Delivery Hero (DHER) Stock: H1 Earnings Show Mixed Results as Uber Deal Looms

Key Takeaways

• Delivery Hero’s first-half net loss reached €392.4 million, significantly exceeding the analyst consensus of €191.7 million
• Top-line performance impressed, with revenue climbing 12.7% to €7.75 billion, surpassing the €7.44 billion estimate
• Adjusted EBITDA increased 3.9% to €426.7 million, beating the €387.7 million analyst projection
• Management upgraded the 2026 GMV growth forecast to 9%-11% from the previous 8%-10% range
• The pending Uber acquisition is projected to finalize in H2 2027, contingent on regulatory clearance

Delivery Hero unveiled first-half financial results on Thursday that revealed a net loss of €392.4 million, substantially exceeding the €191.7 million shortfall anticipated by market analysts. While this represented only a marginal improvement from the €396.3 million loss recorded in the comparable period last year, the magnitude of the miss caught investors’ attention.

On the revenue front, the company delivered a more encouraging performance. Total revenue reached €7.75 billion, representing a 12.7% year-over-year increase and comfortably exceeding the consensus forecast of €7.44 billion. This robust top-line growth demonstrates the platform’s continued ability to attract orders and expand market presence.

The adjusted EBITDA metric provided another bright spot, climbing 3.9% to €426.7 million and surpassing analyst expectations of €387.7 million. Management attributed this operational improvement to increased order frequency, expansion of Quick Commerce capabilities, and growth in the company’s proprietary delivery network.

Delivery Hero SE, DELHY

The disappointing bottom-line performance stemmed primarily from escalating operational costs. General and administrative expenses surged 24.4% to €991 million during the period. Meanwhile, net interest expense increased substantially to €178.9 million compared to €108.9 million in the prior-year period.

The company also recorded €172.7 million in management adjustments related to legal issues, predominantly associated with antitrust exposure. This significant charge weighed heavily on the reported net loss figure.

Upgraded Forward Outlook

Looking past the headline challenges, management demonstrated confidence by elevating its 2026 projections. The GMV growth forecast was revised upward to a 9%-11% range from the previous 8%-10% guidance. Market analysts had been modeling approximately 9.1% GMV growth.

Full-year adjusted EBITDA is now anticipated to land between €960 million and €1 billion. Additionally, management raised its free cash flow projection before extraordinary items to slightly above €250 million from the previous target of slightly above €200 million.

“We delivered a strong first half, with a further acceleration of GMV growth, adjusted EBITDA ahead of expectations, and a significant step up in cash generation,” said finance chief Marie-Anne Popp.

Berenberg analysts highlighted reduced competitive discounting intensity and ongoing platform investments as primary catalysts behind the better-than-anticipated growth trajectory. However, they noted ongoing challenges in South Korea and the MENA region warrant continued monitoring.

Pending Uber Transaction

These financial results emerge as Delivery Hero advances through the regulatory process for its planned combination with Uber Technologies. Uber established significant influence over Delivery Hero in May, with the transaction currently navigating various regulatory hurdles.

A separate arrangement with SSW Partners encompasses the divestiture of operations spanning 14 markets, scheduled to occur following the completion of the Uber transaction.

Berenberg analysts observed that the current 12% discount to Uber’s offer price appears excessively wide, suggesting the possibility of an enhanced bid cannot be dismissed.

The deal is anticipated to reach completion during the second half of 2027, subject to standard closing conditions and regulatory approvals. Management emphasized that Delivery Hero will maintain independent operations throughout the interim period.

The company’s better-than-anticipated first-half performance indicates it had developed positive operational momentum prior to Uber’s latest acquisition overture in July.

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