Grab kicked off fiscal year 2025 with a robust first quarter, reporting a net income of roughly USD 10 million for the three months ended March 31. This marks a notable turnaround from the USD 115 million loss registered in the same period last year, and was accompanied by an upward revision to its full-year adjusted EBITDA forecast, now pegged between USD 460–480 million.
Revenue reached an all-time high of USD 773 million in the quarter, up 18% year-on-year (YoY), with gains across Grab’s mobility, deliveries, and financial services segments. Adjusted EBITDA at group level rose to USD 106 million—its 13th consecutive quarterly increase—while operating losses narrowed around 72% to USD 21 million.
“We achieved yet another quarterly record number of users on our platform,” said CEO Anthony Tan, noting that demand growth came despite seasonal slowdowns linked to the Lunar New Year and Ramadan. He attributed the momentum in part to product innovations such as artificial intelligence-powered merchant tools and ride guidance features.
A closer look at the segments
Grab’s deliveries segment, which includes food and grocery services, posted revenue of USD 415 million—an 18% increase YoY—while gross merchandise value (GMV) rose to USD 3.13 billion. Even during what is typically a seasonally softer quarter, the segment reported its highest-ever number of monthly transacting users, helped by a Ramadan-related shift toward home cooking that lifted demand for GrabMart, its grocery delivery service. Segment adjusted EBITDA climbed 50% to USD 63 million, boosted in part by advertising revenue, which now accounts for 1.7% of deliveries GMV, up from 1.3% a year ago.
Mobility revenue rose 15% to USD 282 million, with GMV up 17% to USD 1.8 billion. Grab noted that advance bookings for airport rides more than doubled from a year earlier, reflecting stronger travel demand. Monthly transacting users for the segment rose 20%, and the adjusted EBITDA margin held steady at 8.8%, even as the company increased incentives to support new service tiers.
Financial services recorded the fastest growth of the three segments, with revenue rising 36% to USD 75 million. Total loan disbursals grew 30% to USD 630 million, though the segment remained in the red, posting an EBITDA loss of USD 30 million—9% wider than the previous year—due to higher credit loss provisions.
Incentives haven’t gone away, but are being used differently
Grab spent USD 501 million on consumer and partner incentives during the quarter, amounting to 10.1% of its on-demand GMV, up slightly from 9.7% in the same period last year. Rather than reduce spending outright, the company has shifted toward more targeted deployment of incentives, relying on scale and operational efficiencies to help support its bottom line.
Internally, Grab’s incentive structure has gradually become more performance-driven. While the company has long used bonuses to attract and retain drivers, eligibility criteria have grown more stringent over time. For instance, drivers in Singapore looking to qualify for Grab’s new joiner incentive must now maintain a minimum customer rating of 4.7, accept more than 90% of trip requests, and keep cancellations below 10%.
Grab has also overhauled its welfare offerings. GrabBenefits 2.0, introduced in 2025, expands on the original 2018 initiative with added features such as medical subsidies, telemedicine access, and wellness perks like flu vaccinations and massage services. However, these remain largely reserved for top-tier drivers who meet certain performance thresholds. These changes were said to be guided by partner feedback and are aimed at reducing downtime from illness and supporting overall well-being.
At the same time, the platform has expanded its use of tiered offerings. “Saver” rides now make up over a quarter of mobility transactions, while demand for premium features like prebooked airport pickups has increased. These options allow for more granular margin control, though they also raise the possibility that service quality may increasingly depend on what users are willing to pay.
Profit through precision, not just cuts
Where Grab did reduce costs was in regional corporate spending, which fell 5% YoY. Share-based compensation also declined. Foreign exchange movements worked in the company’s favor too, delivering USD 33 million in gains that helped tip net income into the black.
More broadly, user engagement deepened. Grab said more than 60% of customers now use multiple services on its platform. Advertising revenue grew alongside this trend, with average spend per merchant up 30% YoY, and the number of self-serve ad clients increasing 49%.
Still, not all metrics were positive. Adjusted free cash flow was negative USD 101 million for the quarter, due to working capital outflows that are common in Q1. And while its digital banking units in Singapore and Malaysia are drawing in customer deposits—USD 1.4 billion as of March 31—the lending business remains unprofitable.
Cautiously forward
Grab is maintaining its full-year revenue forecast at USD 3.33–3.40 billion. But with its Q1 performance showing that the business can turn a profit without significantly pulling back on growth efforts, the company raised its EBITDA target by USD 20 million at both ends.
How durable that performance proves to be remains an open question. Grab continues to rely on incentives, and while its pricing and segmentation strategy appears to be gaining traction, concerns persist about long-term affordability for users and income stability for drivers.
Still, broader trends suggest Grab isn’t running out of road. According to the e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company, Southeast Asia’s digital economy is projected to grow from USD 263 billion in 2024 to USD 363 billion this year, and could reach USD 600 billion by 2030. If that growth materializes, it could offer significant upside for Grab’s multi-vertical model.
For now, its first-quarter results signal that profitability and growth need not be mutually exclusive, at least when the economic winds are blowing in the right direction.