If you’ve been ignoring Grab because of its history of losing money, it’s time to look again. The latest numbers show a major turning point: the business is no longer just cutting costs to survive—it is now growing fast *and* making real profit at the same time.
The Big Picture:
For a long time, the question was, "Can Grab make money without slowing down?" The answer is finally "Yes." In late 2025, they grew their transaction volume by 24% while hitting a record profit milestone.
The 3 Things You Need to Know:
1. The "Free Money" Era is Over (And That’s Good) 💵
In the past, Grab grew by giving out huge discounts (subsidies). Now, they are spending less on incentives (as a % of sales), yet people are using the app *more*. Transactions are up 27%, meaning people are hooked on the service, not just the coupons.
2. The "Fake" Cash Flow Scare 📉
If you look at the headline cash flow number, it looks scary: negative $127 million. But this is misleading. It happened because of how they handle bank deposits for their digital bank. If you strip out the banking movements, the actual core business generated a massive $203 million in cash this quarter. The business is printing cash, not burning it.
3. "Dual-Cycle" Growth 🚀
Usually, companies either grow fast (but lose money) or cut costs (and stop growing). Grab is doing both:
- Margins are at record highs ($136M Profit).
- Growth is accelerating (On-Demand sales up 24%).
This is the "sweet spot" investors look for.
The "Restatement" Check:
They changed how they report their business segments earlier this year. Sometimes companies do this to hide bad numbers. We checked: Grab provided all the old data to make sure we could compare apples to apples. This is a sign of honest management.
The Bottom Line:
Grab has graduated from a "speculative startup" to a "dominant platform." They have $7.4 billion in liquidity, a share buyback program, and a business that is finally self-sustaining.
⚠️ Watch This Number Next Quarter: Transaction Growth (GMV).
It is currently growing at ~24%. If this drops below 15% despite all the new cash they are spending, it means the market is full (saturated), and the fast-growth phase is officially over.
Verdict: The turnaround is real. The machine is working.
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