Grab (NASDAQ:GRAB) used its fourth-quarter and full-year 2025 earnings call to outline a multi-year growth and profitability framework after reporting what management described as its first full year of net profitability. Executives said the company accelerated on-demand gross merchandise value (GMV) growth to 21% year-over-year across mobility and deliveries, driven by a “product-led affordability strategy” that expanded the user base and increased engagement.
2025 milestones and user growth
Co-founder and CEO Anthony Tan said 2025 marked a turning point for the company’s ability to “compound,” pointing to scale and improving unit economics across the ecosystem. He said Grab generated $200 million of net profit for the year and doubled adjusted free cash flow from 2024 to $290 million in 2025. Tan also highlighted the company’s broader ecosystem progress, including the launch of digital banks in Indonesia, Singapore, and Malaysia and the growth of its loan portfolio past $1 billion.
Operational strategy: affordability, engagement, and AI
President and COO Alex Hungate said Grab is doubling down on three priorities: affordability and reliability, deeper engagement across the ecosystem, and technology investments to translate demand density into operating leverage. On mobility, Hungate said the company reduced passenger fares by 16% while improving driver earnings by 29%, attributing the outcome to network density and technology that improves driver productivity.
Hungate also said the company has expanded into almost double the number of cities compared to 2021, with GMV in non-capital cities growing more than twice as fast as in capital cities. In deliveries, he said Grab lowered delivery cost per order by 8% since 2021, contributing to a 41% increase in food transaction volumes, while merchant selection improved 25% over the same period and fulfillment reliability improved by three percentage points over three years.
To increase engagement, management emphasized its loyalty and cross-sell efforts, including Grab Unlimited (which management said accounts for 35% of deliveries GMV), GrabCoins, and Grab VIP. Hungate also pointed to travel-related initiatives, including airport partnerships and in-app translation features, saying traveler MTUs grew more than 10 times over three years and airport rides now drive over 10% of mobility GMV.
In grocery, Hungate said GrabMart is growing 1.7 times faster than GrabFood and represents 10% of deliveries GMV. He cited deeper integration with supermarkets, shifts toward weekly stock-ups, and the “GrabMore” feature that lets users add groceries to food orders at no additional delivery cost. Grab said it saw a 30% year-over-year increase in GrabMart users in 2025.
On AI, Hungate said more than 90% of mobility rides are dispatched using AI and described efforts to reduce cloud costs per transaction and improve headcount efficiency through “auto-adaptive” marketplace technology. Tan added that Grab views AI as an accelerant, not a threat, arguing the company’s “hyperlocal physical infrastructure” and fulfillment capabilities are difficult to disintermediate. He also referenced partnerships with OpenAI and Anthropic, framing them as both efficiency drivers and potential traffic channels.
Financial results and 2026 guidance
Group CFO Peter Oey said fourth-quarter on-demand GMV rose 21% year-over-year (20% on a constant-currency basis) and transactions increased 24%. He reported fourth-quarter group revenue of $906 million, up 19% year-over-year (17% constant currency). Adjusted EBITDA was $148 million in the quarter, marking Grab’s 16th consecutive quarter of adjusted EBITDA improvement, while adjusted free cash flow was $76 million.
For the full year, Oey said adjusted EBITDA increased 60% year-over-year to $500 million, while adjusted free cash flow totaled $290 million. He also said 2025 was Grab’s first full year of net profit.
Grab issued 2026 guidance calling for:
- Group revenue: $4.04 billion to $4.1 billion, representing 20% to 22% year-over-year growth
- Adjusted EBITDA: $700 million to $720 million, representing 40% to 44% year-over-year growth
Oey said the company expects its financial services segment to move toward EBITDA breakeven in the second half of 2026, supported by scaling the loan book and continued technology investment.
2028 framework, capital allocation, and key Q&A topics
Management introduced a multi-year framework through 2028, with Tan and Oey describing targets of 20% revenue CAGR from 2025 to 2028, adjusted EBITDA of $1.5 billion by 2028, and adjusted free cash flow conversion improving to 80% from 58% in 2025. Oey also said the company expects adjusted free cash flow to exceed $1.2 billion in 2028 under that framework.
In Q&A, management said the long-term outlook is intended to provide investors a clearer roadmap and is based on organic growth. Oey and Hungate said key drivers for the EBITDA step-up include continued on-demand margin improvement through lower “cost to serve,” financial services scaling as it moves past breakeven, and corporate cost leverage. Oey also said corporate costs declined from roughly 17% of revenue in 2023 to 11% in 2025.
On Indonesia, Hungate said the government has not proposed changes to ride-hailing commission caps, adding that Grab is in consultation with officials and aligned on improving driver welfare. He said the company does not expect margins to be impacted by driver social programs due to operating leverage as it scales. He also highlighted financial services momentum in Indonesia, including Superbank’s IPO in December 2025, which he said was about 300 times oversubscribed and had a market cap around $1.8 billion.
Grab also announced a new $500 million share repurchase program, following completion of a prior $500 million program, bringing total repurchase commitment to $1 billion. Oey said the company’s capital allocation priorities remain focused on organic growth, disciplined M&A, maintaining a strong balance sheet, and returning excess capital to shareholders.
Finally, management discussed its acquisition of Stash, a U.S.-based digital investing platform. Oey said Stash is positive EBITDA and free cash flow positive and described the deal as a way to add wealth management capabilities and talent. He said the company expects Stash to contribute $60 million in adjusted EBITDA by 2028 and anticipates closing the transaction in the third or fourth quarter.
About Grab (NASDAQ:GRAB)
Grab Holdings Inc is a Singapore-based technology company that operates a consumer-facing “super app” across Southeast Asia offering services spanning ride-hailing, food and package delivery, and digital payments. Its platform connects consumers, drivers, merchants and delivery partners through mobile applications and supports on-demand mobility (taxi and private car), last-mile logistics, and on-demand food delivery under brands such as GrabFood and GrabExpress. The company has also developed a merchant-facing ecosystem that supports ordering, payment acceptance and loyalty functions.
Beyond transportation and delivery, Grab has expanded into financial services through Grab Financial Group, which provides digital payments via GrabPay, consumer lending, insurance distribution and small-business financial solutions.
