Grab Reports $120M Q1 Profit as Revenue Grows 24%

Grab reported a US$120 million net profit for Q1 2026, with revenue rising 24% year-on-year to US$955 million, according to Grab Holdings Limited. Monthly transacting users reached a record 52 million, while on-demand gross merchandise value rose 24% to US$6.1 billion.

Financial Performance Metrics

Adjusted EBITDA increased 46% to US$154 million in the quarter. Grab maintained its full-year 2026 guidance and reported trailing 12-month adjusted free cash flow of US$489 million.

Investor Sentiment and Market Challenges

Despite solid quarterly results, investor concerns persist. Grab's full-year 2026 revenue forecast came in below Wall Street expectations, and the company's shares have fallen nearly 30% this year, according to the report.

Anthony Tan, CEO of Grab, cited rising fuel prices linked to the war in Iran as an ongoing challenge for the business. To address cost pressures, Grab is deploying new AI features aimed at lowering operational costs, including a group ride option that can cut fares by up to 40%.

AI-Driven Strategy and Expansion

Quarterly growth was driven by using AI to make services cheaper and more efficient. This approach reflects a broader shift among established digital companies toward tighter operations and extracting more value from each customer during uncertain economic periods.

Grab also announced a US$600 million deal to acquire foodpanda Taiwan, Delivery Hero's food delivery business in Taiwan. The company has described this as its first move outside Southeast Asia.