Xinhua Finance Singapore, November 5th (Reporter Liu Chuntao)GalaxyInternational (CGS International) released a report on the 4th, saying 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 an "overweight" (Add) rating on Grab and raised its price target to $7.20 from $7.00.
According to the report, Grab's revenue in the third quarter reached $873 million, up 7% quarter-on-quarter and 22% year-on-year; Adjusted EBITDA was $136 million, up 25% sequentially and 51% year over year, beating the combined estimates of Galaxy International and Bloomberg.
Jacquelyn Yow, an analyst at Galaxy International, pointed out in the report that Grab's strong growth was mainly driven by the solid year-on-year and quarter-on-quarter growth of the total merchandise transaction volume (GMV) of its two core businesses, Deliveries and Mobility. There are multiple drivers behind this, including: 1) higher frequency of user usage; 2) Product innovation, such as GrabMart (grocery delivery), Saver (economy) travel and delivery options, etc.; 3) higher ad penetration among merchant partners; 4) Strong loan origination in the financial services sector.
Grab's adjusted EBITDA margin delivered sequential and year-over-year improvements in the third quarter, with GMV up 8% sequentially and 24% year-over-year, despite brief volatility in Indonesia in early September, the report said. This highlights the success of its product innovations in boosting user stickiness and average consumption.
In financial services, Grab's loan originations rose 23% quarter over quarter and 56% year over year in the third quarter. Management reiterated confidence that the division will break even in the second half of 2026.
Looking ahead, Galaxy International raised its earnings per share (EPS) outlook for Grab to reflect higher GMV growth in its delivery and mobility businessesChangheBetter profit margins. The report expects Grab to achieve positive adjusted EBITDA across all business segments for the first time by fiscal 2027.
(Source: Xinhua Finance)