Grab Holdings (GRAB): Is the Post-Earnings Selloff a Strategic Buy Opportunity Amid Rising Profitability and Superapp Momentum?

Grab Holdings (GRAB) has long been a poster child for the challenges of scaling a high-growth tech platform in a competitive market. Yet, its Q3 2025 earnings report-despite triggering a 9% post-earnings selloff-revealed a company on the cusp of a transformative phase. With revenue surging 22% year-over-year to $873 million and adjusted EBITDA jumping 51% to $136 million, Grab's financials underscore a disciplined approach to profitability amid its aggressive expansion as a Southeast Asian "superapp." The question now is whether this selloff represents a strategic entry point for investors willing to bet on its long-term value re-rating potential.

Strong Fundamentals, But Why the Selloff?

Grab's Q3 results were a masterclass in balancing growth and profitability. Revenue growth was driven by its core segments: food delivery revenue rose 23% to $465 million, mobility revenue climbed 17% to $317 million, and financial services-its fastest-growing segment-jumped 39% to $90 million, according to a TS2 analysis. The company's user base expanded to 47.7 million monthly transacting users, a 14% YoY increase, while gross merchandise value (GMV) per user rose 7%, per a DealStreetAsia report. These metrics highlight Grab's ability to monetize its ecosystem effectively.

However, the stock's 9% drop post-earnings defies the narrative of success. Analysts point to two key factors: modest net profit and high valuation multiples. While adjusted EBITDA hit $136 million, net income was a mere $17 million-up just 13% YoY, according to an ADVFN post. This thin margin, despite aggressive cost discipline, left some investors underwhelmed. Additionally, Grab's price-to-sales (P/S) ratio of 8.7 and price-to-EBITDA ratio of 113.65, noted in a MarketsMojo note, suggest it trades at a premium to peers like Uber (P/S of 4.4) and DoorDash, even as it lags in profitability, according to a Nasdaq comparison.

Unit Economics and Strategic Momentum

Grab's unit economics have improved markedly. Its 15th consecutive quarter of EBITDA growth reflects disciplined cost control and expanding margins, particularly in food delivery and mobility. For context, Uber-despite a $13.5 billion Q3 revenue-reported a legal expense of $479 million and missed adjusted EBITDA estimates, per a StreetInsider note. DoorDash, meanwhile, faces margin pressures in North America, where its recent $754 million adjusted EBITDA fell short of expectations, as described in a Blockchain.News report.

Grab's strategic investments further differentiate it. Its partnerships with May Mobility and WeRide to develop robotaxi services and its expansion into digital lending and insurance position it as a "superapp" with cross-segment synergies, according to a Business Today article. These initiatives, combined with a 27% increase in transaction frequency driven by features like GrabUnlimited and GrabMore, suggest a durable flywheel effect, per a Nasdaq report.

Valuation vs. Growth: A Tug-of-War

Grab's valuation remains a contentious issue. While its P/S and P/EBITDA ratios appear lofty, they are justified by its 21% YoY revenue growth and 57% EBITDA growth guidance for 2025, as highlighted in a Jakarta Globe piece. By comparison, Uber's 13% net profit margin in H1 2025 is impressive, but its slower growth (20% YoY revenue) and larger market cap ($205 billion vs. Grab's $26 billion) suggest it is a more mature business (see the Nasdaq comparison referenced earlier). DoorDash's recent guidance for softer EBITDA in 2026 and its $723 million free cash flow miss further highlight Grab's superior unit economics (as reported in the Blockchain.News coverage referenced above).

The selloff may have overcorrected. Maybank Investment Bank Group notes that Grab's renewed focus on growth initiatives-such as affordability programs and product innovation-has temporarily pressured margins (reported in the Business Today article cited earlier). However, these investments are critical for capturing Southeast Asia's $1 trillion digital economy. Analysts at Maybank IBG argue the dip is an overreaction, emphasizing Grab's long-term value creation through ecosystem expansion (also noted in the Business Today coverage).

Is This a Strategic Buy?

For investors with a multi-year horizon, the selloff offers a compelling entry point. Grab's 28% year-to-date stock gain and 40% annual return (noted in the TS2 analysis linked above) suggest it has already priced in much of its near-term growth. Yet, its revised 2025 guidance-$3.4 billion revenue and $500 million adjusted EBITDA-leaves room for upside. Analysts project earnings per share to more than double in 2025 (per the Nasdaq earnings report referenced earlier), and the "Moderate Buy" consensus rating, with a $6.40 average price target (as discussed in the TS2 analysis), reflects optimism about its trajectory.

The risks are clear: high valuations, competitive pressures from GoTo and Gojek, and the need to sustain EBITDA growth in 2026. However, Grab's superapp model-anchored by its 47.7 million users and cross-selling capabilities-provides a durable moat. For those who can stomach short-term volatility, the selloff may be a rare opportunity to buy into a company poised to redefine Southeast Asia's digital landscape.