. Top-line growth remains robust, with Gross Transaction Value (GTV) and revenue both increasing by 9% in constant currency to £3.79 billion and £1.05 billion respectively, driven by an 8% rise in orders. This performance, fueled by successful growth initiatives and unexpectedly resilient consumer demand, has prompted management to upgrade its full-year 2025 guidance. The company now expects adjusted EBITDA to be in the upper half of its £170-190 million range and GTV growth to reach the top end of its previously guided high single-digit percentage range, signaling strong confidence in its near-term trajectory.

Key Decisions for Investors

• Investors should look past the headline net loss, as it is distorted by non-recurring acquisition costs, and instead focus on the strong growth in core profitability metrics like adjusted EBITDA and the underlying profit of £31.8 million.
• The upward revision of full-year guidance for both adjusted EBITDA and GTV growth serves as a key bullish indicator, suggesting management's high confidence in sustained operational momentum and resilient consumer demand for the remainder of 2025.
• Given the 9% GTV growth was attributed to a 'more resilient than expected consumer', it is crucial to monitor consumer spending indicators, as any deterioration in the macroeconomic environment could pose a risk to maintaining this growth trajectory.