European Investor
05 May 2026, 10:24
Grab Holdings Jumps 4.7% as Record Profitability Impresses Investors
May 5, 2026
Grab Holdings (NASDAQ: GRAB) is surging about 4.7% in Tuesday's session after Southeast Asia's leading super-app delivered a record first quarter, posting strong revenue growth and its highest-ever adjusted EBITDA. For a company that spent years burning cash to build market share across the region, the shift to durable profitability is clearly resonating with investors.
Q1 by the Numbers
Revenue grew 24% year-over-year to $955 million, or 19% on a constant currency basis, driven by continued growth across the On-Demand and Financial Services segments. On-Demand gross merchandise value came in at $6.1 billion, up 24% year-over-year, with monthly transacting users growing 16% to 51.6 million and GMV per user rising 4% on a constant currency basis.
The profitability story was the real standout. Adjusted EBITDA grew 46% year-over-year to $154 million, a record for the company, with adjusted EBITDA margin expanding to 16.2% of revenue from 13.7% in Q1 2025. Profit for the period reached $120 million, up sharply from just $10 million a year ago, boosted by improved operating results, a $118 million net gain on fair value of financial assets and liabilities, and a $10 million reduction in income tax expenses.
Operating profit for the quarter was $22 million, a $43 million improvement from an operating loss of $21 million in the prior year period. Adjusted free cash flow swung to $98 million from negative $101 million a year ago, a $199 million improvement driven by increasing profitability and better management of receivables and payables.
The gross loan portfolio grew 130% year-over-year to $1.438 billion, reflecting the rapid expansion of Grab's financial services business, which is fast becoming a meaningful growth engine alongside its core mobility and delivery operations.
One area worth watching is incentive spending, which totaled $650 million for the quarter. On-Demand incentives as a proportion of GMV rose slightly, driven by higher partner incentives to meet festive demand and to support driver-partners facing increased fuel costs across the region. CEO Anthony Tan acknowledged that Southeast Asia is navigating an uncertain macroeconomic environment from a fuel crisis, though he framed Grab's results as a demonstration of platform resilience.
Guidance Unchanged but Confident
Management reiterated its full-year 2026 guidance of $4.04 billion to $4.10 billion in revenue, representing 20% to 22% growth year-over-year, and adjusted EBITDA of $700 million to $720 million, implying 40% to 44% growth. The unchanged guidance reflects confidence in the trajectory rather than caution — CFO Peter Oey noted the strong start keeps the company firmly on track.
Gross cash liquidity stood at $6.9 billion as of March 31, and in March 2026, Grab entered into an accelerated share repurchase agreement to buy back $250 million worth of shares, alongside a contingent forward purchase agreement for up to an additional $150 million, as part of a $500 million repurchase programme approved in February.
The Bigger Picture
Grab's Q1 results mark a meaningful milestone for a company that was once synonymous with cash burn and growth-at-any-cost. The combination of accelerating GMV growth, expanding margins, a fast-growing lending business, and active capital return to shareholders paints a picture of a maturing platform with multiple levers for continued value creation. The 4.7% gain today suggests investors are beginning to price in that story more seriously.
May 5, 2026
Grab Holdings (NASDAQ: GRAB) is surging about 4.7% in Tuesday's session after Southeast Asia's leading super-app delivered a record first quarter, posting strong revenue growth and its highest-ever adjusted EBITDA. For a company that spent years burning cash to build market share across the region, the shift to durable profitability is clearly resonating with investors.
Q1 by the Numbers
Revenue grew 24% year-over-year to $955 million, or 19% on a constant currency basis, driven by continued growth across the On-Demand and Financial Services segments. On-Demand gross merchandise value came in at $6.1 billion, up 24% year-over-year, with monthly transacting users growing 16% to 51.6 million and GMV per user rising 4% on a constant currency basis.
The profitability story was the real standout. Adjusted EBITDA grew 46% year-over-year to $154 million, a record for the company, with adjusted EBITDA margin expanding to 16.2% of revenue from 13.7% in Q1 2025. Profit for the period reached $120 million, up sharply from just $10 million a year ago, boosted by improved operating results, a $118 million net gain on fair value of financial assets and liabilities, and a $10 million reduction in income tax expenses.
Operating profit for the quarter was $22 million, a $43 million improvement from an operating loss of $21 million in the prior year period. Adjusted free cash flow swung to $98 million from negative $101 million a year ago, a $199 million improvement driven by increasing profitability and better management of receivables and payables.
The gross loan portfolio grew 130% year-over-year to $1.438 billion, reflecting the rapid expansion of Grab's financial services business, which is fast becoming a meaningful growth engine alongside its core mobility and delivery operations.
One area worth watching is incentive spending, which totaled $650 million for the quarter. On-Demand incentives as a proportion of GMV rose slightly, driven by higher partner incentives to meet festive demand and to support driver-partners facing increased fuel costs across the region. CEO Anthony Tan acknowledged that Southeast Asia is navigating an uncertain macroeconomic environment from a fuel crisis, though he framed Grab's results as a demonstration of platform resilience.
Guidance Unchanged but Confident
Management reiterated its full-year 2026 guidance of $4.04 billion to $4.10 billion in revenue, representing 20% to 22% growth year-over-year, and adjusted EBITDA of $700 million to $720 million, implying 40% to 44% growth. The unchanged guidance reflects confidence in the trajectory rather than caution — CFO Peter Oey noted the strong start keeps the company firmly on track.
Gross cash liquidity stood at $6.9 billion as of March 31, and in March 2026, Grab entered into an accelerated share repurchase agreement to buy back $250 million worth of shares, alongside a contingent forward purchase agreement for up to an additional $150 million, as part of a $500 million repurchase programme approved in February.
The Bigger Picture
Grab's Q1 results mark a meaningful milestone for a company that was once synonymous with cash burn and growth-at-any-cost. The combination of accelerating GMV growth, expanding margins, a fast-growing lending business, and active capital return to shareholders paints a picture of a maturing platform with multiple levers for continued value creation. The 4.7% gain today suggests investors are beginning to price in that story more seriously.
