Grab Reports Sixfold Profit Jump in Q2 as Financial Services Surge

Profitability Deepens Across All Segments

Grab posted second-quarter earnings of US$252 million, marking a more than sixfold increase from the US$35 million recorded in the same period last year. Revenue climbed 22 percent to US$997 million, according to the company.

The Singapore-headquartered operator reached 54 million monthly transacting users in the quarter, while daily active users grew at a faster pace than the monthly cohort. Retention rates held steady. Group CEO Anthony Tan noted that growth came primarily from transaction volume and user expansion rather than pricing adjustments, describing the dynamic as the healthiest form of revenue expansion for the platform.

Adjusted EBITDA rose 54 percent to US$168 million in Q2 2026 from US$109 million in the prior-year quarter, reflecting improved margins across deliveries, mobility and financial services. Regional corporate costs increased 13 percent year-on-year to US$104 million, driven by cloud and software infrastructure investments, though sequential costs declined by US$10 million due to lower staffing and professional fees.

Financial Services Lead Revenue Mix Shift

Financial services revenue climbed 59 percent to US$134 million, the fastest-growing segment in the quarter. Total loans disbursed increased 72 percent to reach US$1.2 billion in Q2, while the gross loan portfolio expanded nearly threefold to US$2.3 billion from US$781 million a year earlier. Customer deposits across GXS Bank, GXBank and Superbank totalled US$2.5 billion at the end of June.

The earnings figure reflected a US$307 million gain from consolidating Superbank since June and a US$66 million gain from recognising deferred tax assets. These were partially offset by a US$183 million fair-value loss on financial instruments.

Deliveries revenue grew 21 percent to US$531 million, supported by rising gross merchandise value and advertising income. GrabMart, the company's grocery vertical, expanded GMV at 17 times the rate of food delivery in the quarter. Grocery users increased 42 percent, though the segment still represents only 14 percent of the overall user base. Chief Operating Officer Alex Hungate said global peers report grocery penetration rates around 30 percent or higher, indicating significant headroom for expansion in Southeast Asia.

Mobility and AI Cost Optimisation

Mobility revenue rose 12 percent to US$331 million, driven by higher GMV and transaction volumes. Monthly active drivers grew 19 percent to an all-time high, supported by more than US$7 million in fuel subsidies during an ongoing regional fuel crisis.

Tan said the company has cut the cost per AI interaction for drivers and merchants by more than half since June 2025. Internal development cycles have shortened by up to 30 percent year-on-year as engineers use autonomous coding agents, while Jarvis, an internal AI data analytics assistant, saves sales teams approximately 40,000 hours each quarter.

Raised Guidance and Capital Allocation

Grab lifted its full-year 2026 revenue outlook to between US$4.1 billion and US$4.15 billion, implying growth of 22 to 23 percent. The prior guidance range was US$4.04 billion to US$4.1 billion. Adjusted EBITDA guidance was raised to between US$720 million and US$740 million, up from the earlier range of US$700 million to US$720 million.

CFO Peter Oey attributed the upward revision to underlying business strength, the consolidation of Superbank and the acquisition of US fintech Stash. The updated projections account for foreign-exchange headwinds and fuel subsidy adjustments across key markets.

The board authorised an additional US$750 million for share repurchases, bringing total buyback commitments to nearly US$1.8 billion since 2024.

On potential competitive shifts from Uber's interest in acquiring Delivery Hero, which operates foodpanda in the region, Tan said Uber remains restricted from competing in Grab's core markets until one year after selling its stake. He added that the company's competitive positioning stems from structural advantages built over years of localising product, payment and logistics infrastructure across eight countries.

User penetration remains below the addressable population across Southeast Asia, and the company is prioritising engagement depth over market-share expansion in mature verticals. With financial services scaling faster than other segments, the revenue mix is shifting toward higher-margin, capital-light products, a trend likely to support continued margin expansion through 2027.