Marti Expects to Reach Positive Free Cash Flow in 2025

Rhea-AI Summary

Marti Technologies (NYSE American: MRT), Türkiye's leading mobility super app, has announced its financial guidance for 2025, projecting $34.0 million in revenue and $3.0 million in adjusted EBITDA. This represents a 2.1x revenue growth from their 2024 target of $16.6 million and a significant improvement in adjusted EBITDA from $(22.5) million in 2024. The company expects to achieve positive free cash flow in 2025. This outlook follows Marti's October 2024 announcement of monetizing its ride-hailing service, where it operates as the only at-scale provider in the country.

Positive

• Projected revenue growth of 2.1x to $34.0 million in 2025
• Expected positive adjusted EBITDA of $3.0 million in 2025
• Anticipated positive free cash flow achievement in 2025
• $25.5 million improvement in adjusted EBITDA from 2024 to 2025
• Market leadership position as the only at-scale ride-hailing operator

Negative

• Significant negative adjusted EBITDA of $(22.5) million expected in 2024
• Guidance subject to significant risks and uncertainties

Insights

Financial Analyst

The guidance reveals a significant financial transformation for Marti Technologies. The projected $34.0 million revenue for 2025 represents a compelling 110% growth from 2024's expected $16.6 million. More notably, the company anticipates a dramatic turnaround in adjusted EBITDA, shifting from a -$22.5 million loss in 2024 to a positive $3.0 million in 2025 - a $25.5 million improvement. The expected positive free cash flow achievement in 2025 marks a important milestone for operational sustainability. However, investors should note the guidance comes with significant caveats, as the company operates in the competitive mobility sector and faces market uncertainties. The monetization of ride-hailing services appears to be the key driver for this projected financial improvement.

Market Research Analyst

As Türkiye's dominant ride-hailing platform, Marti's position as the "only at scale operator" provides significant competitive advantages in a high-growth market. The transition from growth-focused investment to monetization strategy indicates market maturity and could lead to improved unit economics. The projected financial metrics suggest the company's business model is reaching an inflection point, transitioning from cash-burning growth to sustainable operations. However, the ambitious revenue growth projections require careful scrutiny, particularly regarding market penetration rates and competitive dynamics in the Turkish mobility market. The absence of EBITDA reconciliation details warrants additional transparency for thorough assessment.

Company Presents 2025 Guidance

ISTANBUL--(BUSINESS WIRE)-- Türkiye’s leading mobility super app, Marti Technologies, Inc. (“Marti” or the “Company”) (NYSE American: MRT) announces its expectation to reach positive free cash flow in 2025 and presents 2025 guidance.

After two years of investing in growing its ride-hailing business, Marti announced in October 2024 that it has begun monetizing its ride-hailing service.

As the only at scale ride-hailing operator in the country, together with the monetization of its ride-hailing service, Marti expects to complete 2025 with $34.0 million of revenue and $3.0 million of adjusted EBITDA*. These figures are up from Marti’s 2024 performance targets of $16.6 million of revenue and $(22.5) million of adjusted EBITDA*. Marti’s 2025 forecast represents 2.1 times growth over its expected revenue figure for 2024, and an adjusted EBITDA improvement of $25.5 million.

Marti also forecasts achieving positive free cash flow in 2025.

Outlook for 2025

The Company provides its full year 2025 outlook as follows:

	2024 Guidance	2025 Guidance	Change
Revenue	$16.6 million	$34.0 million	2.1 times growth
Adjusted EBITDA	$(22.5) million	$3.0 million	$25.5 million improvement

The 2025 revenue, adjusted EBITDA and free cash flow guidance provided herein are based on Marti’s current estimates and assumptions and are not a guarantee of future performance. Such guidance is subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission (“SEC”), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance.

* This press release does not include a reconciliation of forward-looking Adjusted EBITDA for 2024 or 2025 because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results.

Non-GAAP Financial Measures

Certain financial information and data contained herein are not presented in accordance with generally accepted accounting principles of the United States (“GAAP”), including adjusted EBITDA.

We define these metrics as follows: Adjusted EBITDA as depreciation, amortization, taxes, financial expenses (net of financial income) and one-time charges and non-cash adjustments, plus net income (loss). The one-time charges and non-cash adjustments are mainly comprised of customs tax provision expenses resulting from the one-time amendment of customs duties and lawsuit provision expense which the Company does not consider the provision to be reflective of its normal cash operations.

About Marti:

Founded in 2018, Marti is Türkiye’s leading mobility app, offering multiple transportation services to its riders. Marti operates a ride-hailing service that matches riders with car, motorcycle, and taxi drivers, and operates a large fleet of rental e-mopeds, e-bikes, and e-scooters. All of Marti’s offerings are serviced by proprietary software systems and IoT infrastructure. For more information, visit www.marti.tech.

Cautionary Note Regarding Forward-Looking Statements

Certain statements made in this press release constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements related to the ride-hailing business and its anticipated growth and impact on the Company’s cash flow, the Company’s expected revenue and adjusted EBITDA for 2025, and the Company’s expectation to reach positive free cash flow in 2025. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risks discussed in the Company’s filings with the SEC, including the Company’s Annual Report on Form 20-F. Marti undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202686710/en/

Investor Contact

Marti Technologies, Inc.

Turgut Yilmaz

investor.relations@marti.tech

Source: Marti Technologies, Inc.

FAQ

What is Marti Technologies (MRT) revenue guidance for 2025?

Marti Technologies projects revenue of $34.0 million for 2025, representing 2.1 times growth from their 2024 target of $16.6 million.

When does Marti (MRT) expect to achieve positive free cash flow?

Marti expects to achieve positive free cash flow in 2025.

What is Marti's (MRT) projected adjusted EBITDA for 2025?

Marti projects an adjusted EBITDA of $3.0 million for 2025, an improvement of $25.5 million from their 2024 guidance of $(22.5) million.

When did Marti (MRT) begin monetizing its ride-hailing service?

Marti began monetizing its ride-hailing service in October 2024.