This article first appeared on GuruFocus .
Grab Holdings ( NASDAQ:GRAB ) raised its full-year outlook after third-quarter revenue climbed sharply and adjusted EBITDA hit a record, showing that the Southeast Asian superapp is continuing to improve profitability even as the quarter delivered a mixed earnings result.
Revenue rose 27% year over year to $1.11 billion, or 30% on a constant-currency basis, driven by growth across Grab's core businesses. On-demand gross merchandise value increased 18% to $6.8 billion.
Profit for the period came in at $18 million, while adjusted EBITDA surged 73% to a record $237 million. Trailing 12-month adjusted free cash flow nearly doubled to $533 million.
The mixed part of the report came from earnings per share.
Grab reported EPS of about $0.01, below the roughly $0.02 consensus estimate, according to market data accompanying the earnings release.
Still, management became more optimistic about the full year.
Grab raised its 2026 revenue outlook to $4.15 billion to $4.20 billionand lifted adjusted EBITDA guidance to $790 million to $800 million.
Operating momentum remained healthy despite higher fuel costs and broader macroeconomic pressure.
Monthly transacting users reached a record 57 million, while on-demand MTUs increased 16%. Grab also continued spending to strengthen driver supply and support new products, pushing on-demand incentives as a percentage of GMV up 64 basis points to 10.7%.
Capital returns are becoming more important as well.
Grab repurchased $400 million of stock during September and Octoberand still has another $500 million available under its current program.
Investor Takeaway
I think the biggest takeaway is that Grab's profitability story is getting much stronger even while it continues investing for growth.
A 73% increase in adjusted EBITDA and nearly $533 million in trailing free cash flow show that operating leverage is finally becoming meaningful.
The EPS miss matters, but the raised outlook suggests management is more confident in the underlying business than the headline earnings figure might imply.
The main risk is incentives.
Grab is still spending heavily to secure drivers and promote new services, so investors need to see GMV and revenue grow fast enough to justify that spending.
For investors, the key things to watch are adjusted EBITDA margins, incentive intensity, monthly users, free cash flow and whether Grab can hit its newly raised guidance without sacrificing growth.
Grab's quarter was mixed on the surface.
Underneath, the profitability trend looks considerably stronger.
