Grab's Q2 2025 Earnings Call: Dissecting Contradictions in Strategy, Growth, and Margins

Strategic focus on affordability and user engagement, TAM and growth opportunities in GrabMart, margin expectations in Deliveries and Mobility, advertising revenue growth and penetration, mobility EBITDA margins and strategic focus are the key contradictions discussed in Grab's latest 2025Q2 earnings call.



Strong Business Growth and Earnings Expansion:
- Grab Holdings Limited reported record adjusted EBITDA growth for the 14th consecutive quarter, and trailing 12 months adjusted free cash flow expanded to $229 million.
- This growth was driven by product and tech-led innovations that increased the ecosystem's flywheel and attracted new users, particularly those with price-sensitive needs.

Consumer Behavior and New Product Adoption:
- On-demand GMV growth accelerated to 21% year-on-year in U.S. dollars, and 18% year-on-year on a constant currency basis.
- This growth was supported by affordability strategies, including Saver delivery and transport rides, which attracted new users and increased frequency of usage, especially in Tier 1 cities.

Financial Services Growth and Risk Management:
- Total loan disbursals across GrabFin and digital banks reached nearly $3 billion on an annualized run rate basis in Q2.
- This growth is due to prudent scaling of financial services and risk management, with finance disbursements aligning with risk appetites and strong credit risk management performance.

Advertising Revenue Expansion:
- Grab's advertising revenue reached a run rate of $236 million, with a 45% growth rate in Q2.
- Growth was driven by increasing penetration of Grab's retail media network among advertisers, with less than 50% of the merchant base having tried it, indicating significant upside potential.