Grab Holdings (NASDAQ:GRAB) shares jumped approximately 10% in premarket trading on Tuesday after the Southeast Asian technology company reported stronger-than-expected third-quarter revenue and raised its full-year 2026 revenue and adjusted EBITDA forecasts. The results reflected continued growth across its platform, improving profitability and a significant increase in operating earnings.
The Singapore-based ride-hailing, delivery and financial services provider reported third-quarter revenue of $1.11 billion, exceeding the analyst consensus estimate of $1.05 billion. Revenue increased 27% compared with the corresponding period last year, or 30% on a constant currency basis.
However, adjusted earnings per share of $0.00 fell short of Wall Street expectations of $0.05, highlighting a difference between the company’s stronger operating performance and its adjusted per-share earnings.
Grab generated revenue of $1.11 billion during the third quarter, surpassing analyst expectations by approximately $60 million.
The 27% year-over-year increase reflected continued expansion across the company’s digital platform, which provides transportation, delivery and financial services throughout Southeast Asia.
Excluding the impact of foreign currency movements, revenue increased 30% compared with the prior-year period.
Chief Financial Officer Peter Oey highlighted the company’s continued growth and improving financial performance.
“This was another quarter of profitable growth. Group revenue was up 27% YoY or 30% YoY on a constant currency basis,” Oey said.
The results demonstrated continued revenue momentum, although adjusted earnings per share remained below market forecasts.
Despite the earnings miss, investors responded positively to the company’s stronger sales performance and increased annual financial guidance.
Grab reported record adjusted EBITDA of $237 million for the third quarter, representing a 73% increase compared with the corresponding period last year.
The company’s adjusted EBITDA margin expanded by 565 basis points year over year, reflecting improved operating profitability.
The result marked Grab’s nineteenth consecutive quarter of adjusted EBITDA growth.
The sustained improvement indicates that the company has continued increasing adjusted operating earnings as its platform expands.
Adjusted EBITDA growth also significantly outpaced the 27% increase in reported revenue, demonstrating stronger operating leverage.
The company attributed its financial performance to continued profitable growth across its operations.
The improvement contributed to management’s decision to increase its full-year adjusted EBITDA forecast.
Grab reported third-quarter operating profit of $108 million, representing a 297% increase from the corresponding period in 2025.
The substantial improvement reflected stronger profitability across the company’s business activities.
The increase in operating profit accompanied record adjusted EBITDA and higher revenue, reinforcing the company’s progress towards generating sustainable earnings from its platform.
Although adjusted earnings per share remained at breakeven, the growth in operating profit demonstrated an improvement in reported operating performance.
The company also recorded its first quarter of adjusted EBITDA profitability in its Financial Services business, representing an important milestone for the segment.
Grab’s Financial Services division achieved adjusted EBITDA profitability for the first time during the third quarter.
The milestone reflects progress in the company’s efforts to develop financial services alongside its established ride-hailing and delivery operations.
Financial Services forms part of Grab’s broader strategy of offering multiple services through a single digital platform.
The achievement contributed to the company’s overall adjusted EBITDA performance and supported its improved profitability outlook.
However, Grab did not disclose a specific adjusted EBITDA figure for the Financial Services segment in the reported announcement.
The division’s progress will remain an important consideration as investors assess the company’s ability to expand profitability across its different business activities.
Grab reported 57 million monthly transacting users on its platform during the third quarter.
The figure demonstrates the scale of the company’s customer activity across its transportation, delivery and financial services operations.
Meanwhile, On-Demand gross merchandise value (GMV) increased 18% year over year to $6.8 billion.
GMV represents the total value of transactions processed through the company’s on-demand platform rather than revenue recognised by Grab.
The increase indicates continued growth in transaction activity across the platform.
The combination of higher GMV, substantial user engagement and stronger revenue contributed to the company’s improved financial performance.
Grab’s ability to convert growing platform activity into higher revenue and operating earnings remains central to its business model.
Following the stronger-than-expected third-quarter revenue performance, Grab increased its full-year 2026 sales outlook.
The company now expects revenue of between $4.15 billion and $4.20 billion.
This compares with its previous forecast of $4.10 billion to $4.15 billion.
The midpoint of the revised guidance range is $4.175 billion, slightly below the analyst consensus estimate of $4.19 billion.
Although management raised its revenue expectations, the updated midpoint remains approximately $15 million below Wall Street forecasts.
The increase nevertheless reflects management’s confidence in the company’s revenue trajectory following the third-quarter performance.
Grab also raised its full-year adjusted EBITDA guidance following the record third-quarter result.
The company now expects adjusted EBITDA of between $790 million and $800 million for 2026.
This represents a substantial increase from its previous guidance range of $720 million to $740 million.
The midpoint of the new forecast is $795 million, compared with $730 million previously.
The $65 million increase in the guidance midpoint reflects management’s improved expectations for full-year operating profitability.
The revision follows third-quarter adjusted EBITDA growth of 73% and continued margin expansion.
The higher outlook indicates that Grab expects its profitability improvements to continue through the remainder of the year.
Grab reported adjusted free cash flow of $533 million on a trailing twelve-month basis.
The figure represented an increase of nearly 100% compared with the previous year.
The improvement reflects stronger cash generation alongside higher operating profitability.
Free cash flow is an important measure of the company’s ability to fund business investments and shareholder returns without relying exclusively on external financing.
The increase also supports Grab’s broader capital allocation activities, including its ongoing share repurchase programme.
Grab continued returning capital to shareholders during September and October.
The company repurchased approximately $400 million of its shares over the two-month period.
Following these transactions, $500 million remained available under its existing share buyback programme.
The repurchases reflect the company’s capital allocation priorities as its operating profitability and cash generation improve.
Share buybacks can reduce the number of shares outstanding, potentially supporting future earnings per share.
The remaining authorisation provides capacity for additional repurchases, although the company did not specify the timing of future transactions.
Grab’s third-quarter results demonstrated strong revenue growth, record adjusted EBITDA and a significant improvement in operating profitability.
Revenue increased 27% to $1.11 billion, exceeding analyst expectations, while adjusted EBITDA jumped 73% to a record $237 million.
Operating profit rose 297% to $108 million, and the Financial Services business achieved adjusted EBITDA profitability for the first time.
The company also reported 57 million monthly transacting users and an 18% increase in On-Demand GMV to $6.8 billion.
Management raised its full-year revenue guidance to $4.15 billion–$4.20 billion and increased its adjusted EBITDA outlook to $790 million–$800 million.
Despite adjusted earnings per share falling short of expectations, the improved financial forecasts and stronger cash generation supported a positive market reaction.
Investors will be monitoring whether Grab can maintain its revenue momentum, sustain margin expansion and translate continued platform growth into higher earnings per share.
The company’s ability to maintain profitability across its on-demand and financial services operations will remain important heading into 2027.
Grab Holdings is a Singapore-based technology company operating a digital platform across Southeast Asia.
The company provides ride-hailing, food and grocery delivery, and financial services through its mobile applications.
Its platform connects consumers with drivers, merchants and financial services providers, supporting transportation, commerce and digital payments across multiple regional markets.
Grab continues to expand its service offerings while focusing on improving operating profitability and cash generation.
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