Grab Holdings Limited

Good morning and good evening everyone and thank you for joining Grab's fourth quarter and full year 2025 earnings call. I'm Ken Leck, Head of Strategic Finance and Investor Relations and joining me today are our Co-Founder and CEO Anthony Tan, our Group CFO Peter Oe, and our President and CEO Alex Hanley. Now before we begin, please note that we are going to be making some forward-looking statements today. You should not place undue reliance on these forward-looking statements, and actual results may differ materially from these statements. And we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. We're also going to be presenting both IFRS and non-IFRS financial measures. Please see the supplemental slides and our earnings release for more disclosures about these non-IFRS financial measures, including a reconciliation of IFRS to non-IFRS measures. We're doing things a little bit differently today, and many of you would have seen the detailed investor deck we published on our investor relations website, and also the video format to our earnings. Today's session will begin first with a 45-minute presentation from our management team, followed by a Q&A session where we do encourage all of you to submit questions via email throughout the presentation to investor.relationsatgrab.com. And with that, I'll now turn it over to Anthony for his opening remarks.

Thanks, Ken. Good day, everyone, and thank you for joining us. In 2025, Grab delivered its first full year of net profitability while accelerating GMB growth to 21% year-on-year across mobility and deliveries. This represents our highest growth in recent years as our team executed upon our product-led affordability strategy. This resulted in strong user growth and engagement, which has improved user lifetime values. Today, I want to take a step back and talk about why this business now compounds, how our journey over the past four years since going public fits into that story, and how we think about the next phase of value creation through 2028. Let's start with a few milestones to explain what they represent. When Grab went public, one of the most common questions we heard was, could this business ever be profitable at scale? Since our IPO, Grab has now crossed over 20 billion rides and deliveries, doubling from our first investor day. We delivered 16 consecutive quarters of adjusted EBITDA improvement. We've achieved our first year of adjusted free cash flow in 2024, which has now doubled to $290 million in 2025, while we generated $200 million of net profit for the year. Along the way, we expanded our horizons. We launched digital banks in Indonesia, Singapore, and Malaysia. We crossed $1 billion in loan portfolio and achieved our first major milestone with our Indonesian bank, Superbank, going public in an Indonesian stock exchange in December 2025 that was oversubscribed 318 times. These are not isolated achievements. They're the outcome of a platform that's beginning to reach escape velocity, where scale, discipline, and product depth reinforce each other. Today, we've expanded our ecosystem to having over 129 million annual transacting users with Grab. 47 million transact monthly, growing 33% from 2023. million transact daily. In particular, monthly transacting user to annual transacting user conversion has grown to 37%, and in the years to come, you'll see us driving further conversion of our daily transacting users to monthly transacting users from the 17% today, which is actually the key opportunity as we increase the depth and affordability of our services. This matters because users who engage across mobility, deliveries, and financial services stay longer, spend more, and are meaningfully cheaper to serve over time, particularly as we amortize the acquisition costs over multiple segments. We've talked about users. Now let's talk about product. When we first came up with the concept of the Super App, we focused on breadth, but not so much on depth. What we realized early on was that while users were trying our new services, the level of stickiness was still lacking. The product was not customized to their individual preferences. Fast forward to today, we've expanded our product suite, multifold, and deepened our focus into the core categories, transport, food and mart, and financial services. Take mobility, for example. We now have low-cost transportation options, but also executive services catered to corporates and travelers. At the same time, we have also integrated maps as well as family accounts, which provides more options even for teenagers to book a ride. As a result, customers no longer need to go elsewhere because they know we cater for different needs across the week. This has been a core tenet of driving user growth and engagement in a profitable manner. This is how we drive growth re-acceleration in our business, where Grab today serves 1 in 15 Southeast Asians monthly, up from 1 in 20 just three years ago. More importantly, approximately two-thirds of our users now use two or more services on our platform. GMV growth has also significantly re-accelerated where we have achieved our fastest growth since 2022 and we are far from done in our growth journey. The newer users we have acquired continue to demonstrate a similar level of quality when it comes to DR spend levels relative to our older cohort. They are already increasingly sticky the longer they remain on the platform. Once you reach this level of density, growth stops being linear. It becomes self-reinforcing, and as we introduce more new products in the years to come, the ecosystem will compound further. I am confident that we will be able to sustain this growth momentum in the years to come. One call-out I'd like to make is on group profitability. We have come a very, very long way to arrive at where we are today. We made tough decisions on business to optimize, and we spent hours with the team building a monetization engine across our various segments and set the bar high on talent and overheads, all while driving growth acceleration at the same time and improving our category position across the region. You see here on the slide the fruits of our labor, where we have demonstrated our ability to deliver consistent EBITDA improvement, generating our 16th straight quarter of adjusted EBITDA improvement, closing the year with continued momentum across growth and profitability. What matters here is not the slope of one quarter. It's the fact that incentives are no longer the primary driver of demand. Margins are expanding through operating leverage, not cost deferral. And cost discipline is now embedded in how we operate, not imposed after the fact. But the journey is far from over. We intend to continue driving profitable growth in the years to come. We do this while continuing to keep an eye sharp on the future, where we will be investing into AI as well as autonomous vehicle and robotics technologies, which Alex and Peter will share more in their sections. The growth and profit acceleration we have driven today is a direct outcome of the strategy that we shared with you one year ago. And looking forward, our strategy will continue to be driven by the same three key pillars. We'll focus on Affordability and reliability to widen the TAM of our audience and provide customers with a delightful experience. Secondly, deepening engagement within the ecosystem through product-led lens. And third, leveraging technology and AI to unlock efficiencies across the platform. Alex will go through in greater detail each of these priorities later in his section. That brings me to how we're thinking about the next three years. Based on the trajectory of the business today, we are introducing a clear, long-term framework through 2028. From 2025 to 2028, we expect to drive growth. 20% CAGR in group revenues, driven by deepening our penetration across our affordability and premium segments, improving monetization of our business, and increasing contributions from financial services. Adjusted EBITDA of $1.5 billion as a result of the growth we achieve, coupled with operating efficiencies we drive across the business. and then adjusted free cash flow conversion of 80 80 improving from 58 in 2025 as we continue to optimize efficiencies around capital expenditure working capital and tax these targets are not aspirational they're the logical outcome of the scale we've already built the operating leverage already visible in the model, and the discipline we now apply to capital allocation, which Peter will share more about in this section. In closing, Grab exits 2025 as a very different company than the one we founded 14 years ago and to the one that went public four years ago. In our founding years, we proved that ride-hailing and delivery were real businesses. In the second era, post-IPO, we proved our business model, that we could be profitable and sustainable. And now in this third era, I'm determined to prove our long-term vision, that we can indeed continue to innovate, Lean in on AI-first technologies and become the platform of choice across the region while empowering our driver partners and merchant partners with heart. I feel more invigorated today than I did when I started this business. And together with all our grabbers, driver partners, and merchant partners, I am confident that we can continue to execute towards our triple bottom line in the years to come, generating profits, uplifting millions, while improving ways to serve in a more environmentally friendly way. With that, I'll hand it over to Alex to walk through how this strategy is translating into execution on the ground.

Thank you, Anthony. Anthony has set the vision for where we are going. Now I will go into the details of how we plan to get there. The growth acceleration we have driven today is a direct outcome of the strategy that we shared with you a year ago. And as we look ahead to the next three years, We are doubling down on this same strategy because we see that it is working and we believe that it is difficult for our competitors to respond. We are focused on affordability and reliability to widen the addressable market and provide customers with a delightful experience. Secondly, deepening engagement within the ecosystem to improve customer lifetime value. And third, investing in technology to translate increased demand density into greater operating leverage. Today I intend to update you on how we have been executing upon this strategy and then share our plans of what we plan to do next in each priority. So let's start with affordability. For me, This is a magical slide. Just look at how we've been able to reduce the fares for passengers by 16% while simultaneously improving driver earnings by 29%. This may sound counterintuitive to most, but it is the holy grail for on-demand platforms because it demonstrates that we can successfully leverage our tech to allow drivers to complete more trips in less time and improve their earnings without relying on high affairs. It is extremely difficult for smaller competitors who lack our network density and tech investments to keep up with this improvement in price performance. The remarkable thing about Southeast Asia is how many big cities there are and the sheer density within these cities. Bangkok, Manila, Jakarta, for instance, all have a population of over 20 million, with a density that is perfectly suited for the Ride Hail business model. In the earlier years, Grab grew mainly within these capital cities. Now, with GenAI capabilities that we've developed, we are able to capture the undertapped opportunity beyond these capital cities. Today we operate in almost double the number of cities that we did in 2021. And GMV in non-capital cities is growing over two times faster than in capital cities. So, as you can see, there is still tremendous upside in the growth potential in the cities of Southeast Asia. Our affordability strategy has also accelerated. GMV growth and deliveries is growing faster and more profitably than our peers in the region. Thanks to our laddered pricing strategy and viral product innovations. Our GrabFood customers are enjoying the perfect trifecta of better affordability, selection and service quality today. We lowered the delivery cost per order by 8% since 2021. which has helped to drive a 41% increase in food transaction volumes. Merchant selection improved at the same time, 25% over the same period. And fulfillment service reliability has also improved by 3 percentage points in the past three years. Next is maximizing ecosystem value. The intent here is to grow the lifetime value of every user who joins us. We are focused on driving users into new categories and expanding how they use our platform every day. Every interaction is an opportunity to deepen their loyalty and capture more value across our entire business. We are cross-selling services to more of our user base every year. Today, approximately two-thirds of our NTUs use two or more services. We are also driving higher spend and frequency across user cohorts. Our 2021 deliveries cohort transacts 1.5 times more often relative to their first year, while all post-COVID deliveries cohorts demonstrate higher spend of up to 1.6 times relative to their initial year. To drive this engagement, we have built a powerful loyalty flywheel, combining three components. First, Grab Unlimited, the largest paid on-demand loyalty program in Southeast Asia, which now accounts for 35% of our deliveries GMV. Next, Grab Coins, our awards program recently redesigned as an ecosystem currency to nudge cross-sell behaviors. And lastly, GrabVIP, an exclusive program reserving the best service quality and exclusive perks for our top spending users. Southeast Asia is becoming an increasingly popular travel destination. To capture this opportunity of growing demand, over the past two years, we have struck partnerships with regional airports, acquiring visitors from the moment they land. We have also embedded in-app translation features, leveraging large language models to overcome language barriers. And we have integrated with global partners like Trip.com and Alipay to enhance brand visibility even before users land in the region. And as a result of these initiatives, Travelers MTUs have grown over ten times over the last three years. with airport rides driving over 10% of our mobility GMV today. GrabMart is growing 1.7 times faster than GrabFood, thanks to three important improvements to the customer proposition. First, deepening integration with major supermarkets to ensure that handling of fresh produce deliveries is reliable and consistent. Next, curating our merchant selection to shift user behavior from daily essentials to weekly stock-ups. And lastly, GrabMore has been launched, where users can add groceries to their food order at no additional cost. And as a result, we've seen a 30% year-on-year increase in GrabMart users in 2025, while usage frequency continues to improve. There is still plenty of upside with GrabMart, only accounting for 10% of our deliveries GMP today. The success of our merchants has always been at the heart of our mission. The powerful integrated suite of offerings that we've built for them is intended to take them and the Grab platform to the next level. First, Grab offers merchants enterprise level digital tools that help them maximize their return on advertising spend. Next, we provide integrated point of sale and payment systems to widen payments acceptance for them. And then we embed lending to improve cash flows. And finally, transform their transaction data into actionable insights to help them scale their businesses. With these capabilities, Grab will be able to deliver the one outcome that matters most to our merchant partners, which is, of course, sustained earnings growth. In 2025, total active deliveries merchants increased 9% year-on-year, while their earnings have seen a corresponding increase of 11%. Our financial services strategy is centered on embedded distribution that lowers customer acquisition costs with personalized offerings. For the majority of our users, drivers, and merchants, GrabPay is their initial entry point into our range of financial services. And as they build a transactional history with us, we can also offer lending and insurance and even digital banking services in Singapore, Malaysia, and Indonesia. In just three years, we have grown to 7.4 million deposit customers across our three banks. We have not had to invest heavily in acquiring new users or offering high deposit rates as we are converting the users who are already on our platform. This also drives our lending business because we see high frequency daily transaction data on our platform. We can predict risk more accurately. And this allows us to scale our loan portfolio rapidly while risk-adjusted returns continue to track above our cost of capital. And credit costs remain well within our risk appetite. In 2025, our gross loan portfolio surpassed $1 billion for the first time, ending the year at $1.3 billion. Our goal is to exit 2026 with a gross loan book of over $2 billion. I also want to touch on this morning's announcement on our acquisition of Stash, a US-based digital investing platform. While we remain firmly committed to Southeast Asia and the growth of our regional lending business, this acquisition achieves two specific objectives. First, it accelerates our wealth management roadmap with the addition of new capabilities and talent, And second, it has an attractive financial profile. Stash has the potential to grow into a high-margin subscription revenue stream, contributing over $60 million in adjusted EBITDA by 2028. The last part of our strategy is potentially the most important for the long term. That is how we harness technology, including AI, for efficiency gains. We leverage AI to improve conversion at every stage of the funnel. For example, we automate menu translations to enhance conversion of high-value segments such as travelers. Over 97% of our merchant listings regionally are now available in English and Chinese. Our credit scoring models are also increasingly robust as we were able to whitelist a greater proportion of ecosystem partners. We have also improved real-time personalization by collating a database of over 1,000 attributes and segmenting our users and ecosystem partners into 200,000 distinct segments. And finally, We've improved our search and basket conversion with AI semantic search and real time personalization. Our tech investments are helping us to gain operating leverage. We continue to lower our cloud costs per transaction by proactively retiring idle resources and transitioning to more cost efficient solutions. And at the same time, payment processing costs as a proportion of total payment volumes is declining as we increase volumes through our wallets. And finally, we are maximizing headcount efficiency by deploying in-house AI models. For example, you may be asking yourselves, how are we able to double the amount of cities in which we offer services with a reduction in operations headcount at the same time? The answer is that we have been deploying auto adaptive technology to optimize our core marketplace in each city, enabling us to scale in a lean and agile fashion. In fact, today more than 90% of our mobility rides are dispatched by using AI. Looking ahead to the future, we are investing in the next structural shift in on demand services. autonomous vehicles and robotics. In partnership with WeRide, we launched our first AV shuttle service for the public in Singapore. Our position as Southeast Asia's leading on-demand marketplace makes us the preferred commercialization partner for global autonomous technology leaders. We are committed to serving two critical functions. First, acting as a key thought partner for regulators to help define safety standards and operational frameworks for driverless transport. And next, supporting our driver partners through the transition to our hybrid fleet by uplifting them to take on specialized roles in safety and fleet management within the autonomous ecosystem. So in closing, I have updated on the strong progress we are making as we execute towards our strategy and shared with you our priorities for the future. We will work closer than ever with our merchant and driver partners, government agencies, corporate partners and grabbers to execute this strategy. Thank you for your continued support. And with that, I will now turn the call over to Peter. who will discuss how these developments support our financial roadmap over the next three years. Thanks, Alex.