Hepsiburada Announces Third Quarter 2025 Financial Results

Core Insights - Hepsiburada reported a gross merchandise value (GMV) increase of 8.9% to TRY 61.4 billion in Q3 2025 compared to TRY 56.4 billion in Q3 2024, with an IAS 29-unadjusted GMV increase of 45.0% to TRY 59.8 billion [7][14] - Revenue rose by 22.1% to TRY 19,919.8 million in Q3 2025 from TRY 16,317.3 million in Q3 2024, driven by significant growth in direct sales and delivery service revenue [7][25] - The company experienced a net loss of TRY 1,324.8 million in Q3 2025, a substantial increase from a net loss of TRY 409.7 million in Q3 2024, primarily due to increased advertising and financial expenses [7][34] Financial Performance - The number of orders increased by 17.6% to 22.1 million in Q3 2025, while active customers decreased by 2.3% to 11.6 million [7][14] - Average order value decreased by 7.4% in Q3 2025 compared to Q3 2024 [7] - EBITDA decreased by 74.3% to TRY 173.8 million in Q3 2025 from TRY 676.8 million in Q3 2024, with EBITDA as a percentage of GMV dropping to 0.3% [7][35] Cash Flow and Expenses - Free cash flow increased to TRY 2,584.3 million in Q3 2025 from TRY 2,104.7 million in Q3 2024, reflecting improved cash management [9][36] - Operating expenses rose by 26.0% to TRY 20,510.5 million in Q3 2025, driven by higher costs in inventory, shipping, and advertising [30][31] - The company reported a significant increase in advertising expenses, which rose by 48.7% in Q3 2025 compared to Q3 2024 [31] Market Position and Strategy - The share of marketplace GMV was 69.2% in Q3 2025, a slight decrease from 70.4% in Q3 2024 [7][14] - The company continues to focus on improving delivery operations and payment solutions to enhance customer experience and drive growth [11][10] - Hepsiburada's initiatives to support women entrepreneurs through various programs have expanded, indicating a commitment to social responsibility [17][18] Inflation and Economic Context - The annual inflation rate in Turkey was reported at 33.3% as of September 30, 2025, down from 49.4% a year earlier [29] - The financial statements are adjusted for inflation in accordance with IAS 29, reflecting the hyperinflationary economic environment in Turkey [2][3]