20-F: Grab Holdings Achieves First Net Profit in 2025 Amid Strong Growth

Grab Holdings Limited reported its first net profit of $200 million in 2025, driven by robust growth in deliveries, mobility, and financial services across Southeast Asia.

Summary

• Grab Holdings Limited (GHL) achieved a net profit of $200 million for the year ended December 31, 2025, a significant improvement from net losses of $158 million in 2024 and $485 million in 2023.
• Revenue increased by 20% year-over-year to $3,370 million in 2025, up from $2,797 million in 2024 and $2,359 million in 2023.
• Adjusted EBITDA grew by 60% to $500 million in 2025, compared to $313 million in 2024 and a loss of $22 million in 2023.
• On-demand Gross Merchandise Value (GMV) rose 21% to $22.1 billion in 2025, from $18.4 billion in 2024.
• Monthly Transacting Users (MTUs) increased by 14% to 47.2 million in 2025, from 41.3 million in 2024.
• The loan portfolio expanded by 120% to $1,180 million as of December 31, 2025, from $536 million in 2024.
• The company issued $1.5 billion in zero coupon convertible senior notes due 2030 in June 2025.
• Acquired a majority economic interest in Everrise, a premium supermarket chain in East Malaysia, and Validus Capital, a digital SME lending platform in Singapore, in 2025.
• Acquired Chinese AI robotics company, Infermove, focused on autonomous robotics for first and last-mile delivery in December 2025.
• The board authorized a new share repurchase program of up to $500 million in February 2026.
• A special resolution will be proposed on March 24, 2026, to increase the voting power per Class B Ordinary Share from 45 to 90 votes, aiming to preserve Mr. Tan's majority voting power.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, marked by the company's achievement of its first net profit and significant growth across key financial and operational metrics, indicating a positive trajectory and effective strategic execution.

Positives

• Achieved first net profit of $200 million in 2025, a significant turnaround from previous losses.
• Strong revenue growth of 20% in 2025, reaching $3,370 million.
• Adjusted EBITDA surged by 60% to $500 million in 2025, demonstrating improved operational efficiency.
• On-demand GMV increased by 21% to $22.1 billion, indicating strong consumer demand and platform engagement.
• Monthly Transacting Users (MTUs) grew by 14% to 47.2 million, reflecting successful user acquisition and retention strategies.
• Loan portfolio expanded by 120% to over $1 billion, highlighting growth in financial services.
• Strategic acquisitions of Everrise, Validus Capital, and Infermove are expected to enhance market position and technological capabilities.
• Digital banking services (GXS Bank and GXBank) are expanding their customer base and product offerings, with customer deposits reaching $1.2 billion and GXBank exceeding one million users by end of 2024.
• The GrabScholar program expanded to Thailand and Vietnam, supporting 3,486 school-going children and 117 undergraduate scholars annually in 2025.

Negatives

• Incurred significant incentives of $2.3 billion in 2025 ($1.0 billion partner, $1.3 billion consumer), which reduce reported revenue.
• Net impairment losses on financial assets increased by 47% to $140 million in 2025, driven by loan portfolio growth and upfront provisioning.
• Financial services Segment Adjusted EBITDA remained negative at $(110) million in 2025, slightly worse than $(105) million in 2024, due to increased credit loss provisions and overheads.
• The company has accumulated losses of $17.5 billion as of December 31, 2025.
• The proposed increase in Class B voting power could further concentrate control with Mr. Tan, potentially limiting influence for other shareholders.

Risks

• Business is still in a growth stage, and failure to maintain growth or achieve sustained profitability could materially and adversely affect financial condition.
• Intense competition across all segments and markets, including from regional and single-market players, could impact market share and profitability.
• Ability to remain profitable is dependent on managing incentive levels and corporate overheads relative to commissions and fees.
• Subject to numerous, often conflicting, and evolving legal and regulatory risks across multiple jurisdictions, including data privacy, gig economy, anti-trust, and foreign ownership regulations.
• Harm to brand and reputation from negative publicity, illegal activities by partners, service failures, or regulatory scrutiny could adversely affect the business.
• Failure to manage growth effectively, including employee headcount, platform users, and new offerings, could impact operational efficiency and brand.
• Exposure to anti-corruption, anti-bribery, anti-money laundering, and countering the financing of terrorism laws, with operations in countries known for high corruption levels.
• Potential reclassification of driver-partners as employees or imposition of additional benefits could lead to significant labor costs and legal consequences.
• Inability to continue growing the base of platform users (driver-partners, merchant-partners, consumers) could diminish value proposition and impact results.
• Security, privacy, or data breaches involving sensitive information could lead to liability, decreased trust, and increased litigation.
• Financial services business, including digital banking, may not be successful and is subject to strategic, credit, fraud, capital, market, liquidity, operational, third-party, technology, information, cybersecurity, model, reputational, regulatory, compliance, and financial crime risks.
• Lending business faces credit risks, and ineffective collection efforts on delinquent loans could adversely affect performance.
• Improper, dangerous, illegal, fraudulent, or otherwise inappropriate activity by platform users or third parties could harm business and reputation.
• Risks associated with strategic alliances and partnerships, including non-performance, disputes, increased expenses, and restrictive provisions.
• Operation of digital banking through joint ventures in Singapore, Malaysia, and Indonesia is subject to regulatory and contractual difficulties, including capital requirements and potential indemnification obligations.
• Expansion of digital banking regionally may cause other group companies to be designated as financial holding companies, leading to additional compliance and capital obligations.
• Reliance on third-party cloud infrastructure and SaaS providers, with any disruption or interference adversely affecting business operations.
• Potential for being blocked from or limited in providing products in certain markets due to evolving or unclear laws and regulations.
• Proper uninterrupted functioning of highly complex technology platform is essential, and system failures or defects could cause disruptions.
• Dependence on interoperability of superapp with different devices, operating systems, and third-party software, with potential for adverse impacts from changes or unavailability.
• Inadequate protection of intellectual property rights or claims of misappropriation by third parties could incur significant costs and harm business.
• Inability to make or successfully integrate acquisitions or investments could hinder business growth.
• Failure to comply with anti-money laundering (AML) or other related laws and regulations could damage business and reputation.
• Changes in, or failure to comply with, competition laws could adversely affect the company, including fines or restrictions on operations.
• Growing use of AI and machine learning may present additional risks related to algorithm flaws, biased data, unclear intellectual property rights, and evolving regulatory environments.
• Unfavorable media coverage could harm business and reputation.
• Reliance on third-party background check providers, with potential for inaccurate information or non-compliance.
• Inability to maintain and evolve company culture as it grows could adversely affect business.
• Dependence on talented personnel, particularly engineers, with risks related to recruitment, retention, and increased compensation costs.
• Adverse litigation judgments or settlements could expose the company to monetary damages or limit business operations.
• Payment obligations under debt, including convertible notes, may limit available funds and restrict operational flexibility.
• Increases in fuel, food, labor, energy, and other costs could adversely affect operating expenses and consumer demand.
• Fluctuations in operating results due to seasonal factors and other business uncertainties.
• Exposure to fluctuations in currency exchange rates, particularly in emerging markets currencies.
• Reliance on internal systems and tools for operating metrics, with inherent challenges in measurement and potential for inaccuracies.
• Use of open source software under restrictive licenses could affect ability to commercialize proprietary code or result in loss of intellectual property rights.
• Business is subject to concentration risks, with over 85% of revenue from deliveries and mobility segments.
• Heavy dependence on third-party insurance coverage, with risks of insufficiency or provider inability to meet obligations.
• Increase in credit and debit card use may result in lower growth or decline in e-wallet usage.
• Reported results may be adversely affected by changes in accounting principles or business model.
• Use of cash for services raises regulatory, operational, and safety concerns.
• Investments in autonomous vehicle (AV) technologies may not be successful and face competitive and regulatory risks.
• Impact from governmental economic and trade sanctions laws and regulations, particularly in Myanmar.
• Impact from environmental regulations and policies, changes in consumer behavior, and failure to meet ESG targets.
• Uncertain tax liabilities in various jurisdictions and potential adverse financial consequences from changes in tax laws.
• Natural events, wars, terrorist attacks, and other acts of violence directly or indirectly impacting operating countries could adversely affect operations.
• Volatility in trading prices of Class A Ordinary Shares and Warrants.
• Sales of substantial number of securities by existing securityholders could cause prices to fall.
• Issuance of additional securities without shareholder approval could dilute existing ownership interests.
• Lack of research or inaccurate/unfavorable research by analysts could cause share price decline.
• Exercisable warrants could increase shares eligible for resale and result in dilution.
• Choice-of-forum provision in warrant agreement may limit holder's ability to obtain favorable judicial forum.
• Requirements of being a public company may strain resources and divert management attention.
• Inability to maintain effective internal controls and compliances could adversely affect business and reputation.
• Foreign private issuer status exempts from certain U.S. provisions, potentially affording less protection to shareholders.
• Difficulties in protecting interests and enforcing rights through U.S. courts due to incorporation in Cayman Islands and operations outside U.S.
• Securities litigation is expensive and could divert management attention.
• Restrictions on subsidiaries' ability to distribute dividends to the parent company.
• Share repurchase program may not be fully consummated or enhance long-term shareholder value.
• Dual-class voting structure may limit ability to influence corporate matters and discourage change of control transactions.
• No assurance of not being a passive foreign investment company (PFIC) for U.S. federal income tax purposes, leading to adverse tax consequences for U.S. Holders.

Future Outlook

Grab Holdings Limited anticipates continued growth in its business, driven by ongoing investments in technology and infrastructure, including AI and AV/robotics. The company plans to expand product offerings in high-growth areas like package and grocery delivery, financial services (including digital banking), and advertising. It also expects to pursue targeted investments, acquisitions, and strategic partnerships to enhance its platform and attract more users. The company aims to moderate the use of incentives over time to improve profitability and net cash inflow, while continuing to leverage its platform synergies and hyperlocal approach in Southeast Asia.

Management Comments

• Management believes that growth depends on expanding and diversifying offerings, increasing the scale of driverand merchant-partner and consumer bases, optimizing cost efficiency, reducing incentives, enhancing technology, recruiting talent, and navigating macroeconomic conditions.
• Management believes that increasing the depth and breadth of offerings will attract more consumers and partners to the platform.
• Management reviews the estimated useful lives and residual value of assets annually to determine depreciation expense.
• Management considers that the feature of warrants allowing holders to receive cash in certain tender or exchange offers results in their classification as liabilities measured at fair value through profit or loss.
• Management believes the arrangements in Thailand, the Philippines, Vietnam, Indonesia, and Malaysia are in compliance with applicable local laws and regulations, except as disclosed.

Industry Context

StockSavvy.ai notes that Grab Holdings Limited operates in the intensely competitive and rapidly digitalizing Southeast Asian market. The company's focus on a 'superapp' model, integrating deliveries, mobility, and financial services, positions it to capitalize on low digital penetration in these sectors. The expansion into digital banking and AI robotics reflects broader industry trends towards diversified tech ecosystems and advanced automation. However, the fragmented regulatory landscape across Southeast Asia, with evolving laws on gig economy, foreign ownership, and digital platforms, presents significant operational complexities and compliance costs, a common challenge for regional tech giants. The company's strategy of hyperlocal adaptation and strategic acquisitions (e.g., Everrise, Validus Capital, Infermove) is a direct response to the diverse market conditions and competitive pressures from both established local players and other regional tech firms like Foodpanda, ShopeeFood, Gojek, and traditional financial institutions.

Comparison to Industry Standards

• The filing does not provide specific comparable company financial results or operational benchmarks to assess against global industry standards. It mentions competitors like Foodpanda, ShopeeFood, Gojek, and Uber, but does not offer their performance metrics for direct comparison.
• The company's on-demand incentives as a percentage of on-demand GMV remained flat at approximately 10% in 2023, 2024, and 2025, reflecting a strategic use of incentives to drive growth, which is a common practice in competitive on-demand service markets but without specific industry benchmarks, it is difficult to assess its relative efficiency.
• The loan portfolio growth of 120% in 2025 is substantial, but without industry-specific non-performing loan rates or credit quality benchmarks for digital lending in Southeast Asia, a direct comparison of risk management effectiveness is not possible.

Management Changes

Corporate Governance

Legal Proceedings

• In Indonesia, the Business Competition Supervisory Commission (KPPU) investigated partnership arrangements with driver-partners for GrabExpress, GrabFood delivery, and special rental transportation. Proceedings are ongoing.
• KPPU also initiated proceedings regarding a cartel allegation involving the determination of P2P interest rates by the Indonesian Fintech Peer-to-Peer Funding Association, of which a relevant subsidiary is a member. Proceedings are ongoing.
• In the Philippines, the company was assessed approximately PHP 1.4 billion ($23.8 million) for alleged local business tax deficiencies in December 2018, which was settled for PHP 50 million ($849,000) in May 2025.
• In 2023, the Philippine Competition Commission (PCC) imposed fines totaling PHP 9 million ($153,000) for allegedly violating orders to return PHP 25.45 million ($432,000) to customers and providing incorrect information in compliance reports.
• The company faced an adverse decision by the Philippine Court of Appeals in February 2024 for alleged violations of interim measures previously ordered by the PCC, potentially leading to an additional PHP 12 million ($200,000) in fines.
• In Malaysia, the Malaysia Competition Commission (MyCC) had issued a proposed decision in October 2019 alleging abuse of dominant position, proposing a fine of approximately MYR 86.8 million ($21.4 million). The High Court quashed the fines, and MyCC's appeal was dismissed by the Court of Appeal and Federal Court, effectively ending the case.
• A claim was filed in Bangalore, India, on September 21, 2021, alleging breach of intellectual property rights related to Grab's wallet platform. The case was dismissed on May 31, 2023, but plaintiffs filed a petition to review the dismissal, which is pending.

Related Party Transactions

• Framework Collaboration Agreement (FCA) with Toyota Motor Corp. (a principal shareholder) renewed and amended on August 1, 2023, committing Grab to collaborate as a preferred OEM partner in R&D, install Toyota vehicle management hardware/software in its rental fleet, use Toyota-selected maintenance centers, and maintain an 80%-unit share of Toyota vehicles in its rental fleet. Transactions under FCA were $54 million in 2025.
• Related party transactions with PT Super Bank Indonesia Tbk (less than 50% equity interest) totaled $6.2 million in 2025, mainly for payroll-related costs and technology resource services.
• On December 31, 2024, GrabCar Sdn Bhd (wholly-owned subsidiary) awarded a contract to MUV Marketplace Sdn. Bhd. (majority owned by members of the Tan family, including Mr. Anthony Tan's father) to purchase 281 units of Perodua Bezza for MYR 4.7 million ($1.1 million) through a competitive bidding process.

Stakeholder Impact

• Shareholders: Potential for dilution from future equity issuances (e.g., convertible notes conversion, Digital Banking JV share swap) and the proposed increase in Class B voting power, which could concentrate control.
• Employees: Continued share-based compensation plans (2021 Plan, ESPP) to attract and retain talent, but also subject to clawback policy for erroneously awarded compensation.
• Driver-partners: Continued incentives and support programs (GrabForGood Fund, GrabScholar) aimed at improving socioeconomic mobility and quality of life, but also facing potential reclassification as employees and new regulatory requirements (e.g., Singapore's PWA, Malaysia's GWA) that could increase costs or alter working conditions.
• Merchant-partners: Opportunities for increased consumer demand and tools to enhance profitability through Grab's platform, but also subject to potential regulatory limits on commissions.
• Customers (Consumers): Enhanced offerings, product innovations, and loyalty programs (GrabUnlimited, GrabCoins) to improve user experience and value, alongside digital banking services for financial inclusion.
• Creditors: The issuance of $1.5 billion in convertible notes and existing debt obligations create fixed obligations, but the company's improved profitability and liquidity position mitigate immediate concerns.
• Regulators: Ongoing engagement and compliance efforts across multiple jurisdictions due to evolving and often conflicting regulations in deliveries, mobility, and financial services, with potential for fines or operational restrictions for non-compliance.

Next Steps

• Hold an extraordinary general meeting on March 24, 2026, to consider increasing the voting power per Class B Ordinary Share from 45 to 90 votes.
• Complete the acquisition of 100% equity interest in Stash Financial, Inc. in the third quarter of 2026, subject to regulatory approvals.
• Continue to invest in technology and infrastructure, including AI and AV/robotics, to enhance user experience and operational efficiency.
• Expand product offerings in high-growth areas such as package and groceries delivery, financial services, and advertising services.
• Pursue targeted investments, acquisitions, and strategic partnerships to complement organic growth.
• Release the sustainability report for 2025 in the second quarter of 2026.

Key Dates

Recommendation

The company's achievement of its first net profit in 2025, coupled with strong revenue and Adjusted EBITDA growth, signals a significant positive inflection point. Robust expansion in GMV and MTUs across its core segments demonstrates sustained market leadership and user engagement in Southeast Asia. While incentive spending remains high and the financial services segment is still in investment phase, the overall trend towards profitability and strategic acquisitions in high-growth areas like AI robotics and digital lending position the company for continued long-term value creation. The new share repurchase program also indicates management's confidence and commitment to shareholder returns. The proposed change in Class B voting rights, while concentrating control, is framed as a measure to ensure long-term growth and regulatory compliance, which could be viewed as a stabilizing factor for strategic direction.

Keywords

Superapp, Deliveries, Mobility, Financial Services, Digital Banking, Southeast Asia, Grab, GrabFood, GrabMart, GrabExpress, GrabCar, GrabPay, OVO, GXS Bank, GXBank, Jaya Grocer, Everrise, Infermove, Validus Capital, Convertible Notes, Share Repurchase, Dual-Class Shares, SEC Filing, 20-F, Financial Results, Profitability, GMV, MTUs, Risk Factors, Regulatory Compliance, AI, Robotics, E-commerce, Ride-hailing, Fintech