Uber Reports Strong Q2 Earnings, Sets $20 Billion Share Buyback, and Announces 17-21% YOY Growth in Q3 Gross Bookings

Uber reported Q2 2025 earnings with adjusted EBITDA increasing 35% YoY to a record $2.1 billion, meeting expectations. Gross Bookings grew 18% in constant currency to $46.8 billion. The company unveiled a $20 billion share repurchase program, supported by a record trailing 12-month free cash flow of $8.5 billion. Despite positive developments, Uber's stock experienced a sell-off due to profit-taking and concerns about its autonomous vehicle strategy impacting driver-based revenue in the long run.

Uber Technologies, Inc. (NYSE: UBER) reported its second-quarter 2025 earnings, showcasing robust financial performance with adjusted EBITDA increasing 35% year-over-year (YoY) to a record $2.1 billion. The company's gross bookings grew 18% in constant currency to $46.8 billion, while revenue increased 18% YoY to $12.7 billion. The company also announced a $20 billion share repurchase program, supported by a record trailing 12-month free cash flow of $8.5 billion [1].

Key Financial Highlights:
- Trips: Increased 18% YoY to 3.3 billion, driven by a 15% YoY growth in Monthly Active Platform Consumers (MAPCs) and a 2% YoY increase in monthly trips per MAPC.
- Gross Bookings: Grew 17% YoY to $46.8 billion, or 18% on a constant currency basis.
- Revenue: Increased 18% YoY to $12.7 billion, and 18% on a constant currency basis.
- Income from Operations: Grew 82% YoY to $1.5 billion.
- Net Income Attributable to Uber Technologies, Inc.: Was $1.4 billion, including a $17 million net headwind from revaluations of Uber’s equity investments.
- Adjusted EBITDA: Grew 35% YoY to $2.1 billion, with an adjusted EBITDA margin as a percentage of Gross Bookings of 4.5%, up from 3.9% in Q2 2024.
- Operating Cash Flow: Was $2.6 billion, and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $2.5 billion.

Outlook for Q3 2025:
For Q3 2025, Uber anticipates gross bookings of $48.25 billion to $49.75 billion, representing growth of 17% to 21% YoY on a constant currency basis. Adjusted EBITDA is expected to be $2.19 billion to $2.29 billion, representing 30% to 36% YoY growth [1].

Stock Performance:
Despite the positive earnings report, Uber's stock experienced a sell-off due to profit-taking and concerns about its autonomous vehicle strategy potentially impacting driver-based revenue in the long run.

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