Grab Holdings Ltd (GRAB) Q3 2025 Earnings Call Highlights: Strong Growth in Users and ...
GuruFocus News
Mon, November 3, 2025 at 11:01 PM PST 4 min read
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- Monthly Transacting Users: Increased by nearly 6 million year-over-year to 48 million.
- On-Demand GMV: Grew 24% year-on-year, or 20% on a constant currency basis.
- Group Adjusted EBITDA: Rose 51% year-on-year to $136 million.
- Adjusted Free Cash Flow: Improved by $185 million year-on-year to EUR 283 million on a trailing 12-month basis.
- Financial Services Loan Portfolio: Expected to exceed $1 billion by year-end.
Release Date: November 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points- Grab Holdings Ltd ( NASDAQ:GRAB) reported a 24% year-on-year increase in on-demand GMV, driven by product-led innovations.
- The company achieved a 51% year-on-year rise in group adjusted EBITDA to $136 million, marking its 15th consecutive quarter of sequential profitability improvement.
- Adjusted free cash flow improved by $185 million year-on-year to EUR 283 million on a trailing 12-month basis.
- Grab Holdings Ltd ( NASDAQ:GRAB) is on track for its financial services loan portfolio to exceed $1 billion by the end of 2025.
- The company is experiencing strong growth in its GrabMart segment, which is growing 1.5 times faster than its food delivery segment.
Negative Points- The competitive landscape in key markets like Indonesia remains intense, requiring continuous strategic adjustments.
- Despite strong growth, the company faces challenges in maintaining margins, particularly in its GrabMart segment, which currently has lower margins than food deliveries.
- There is an increase in expected credit losses due to accelerated growth in the financial services segment, impacting financial performance.
- The macroeconomic environment poses uncertainties, although the company has strategies to mitigate potential impacts.
- Grab Holdings Ltd ( NASDAQ:GRAB) must continue to invest in new product initiatives and technology, such as autonomous vehicles, which could impact short-term profitability.
Q & A HighlightsQ: Can you discuss the competitive landscape in Indonesia and what has led to your strong performance there? Also, what prompted the increase in your guidance? A: Alexander Hungate, Chief Operating Officer: Indonesia is a key market for us, and our product-led growth strategy is driving an increase in monthly transacting users (MTUs) for both deliveries and mobility. Our affordability strategy is attracting users at different pricing levels, and we're seeing strong growth in high-value rides and priority food delivery services. Peter Oey, Chief Financial Officer: Our guidance increase is due to strong top-line growth across our segments, disciplined cost management, and improved operating leverage. We are confident in raising our EBITDA guidance to $490 million to $500 million for the full year 2025.
Q: Could you elaborate on your MTU growth and the user profile changes this quarter? Also, what are your expectations for delivery business growth into 2026? A: Alexander Hungate, Chief Operating Officer: Our on-demand MTUs grew 14% year-on-year, with daily transactions growing even faster. We're seeing growth in both high-value and saver services, with a skew towards younger customers for saver products. For 2026, we expect continued strong growth driven by product-led viral growth, our Grab Unlimited subscription program, and the GrabMart opportunity. We aim to maintain margin growth while investing in new product initiatives.
Q: How do you plan to use your strong cash balance over the next 12 to 18 months? A: Peter Oey, Chief Financial Officer: Our capital allocation focuses on investing in organic growth, selective M&A with a high bar for synergies, and returning excess capital to shareholders. We're using our balance sheet to support our loan book, which yields a high return. We're also investing in strategic areas like autonomous vehicles to ensure long-term growth and value creation.
Q: What are your plans for the GrabMart business, and how do you see it scaling? A: Alexander Hungate, Chief Operating Officer: GrabMart is growing across all markets and is currently about 10% of our deliveries GMV. We're experimenting with new business models like quick commerce in Malaysia and Indonesia to unlock more TAM. Our GrabMore feature, which allows customers to add groceries to food orders, is driving cross-sell and increased order frequency.
Q: Can you provide insights into your Financial Services segment's growth and risk management? A: Alexander Hungate, Chief Operating Officer: We're accelerating financial services growth and aim to exceed a $1 billion loan book by the end of 2025. Our credit models are maturing, and we're learning from unconventional data markers to underwrite segments of the population that are underbanked. Despite increased credit loss provisions, our segment adjusted EBITDA is improving, indicating strong underlying performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript. |
