Marti Technologies 2026 Q3 Earnings Call

Thank you for joining us today for Marti's third quarter 2026 earnings call. The third quarter was a breakthrough quarter for Marti. We delivered record revenue, record gross profit margin, positive income from operations for the first time in our history, and our second consecutive quarter of positive free cash flow. Last quarter, we said that scale was increasingly translating into operating leverage. This quarter, that leverage carried through to our operating performance. As our platform scales, we are generating significantly more revenue without a corresponding increase in our cost base, allowing a growing proportion of our incremental revenue to flow through to profitability and cash generation. Our strategy remains straightforward. Build Türkiye's largest and most engaged mobility network, then leverage that network to expand into adjacent services and capture additional value from our existing consumer and driver relationships. The third quarter results demonstrate that this strategy is working.

We are growing our nationwide presence, deepening engagement across our multi-service platform, and increasingly translating that growth into improved profitability. During the quarter, we continued to strengthen our nationwide presence. Ride-hailing delivered robust growth across our 30-city footprint, and in October, we launched ride-hailing in 10 additional cities. Today, Marti operates in 40 cities in total, covering approximately 90% of Türkiye's GDP. Our rider and driver networks continued to grow strongly. We exceeded our September 30 targets for both all-time unique ride-hailing riders and registered drivers, achieving our key milestones a month ahead of schedule. We also continued to advance our long-term growth initiatives. Following our partnership with Tensor, we extended our multi-partner autonomous mobility ecosystem in October with CalmCar, and the first CalmCar-equipped vehicle was already delivered and arrived in Türkiye. Continued operating leverage translated into exceptional financial results too.

Revenue increased 128% year-over-year to a record $24.7 million, driven by increasing trip volumes and continued platform monetization. Gross profit increased 176% to $20.2 million, and gross profit margin reached a record 81.5%, reflecting improving unit economics and the operating leverage of our model. Our improving unit economics and disciplined cost management drove a significant improvement in profitability. Adjusted EBITDA reached $5.6 million, a 23% margin, nearly doubling from $2.9 million in the second quarter. Income from operations turned positive for the first time at $2.7 million, and our net loss narrowed to a near break-even of $1 million. With one quarter remaining, our nine-month adjusted EBITDA of $8 million already exceeds our full-year guidance of $7 million, and we are positioned to meet our full-year 2026 guidance.

We are the number one urban mobility app in Türkiye across both iOS and Android. Marti is also the only operator offering both car and motorcycle-hailing service at scale, which we complement with our two-wheeled electric vehicle fleet and our on-demand delivery services. Since launch, our platform has facilitated more than 217 million trips, serving 8.9 million unique consumers across our mobility and delivery services. Our ride-hailing marketplace continues to expand rapidly as well. As of September 30, we had reached 5.1 million all-time unique ride-hailing riders and built a network of 597,000 registered drivers. These metrics highlight the strength of our multi-service platform and our ability to scale both supply and demand at the same time. Martı has quickly emerged as Türkiye's leading urban mobility platform. Scale, brand recognition, and nationwide operations create meaningful competitive advantages as we continue expanding our services.

Globally, mobility markets tend to be led by local champions with deep operational expertise, strong brand recognition, and an understanding of local consumer behavior. There is no exception in Türkiye. Our nationwide presence, established brand, and integrated platform position Martı to benefit from these dynamics. Following the launch of our ride-hailing in 10 new cities in October, Martı now operates in 40 of Türkiye's largest cities, representing approximately, as I've said, 90% of our GDP. This is up from 30 cities and approximately 85% of GDP at the end of the quarter. This footprint enables us to launch new services efficiently, deepen consumer engagement, and serve the large majority of the Turkish mobility market through a single integrated platform. Our operating metrics once again reflect the strength of our multi-service platform.

During the third quarter, trips increased 46% year-over-year to 22 million, and the unique platform consumers grew 54% to 2.7 million. Since the first quarter of 2025, trips have grown 2.6 times and unique platform consumers 2.5 times. Trips per unique platform consumer were 8.2 compared to 8.6 in the prior year quarter. This modest decline reflects the increasing contribution of newly launched cities where consumer engagement is still developing. We expect engagement to strengthen as these markets mature. Our ride-hailing service continues to be the primary driver of platform growth and consumer acquisition. As of September 30th, all-time unique ride-hailing riders grew by 81% year-over-year from 2.8 million to 5.1 million, and all-time registered ride-hailing drivers grew 54% from 387,000 to 597,000.

During the third quarter, we added a record 650,000 new riders and 53,000 new registered drivers, further strengthening the scale and liquidity of our marketplace. Once again, we exceeded our targets, which were 4.9 million riders and 580,000 drivers by the end of the third quarter. Our next milestone is to reach 5.65 million all-time unique ride-hailing riders and 630,000 registered drivers by December 31st, 2026. As our ride-hailing marketplace scales, multi-service engagement continues to strengthen and drive stronger platform economics. During the third quarter, multi-service consumers completed 3.2 times more trips and generated 2.8 times more revenue per consumer than single-service consumers. On the supply side, multi-service drivers completed significantly more trips than single-service drivers, 3.2 times more for motorcycle drivers and 1.9 times more for car drivers in Istanbul. Each new service we add strengthens utilization and deepens engagement on both sides of our marketplace.

We continue to apply AI across our technology stack and operations to improve the efficiency of our marketplace. A good example of this is the core of our marketplace, our dynamic pricing and matching systems. Our teams continuously refine these AI models to better balance consumer demand and driver supply in real time, match each request with the most suitable driver, and improve trip completion rates. In the third quarter, we continued to work on our elasticity measurements, supply and demand forecasting, and batch matching algorithms. As our platform expands, the growing volume of transactions provide additional data to continuously refine these systems. We believe these capabilities will become increasingly important in helping us manage a larger marketplace more efficiently while maintaining a high-quality consumer and driver experience. On interesting news, we also made meaningful progress in autonomous mobility this quarter.

As autonomous vehicle technology continues to develop, we believe the key to bringing it to Türkiye will be connecting technology providers with consumer demand and the infrastructure required to operate in each market. Our approach is to build a multi-partner autonomous mobility ecosystem in the country, working with multiple partners and selecting autonomous driving technologies best suited for Türkiye. Marti brings three things to this ecosystem: our leading mobility super app and the rider demand it aggregates, our established operational infrastructure, and our ability to engage with regulators and public sector stakeholders. Following our multi-year strategic partnership with Tensor in October, we expanded this ecosystem through a partnership with CalmCar, a provider of autonomous driving solutions. The first CalmCar-equipped vehicle has arrived in the country, and we expect to begin closed area testing in Istanbul, subject to obtaining the required test permits.

We are also in discussions with additional autonomous vehicle partners. With that, I will turn the call over to my partner, Cankut, to discuss our financial results in greater detail.

Thank you, Alper. Our third quarter results demonstrate the significant operating leverage in Marti's business model. We continued to grow the platform rapidly while keeping cost growth well below revenue growth. This translated into record gross profitability, positive income from operations for the first time, and our second quarter of positive free cash flow. Let me now walk you through the financial results in more detail. Trips increased 46% year-over-year, and unique platform consumers grew 54%, driven by increasing ride-hailing usage in our existing cities and the launch of new cities. We ended the quarter with 5.1 million all-time unique ride-hailing riders and 597,000 registered drivers. As part of our two-wheeled electric vehicle fleet optimization strategy, we continued to gradually decommission our two-wheeled electric vehicles, which were first introduced on the field in 2021 and have therefore already been active for over five years.