Marti Technologies, Inc. 2026 H1 Earnings Call

Everyone, thank you for joining us today for Marti's second quarter 2026 earnings call. The second quarter marked an inflection point for the company. We continued to deliver strong growth while achieving positive adjusted EBITDA for the first time. These results that scale is increasingly turning into profitability. From the beginning, our strategy has been straightforward, build the largest and most engaged mobility network in Turkey, and leverage the network by expanding to adjacent services with attractive economics. Our second quarter results demonstrate continued progress in executing this strategy. During this quarter, we continued strengthening the foundation for long-term profitable growth. Ride hailing remained a strong growth engine across our 20-city footprint, which we have since expanded into three cities in Q3, with strong performance in both Istanbul and non-Istanbul markets.

In addition, delivery adaptation continued to accelerate in Istanbul among both consumers and drivers, reinforcing our approach of using our established ride hailing network to efficiently expand to adjacent services. The result is higher engagement, better driver utilization, and stronger economics. Looking ahead, we are also advancing our autonomous mobility strategy in the country. We are building Turkey's autonomous vehicle alliance to bring together autonomous vehicle technology and vehicle providers with Marti leveraging its platform, rider demand, and operational infrastructure. The first strategic step into this strategy, entered into a multi-year partnership with Tensor to deploy autonomous vehicles on the Marti platform while engaging with additional technology and vehicle providers. Strong execution translated into strong financial results. Revenue increased 141% year over year to nearly $20 million, while gross profit more than tripled to over $50 million.

Gross profit margin expanded to a record 77%, reflecting improvements in economics and operating leverage. Most importantly, adjusted EBITDA turned positive at $2.9 million, a $5.3 million improvement from the prior year quarter. This milestone demonstrates the operating leverage of our marketplace model and reflects the earning power of our business as it continues to scale. Based on our first half performance and current momentum, we increased our fiscal year 2026 guidance to $85 million in revenue and a positive $7 million in adjusted EBITDA. The increased outlook reflects accelerating demand across our apps, expanding addressable markets throughout the country, higher gross margins, and continued progress towards long-term profitable growth. We are the number one urban mobility app in the country across both iOS and Android.

Marti is also the only operator offering both car and motorcycle hailing services at scale, which we complement via our large two-wheeled electric vehicle fleet and our on-demand delivery services. Since launch, consumers have completed 195 million trips through our platform, and 8.3 million unique platform consumers have used at least one of our services. Our ride hailing marketplace continued to expand rapidly. As of June 30, we had reached 4.4 million all-time ride hailing riders and built a network of 544,000 registered drivers. These metrics highlight the strength of our multi-service platform, seamlessly combining mobility and delivery, and our ability to scale both supply and demand in a highly dynamic market. Marti has quickly emerged as Turkey's leading urban mobility platform. Scale, brand recognition, and operations create meaningful competitive advantages as we continue expanding our services.

Globally, mobility is led by local champions who benefit from deep operational expertise and strong brand trust. Turkey is no exception, with four of the five leading mobility apps operated in the country by local companies. Today, Marti operates in 30 cities, representing approximately 85% of the country's GDP. This includes 10 cities in which we launched our ride-hailing operations last week, further strengthening our nationwide footprint. This broad footprint enables us to launch new services efficiently, deepen consumer engagement, and serve a substantial portion of the Turkish mobility market through a single integrated platform. Turkey continues to present a compelling long-term mobility opportunity. Urbanization, congestion, and increasing demand for technology-enabled transportation continue to support structural market growth, and Marti is well-positioned to lead the way and capture that opportunity. Our operating metrics once again reflect the strength of our integrated multi-service model.

During the second quarter, trips increased 73% to 18.8 million, while unique platform consumers grew even faster, rising 76% year over year to 2.4 million. Importantly, trips per unique platform consumer stayed broadly stable despite rapid consumer growth. We view this as an encouraging indicator that our marketplace continues to scale efficiently. This combination of accelerating consumer growth and stable engagement provides a strong foundation for sustained revenue growth and expanding profitability. Our delivery service continues to be the primary driver of our overall platform growth and consumer acquisition. As of June 30th, all-time unique ride-hailing riders grew by 95% year over year, from 2.3 million to 4.4 million. All-time registered ride-hailing drivers grew by 63% year over year, from 327,000 to 544,000. We continue to exceed the operational targets set for ourselves, driving both revenue growth and improved economics.

Looking ahead, our next milestone is to reach 4.9 million all-time ride-hailing riders and 580,000 registered drivers by the end of next quarter. As our ride-hailing service continues to scale, we are also seeing encouraging momentum in the growth of our delivery service. In the second quarter, delivery adoption continued to rise among both consumers and drivers in Istanbul. Among all-time unique platform consumers with more than one trip, approximately 82% of motorcycle-hailing consumers and 31% of car-hailing consumers used these services after first engaging with another Marti service. In addition, 73% of motorcycle-hailing consumers and 13% of car-hailing consumers subsequently adopted additional services. Multi-service engagement will continue to drive stronger economics. During the second quarter of 2023, trips per consumer were 3.1 times higher, and revenue per consumer was seven times higher for multi-service consumers compared to single-service consumers.

This reflects the brand utility and stickiness of our integrated multi-service platform. On the supply side, growing driver adoption continues to reinforce the strength of our integrated marketplace. In Istanbul, 55% of motorcycle-hailing drivers and 22% of car-hailing drivers also accompanied or completed delivery trips during the second quarter. Similarly, multi-service drivers in Istanbul completed significantly more trips than single-service drivers, with tips per motorcycle driver 4.4 times higher and tips per car driver 2.2 times higher. Each new service added to our network strengthens utilization and drives deeper engagement. Beyond marketplace, we are increasingly deploying AI across our organization to improve efficiency, reduce costs, and increase output. Our focus is on enabling rapid iteration and faster time to market, allowing well-defined tasks to be executed with human supervision. Importantly, we are doing this without increasing team sizes.

In practice, we're applying AI across our tech stack, operations, and marketplace. This includes dynamic pricing to improve marketplace efficiency and customer acquisition. We're building an AI-powered customer engagement platform to streamline processes and personalize the customer experience. We are also using AI to power more effective performance marketing, helping us optimize spend and marketing spend. We are also leveraging AI for creative content production, allowing us to accelerate experimentation and increase our marketing output more effectively. Finally, we are using AI to enhance G&A functions. With that, I will turn the call to my partner, John, to discuss the test results.

Thank you, Alper. Our second quarter results reflect the scalability of Marti's business model. Trips increased 73% year-over-year, while unique platform consumers grew even faster, increasing 76%. Engagement remains strong, with trips per unique platform consumer broadly stable at 7.9, despite the rapid expansion of our consumer base. Growth was driven primarily by increasing ride-hailing usage across our existing cities, alongside encouraging momentum in cross-service adoption across the platform. We also exceeded our operational targets, ending the quarter with 4.4 million all-time unique ride-hailing riders and 544,000 registered drivers. As part of our fleet optimization strategy, we continued to decommission our existing two-wheeled electric vehicle fleet, reducing the number of average daily two-wheeled electric vehicles deployed from 24.1 thousand in the second quarter of 2025 to 20.9 thousand in the second quarter of 2026.

This reflects our ongoing focus on capital efficiency and resource allocation. On the financial side, revenue more than doubled year-over-year, while costs grew at a slower rate, resulting in substantial gross margin expansion and allowing us to deliver positive adjusted EBITDA for the first time. I am now going to go into the details of our revenue and cost of revenue figures. Q2 revenue increased 141% year-over-year to nearly $20 million, continuing the strong momentum we have seen throughout the year. This growth was primarily driven by the continued success of our platform subscription package monetization, together with increasing trips and unique platform consumers. Importantly, cost of revenues increased only 32%, despite significantly higher business volumes. At the same time, cost efficiency improved significantly across several major cost categories.