Grab Holdings Ltd. (Singapore) Q3 FY2026 earnings call

• Ecosystem Profitability: For the first time, all core segments (Mobility, Deliveries, Financial Services) are profitable, driving 19 consecutive quarters of adjusted EBITDA expansion.
• User Growth & Engagement: Monthly Transacting Users (MTUs) hit a record 57 million. GrabUnlimited subscribers transact nearly three times as often as non-subscribers, and cross-pollination between GrabFood and GrabMart accounts for 43% of food GMV with 10% larger baskets.
• AI Integration: AI is embedded across the platform, reducing compute costs by 42% while interactions grew 60%. Driver AI Assistant tools help nearly 500,000 drivers earn over 10% more per online hour. Merchant AI tools drive a 20% average earnings uplift.
• Strategic Partnerships: Announced a partnership with OpenAI to train 30,000 driver and merchant partners in practical AI skills over two years. Selected as an early connector partner for Meta’s Muse AI agent in Singapore, focusing on habitual tasks like grocery shopping and dining.
• New Product Launches: Launched GrabMall, a branded retail commerce channel leveraging FMCG advertiser relationships and last-mile logistics. Rolled out GXS Credit Card in Singapore and OVO Pinjang lending product in Indonesia via Atomi collaboration.
• Regional Expansion: Strong conviction in Southeast Asia’s growth, with projections above global averages. Continued investment in autonomous vehicles (WeRide, Momenta) and robotics, positioning Grab as the orchestration layer for future mobility.

The company reported record financial performance with all three core segments achieving profitability for the first time. Adjusted EBITDA reached a record $237 million, up 73% year-on-year. The Mobility segment generated an EBITDA margin of 8.9%. The Deliveries segment achieved an EBITDA margin of 2.7%, expanding from 2.1% in the prior year period. The Financial Services segment contributed $12 million in segment-adjusted EBITDA, marking its first profitable quarter and an improvement of $40 million year-over-year.

• Full Year 2026 Revenue: Raised to $790 million - $800 million (previously $720 million - $740 million).
• Full Year 2026 Adjusted EBITDA: Raised to $790 million - $800 million range implied by context of EBITDA guidance revision; specifically noted as representing 58%-76% YoY expansion based on previous ranges.
• Long-term Targets: Reiterated 2028 expectations of >30% CAGR in group revenue and $1.7 billion in adjusted EBITDA, inclusive of the proposed Atomi acquisition.
• Financial Services Target: Maintained $500 million EBITDA target for Financial Services by 2028, with $300 million expected from Atomi and Superbank.

• Regulatory Environment: Indonesia introduced a new two-wheeler commission framework in July; ongoing dialogue with government regarding fee transparency and driver earnings, though no material impact on guidance is expected.
• Operational Costs: Elevated fuel prices continue to pressure driver operating costs and take-home earnings, requiring continued incentive support.
• Acquisition Risk: The proposed acquisition of Atomi remains subject to completion and regulatory approval, particularly in Indonesia.
• Market Competition: Intense competition in the region requires continuous investment in affordability and reliability to maintain market share.

Q: Why was Q4 EBITDA guidance not raised higher given Q3 strength, and what are the assumptions for fuel, FX, and seasonality? / A: CFO Peter Oey explained that Q4 is a high-return investment window due to the festive season and tourist travel. Management is deliberately leaning in to secure driver capacity amid elevated fuel costs and supporting high-growth product launches like GrabMall and digital banking initiatives. They prioritize maintaining a strong driver community and customer experience over maximizing short-term margins, aiming for profitable growth rather than aggressive EBITDA expansion in the final quarter.

Q: Is the 2.7% delivery margin a new structural baseline, and how does GrabMall fit into the strategy? / A: COO Alex Hungate stated that the 2.7% margin reflects significant operating leverage from scale and AI-driven efficiencies, but it is not yet the final baseline. The long-term target is 4%+ margin. GrabMall is a new branded retail channel inspired by FMCG advertisers, leveraging Grab’s last-mile logistics for closed-loop fulfillment. It aims to improve affordability and drive further growth in groceries, supported by future monetization opportunities from the Atomi acquisition.

Q: What tangible benefits are AI agents and partnerships delivering in terms of user engagement and supply-side efficiency? / A: CEO Anthony Tan highlighted that AI drives transaction frequency rather than just time spent. Users using both GrabFood and GrabMart have 10% larger baskets, and GrabUnlimited subscribers transact three times more often. On the supply side, drivers using AI assistants earn 10% more per hour, and merchants using AI tools see a 20% earnings uplift. The OpenAI partnership aims to equip 30,000 partners with AI skills to boost income and loyalty.

Q: How does Grab plan to achieve the $500 million Financial Services EBITDA target by 2028? / A: CFO Peter Oey and COO Alex Hungate outlined that $300 million will come from Atomi and Superbank, while the remaining $200 million will come from other ecosystem products. Key drivers include low customer acquisition costs due to the super app’s reach, lower funding costs via digital banks, and rapid scaling of consumer lending through Atomi’s existing models. The gross loan book is expected to exceed $6 billion by 2028, including Atomi.

Q: What is the long-term strategy for autonomous vehicles and potential partnerships with firms like Uber? / A: CEO Anthony Tan emphasized partnering with best-in-class technology providers globally, citing current collaborations with Uber for cross-border bookings, OpenAI for AI, and WeRide/Momenta for AVs. COO Alex Hungate described a steady-state model where Grab acts as the orchestrator and demand aggregator, while third parties own and operate AV fleets. In Southeast Asia, human drivers and AVs will coexist for a decade due to operational complexities and cost structures, with Grab optimizing hybrid dispatch.