Company Reports

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia for its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow in midteens year on year in 2026, and anticipate similar growth for three to five years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is no longer a concern, as we have seen the platform to be a consistently profitable segment since 2025. Grab is still incurring heavy losses from developing its financial services business, which includes fintech payments and loans, but expects long-term profitability. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

Grab's second-quarter revenue grew 21% year-on-year, driven by the expansion of its fintech business as the loan book increased by 227%. Its on-demand gross merchandise value also contributed to growth and increased by 21%.

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia for its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow in midteens year on year in 2026, and anticipate similar growth for three to five years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is no longer a concern, as we have seen the platform to be a consistently profitable segment since 2025. Grab is still incurring heavy losses from developing its financial services business, which includes fintech payments and loans, but expects long-term profitability. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

Grab's first-quarter revenue grew 24% year on year, driven by a reacceleration in its delivery and mobility business from greater advertising and gross merchandise value and the expansion of nonfood delivery.

Grab is acquiring Delivery Hero's Foodpanda business in Taiwan for $600 million. The deal is expected to close in the second half of 2026 and will be cash-free and debt-free.

Grab's fourth-quarter revenue grew 19% year on year, driven by a reacceleration in its delivery business as gross merchandise volume, or GMV, grew 22% year on year compared with 19% a year before.

Grab announced that it is making a $60 million investment in Vay, a remote driving company. In unrelated news, Bloomberg reported that GoTo-backer SoftBank wants to remove the current GoTo CEO Patrick Walujo to facilitate a Grab takeover.

Grab's third-quarter 2025 revenue grew 22% year on year driven by a reacceleration in its delivery business as it grew 26% in gross merchandise volume, or GMV.

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia of its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow 41% year on year in 2023, and anticipate robust growth for 3-5 years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is a concern as we expect mobility to be the only profitable segment in 2023. The delivery service generates negative margins and Grab is incurring heavy losses from developing its financial services business that includes fintech payments and loans. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

Grab's second-quarter revenue grew 23% year on year, driven by a 21% acceleration in gross merchandise volume, or GMV, in its delivery business.

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia of its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow 41% year on year in 2023, and anticipate robust growth for 3-5 years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is a concern as we expect mobility to be the only profitable segment in 2023. The delivery service generates negative margins and Grab is incurring heavy losses from developing its financial services business that includes fintech payments and loans. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

Grab's first-quarter 2025 revenue grew by 18% year on year, in line with guidance, while adjusted operating profit was positive for the third consecutive quarter and better than expected.

Grab's fourth-quarter 2024 revenue increased 17% year on year to $764 million while operating profit was positive for the second consecutive quarter.

We raise our fair value estimate for Grab by 11% to $5.10 per share from $4.60, after it posted third-quarter revenue of $716 million, an 18% year-on-year increase. The firm also generated positive adjusted operating income for the first time in its history of $16 million, and more importantly, it raised its outlook for the rest of 2024 and expects further revenue reacceleration in 2025. Grab expects reacceleration to be driven by robust growth of its lending portfolio, increasing frequency in transactions of its Grab Saver business, and growth of its nonfood deliveries. In addition, mobility services remain in demand as the company is seeing greater demand from some of its lower-tier customers.

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia of its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow 41% year on year in 2023, and anticipate robust growth for 3-5 years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is a concern as we expect mobility to be the only profitable segment in 2023. The delivery service generates negative margins and Grab is incurring heavy losses from developing its financial services business that includes fintech payments and loans. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

We maintain our fair value estimate for Grab at $4.60 per share despite reporting second-quarter 2024 revenue of $664 million that fell short of our estimate by 1.5%. The stock dropped sharply given the slight miss, but we believe this was a vast overreaction and concerns are overblown. The revenue miss was due to foreign exchange translation resulting from weakened Asian currencies against the US dollar and not because of any structural changes or operational issues. Without the translation and on a constant-currency basis, revenue rose 23% year on year, which would've beaten the consensus estimate by 4%. We believe that the weakening currency is temporary, and investors are overlooking that gross transaction value, or GTV, would have increased 18% year on year under constant currency. Given the robust growth, we do not believe there are any operational issues with Grab and the firm should continue to expand scale as it added 2.4 million users to its platform sequentially and 6 million year on year to 40.9 million total users. The user growth reflects continued momentum for the platform.

Grab acquired restaurant reservation app Chope yesterday in a private deal for an undisclosed sum. According to Chope, it has 1.7 million users and operates in Singapore, Thailand, and Indonesia, which overlaps with Grab’s markets. We believe this deal gives Grab another touchpoint on the platform for users and likely provides a greater flywheel effect where the platform becomes more ubiquitous for Southeast-Asian consumers. While it may not directly benefit revenue for its ride-hailing or delivery services, it could provide a boost in advertising revenue from large food and beverage brands on the platform as Grab continues to accelerate the monetization of its advertising business.

Grab is still in its growth phase as it continues to acquire more users in Southeast Asia of its mobility and delivery services, its core businesses. We expect Grab’s overall gross merchandise value, or GMV, to grow 41% year on year in 2023, and anticipate robust growth for 3-5 years as its core businesses have a dominant market position and a broad network of drivers and customers. However, profitability is a concern as we expect mobility to be the only profitable segment in 2023. The delivery service generates negative margins and Grab is incurring heavy losses from developing its financial services business that includes fintech payments and loans. Grab has also seen its advertising business grow into another revenue stream, which we believe will be a long-term catalyst.

We are raising our fair value estimate for no-moat Grab to $4.60 per share from $4.40 after it posted revenue of $653 million, a 24% increase year on year, which was 7% better than our estimate. More importantly, the company raised guidance for its 2024 adjusted EBITDA upper range to $270 million from $200 million, driven by a reduction in operating costs. Grab elected to keep its revenue guidance the same at $2.70 billion-$2.75 billion, or 14%-17% growth year on year, as it believes that it can improve profitability without materially increasing monetization rates—which, in our view, is an impetus for long-term organic growth. In the first quarter of 2024, recurring operating margin improved to negative 8% from negative 37% a year ago, while sales and marketing expenses were flat year on year and represented only 11% of sales, down from 13%. Coupled with strong on-demand gross transaction volume, or GTV, growth of 18% year on year, we believe this reflects a long-term path for margin expansion without heavy incentives, and our fair value change reflects the incremental 40-50 basis points of EBITDA margin each year from 30-40 basis points previously.

We maintain our fair value estimate of $4.40 for Grab after the company reported fourth-quarter revenue of $653 million that was in line with our estimate. The company provided upper-range revenue guidance of $2.75 billion for 2024, which represents a 17% year-on-year growth but a deceleration from 65% in the year before. The company also guided to $180 million-$200 million adjusted EBITDA in 2024, which will be an improvement from a $22 million loss in 2023. Profitability will be driven by EBITDA margin expansion of 100-200 basis points in the delivery business in the medium term due to operating leverage and lower incentives. We believe Grab’s 2024 guidance represents a milestone where it can both increase revenue and see greater visibility for profitability at the same time, a benchmark that has eluded other Southeast Asia internet giants such as Sea and GoTo.