TLDR
- Grab reported Q3 revenue of $873 million, beating analyst estimates of $872.9 million with 22% year-over-year growth
- The company’s profit reached only $17 million, up just $2 million from last year, disappointing investors expecting stronger earnings
- Grab raised its full-year revenue guidance to $3.38-$3.40 billion and adjusted EBITDA forecast to $490-$500 million
- Financial Services showed the strongest growth at 39% year-over-year, while Deliveries grew 23% and Mobility increased 17%
- Grab shares dropped 9.2% following the earnings report despite the revenue beat and raised guidance
Grab Holdings reported third-quarter revenue of $873 million, beating analyst expectations of $872.9 million. The 22% year-over-year increase reflects continued growth across the company’s platform.
However, the win on the top line couldn’t save the stock. Shares tumbled 9.2% following the earnings announcement.
The problem was profit. Grab posted just $17 million in net income for the quarter. That represents an increase of only $2 million compared to the same period last year.
Investors had expected stronger bottom-line growth. The modest profit improvement disappointed the market despite the revenue beat.
The company’s On-Demand GMV, combining Mobility and Deliveries, grew 24% year-over-year to $5.8 billion. Adjusted EBITDA climbed 51% to $136 million.
Grab’s Deliveries segment generated $465 million in revenue, up 23% from last year. This fell slightly short of analyst estimates of $470 million.
Mobility revenue reached $2.04 billion in gross merchandise value, representing 17% year-over-year growth. The segment continues to benefit from increased ride-hailing demand across Southeast Asia.
Financial Services Leads Growth
Financial Services emerged as the strongest performer. The division posted 39% year-over-year revenue growth to $90 million.
Increased lending activities drove the expansion. The company’s push into financial products appears to be gaining traction with users.
CFO Peter Oey told Reuters that about one-third of new monthly transacting users in deliveries come from affordable channels. Roughly 40% of these users eventually upgrade to standard products.
“What we’re seeing is more engagement from these saver platforms or these affordable products, and also they’re spending more frequent at the same time as we are able to upsell them,” Oey said. The strategy targets cost-conscious consumers while creating opportunities for upselling.
Raised Guidance for 2025
Grab raised the lower end of its full-year revenue forecast. The new range stands at $3.38 billion to $3.40 billion, up from $3.33 billion to $3.40 billion previously.
The company also upgraded its adjusted EBITDA guidance. The new forecast calls for $490 million to $500 million, compared to the previous range of $460 million to $480 million.
Adjusted Free Cash Flow reached $283 million on a trailing twelve-month basis. CEO Anthony Tan called the quarter “another vital step forward” in building a more resilient platform.
The company continues its evolution into a “superapp” offering food delivery, grocery delivery, ride-hailing, and financial services. This one-stop-shop approach has gained traction with users seeking convenience.
Grab has focused on expanding affordable options to attract budget-conscious consumers. The strategy aims to provide a buffer against potential spending downturns.
The company is also exploring expansion into autonomous robotaxis. Analysts expect this segment to see strong growth in coming years as the technology matures.
The raised guidance suggests management remains confident in the business trajectory. However, the market’s reaction shows investors want to see that confidence translate into stronger profit growth, not just revenue gains.
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