What factors led to the strong EBITDA improvement in Financial Services despite modest loan portfolio growth, and what can be expected in coming quarters?

Strong EBITDA improvement was due to operating leverage as the loan portfolio scaled, with revenue growth accelerating 43% YoY. Loan disbursals grew 67% YoY to over $1 billion, but Q1 growth was modest due to seasonal factors. Credit quality is improving, and the H2 2026 breakeven target for Financial Services was reiterated. “So that is the operating leverage that we've been talking about starting to come through very strongly now as we scale up our loan portfolio.”

Clarify if the 8% commission cap applies to 4-wheels, levers to cushion impact, likely profitability impact, and impact on delivery segment.

The regulatory exposure appears specific to 2-wheel ride-hailing partners, which is less than 6% of total mobility GMV. Grab is engaging with regulators for clarity. 4-wheel drivers are less of a concern. Mobility margins are expected to stabilize within the historical range. “It's worth noting, as I mentioned in my prepared remarks, that 2-wheel mobility, so the O2O drivers that the decree referred to in Indonesia is less than 6% of our total mobility GMV.”

How do elevated partner incentives due to fuel costs impact demand elasticity and the near-term financial outlook? Will incentives remain high, or can EV adoption and other levers bring them down?

Q1 driver incentives were elevated due to Lunar New Year/Ramadan and fuel crisis. Q1 is expected to be the peak for driver incentives. Full-year guidance of $700M-$720M adjusted EBITDA is reiterated. Multiple levers, including AI marketplace optimization and potentially more emphasis on advertising/financial services monetization, are available to defend margin trajectory. “We expect this first quarter to be a peak in the driver incentives.”

GRAB

Grab (GRAB) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Industrials· May 5, 2026

Source: earnings call transcript

Executive summary

Grab Q1 FY26 — Strong Start with AI-Driven Efficiencies and Reaffirmed Guidance

Grab delivered a strong Q1 FY26, driven by accelerating on-demand GMV growth and significant progress in Financial Services, despite seasonal headwinds. The company's strategic investments in AI are yielding measurable financial outcomes and enhancing marketplace efficiency, while efforts to accelerate EV transition aim to mitigate long-term fuel risks. Management reaffirmed its full-year guidance, expressing confidence in its diversified approach and capital allocation strategy.

Highlights

On-demand GMV growth accelerated to 24% year-on-year, despite seasonal softness.
Group MTUs increased to 52 million.
Financial Services loan disbursals grew 67% year-on-year to exceed $1 billion for the first time.
Achieved 17th consecutive quarter of adjusted EBITDA growth, with trailing 12-month adjusted free cash flow reaching $489 million.
Driver partners using AI-powered Turbo saw a 23% uplift in earnings per online hour.

Concerns

Regional corporate costs increased year-on-year to $114 million due to AI infrastructure investments.
Fuel price volatility emerged in early March, leading to targeted fuel rebates and elevated driver incentives in Q1.
Indonesia's proposed 8% commission cap for 2-wheel ride-hailing partners could impact profitability, though this segment is less than 6% of total mobility GMV.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Group Revenue	$4.04 billion to $4.10 billion high materiality	FY26	High
Full-year 2026 Group Adjusted EBITDA	$700 million to $720 million high materiality	FY26	High
Financial Services Adjusted EBITDA Breakeven	breakeven medium materiality	H2 2026 · FY26	High
Financial Services Loan Book	$2 billion medium materiality	end of year · FY26	High
Regional Corporate Costs	stabilize around Q1 levels medium materiality	rest of 2026 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Mobility On-demand GMV growth accelerated, with transactions outpacing GMV. Driver partners using AI-powered Turbo saw significant earnings uplift. April demand trends remained resilient. GMV growth: 24% year-on-year (on-demand)Transactions growth: 28% year-on-yearWeekly average transaction volumes (April): +32% year-on-yearTotal active driver partners: 4% quarter-on-quarter, 16% year-on-year	—	—	—	—
Deliveries Deliveries business continues to see strong user engagement. GrabMart is a key growth driver, expanding the top of the funnel and enhancing long-term value relationships with consumers. Record high daily transacting users: AprilGrabMart GMV: 10% of deliveries GMVGrabMart growth: 1.7x faster than foodGrabMart MTU growth: 2.6x the rate of food MTU growth year-on-yearGrabMart order frequency: 1.8x higher than food-only users	—	—	—	—
Financial Services Demonstrated strong operating leverage with accelerated revenue growth and improved credit quality. On track for adjusted EBITDA breakeven in H2 2026. Loan disbursals: >$1 billionLoan disbursals growth: 67% year-on-yearRevenue growth (constant currency): 38%ECL as percentage of gross loan portfolio: improved year-on-year	—	43%	—	strong EBITDA improvement

Product announcements

Product	Type	Timeline
Turbo	launch	—
Mai	launch	within a year of launch
13 new AI-powered experiences	launch	this year
Autonomous passenger service deployment	milestone	April
Digital earnings tracker	launch	April
Group rides	launch	last month

Deals & partnerships

WeRide Autonomous passenger service deployment

Partnership for the first autonomous passenger service deployed within a Southeast Asian residential estate, transitioning private trials to full public operations in April.

BYD and GAC Drive-to-own program for EVs

Partnership in Thailand and Philippines connecting drivers with OEMs for EV ownership, with deals for up to 70,000 vehicles across 6 markets.

EBOOST and Charge+ EV charging network

Partnership in Vietnam to secure preferential charging rates for Grab drivers.

Foodpanda Taiwan Acquisition of Foodpanda's Taiwan business

Currently in the middle of the approval process with regulators.

Capital programs

EV transition (Drive-to-own program) underway

Funding: access to financing

Benefit:70,000 vehicles available across 6 markets

Program in Thailand and Philippines connecting drivers with OEMs like BYD and GAC to own EVs more easily.

EV charging network underway

Benefit:preferential charging rates

Secured preferential charging rates in Vietnam through partners EBOOST and Charge+ to help drivers in EV transition.

Risks & headwinds

Macroeconomic uncertainties

particularly regarding inflation and fuel prices

Mitigation:Platform is structurally stronger; leveraging AI for marketplace efficiencies; accelerating EV transition; proactive risk management in Financial Services.

Fuel price volatility Q1 FY26, potentially Q2 FY26 and medium term

emerged in early March

Mitigation:Deployed targeted fuel rebates; proactively engaged with regulators; accelerating EV transition (drive-to-own programs, preferential charging rates); AI marketplace optimization to manage incentive spend; potential judicious cost pass-through to consumers in medium term.

Indonesia regulatory changes (commission cap)

8% cap on rider commissions for 2-wheel ride-hailing partners (less than 6% of total mobility GMV)

Mitigation:Engaging proactively with relevant ministries to seek clarity and shape balanced implementation; 4-wheel drivers less affected; reiterating expectations for Mobility margins to stabilize within historical range.

What to watch in Q2 FY26

Financial Services Adjusted EBITDA Breakeven

H2 2026

Current strong EBITDA improvement, on track

Target breakeven

Why it matters

Achievement of this target is a key milestone for the profitability of the Financial Services segment and overall company profitability.

We aim to generate healthy returns on risk-adjusted returns for our loan portfolio and we are reiterating our second half 2026 breakeven target for financial services.

Find out whether GRAB delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the impact of higher fuel prices on business performance in Q2, can it be quantified, and what is Grab's long-term strategy for fuel risk?

Q1 demand trends remained resilient, with Mobility transactions up 32% YoY in April and Deliveries seeing record daily transacting users. Grab is accelerating EV transition through 'drive-to-own' programs and charging networks, with Thailand's EV fleet now over 30,000. In the medium term, elevated fuel costs might be passed to consumers judiciously.

“This fuel crisis has become an opportunity in the sense that it helps us to accelerate that EV transition.”

asked by Divya at Morgan Stanley, Venu at Bernstein and Piyush of HSBC · answered by Alexander Charles Hungate

3 min read 7 chapters

Detailed narrative

AI Investments Driving Marketplace Efficiency and Partner Earnings

Grab's AI capabilities, built on 14 years of proprietary data from over 20 billion transactions, are translating into measurable financial outcomes. The AI-powered 'Turbo' driving mode for driver partners resulted in a 23% uplift in earnings per online hour, contributing to Mobility transactions growth outpacing GMV growth.

The merchant AI Assistant, 'Mai', adopted by approximately half of active single-store merchants, drove a 15% GMV uplift for engaged users and a 44% year-on-year growth in average advertiser spend.

Autonomous Vehicle Strategy and Progress

Grab is making steady progress in autonomous vehicles, transitioning private trials to full paying public operations in April through a partnership with WeRide. The AV fleet has clocked over 40,000 kilometers and served thousands of public rides. While adoption in Southeast Asia remains nascent, Grab aims to be the most experienced local hybrid AV and human operator, scaling up in partnership with governments and focusing on safety and cost-efficiency.

Managing Fuel Price Volatility and Accelerating EV Transition

In response to fuel price volatility in March, Grab deployed targeted fuel rebates and engaged with regulators to protect partner livelihoods. The company is committed to accelerating EV transition to reduce driver partners' exposure to fuel price fluctuations, with programs like 'drive-to-own' in Thailand and the Philippines, and preferential charging rates in Vietnam.

Thailand's EV fleet supply on the platform has crossed 30,000, with consumer demand for EV options growing over 35% year-on-year.

Financial Services Operating Leverage and Credit Quality

The Financial Services segment demonstrated strong operating leverage, with revenue growth accelerating 43% year-on-year (38% constant currency) and over one-third of incremental revenue dropping to the bottom line. Loan disbursals grew 67% year-on-year to over $1 billion, and credit quality improved, with ECL as a percentage of gross loan portfolio improving year-on-year.

The company proactively tightened risk management for some sectors and reiterated its H2 2026 breakeven target for the segment.

Indonesia Regulatory Landscape and Business Impact

Recent regulatory announcements in Indonesia regarding an 8% commission cap are explicitly focused on 2-wheel ride-hailing partners, which represent less than 6% of Grab's total mobility GMV. Grab is engaging with regulators to ensure a balanced implementation. The company's strategy for Indonesia remains unchanged, with the Mobility business continuing to grow double digits year-over-year and remaining stable quarter-on-quarter despite seasonal headwinds.

Strategic Share Repurchase Program

Grab announced a $500 million share buyback program, including a $400 million accelerated share repurchase (ASR) and contingent forward purchase initiated in March. This program is expected to be executed over the next four months and is anticipated to offset dilution from stock-based compensation by approximately 2% of total share count.

The company continues to evaluate capital allocation opportunities with a high bar for long-term shareholder value.

GrabMart's Growth and Long-Term Potential

GrabMart is an exciting segment with a large total addressable market, growing 1.7x faster than food delivery and contributing 10% of deliveries GMV. GrabMart MTUs are growing 2.6x faster than food MTUs, and order frequency is 1.8x higher for GrabMart users.

The company is accelerating product innovation, including an AI-powered shopping agent, and aims for GrabMart to maintain its growth momentum to underpin long-term sustainable economics as part of its super app strategy.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.