Feb 11 (Reuters) - Singapore's Grab forecast fiscal 2026 revenue below Wall Street expectations on Wednesday, signaling slower momentum in the tech firm's core businesses of ride hailing and deliveries as consumers grapple with economic uncertainty.
Shares of the company dropped about 2% in premarket trading after the results.
Sticky inflation levels amid major Southeast Asian markets, paired with the fallout of the U.S. tariff policies, has prompted consumers to become more selective with spending, as they curb discretionary budgets and look for cost-saving options for regular purchases.
Grab has leveraged its Saver platform to lure frugal customers with discounts, offers, and bundling to bring down delivery fees in an attempt to keep up with rapidly changing spending patterns.
The company also announced a $500 million share buyback program.
Separately, Grab said it will acquire U.S. digital financial services company Stash Financial in a deal initially valued at $425 million, where half the equity interest will be paid at closing.
The remaining interest will be made at "fair market value" over three years after the deal's closing, the company said.
The company expects annual revenue between $4.04 billion and $4.10 billion, compared with estimates of $4.13 billion, according to data compiled by LSEG.
Grab reported fourth-quarter revenue of $906 million, missing estimates of $940.7 million.
It also forecast revenue to grow 20% compounded annually from 2025 to 2028.
Comments