Uber's $20B Buyback Plan Sparks Trend, Two Stocks Follow Suit

Uber Technologies has announced a $20 billion buyback authorization, equal to 10.7% of its market capitalization, after reporting solid Q2 results with an 18% revenue increase and a turnaround in free cash flow. The company plans to use at least half of its future cash flow for share repurchases. Two other notable stocks, Roku and Square, have also increased the size of their buyback chests.

Uber Technologies, Inc. (NYSE: UBER) has announced a significant financial move, authorizing a $20 billion share repurchase program following the release of its second-quarter (Q2) 2025 financial results. This authorization, which represents approximately 10.7% of its market capitalization, underscores the company's confidence in its current financial performance and future prospects [1].

The Q2 2025 results showed robust growth across various key metrics. Revenue increased by 18% year-over-year (YoY) to $12.7 billion, with gross bookings growing by 17% YoY to $46.8 billion. Income from operations grew by 82% YoY to $1.5 billion, while adjusted EBITDA increased by 35% YoY to $2.1 billion. Notably, the company reported a turnaround in free cash flow, reaching $2.5 billion, up from $1.721 billion in Q2 2024 [1].

Uber's CEO, Dara Khosrowshahi, highlighted the company's platform strategy, noting that it has achieved record audience, frequency, and profitability across its Mobility and Delivery segments. The company also reported a significant increase in its Monthly Active Platform Consumers (MAPCs) by 15% YoY and monthly trips per MAPC by 2% YoY [1].

The share repurchase authorization is part of Uber's broader strategy to return capital to shareholders. The company plans to use at least half of its future cash flow for share repurchases, indicating a strong commitment to shareholder value [1].

This move by Uber is not an isolated incident. Other notable stocks have also increased the size of their buyback chests. Roku, for instance, authorized a $1.5 billion share repurchase program, while Square increased its authorization to $1 billion. These actions reflect a broader trend among companies with strong financial performance and cash flow generation [1].

Uber's share repurchase authorization comes amidst a broader trend of companies using buybacks to signal confidence in their financial health and future prospects. Investors should closely monitor the execution of these programs and the company's future performance to gauge the effectiveness of these capital return strategies.

References:
[1] https://investor.uber.com/news-events/news/press-release-details/2025/Uber-Announces-Results-for-Second-Quarter-2025/default.aspx