Grab posts first full-year profit with earnings of $338m, unveils $631m share buyback

Bengaluru - Singapore-based Grab swung to a net profit of US$268 million (S$338 million) in 2025, from a loss of US$105 million in 2024, its first year in the black after a record fourth-quarter performance.

Earnings for the fourth quarter of 2025 was more than six times higher at US$171 million from US$27 million in the year-ago period, driven by higher operating profit and net finance income. Revenue for the quarter grew 19 per cent year on year to US$906 million from US$764 million.

The company also announced on Feb 11 a US$500 million (S$631 million) share buyback programme.

“We exited 2025 with a record fourth quarter, delivering our first full year of net profit and crossing 50 million monthly transacting users,” group chief executive and co-founder Anthony Tan said in a results announcement on Feb 11.

Shares of US-listed Grab, however, dropped about 4 per cent in extended trading on Feb 11 after the company forecast 2026 revenue below Wall Street expectations.

For analysts, this signalled slower momentum in the tech firm’s core businesses of ride hailing and deliveries as consumers grapple with economic uncertainty.

Sticky inflation levels in major South-east Asian markets, paired with the fallout of US tariff policies, has prompted consumers to become more selective with spending, as they curb discretionary budgets and look for cost-saving options for regular purchases.

Grab has leveraged its Saver platform to lure frugal customers with discounts, offers and bundling to bring down delivery fees in an attempt to keep up with rapidly changing spending patterns.

“We’re going to continue to make our rides affordable, because that’s really one of the fastest growing businesses in terms of adding new users into the platform today,” chief financial officer Peter Oey told Reuters.

He added that in 2026, the company plans to double down on its grocery business, which is growing 1.7 times faster than its food delivery segment.

Separately, Grab said it will acquire US digital financial services company Stash Financial in a deal initially valued at US$425 million.

Grab said acquiring Stash offers it access to talent and technology to accelerate its financial services road map, as well as high-margin subscription-based revenue.

Stash has US$5 billion in assets under management with over a million paying subscribers. It will operate as an independent brand in the United States after the transaction closes.

On its outlook, Grab expects 2026 revenue between US$4.04 billion and US$4.10 billion, compared with estimates of US$4.13 billion, according to data compiled by LSEG.

It forecast 2026 adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of between US$700 million and US$720 million, while analysts expect US$721.7 million.

Its adjusted Ebitda in 2025 surged 60 per cent to US$500 million from US$313 million a year ago.

Grab also forecast revenue to grow 20 per cent compounded annually from 2025 to 2028. REUTERS

With additional information from The Straits Times