Xinhua Finance Singapore, November 5th (Reporter Liu Chuntao)GalaxyCGS International released a report on the 4th stating that Singapore-based Grab Holdings (Grab Holdings) Third quarter 2025 results were strong, with both revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) beating market expectations. Galaxy International maintained its "Overweight" (Add) rating on Grab and raised its price target to $7.20 from $7.00.
The report shows that Grab's revenue in the third quarter reached US $873 million, an increase of 7% month-on-month and 22% year-on-year; Adjusted EBITDA was $136 million, up 25% sequentially and 51% year-over-year, beating combined Galaxy International and Bloomberg estimates.
Galaxy International analyst Jacquelyn Yow pointed out in the report that Grab's strong growth is mainly due to the steady year-on-year and month-on-month growth in the gross merchandise volume (GMV) of its two core businesses of Deliveries and Mobility. There are multiple drivers behind this, including: 1) higher user usage frequency; 2) Product innovation, such as GrabMart (grocery delivery), Saver (economy) travel and delivery options, etc.; 3) Higher advertising penetration among merchant partners; 4) Strong loan origination in the financial services sector.
Despite brief volatility in Indonesia in early September, Grab's adjusted EBITDA margin improved sequentially and year-over-year in the third quarter, with GMV up 8% sequentially and 24% year-over-year, the report said. This highlights the success of its product innovation in improving user stickiness and average consumption.
In the financial services segment, Grab's loan originations in the third quarter increased 23% sequentially and 56% year-over-year. Management reiterated its confidence that the unit will break even in the second half of 2026.
Looking ahead, Galaxy International raised its earnings per share (EPS) forecast for Grab to reflect higher GMV growth in its food delivery and mobility businessesChangheBetter profit margins. The report expects that by fiscal year 2027, Grab will achieve positive adjusted EBITDA for all business segments for the first time.
(Source of article: Xinhua Finance)