Grab reports Q3 earnings of US$37 million on positive operating profit
Operating profit rises to US$27 million in the quarter from a loss of US$38 million the previous year
[SINGAPORE] Ride-hailing giant Grab posted Q3 2025 earnings of US$37 million on Tuesday (Nov 4), up from US$26 million in the previous corresponding period.
This was primarily due to positive operating profit and lower income tax expenses incurred, which were partially offset by lower net finance income for Q3.
Revenue in Q3 grew 22 per cent to US$873 million from US$716 million the year before, driven by growth across its on-demand and financial services segments.
The company also reported an operating profit of US$27 million in the quarter, reversing from a loss of US$38 million in Q3 2024.
This is mainly due to increases in revenue, improvements in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) margins, and disciplined cost management.
Adjusted Ebitda was US$136 million for the quarter, an improvement of 51 per cent year on year from US$90 million. This was due to the company growing on-demand gross merchandise value (GMV) and revenue, while improving profitability on a segment-adjusted Ebitda basis.
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On-demand GMV rose 24 per cent year on year, or 20 per cent on the year on a constant currency basis, to US$5.8 billion. It was underpinned by strong year-on-year growth in on-demand monthly transacting users and total number of on-demand transactions at 16 per cent and 27 per cent, respectively.
Partner incentives of the group also increased 40 per cent on the year to US$263 million, from US$187 million previously.
Revenue for the financial services segment grew 39 per cent on the year, or 35 per cent on a constant currency basis, to US$90 million in the third quarter of 2025, up from US$64 million. The increase was primarily driven by higher contributions from lending across GrabFin and its digibanks.
Total loans disbursed increased 56 per cent year on year to US$886 million in the third quarter.
“Our total loan portfolio at the end of the third quarter grew 65 per cent year on year to US$821 million from US$498 million in the same period a year prior, and remains on track to exit the full year above US$1 billion,” said the group on Tuesday.
Grab has increased provisions for expected credit losses in line with disbursals growth. This has resulted in segment-adjusted Ebitda losses increasing 8 per cent year on year to US$28 million, as it scaled its lending businesses across GrabFin and digibanks during the quarter.
Customer deposits in GXS Bank (Singapore) and GXBank (Malaysia) grew 20 per cent year on year to US$1.3 billion in the third quarter, up from US$1.2 billion. However, it declined 15 per cent from US$1.5 billion in the prior quarter.
“The sequential decline reflects our move to proactively manage funding costs across our digibanks and align our deposit rates with the prevailing interest rate environment,” Grab noted.
Total deposit customers across GXS Bank and GXBank grew to another all-time high at the end of the third quarter, signalling the continued traction of Grab’s digital banks, said the company.
In September, GXBank launched GX Business Banking alongside its flagship Jaguh Niaga Programme – initially rolled out for sole proprietors – to support micro, small and medium enterprises in Malaysia.
“We now expect full-year group revenue to come in at US$3.38 billion to US$3.4 billion, up from our prior range of US$3.33 billion to US$3.4 billion, and are also upgrading our full-year adjusted Ebitda guidance to US$490 million to US$500 million, from US$460 million to US$480 million,” said Peter Oey, chief financial officer of Grab.
The company will continue to prioritise innovation to fuel profitable growth in its core on-demand business, while making investments to accelerate growth in financial services and explore autonomous vehicle and remote driving opportunities.
Shares of Nasdaq-listed Grab closed up 1 per cent or US$0.06 at US$6.07 on Monday.
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