Deliveroo’s latest interim results reveal a business hitting its stride just as the DoorDash acquisition moves closer to completion. The H1 2025 numbers paint a picture of accelerating growth, savvy operational improvements, and a clear runway toward profitability – all while navigating the complexities of a major corporate marriage. Let’s unpack what matters.
Growth Accelerates Across the Board
Deliveroo isn’t just growing – it’s picking up speed. Group orders climbed 8% year-on-year to 147 million, with Q2 growth (8%) outpacing Q1 (7%). This momentum translated into Gross Transaction Value (GTV) and revenue both rising 9% in constant currency (£3.79bn and £1.05bn respectively). The acceleration is particularly noteworthy given the economic backdrop.
Breaking it down:
- UK & Ireland (UKI): Remains the powerhouse, delivering 10% constant currency GTV growth.
- International: Posted a robust 9% constant currency GTV rise, fuelled by standout performances in the UAE and Italy (though France remains a softer spot).
- Beyond Restaurants: Grocery saw “strong double-digit growth”, while retail and advertising also made gains. Restaurant growth showed a “marked improvement”.
Cracking the Consumer Code
The secret sauce? Deliveroo’s relentless focus on enhancing its Consumer Value Proposition (CVP). Their efforts to boost customer stickiness are bearing fruit:
- Plus Perks: New partnerships and benefits sweetened the deal for subscribers.
- Selection & Quality: Added 4,000 merchant sites and drove critical order defects to “all-time lows”.
- Value Focus: Continued emphasis on affordability resonated with cost-conscious consumers.
The payoff? Average order frequency (AOF) increased across every annual customer cohort, and retention rates improved year-on-year. This isn’t just growth – it’s deeper, more valuable customer relationships.
Profitability Powers Up (Despite the Acquisition Bill)
Here’s where things get juicy. Deliveroo’s adjusted EBITDA surged 46% to £96 million, pushing the margin to 2.5% of GTV (up from 1.9% in H1 2024). This leap was driven by clever marketing efficiencies and operating leverage – proof the model scales.
Yes, the statutory loss widened to £19.2 million (vs a £1.3m profit in H1 2024), but this is almost entirely down to costs tied to the DoorDash acquisition. Strip those out, and the underlying profit (tax-adjusted) was a healthy £31.8 million.
The cash flow story is equally compelling:
- Free Cash Flow: Rocketed to £46.3 million (up from £9.3 million in H1 2024).
- Net Cash: Stands at a comfortable £624 million (£90 million was spent on share buybacks in H1).
This financial fortitude provides ample breathing room during the transition.
The DoorDash Deal: On Track and On Time
The elephant in the boardroom? The pending acquisition by US giant DoorDash. Progress looks solid:
- Shareholder Approval: Secured on June 16th, 2025.
- Regulatory Process: Ongoing, but Deliveroo reaffirms expectation of completion in Q4 2025.
Will Shu’s commentary strikes an optimistic tone: “They will be an excellent partner for everyone at the company, as well as for our consumers, merchant partners and riders.” The market will be watching regulatory nods closely, but the timeline seems firm.
Outlook: Narrowing Guidance and Raising Ambitions
Buoyed by H1’s strength, Deliveroo has narrowed and lifted its full-year 2025 guidance:
- GTV Growth: Now expected “around the top end” of the high-single-digits % range (constant currency).
- Adjusted EBITDA: Forecast to land in the “upper half” of the £170-190 million range.
Peering further ahead, the medium-term ambitions are bold:
- GTV Growth Target: Mid-teens percentage per annum (constant currency).
- Profitability Target: Adjusted EBITDA margin of 4%+ of GTV, with acceleration expected from 2026.
The Takeaway: A Business in Full Flight
Deliveroo’s H1 2025 report card is impressive. They’ve demonstrated they can simultaneously:
- Accelerate top-line growth,
- Sharpen consumer engagement,
- Drive meaningful profitability improvements, and
- Manage a complex acquisition process.
The underlying £31.8 million profit (pre-acquisition costs) and surging cash flow are perhaps the most telling metrics – this is a business finding its economic footing. While the DoorDash deal naturally dominates headlines, these results prove Deliveroo is entering the next chapter from a position of operational strength, not weakness. The neighbourhood delivery game just got even more interesting.
