Grab Holdings (GRAB) Shares Drop 9% After Revenue Forecast Misses Estimates

Grab Holdings (NASDAQ: GRAB) saw its shares tumble over 9% after hours as its fiscal 2025 revenue forecast fell short of analysts' expectations. The company projects revenue between $3.33 billion and $3.40 billion, with the midpoint slightly below the $3.40 billion consensus estimate from LSEG data.

Intensifying competition in food delivery and ride-hailing is challenging Grab’s growth. Rivals such as Foodpanda and Indonesia's GoTo are adding pressure, especially amid weak consumer sentiment and macroeconomic volatility. Reports earlier this month suggested Grab was in advanced merger talks with GoTo to strengthen its market position. However, Grab’s CFO Peter Oey declined to comment on speculation, stating the company maintains a high bar for mergers and acquisitions. GoTo, meanwhile, denied any discussions regarding a potential merger.

To stay competitive, Grab is focusing on expanding its subscriber base and increasing engagement on its super app, which offers food delivery, ride-hailing, and financial services. Oey noted that subscriber retention remains strong, with paid members spending four times more than non-subscribers.

For Q4, Grab’s deliveries revenue reached $407 million, slightly missing the $408 million estimate, while its mobility segment also underperformed. Overall, the company reported $764 million in revenue for the quarter, exceeding analysts’ expectations of $757.6 million.

Despite the challenges, Grab remains committed to growth, leveraging its expanding platform and financial services to drive long-term success in Southeast Asia's competitive market.