20-F: Marti Technologies Reports Strong Revenue Growth in 2025

Marti Technologies, Inc. announced a significant increase in revenue for the fiscal year ended December 31, 2025, driven by the successful launch of its subscription packages and growth in ride-hailing services.

Summary

• Marti Technologies reported a substantial revenue increase of 110.3% to $39.2 million for the year ended December 31, 2025, up from $18.7 million in 2024.
• This growth was primarily attributed to the introduction of subscription packages in October 2024, which offer benefits across ride-hailing, delivery, and two-wheeled electric vehicle services.
• Total trips across all services increased by 60.3% to 50.84 million, with ride-hailing trips showing significant growth.
• The company also saw a 44.3% increase in unique platform consumers, reaching 3.08 million.
• Cost of revenues decreased by 29.2% due to operational efficiencies and AI-enabled cost reduction initiatives, leading to a gross profit margin improvement from -15.5% in 2024 to 61.1% in 2025.
• General and administrative expenses decreased by 43.0% primarily due to a reduction in share-based compensation expenses, although other G&A costs increased due to public company requirements.
• The company reported a net loss of $41.4 million for 2025, an improvement from a net loss of $73.9 million in 2024.
• Cash used in operating activities decreased to $14.8 million in 2025 from $25.1 million in 2024.
• The company has $7.8 million in cash and cash equivalents as of December 31, 2025, and believes it has adequate resources for the next twelve months.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive filing, with strong revenue growth and significant operational improvements leading to a much-improved gross profit margin. While net losses persist, they have decreased, and the company has secured substantial funding, indicating a solid growth trajectory.

Positives

• Revenue more than doubled, increasing by 110.3% to $39.2 million in 2025.
• Gross profit margin improved significantly from -15.5% in 2024 to 61.1% in 2025.
• Total trips increased by 60.3% to 50.84 million.
• Unique platform consumers grew by 44.3% to 3.08 million.
• Cost of revenues decreased by 29.2% due to operational efficiencies.
• General and administrative expenses decreased by 43.0% due to reduced share-based compensation.
• Net loss improved to $41.4 million in 2025 from $73.9 million in 2024.
• Cash used in operating activities decreased by $10.3 million.
• The company has secured significant funding through convertible notes, with $85.8 million outstanding as of December 31, 2025.

Negatives

• The company continues to incur net losses, reporting a net loss of $41.4 million for the year ended December 31, 2025.
• Despite improvements, the company still has accumulated deficits of $180.9 million as of December 31, 2025.
• The company's financial statements were prepared assuming it will continue as a going concern, with its ability to continue dependent on securing additional capital.
• Material weaknesses in internal control over financial reporting were identified and are in the process of remediation.

Risks

• The company has a limited operating history and operates in a new and rapidly evolving industry, making future prospects difficult to evaluate.
• Dependence on attracting and retaining drivers, riders, and consumers, and maintaining effective pricing strategies.
• Inability to efficiently grow, manage, and compete in ride-hailing, delivery, and two-wheeled electric vehicle services.
• Risks associated with scaling ride-hailing and delivery services, potentially leading to increased liability.
• Potential for acquisitions to require significant management attention, disrupt business, dilute shareholder value, and adversely affect operating results.
• Dependence on obtaining vehicles and components on commercially reasonable terms and the stability of international supply chains.
• Potential for delays in launching and ramping up production of products and features, and inability to control manufacturing costs or quality of supplies.
• Seasonality due to poor weather conditions affecting the use of certain services.
• Risk of defects in mobile applications, vehicles, or other services harming reputation and brand.
• Exposure to liability, regulatory scrutiny, and reputational harm from illegal, improper, or inappropriate activity of drivers, riders, and consumers.
• Significant insurance and liability risks, with potential adverse effects from increased claims, changes in insurance market conditions, or insufficient coverage.
• Inaccuracies in growth and performance metrics could harm reputation.
• Reliance on third-party service providers, including payment processors and operational partners.
• Intense competition in the ride-hailing, delivery, and two-wheeled electric vehicle markets.
• Potential for intellectual property rights claims and other litigation that are expensive to defend.
• Vulnerability to cyberattacks and security breaches.
• Exposure to evolving government regulations for internet and consumer privacy.
• Potential for adverse impacts from geopolitical instability, war, earthquakes, natural disasters, public health crises, and other unexpected events.
• Risk of loss of key personnel or failure to attract and retain highly qualified personnel.
• Sensitivity to economic conditions and their impact on discretionary consumer spending.
• Challenges in maintaining company culture as the business grows.
• Risks associated with doing business in an emerging market like Turkey, including political and economic instability, high inflation, and foreign exchange fluctuations.
• Potential reclassification of drivers as employees, which could fundamentally change the business model and increase expenses.
• Climate change, sustainability initiatives, and evolving environmental regulations could adversely affect operations and costs.
• The company's ability to continue as a going concern depends on securing sufficient funding due to a history of recurring losses.
• Debt repayment obligations may limit available resources and operational flexibility.
• Potential for substantial sales of securities by existing shareholders to depress the market price.
• The company's management team has limited experience managing a publicly traded company.

Future Outlook

The company intends to expand its existing urban mobility services, introduce additional shared and/or electric transportation solutions, and leverage its scale and growing consumer base to offer adjacent, tech-enabled services beyond transportation. They plan to continue investing in organic growth, launch services in new cities, optimize dynamic pricing, and increase the take rate of platform services. Fleet expansion for two-wheeled electric vehicles is being evaluated for no earlier than summer 2027.

Management Comments

• We believe our strategy for sustainable growth positions us to become an integral component of urban transportation ecosystems, supporting more efficient, environmentally responsible mobility while enhancing the daily lives of our consumers.
• We believe these cities present a significant opportunity to drive incremental growth through higher engagement, increased usage frequency, and greater cross-service adoption among riders, drivers and consumers.
• We believe these dynamics reinforce our strategy of investing in the balanced growth of our ride-hailing, delivery, and two-wheeled electric services within a unified platform.

Industry Context

StockSavvy.ai notes that Marti Technologies operates in Turkey's shared mobility market, a segment of the country's $55-$65 billion consumer mobility market. Demand is strong due to limited public transportation, low taxi penetration, traffic congestion, and high private vehicle ownership costs. The shared mobility market in Turkey was estimated at $10-$15 billion in 2021 and is projected to grow to at least $16 billion by 2030. Marti is positioned as a market leader and category creator in Turkey for shared e-scooters, e-bikes, and e-mopeds.

Comparison to Industry Standards

• Marti's revenue of $39.2 million in 2025 represents less than 1% of Turkey's estimated $16 billion shared mobility market by 2030, indicating significant room for expansion.
• The company's two-wheeled electric vehicles emit approximately 18% less CO2 than alternative modes of urban transportation in Turkey, aligning with industry trends towards sustainability.
• Marti's recycling rate of 98.7% in 2024, processing 96.6 tons of materials, surpasses general industry benchmarks for waste management in the mobility sector.

Corporate Governance

Legal Proceedings

• A lawsuit filed by the Istanbul Otomobilciler Esnaf Odas claims unfair competition regarding ride-hailing and e-moped services. The case is ongoing, with a retrial scheduled.
• The company is subject to various other legal proceedings and claims in the ordinary course of business, including those involving personal injury, property damage, worker classification, and consumer complaints.

Related Party Transactions

• The company has entered into various subscription agreements for convertible notes with entities such as 405 MSTV I LP, Farragut Square Global Master Fund, LP, and New Holland Tactical Alpha Fund LP.
• Callaway Capital Management LLC, whose Chief Investment Officer, Daniel Freifeld, is also an independent director, has entered into commitment letters and subscription agreements for convertible notes.
• An engagement letter was entered into with Quinn Emanuel Urquhart & Sullivan, LLP, where Board member Alex Spiro is a partner, for legal services not exceeding $100,000.

Stakeholder Impact

• Shareholders may experience dilution if convertible notes are converted into ordinary shares.
• The company's focus on sustainability and ESG initiatives may positively impact environmentally conscious investors and customers.
• The ongoing legal proceedings, particularly the unfair competition claim, could impact the company's operations and financial performance, potentially affecting shareholders.
• The company's growth strategies and potential expansion into new markets could create opportunities for employees and partners.

Next Steps

• Continue investing in organic growth in existing cities.
• Launch services in new cities.
• Optimize dynamic pricing strategies.
• Increase the take rate of platform services.
• Evaluate opportunities for fleet expansion for two-wheeled electric vehicles no earlier than summer 2027.
• Continue to improve platform-level efficiency and operational excellence.
• Implement remediation measures for material weaknesses in internal control over financial reporting.

Key Dates

Recommendation

While Marti Technologies has shown impressive revenue growth and operational improvements, the company continues to operate at a net loss and faces significant risks related to its emerging market operations, competition, and regulatory environment. The substantial convertible debt and ongoing legal proceedings warrant a cautious approach. The positive revenue trend and improved gross margins are encouraging, but the path to profitability and sustained positive cash flow requires further demonstration. Therefore, a 'hold' recommendation is appropriate, with investors monitoring the company's ability to achieve profitability and manage its risks.

Keywords

Marti Technologies, SEC Filing, Form 20-F, Annual Report, Turkey Mobility, Ride-hailing, Electric Scooters, Delivery Services, Financial Results, Revenue Growth, Subscription Packages, Startup Funding, Emerging Markets