Grab in black for first time as Q4 earnings drive full-year profit to US$268 million

[SINGAPORE] Grab announced its first year in the black with FY2025 earnings of US$268 million on Thursday (Feb 12), turning around from a loss of US$105 million in FY2024.

The US$171 million in earnings for Q4 FY2025 was over six times the US$27 million a year prior. This was driven by higher operating profit and net finance income.

Revenue for the period grew about 19 per cent to US$906 million in Q4 FY2025 from US$764 million.

All business segments except financial services delivered positive segment adjusted earnings before interest, tax, depreciation and amortisation (Ebitda). Deliveries and mobility expanded its Ebitda margin to 2.2 per cent and 8.6 per cent, respectively.

Financial services revenue grew about 34 per cent on the year to US$99 million in Q4, from US$74 million in the year-ago period. Loans grew around 120 per cent to US$1.2 billion from US$536 million. Total loans disbursed rose 53 per cent to US$979 million in the quarter.

Customer deposits in GXS Singapore and GXBank Malaysia rose to US$1.6 billion at the end of Q4, from US$1.2 billion previously. This was driven by customer growth, with Grab users accounting for the majority of depositors.

Earnings for the quarter drove most of full-year profit.

Revenue for FY2025 grew about 20 per cent to US$3.4 billion from US$2.8 billion in FY2024. Earnings for FY2025 were driven by improvements in adjusted Ebitda, increases in net finance income and lower share-based compensation expenses.

“We exited 2025 with a record fourth quarter, delivering our first full year of net profit and crossing 50 million monthly transacting users,” said Anthony Tan, group chief executive officer and co-founder of Grab.

Peter Oey, Grab’s chief financial officer, said that the past year was critical in proving that the superapp model could work. “We have reached a stage where growth and profitability are no longer trade-offs,” he added.

Tan noted that, after 16 straight quarters of adjusted Ebitda improvement, incentives are no longer the primary driver of demand, and that margin expansion now comes through operating leverage, not cost deferral.

The Indonesian government has not proposed changes in commission caps, said Alex Hungate, Grab’s chief operating officer. The social security initiatives in Indonesia, such as the Hari Raya Bonus, are not expected to affect margins in the Indonesian market.

Generative artificial intelligence (GenAI) has also been leveraged to expand Grab’s services beyond capital cities. The platform is operating in twice the number of cities compared to 2021, with the addition of more than 400 cities. The gross merchandise value in non-capital cities is growing more than twice as fast as in capital cities.

Grab is using AI to dispatch over 90 per cent of its rides and improve credit writing. Headcount has stayed flat but revenues doubled between 2022 and 2024, noted Tan.

Grab is guiding for FY2026 revenue to be between US$4.04 billion and US$4.1 billion at a growth rate of 20 to 22 per cent year on year.

Guidance for adjusted Ebitda for FY2026 is between US$700 million and US$720 million at a 40 to 44 per cent growth on the year.

The super app platform is also guiding for a 20 per cent compound annual growth rate for its revenue between 2025 and 2028. Adjusted Ebitda guidance for 2028 stands at US$1.5 billion and adjusted free cash flow conversion is at 80 per cent for the same period.

This guidance and expected year-on-year growth is primarily attributable to the organic expansion of Grab’s business.

The company also announced a newly authorised US$500 million share buyback programme.

Acquisition of fintech Stash

Separately, Grab announced that it has acquired US-based digital financial services provider Stash. The acquisition will give the company access to talent and technology, as well as high-margin subscription revenue.

Stash currently has US$5 billion in assets under management with over a million paying subscribers. The financial services provider is adjusted Ebitda and cash-flow positive, and will operate as an independent brand in the US after the transaction closes.

“This acquisition brings more than just recurring, high-margin subscription revenue; we will strengthen Grab’s fintech knowhow with Stash’s artificial intelligence-powered investing app, designed with existing US regulatory requirements at its core,” said Tan.

The payment for 50.1 per cent of equity interest will be made at an enterprise value of US$425 million, with the remainder to be made at fair market value over three years.

This is subject to regulatory approvals and is expected to close in the third quarter this year. The payment will be a combination of cash and stock.

Nasdaq-listed Grab closed 1.9 per cent or US$0.08 lower at US$4.23 on Wednesday.