Uber Announces $20 Billion Stock Buyback Program: Boosting Shareholder Value and Signaling Confidence in Business Strategy.

Uber Technologies announced a $20 billion stock repurchase program, aiming to enhance shareholder value and signal confidence in its business strategy. The company generated a record $6.9 billion in free cash flow and $6.5 billion in adjusted EBITDA in 2024. Other ride-hailing players, such as Lyft and Grab, have also initiated share buyback programs to return value to their shareholders. Uber's stock has gained 53.7% YTD, and the company trades at a 12-month forward price-to-sales of 3.5X, making it an inexpensive option compared to its industry.

Uber Technologies, Inc. (NYSE: UBER) announced a significant stock repurchase program on August 6, 2025, authorizing up to an additional $20 billion of common stock. The move aims to enhance shareholder value and demonstrate confidence in the company's business strategy. This announcement follows Uber's strong financial performance in the second quarter of 2025, where the company reported an adjusted EBITDA of $2.1 billion, up 35% year-over-year [3].

The stock repurchase program is part of Uber's broader strategy to return value to shareholders. The company generated a record $6.9 billion in free cash flow and $6.5 billion in adjusted EBITDA in 2024, further underscoring its financial health [3]. Other ride-hailing players, such as Lyft and Grab, have also initiated share buyback programs to return value to their shareholders.

Uber's stock has gained 53.7% year-to-date (YTD), and the company trades at a 12-month forward price-to-sales ratio of 3.5X, making it an inexpensive option compared to its industry peers. The stock price fell 1% to 88.48 shortly after the announcement, suggesting a possible move back below its 50-day moving average [1].

Uber's Chief Executive Officer, Dara Khosrowshahi, commented on the platform's strategy, stating, "Our platform strategy is working, with record audience, frequency, and profitability across mobility and delivery." He added, "But we're still only beginning to unlock the platform's full potential, now with 20 autonomous partners around the world" [3].

For the third quarter of 2025, Uber is targeting gross bookings of $48.25 billion to $49.75 billion, representing growth of 17% to 21% year-over-year (YoY) on a constant currency basis, and adjusted EBITDA of $2.19 billion to $2.29 billion, representing 30% to 36% YoY growth [3].

References:
[1] https://www.investors.com/news/technology/uber-stock-uber-q2-2025-robotaxi-food-delivery/
[2] https://www.marketscreener.com/news/uber-reports-quarterly-net-income-in-line-with-expectations-correction-ce7c5ed9d08af522
[3] https://investor.uber.com/news-events/news/press-release-details/2025/Uber-Announces-Results-for-Second-Quarter-2025/default.aspx