Grab Holdings Aktie

Good morning, and good evening, everyone, and thank you for joining Grab's investor update session. I am Douglas Yu, Director, Strategic Finance and Investor Relations. And joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oey, Chief Financial Officer.

Before we begin, we're going to be presenting both IFRS and non-IFRS financial measures. Please see the supplemental slides, our press release and our filings with the SEC for more disclosures about these non-IFRS measures, including a reconciliation of IFRS to non-IFRS measures.

We are also going to be making some forward-looking statements today. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today and in other filings made with the SEC.

And with that, today, Grab is announcing an agreement to acquire a controlling 60% equity interest in Atome Financial, accelerating the growth and profitability of our Financial Services segment. Anthony will present the opening remarks, covering the strategic rationale and merit of the proposed transaction, Alex will describe our strategic road map and cover our strengths and track record in financial services, and Peter will discuss the outlook and capital allocation priorities.

We'll begin with a presentation from our management team. And after the presentation, we'll have a Q&A session, and we encourage you to submit questions via e-mail through the presentation to [email protected].

And with that, I'll hand it over to Anthony.

Thanks, Doug. Good day, everyone, and thank you for joining us. Today, Grab is announcing a landmark acquisition of Atome Financial deepening our commitment to financial inclusion across Southeast Asia and accelerating the growth and profitability of our Financial Services segment.

I want to first take a step back to emphasize that building businesses from the ground up is a new to us. We've already proven we can build a category-leading business, not once, but twice in mobility and in deliveries. Financial services, while nascent today is where we're confident and where we intend to prove it again. In mobility, we sell to make transportation safer for all across all while improving our drivers' earnings potential. Today, despite being in this business for 14-plus years, growth continues to remain robust and strong, with transaction growth still at 28% year-on-year.

All of this is achieved with industry-leading adjusted EBITDA margins. In deliveries, we were actually first to market in this region, but we were able to grow rapidly because we could leverage the existing supply, we are already built in mobility along with a brand and recognition that came with it, which let us scale quickly through COVID. While many expected the business to decelerate or decline once the period ended, not only have we moved beyond that or we've done so sustainably, powered by our own product and tech land strategies with GMV growth accelerating to 24% year-on-year. Financial Services is our good segment, while it's still nascent, we have real conviction in its potential because it lets us leverage the same ecosystem, strength, trust and brand recognition and powered mobility and deliveries to unlock our next leg of growth.

It's already our fastest-growing segment, and we are on track to exit this year with a gross loan book of over $3 billion and reached profitability in the second half of 2026. From here, we're targeting $500 million in adjusted EBITDA by 2028. Financial Services opportunity excites me because the headroom to grow ahead of us is enormous. Millions of people across Southeast Asia, still lack of formal credit history and shut out of traditional banking. This is exactly the gap we are well positioned to close.

Despite how far Financial Services has advanced in markets in other parts of the world, the options here remains massive. It is simply not a credit card market. Only 5% of adults here own a credit card, a fraction of what you would see in a market like Brazil. Formal lending is just a thin, only 14% of adults have ever borrowed from a bank or financial institution. And what fills that gap today is informal borrowing from friends, from family, for instance, and those at the safe ones accounted for over 1/3 of lending across these markets.

That gap between the credit people need and what the formal system actually provides is the option in front of us and closing it isn't something we're starting from scratch. I want to show you how far we've already come and where I believe the next chapter takes us.

If you look at this slide, what you're really looking at is a story of how we build towards this moment piece at a time. We started to solve a basic problem, giving people markets without credit cards or former payment infra, a safe way to transact with each other on our platform. That early bet is why the majority of transactions on our platform now run through our own wallet. This was built from scratch to scale we have today. And it's also why we have industry-leading payment processing cost as owning that infrastructure ourselves let bring costs down for the entire platform. From there, we use the trust and the data that gave us to move into partner and ecosystem lending and insurance.

Over 1/3 of our active drivers now carry a loan invest scale prudently and with discipline and nonperforming loans have remained stable or improved across the portfolio even as that scale has grown, which is also the foundation for the profitability we expect to reach in the second half of 2026. The next piece was digital banking. That took us somewhere credit. Our Digibank are able to take deposits and operate under the same oversight as any other financial institution with our footprint across Indonesia, Singapore and Malaysia. And the next piece this year was DASH. We completed the acquisition and added a micro investment platform. This not only let us diversify in the fee-based income streams, but also deepen our ability to help in both save and grow their investments for retirement building on how we already help them spend and borrow, which leads me to today and to Atome and to consumer lending.

Atome is highly complementary to everything I just walked you through. Our lending so far has been led by driver and merchant lending close loop and embedded inside our own ecosystem. We do have consumer lending today, but still nascent. Atome is the natural next stage. It pushes us into consumer lending, which allows us to widen credit access to unbanked and underbanked across the region. Atome gives us that scale immediately, the same scale many of our peers have already reached by building organically over several years, often sustaining years of losses along the way. And this is the missing piece, it completes our stream of Financial Services stretching across lending, insurance, payments, investments and digital banking.

Atome has substantial scale with a gross loan book of over $1 billion today, built across a wide range of over 30,000 unique brands and more than 25 million cumulative transacting users. And importantly, it does all this 1 already delivering a positive, profitable adjusted EBITDA contribution. Atome has a diversified portfolio that serves a wide range of consumer credit needs under 1 app. Atome card gives consumers a pay later card, they can use anywhere. Atome BNPL lets them shop and split purchases across your brand partners. Atome cash loan gives them accessible credit when they need liquidity beyond a single purchase.

Every product here is built around individual consumers' everyday spending and borrowing needs, covering the full range of scenarios, whether they are paying a checkout, splitting up a purchase or drawing down cash. And it's this relentless focus on enhancing the product that has driven strong and durable growth for Atome. Atome's GMV has grown over 9x across the past 6 years, and it is adjusted EBITDA positive today. What makes this more notable is that this growth has held up to periods of weaker macro conditions across the region, a sign of how durable the underlying demand for this business really is.

Atome's growth has not come at all costs. It has been achieved in a disciplined manner with prudent credit risk management and a constant focus on improving lifetime value, enabling the platform to also drive sustainable profitable growth. There are 2 factors that support this. First, delinquency rates have improved across every cohort and a 2026 cohort is the best performing yet. That tells us that underwriting is getting sharper and platform scales, not just that risk is being managed defensively.

Second, but case frequency has stayed high and consistent running at an annualized rate in the 50s to 60s, and reaching a high of 62 transactions per user in the most recent quarter. That level of repeated engagement means this growth isn't coming from acquiring new users alone. It's coming from existing users transacting with Atome again and again, which makes the revenue base far more recurring and predictable. This is precisely the discipline we look for before scaling our lending business. And it's exactly what gives us confidence to accelerate from here.

That confidence is grounded in Atome's credit underwriting engine on the most sophisticated in the region. Atome has built a system of over 100,000 variables and 131 models. That's what enables real-time credit decisions, credit approval rates above peers and loss rates consistently below industry benchmarks. What sets Atome apart, similar to Grab is, how deeply AI is embedded across the full risk stack through more than 22 live applications. Models are now built twice as fast, feature engineering is 6x more efficient, and risk monitoring is 4x more robust. The result speaks for itself. GMV has grown fourfold over the past 3 years and risk-adjusted margins have remained stable too. This is exactly the kind of platform you build from.

You've just seen the scale and discipline Atome already has, and this is exactly why we chose to acquire and build this ourselves. The strategic rationale also stems from Atome operating in 5 of the 6 markets we are already in, which means it comes with scale in exactly the geographies don't matter. And beyond that, the strong potential for strategic synergies as a combined platform, combining our ecosystems will enable us to accelerate financial inclusion to the unbank and underbanked across the region. Atome leveraging the distribution and reach of Grab with ample opportunities to drive cross-sell opportunities across both of our networks.

Let me put some numbers behind that opportunity, starting with where we stand today. As I mentioned earlier, consumer credit penetration across our own ecosystem is still nascent and smaller than what we see among peers. Of our 138 million annual transacting users, only 1% borrow from us today. That's a deliberately small number we prioritize prudence and profitability in scaling our Financial Services segment, even though we always knew that underlying demand was real. Atome changes that immediately, expands our lending reach and broadens the base of our users we serve from day 1. And as we expand the parameter of both platforms together over the midterm, we see the potential to scale our user base for lending by more than 10x from where we stand today. That's the real size of the option in front of us.

Currently, our biggest lending exposure sits in DigiBank Retail and MSME, both larger today than our consumer fintech book. That's largely a function of tenure as DigiBank's loans run longer, so balances build up and stay on our books for longer. Our FinTech businesses, driver, merchant and consumer lending run on much shorter tenors with far higher origination and dispersal volumes. Of the 3 consumer is still the most nascent. At Atome's book as of the second quarter on a pro forma basis, and that changes immediately. Consumer cash loan exposure grows more than 16x from where we are today and consumer BNPL and card exposure grows more than 4x.

Put together with what we already have in driver, merchant and digital bank lending, this gives Grab a sizable regional presence across nearly the full spectrum of consumer finance. Beyond the user and consumer exposure, we've just walked through, Atome also brings over 30,000 unique brands into the for spending categories like travel, electronics, home and lifestyle, fashion, beauty and e-commerce. This matters in 2 directions. First, it opens up a much broader cross-sell for Grab. These are categories we've historically never served, sitting at a different point on the frequency and average order value spectrum than our own F&B heavy merchant base. And it gives us a path to bolt on more products to serve these merchants over time.

Second, it works the other way as well. Atome now gets access to cross-sell into our own merchant base, which focus is largely F&B. So this isn't just Grab gaining a new merchandise work. It's 2 ecosystems that can now sell into each other.

Finally, and most importantly, our shared vision Grant's mission is it drives Southeast Asia forward by creating economic empowerment for everyone. Atome's mission is to improve the lives of consumers through greater financial access and technology. Put those 2 together and we arrive at a shared vision to accelerate financial inclusion by responsively extending credit access to the unbanked and underbanked across Southeast Asia.

Jefferson founded to my 8 years ago under that same conviction that everyone deserves access to responsible credit, not just those with a conventional banking history. Having spent time personally with him and his team, I've come our way impressed by what they've built since then, and I'm confident in our decision to work alongside them.

Turning this vision into results starts with how we structure the deal because we only pay full value for performance that Atome actually delivers, while acquiring a controlling 60% stake today for $1.49 billion in cash expected to complete by the third quarter of 2027. This is funded entirely from our existing cash. We'll maintain an ample net cash buffer after completion, where we intend to complete approximately $900 million in buybacks over the next 12 months. The remaining 40% is tied directly to Atome's adjusted EBITDA and revenue performance over the next 2 years. We're confident in Atome's ability to deliver, and this structure protects our share downside while keeping our capital allocation discipline.

Atome's own management continues running their business through an earn-out period, which meaningfully derisk our exposure from day 1. This transaction reflects the same discipline we apply to every capital allocation decision at Grab. We'll only pursue inorganic options that clear a high hold of rate of return because we evaluate this deal or what the combination makes possible over time, including cross-sell running in both directions and a multiyear head start into consumer lending that will take significantly longer and cost significantly more to build on our own.

The proposed transaction also drives meaningful upside to our group outlook and Peter will walk through the details of this in the section. To start, we are introducing 2 new guidances for 2028. First, we expect to scale our gross loan portfolio from above $3 billion by the exit of 2026 to over $6 billion by the end of 2028, driving meaningful top line expansion. Second, that growth carries our financial services segment adjusted EBITDA, including Atome to $500 million in 2028 building on the profitability. We expect this segment to reach in the second half of 2026. That guidance reflects growth achieved in discipline prudent manner, managing credit risk carefully even as we scale the top line. Together, these 2 targets flow straight true to our group numbers.

We are raising our revenue growth guidance to 30% plus CAGR from 2025 to 2028, up from 20%, and raising our 2028 adjusted EBITDA target to $1.7 billion, up from $1.5 billion. Peter will take you through exactly how we get there later in this session. Taken together, this is a transaction that gives us instant scale in consumer lending, builds in a proven and complementary partner is structured with real discipline and already list our outlook for 2020. I'm excited about what Grab and Atome can build together.

With that, I'd like to hand things over to someone who has been a close partner in getting us here. Jefferson Chen, Atome's Chief Executive Officer and co-founder has kindly recorded a short video to share a few words with you directly.

[Presentation]

Thank you, Anthony. Thank you, Jefferson. You've heard how the combination of ATMI and Grab will bring together complementary capabilities and scale to accelerate growth and profitability. Now I'll describe how the combination creates value for users, partners and shareholders. Our financial services strategy is centered on embedded distribution, offering the right product at the point of an existing transaction directly within the primary flows of our users. We already have daily relationships with millions of consumers and merchants. So we reach potential borrowers at a fraction of the cost of a stand-alone lender. Every transaction generates a behavioral signal spending patterns, location, lifestyle, wallet management, that feeds directly into more accurate credit assessments.

In many cases, repayments can also be deducted directly from the Grab Pay wallet, reducing friction for the borrower and lowering default risk for us. These 3 advantages compound into a flywheel that generates more value for the ecosystem as it scales. More transaction volume gives us better data insights, better data insights enhance our credit underwriting and better underwriting lets us price and reward more competitively. Better pricing attracts more partners and users and more partners and users drive more transaction volume starting the cycle again.

This continuously improves our underwriting models and lets us scale the ecosystem more efficiently with better operating leverage over time. Atome accelerates this consumer underwriting flywheel by several years when compared with organic development. This not only enhances financial returns, but it also dramatically strengthens the whole on-demand ecosystem to bring this to life. Let's consider 3 examples of how customers experience these embedded personalized financial offerings. The recently launched GXS credit card is one example with white listing and limits decided based upon the data from the ecosystem.

It makes spending on Grab more attractive by rebating Grab coins, which can be used to buy additional Grab services. Right Cover is built directly into Grab rides, giving users personal accident insurance during and after their trip. And GrabPay for travel lets inbound travelers use our payments infrastructure for cashless payments while they're in the region so that they can pay like a local. The most awful example of how well customers respond to this kind of embedding is our digital banking growth. We've scaled 9 million deposit customers across our 3 digital banks within just 3 years.

Most of these signed up after seeing the bank's products embedded seamlessly in their customer journeys on Grab with little or no acquisition cost. So for example, 76% of GX Singapore's deposit customers are Grab users. That number is 92% for GX Bank in Malaysia, and 60% for Super bank customers who are either Grab or OVO users. We've seen how the Grab ecosystem drives customer acquisition for financial services via seamless embedding personalization and better underwriting.

Now let's look at some equally compelling examples of how financial services power the ecosystem in turn, creating uplift for the whole platform. We see quantifiable increases in spend and engagement by consumers in Philippines and Malaysia after they draw down their loans. For example, GX Bank Flexi credit in Malaysia drove an 11% GMV uplift on Grab after drawdown and a 54% spend uplift through GS Bank payment methods.

We also see better commissions and add spend adoption by merchants who borrow from us. This uplift isn't limited to our own ecosystem, embedding our services into partner ecosystems drives the same effect there, too.

Let's hear directly from Michael La Cour, CEO of IKEA Singapore, an important GrabPay and pay later partner in this short video.

[Presentation]

So the advantages for our customers, our ecosystem and our partners are significant and growing greater as our data flywheel scales. But how unique is our data. Well, first, it's real world data generated from an existing physical ecosystem, not something our model can scrape or generate, which is what makes it durable and hard to replicate. Grab operates as the system of record for local commerce across Southeast Asia. Real-time signals from over 50 million ecosystem participants, in-store payments, mapping telemetry across more than 900 cities and adding up to over 20 billion cumulative transactions since 2012.

To put that in perspective, we process 300 petabytes of data every single day. No 1 else in the region has a data set of this depth, breadth or recency across both digital and physical commerce. Here is the data on this slide that proves that Grabs underwriting, using our proprietary ecosystem data outperforms underwriting that relies upon credit bureaus in our markets. We've built up 647 million cumulative repayment touch points, each one, a behavioral signal on how a user manages their obligations. This allows us to make better lending decisions, which is why at comparable approval rates, our models produce lower delinquency than traditional bureau models.

And that has resulted in nonperforming loans across our consumer finance and banking portfolios staying stable or improving over time. And here I'm additional data on driver partner lending, showing how we've been able to scale significantly without compromising credit quality. Cumulative loan balances per cohort have expanded consistently over time. At the same time, cumulative charge-offs have improved and now follow a stable, predictable pattern. 68% of drivers access credit for the first time through Grab, and half of them say they did it specifically to avoid predatory lenders.

In yet another illustration of the ecosystem flywheel, drivers who take loan with us complete 13% higher number of rides per month on average. We've been doing this for quite some time, and that shows in the maturity of the book. The discipline we maintain and how we manage these loans, while still underwriting competitively is what lets us consistently generate risk-adjusted returns above our cost of capital, even through several macroeconomic shocks such as COVID and oil price spikes.

We have found that AI already drives measurable financial and operational outcomes. Grabs merchant AI systems has increased engagement with merchants by providing real-time suggestions for how to grow their business, menu changes, promotions, performance tracking. That engagement has also driven a sharp increase in lending dispersals. For example, at Highland, merchants receiving AI-driven lending recommendations saw a 19% increase in average disbursement versus the control group. The equivalent uplift in Indonesia was 7%. AI has improved collections productivity by 62% since 2022, with room to improve further from here also.

So in summary, Financial Services is an integral part of our ecosystem, not a stand-alone fintech business, but a fundamental complement to our on-demand business. customers, partners and the ecosystem all benefit by the way that financial services are embedded, personalized and priced through our unique proprietary data. These benefits grow as our ecosystem scales. So the addition of Atome takes us to a whole new level of ecosystem value and financial performance.

Finally, as the ecosystem scales, so does the value that AI can bring. So the timing for our acquisition of Atome really could not be better.

Now over to you, Peter, to round up with the financial impact of the acquisition.

Thanks, Alex. Anthony and Alex have shared our strategic direction for Grab's Financial Services and our acquisition of Atome, the opportunity we're going after and the capabilities we have built to capture it. I will now walk you through how that translates into our financial road map and specifically, how our acquisition of Atome reshapes our group outlook in a meaningful way.

Let me set the stage for how we think about growth and profitability across the group over the medium term. Now this chart is a useful standpoint because it shows where the 2 are emerging rather than trading off against each other. Financial Services has been our fastest-growing vertical gram and remains on track to reach profitability on an adjusted EBITDA basis in the second half of 2026, consistent with the guidance we've given. This segment, together with the GrabFin, digital banks, GXS, Superba and Stash was already built to be one of the key monetization levers for the platform.

What the proposed acquisition of Atome does, it further accelerates that path so that upon completion of the transaction, it contributes to the overall group sooner and at greater scale than you would have. And given how underserved the credit market still is across our region, and the structural advantages in this segment, we believe we will be able to further reinforce with Atome. This is a profit pool. We have plenty of room to go into, while it depends less on winning share from a competitor and more on serving that's being met today. It also reinforces the ecosystem effect Alex talked about.

When we can lend into our own ecosystem and rely enough of funding and distribution, the whole platform becomes stickier. And financial services also becomes a lever that strengthens our on-demand verticals in mobility and deliveries and also advertising. Mobility and deliveries remain our core on-demand businesses, and they continue to grow at a healthy clip. Mobility is operating in the 8.5% to 9% adjusted EBITDA margin range and growth remains robust. While deliveries continues to grow towards our 4% steady-state adjusted EBITDA margin target at a healthy growth rate.

This chart illustrates why we believe why is the right call overbuilt. If we try to reach the same scale in consumer lending organically without a timing, the green bar shows what that path looks like. Real positive growth are building from a much smaller base and taking years longer to get where the yellow bars already are. That gap exists because of how lending economics work, with front book, the expected credit loss at the point of a loan is originated, while the revenue from the same loan is recognized. The more aggressively scale a lending book, the more that timing mismatch weighs on risk-adjusted revenue in the early years, even as the underlying economics are sound.

Now Atome has already moved past that phase of it in build out. with Atome, we're acquiring a platform that's already further along that curve at a cost below what it would take us to build the equivalent capability ourselves. Because there's meaningful overlap between Atome's geographical footprint and ours, the synergies are sizable, which is what the yellow bars separate from the green ones. And that gap keeps unwinding every year. Put together, this is the advantage Anthony spoke about earlier. It lets us reach a substantially larger scale in risk-adjusted consumer lending revenue with a lower credit charge footprint than either business would carry building this loan, years ahead of where an organic bill would get us.

The conviction we have in this outlook comes from 2 things together. First, the continued strength of our existing financial services vertical and second, with the proposed Atome acquisition adds on top of it. We're guiding towards $500 million in financial services adjusted EBITDA by 2028. Building from our expectation to reach profitability in the second half of 2026, off a base where the segment was still loss making in 2025 at a negative $110 million. This chart walks through the levers that gets us from there to $500 million.

The most material one is user growth. As Atome extends our footprint alongside our core financial services vertical, we wanted the perimeter of who we can serve and deepen the penetration of consumer lending within the Grab ecosystem. And that increase in consumer penetration is the single largest driver of this bridge. From there, a shift towards longer tenure products and improving yields adds a further step up. And as our credit models continue to improve, we expect credit provisions to come down as a share of the book, adding another layer of margin.

And finally, given the margin potential in the lending business at scale, we expect meaningful operating leverage as the fixed cost of running this platform, the underwriting infrastructure, the risk models, the servicing capability can spread across a much larger loan book without needing to scale at the same rate. Underpinning the adjusted EBITDA trajectory is an expectation that we more than double our gross loan portfolio from just over $3 billion we're targeting by the end of 2026 to over $6 billion by the end of 2028, assuming the timely consolidation of Atome, with an increasing portion of the gross loan portfolio coming from consumer loans.

I want to be clear that we don't see this as a capital-intensive way to grow. The bulk of this loan book by 2028, will sit within GXS, GX Bank and Super Bank, our directly consolidated digital banks. And as the platform scales, we see room to move this funding mix towards increasingly lower cost sources over time. Atome's book today is already funded through its own financial partners, and that's a relationship we intend to keep on building as we scale together. And this platform grow risk, we see continued room to optimize our overall cost of funds across the group.

The bottom line is this. Growing this line book to over $6 billion is not an equity-funded story. It's a diversified funding strategy, and that means significantly less strain on our balance sheet.

Let me bring together everything I've just walked you through, the loan book, the financial services, adjusted EBITDA path and show you where it lands at the group level. With the consolidation of Atome and the $6 billion loan book and the $500 million financial services adjusted EBITDA target I just covered, we are upgrading our guidance at the group level. 2025 to 2028, revenue CAGR moves from 20% to 30% plus. And our 2028 group adjusted EBITDA target moves from $1.5 billion to $1.7 billion.

Now you might be asking how do we arrive at an EBITDA outlook of $1.7 billion in 2028. There's 2 items that sets all this out. First, Foodpanda Taiwan, which we expect to complete in 2026 is at $60 million. Second, SuperBank and Atome together add $300 million, which is the more meaningful piece, and consistent with everything I've just walked you through earlier on. Now we're also choosing to deploy $160 million to widen our affordability offerings across the platform and to continue building structural advantages in groceries and retail. Both have already proven themselves as engines of accelerated growth with affordability driving a meaningful share of our new user and engagement growth across mobility and deliveries and grocery scaling at multiples of the rate of core of our core deliveries business.

That momentum gives us real conviction to leaning further because the long-term opportunity in both categories remains massive relative to where we are today. It strengthens lifetime value for our users because it widens the range of products they have access to on our platform. It also deepens our structural mode in these categories. In the same way, Financial services is doing its side, growing what each user contributes to the platform over time. Put all of that together and you get to $1.7 billion, a number that reflects both the contribution from Super Bank and Atom and our decision to reinvest a portion of that into the platform's long-term competitive position.

Capital allocation for this transaction follows the same 4 principles that govern every capital decision we make as a group. We remain disciplined in how we invest for organic and profitable growth. And that discipline extends directly to how we evaluate inorganic opportunities. A term met that bar. It is a proven consumer lending platform that lets us accelerate growth in this segment profitably, rather than spending years and capital building it ourselves. The structure reflects the same discipline. The upfront consideration is funded entirely from existing cash. The remaining stake is structured as an earn-out.

So future payments are tied directly to Atome's actual performance rather than fixed today. We'll also maintain a strong balance sheet with ample liquidity. Even after this transaction completes, we remain committed to a healthy net cash position, and this deal does not come at the expense of our financial flexibility. This chart shows the track record behind that commitment. We announced our inaugural $500 million share repurchase program back in 2024 and repurchasing $226 million that year and completing the program with a further $274 million in 2025.

This year, we view the dislocation in our share price as an opportunity to further lenient. We announced a $500 million program in February and follow that with a further $750 million program in August. Between the 2, we've repurchased $351 million through August 2026, and we intend to complete around $900 million of the remaining mandate within the next 12 months. Taken together, that brings our cumulative share repurchases from 2024 to $1.75 billion, representing over 10% of shares since the start of 2024, and we intend to cancel these shares.

This slide brings some transaction together, and I'll summarize it bullet by bullet. Since most of the substance here, we've already covered. Firstly, this deal is built with capital discipline at its core. We're acquiring 60% control today in cash at signing. The remaining 40% is priced 2 years after completion based on deliberate performance, which means our exposure on their second tranche moves means how the business actually performed not with the fixed price locked in today.

Secondly, on financial impact. The case for this deal is exactly what I've walked you through this section. Atome is expected to be accretive to our group revenue and adjusted EBITDA. We expect the combined financial services segment including Atome to reach $500 million in adjusted EBITDA and a loan book of over $6 billion by 2028. And that's the basis for raising our group targets to $1.7 billion in adjusted EBITDA and the 30% plus revenue CAGR over the same period.

And third, on closing, we expect this transaction to complete by the third quarter of 2027, subject to regulatory approvals. With that, I would like you to hear directly from the team who will be running this business day to day. You'll hear from, who leads our Financial Services segment along with our Digital Bank leads and the Stash and tome teams.

[Presentation]

Before we move to Q&A, let me close this slide and leave you with 3 things today. First, this transaction gives us access to a proven operator in consumer lending. And that lets us accelerate our expansion into this category in a far more sustainable way and at a faster pace than if we try to build it ourselves.

Second, this reflects the same disciplined capital allocation we apply to every investment we make. It's funded entirely from our existing cash. It's expected to be accretive to our group adjusted EBITDA and completion and it does not come at the expense of our balance sheet strength or our ongoing share repurchase program. We're guiding to $500 million in financial services adjusted EBITDA and a $6 billion loan book by 2028, and we do this without compromising the shareholder returns, we remain fully committed to.

And third, the opportunity in front of us is significant. Consumer fintech penetration across our region remains very low, which means there is massive headroom to grow into. And Atome is a highly complementary fit for that opportunity. We've already shown we have the right to win in financial services, built on our track record so far, the strength of our ecosystem and our data and our ability to manage collections and credit risk discipline. Thank you for your time today. We'll now move to Q&A.

Thanks, Peter. And with that, let's move to Q&A. [Operator Instructions]

Our first question comes from the line of several analysts. We have Alicia from Citi, Ranjan from JPMorgan, and Jiong from Barclays.

So this is a question for Alex. Grab has been pursuing financial services and online lending for years. Why are you choosing now to buy a consumer lending business? And What does Atome have an edge over Grab and why can't replicate this on its own.

Thanks. Great question. Yes, we have a successful business lending to drivers and to merchants. But we've only just begun the journey of lending to consumers. In fact, only 1% of our 138 million annual transacting users have taken a loan from us. So we're starting off on the consumer journey. This acquisition is an opportunity for us to leapfrog the 10 years of learning across multiple products and multiple markets that Atome has already been through. So we don't have to go through the pain of all the credit losses to train those models. The Atome team have done a fantastic job. Their AI-driven underwriting is best-in-class. They've developed a great company that's growing very fast. Net growth in 6 years. They are already profitable, generating strong cash flows and the prospect of using our data to improve their credit models to the next level is actually a big leapfrog in terms of the capability that they've built already.

And frankly, the distribution that they've built up with 30,000 brands, retail brands across their network would also take us many years to build up. So it's a great combination of assets that will give us tremendous revenue synergies together.

Thank you, Alex. So for the next question will come from Venu of Bernstein and Divya of Morgan Stanley. This is a question about the Atome management. So the question is, will the founder and the top management of Atome remain with the business? And are there any commitments for that? So this is another question for Alex.

Yes. Jefferson and Chen, the 2 founders and the rest of the team are super talented. With this earnout structure, I think there's a very strong incentive for them to remain around for those 2 years. And frankly, we also share a common mission to help this -- close this financial inclusion gap across Southeast Asia. So we believe that with shared mission, shared values that we believe we share with them, there's a very good chance that many, many of them, hopefully, all of them will stay around even past the 2-year period. So we're looking forward to working with them during the 2 years so that we can start to integrate the teams.

Okay. So this question now moves to the guidance of the $500 million EBITDA for financial services and from Zhiwei Foo Macquarie. This is a question for Peter. So on Slide 36, your slide shows improving cost leverage to be a significant driver of EBITDA growth to achieve the $500 million. What do you need to do to execute on that component?

The way to think about it is if we just step back first, the Financial Services segment was loss-making in 2025. And when we also announced in last quarterly earnings, we said that they'll be expected to be profitable in the second half of 2026. So you see the trajectory of the profitability of our Financial Services business. Now on the cost leverage, your question around improving cost leverage, I would say 4 things here. I think the first one, which is the biggest opportunity and the largest driver is the user growth because Atome really extends that footprint. We operate across 5 markets that we share today, and it deepens the whole consumer lending penetration across all out Grab ecosystem today. It really just complements in terms of what we have across not just the interfinancial services, whether it's our banks, but also our on-demand services that we can really start to amalgamate work together on.

That's the first one, the user growth. The second one is a shift towards longer tenured products. And part of that complementing that will be improving yields at the same time. As you know today, a majority of the loan book today is sure on the driver side is very short tenured. And we've always had an aspiration to actually extend those 10 products, and this is now a great opportunity for us as we team up to really shift towards that much longer tenured products and also improving that yield. So that's the second one.

The third one is as the credit provision comes down a show the book we see that our credit models continue to improve. And that's really, really important. One of the secret sauce of lending, as you really all know, is the credit engine, the risk appetite and the credit model age. And this is where Atome really comes in. And together, also, we could really improve the credit provision coming down, which improves operating leverage in the business.

And lastly, as operating leverage is just the fixed cost, the whole underwriting infrastructure, the risk model, the servicing, the collections, we all get spread now across a much larger loan book without really scaling at the same rate. So lots of opportunities.

All right. Thanks, Peter. So next question is more specific to Atome, asked by several analysts as well as. This is from Ranjan from JPMorgan and Zhiwei of Macquarie. So a question for Alex. Can you talk a little bit more about the profitability of Atome. From the question as asking though it's very low at the moment. So just want to understand what's the reason for that? And is there any additional financial metrics that we're able to share such as ROE, yields, cost of credit or a tenor of the book?

Okay. Yes. So actually, the -- it's moved into profitability relatively recently. But the growth trajectory of the profitability is very attractive and is rapidly moving into providing strong profitability. And that's obviously a good time for this acquisition because the high growth continues, but the operating leverage in their own model is showing very clearly over the last 12 to 6 months as it comes through into generating strong profitability. It's a very complementary fit, as we talked about earlier. So that revenue growth, we expect to continue to grow, which will drive further operating leverage, and that profitability is achieved with a very high growth rate on loan dispersals.

So as you understand, when you disburse a lot of loans, you also incur the provisions for those loans. So even with those, it's generating very attractive profitability currently. Going through to 2028 as that process continues and compounds, it will account for a good part of the EUR 500 million that Peter talked about earlier in our guidance. So we are -- we know that the cash flow is already attractive. They will grow rapidly over time now as the revenues increase. And the revenue growth of Atome as a standalone will be accelerated by working with the Grab ecosystem. So it should grow even faster than they would have done on a stand-alone basis.

We're not providing risk-adjusted returns specifically for Atome at this point. But in terms of the long tenor, I will say that these are relatively shorter tenor loans, and the average is below 6 months for the entire Atome portfolio.

So we'll move on to the next question. And this question is on valuation. This is a question for Peter. This comes from Piyush from HSBC. So for the Phase II part of the transaction, there is a valuation range of $2 billion of the cap of $4.5 billion for the remaining 40% stake. The question is, if the upper end of the valuation range materializes, then what could be the upside to 2028 adjusted EBITDA target of $1.7 billion. This is repeater.

Yes. So Piyush, if you -- one of the characteristics of atoms what Alex mentioned that the growth you're growing very fast as a business overall from the top line disbursal and loan also. So what we see is what that means to our on-demand business also will accelerate also a lot faster than you would have as well. So we see the synergies for those 2 to come together. Now the synergies ascribed not just to Atome, but the way we look at it also is also to our on-demand business, so our mobility under deliveries business because the going hand in hand as an ecosystem, as you know, fair enough well.

Now I would also highlight that it's really important that in the 2028, which is where we've been guiding also is just a point in time. And also the second transaction also as it happens, the Phase II is that point in time also. So the multiple really doesn't capture Atome's growth trajectory and EBITDA expansion beyond that. And also not to mention that there is incremental synergies we see also that we can derive beyond that Phase II, especially beyond 2029.

So I think what's key to highlight, Piyush, is that the valuation of Atome's reflects this fast growth. They have a leading market position. They have an improving cash flow, which is really important to us also, and its unique underwriting engine. So all that, we see this 2-step process with this transaction really gives us that EBITDA trajectory growth beyond the Phase II marker in 2029.

All right. Thanks, Peter. So the next question comes from Alicia Yap of Citi. So a question for Anthony, pertaining to management bandwidth. So with recent moves across Atome superbank and Stash, Fintech is taking a more prominent role in Grab's portfolio. How is management managing integration bandwidth across the multiple assets concurrently to mitigate operational execution risk? That is a question for Anthony?

Thanks, Alicia. Great question. The short answer is that each transaction Structure does the heavy lifting. So we deliberately stage these so they don't compete for the same bandwidth. Atome is the clearest example. Post close, Atome's management team continues to run the business under its own brand and licenses for 2 years, and the Phase II consideration is tied directly to the performance they deliver in that window. So the people best place to run Atome are running Atome with every incentive to execute while our team's focus on a specific synergy or underwriting insights, cross-sell, funding costs, not a big bang in integration.

And on Superbank, we consolidated Superbank in May, and it runs under its own banking leadership led by within the regulators' framework. The same playbook we've now run with GXS and GXP. Stash operates standalone with its own team and its own book. The wealth synergies are ahead of us, not something we force today. So each asset has one accountable leader, and its own plan, none of this runs through a single central team stretched across 4 deals. And here's why we do them or each one plugs into the same flywheel. Atome's lending meets our ecosystem data and distribution. Superbank strengthens our deposit base and funding costs. Each one makes the ecosystem more valuable. That's growth. None of these individual business could generate setting alone, and it comes from an ecosystem, not from a lot of heavy integration work.

And as you can see, the discipline is already in the numbers, our $1.7 billion raised guidance, 2028 target reflects these moves including the platform investment to support them.

Thanks, Anthony. So the next question is on just general integration. There's a question from Divya from Morgan Stanley. A question for Alex, and it pertains to the Grabfin product as well. So the question is, what happens to Grab's own existing pay leader product in Singapore and Malaysia? Will these products be retired, emerged into a tome or already run in parallel? This is a question for Alex.

Thanks, Divya. Yes, there are a couple of markets where we both have products in market, although we're relatively early in consumer lending overall, which is the whole thesis behind this acquisition and the acceleration to enjoy the maturity of credit models they have across a whole range of products in consumer lending. But in those markets where we both do have offerings in the market, we feel we would want to keep them in place to give consumers more -- the credit market is very large in places like Singapore and Malaysia. So there's lots of white space. It's really not a net sum 0 situation between us and Atome, and we're both growing rapidly. So we'll keep both those offerings in the marketplace.

Thanks, Alex. So next question pertains to, once again, a question for Alex and from Divya from Morgan Stanley. So with Grab owning 60% and consolidating the business, what governance writes, if any, will AIG retain over underwriting policy, credit risk appetite or capital allocation during Phase I to Phase II given that AIG's ultimate payout depends on Atome's performance during a period, which creates a potential principal AIG tension. So a Grab's cheaper cost of capital be used to refinance Atome's existing facilities. And with that inflate Phase IIs adjusted EBITDA in AIG's favor?

Yes. So we have a methodology that we already use for managing risk appetite vis-a-vis the bank. So at the banks, the credit committee of the bank's Risk Committee will set a risk appetite statement across the key measures of risk. And then the team can execute within those guardrails, and that's exactly the approach that we will apply for Atome. So there'll be a subcommittee of the board, essentially, that's controlled by Grab. And that subcommittee will set the risk appetite statement corridors. But then the Atome team gets to execute within that. And that's what we want because they've got a tremendous track record of managing risk through the cycles, through the macro economic shocks, like oil price spikes, et cetera, they've been able to show that they can control delinquencies and control a lot of the credit losses. So that's the capability we're buying. We don't want to interfere with that.

In terms of the way we will work together, we think there are opportunities for us to work together during the 2-year period before Phase II creates the full buyout, and those opportunities will be win-win opportunities. So they can be embedded finance distribution deals. They can be distribution deals for us to access the Atome customer base too, because don't forget, they've got 25 million transacted users also that we'd like to cross-sell to.

They can also, to your point in the question, the balance sheet cooperation ideas as well because we -- there are ways in which we can -- under the regulatory frameworks use some of their bank deposits through channel with the bank -- with Atome. So Atome has existing bank facilities, and we can participate in those. Each one of those types of ways of working together will have to be arm's length because it's a related party transaction. So there's no inflation of the earn-out because it will all be market-based arm's length. And neither is there a subsidy going either to Grab or to Atome because we have the arm's length related pane transaction process to manage all of that.

So lots of scope for us to work together even within the 2 years, but no danger of us losing control of the risk appetite, management and governance and no risk of any subsidy going 1 way or the other.

Thanks, Alex. Next question is on the 2028 outlook. So this is a question for Peter. It's from Piyush HSBC. In your 2020 outlook of the $1.7 billion adjusted EBITDA, there is a new element of investing in affordability and groceries retail. Can you please elaborate on this new element? And what has changed in the last 6 or 7 months, which is leading to $160 million drag on the EBITDA guidance. So this is for Peter.

Yes, Piyush. Yes, you're right, we're planning to deploy roughly about $160 million. And really where we are focusing on is deepening that affordability across the platform. And you should hear us many, many quarters around how powerful affordability has been for -- on our on-demand business as a growth factor, and we're going to continue to double down on that, but also building meaningful structural advantages in what we're seeing in groceries and retail business also at the same time, we always commented that groceries is growing close to 2x faster than food. And we see that as an opportunity for us to really for the next 2 years to really put on the gas panel and really just accelerate that growth.

Now both our proven growth of engines as affordability drives a really meaningful share of the new user engagement. And that's been really critical for us as we get every user on the ecosystem here, how do we make sure they continue to engage frequency as well as how do we all to make sure the retention also is high. And that's been a really core fundamental of our on-demand business, really improving that lifetime value scale of a user base. And grocery is also scaling at multiples of what the core deliveries growth rate is.

Now as the question as to why now. Why are we deploying this? Why are we thinking about this $160 million now and not before? I think what's unique is Atome because I think a Atome will give us access to a new user base. And the largest this cross-selling opportunity. Alex have talked a lot about how that opportunity is in terms of where in the 5 markets that we cross today, they have 25 million transacted users on the platform also. And it just gives us access to new user base. At the same time, also, we can monetize every user that comes into our platform more effectively. And that's part of our extending at lifetime value growth of the user base as they're coming through the affordability funnel or the grocery funnel. We see opportunities for us to cross-sell and upsell this user base to really extend their lifetime value.

Now part of that is also extending loans. Now with the time also it gives us the capability now to do consumer loan that we might not be able to do back pre autonomy where obviously, we were building it ourselves. Now this gives us somewhat of a turbo charge for us to be able to extend that lifetime value even further. I also want to mention, Piyush, on the supply side, which is kind of unique here, we can also now tap into Atome's existing 30,000 unique brands that we don't see today. So those brands that Atome is a slide on Anthony's presentation earlier, Cabos travel, electronics, home and lifestyle, fashion, beauty and e-commerce that we don't do today. So that gives us a new penetration on the supply side. that gives us more flexibility and also gives us more future merchant relationships bringing to our marketplace.

So with the timing and the momentum we're seeing in our on-demand business, just gives us conviction to double down until leaning and there's long-term opportunity in both what remains to be a really massive relative to today. What I would just finish off the bottom line is with the expansion of our financial services offering. -- that the product spectrum, now with the Atome's worth more to us than ever before.

All right. So this is for the next question, it's on capital allocation. Question once again for Peter. Alicia, Citi, and Jacklin of CIMB. On uses of cash, can we -- are we expecting more M&A in fintech financial services going forward? And can you help us understand why Grab has become more active in financial services M&A recently following SuperBank, Stash and now, of course, Atome.

Yes. Look, capital allocation, you've heard me many times, discipline remains very high. And that's core true to our DNA and how we operate here as a management team nothing has changed from that. We continue to make sure we allocate the right capital to organic growth in our business. And that has to be one of our most highest priority for us today. You saw in the last quarter, the acceleration of our growth in the deliveries business, which has been really, really important. And also, you look at the mobility side, rides were up 28% year-over-year. And then all this organic growth is really important. And that's one way that we are making sure we get the most yield and highest internal payback for those capital that we every cent that we deploy.

Now for the M&A side, it's no different, actually. But actually, what is more important it's done on a higher internal hurdle rate than your -- we're seeing in organic growth. And if you see the theme of the M&As that we've been doing, and it's all centered around how we can complement the existing Grab ecosystem. If you see how we are deploying capital in Taiwan potentially also closing this transaction, and then you see what we've done as when it comes to a micro investment platform was a new capability that we didn't have before.

And now with Atome it really can just scale consumer lending. It would have been taken years for us to build it. And now we have this capability, a talented team and a great platform that we can just leverage. So we adopt the same lens and framework for every deal and for end market also in any size.

Let's also not forget that we're also doing share buybacks at the same time as we're allocating those capital. Look, I know our share price is dislocated, and we're leaning in, and we've been leaning in since the beginning of this year. If you look at a total buyback program, now it's $1.75 billion in total, we announced today also that $900 million has been authorized remaining tranche. We're committed to doing -- completing that in the next 12 months. And to provide some perspective, the $1.75 billion buyback program, this is roughly about 10% of shares to be canceled since the start of 2024.

So also from a free cash flow ideation that we've guided 80% conversion remains. And as we expand our profitability at the same time, also, it just gives us sufficient net cash buffer from a capital preservation is also how we deployed capital, and we continue to make sure all that our balance sheet continues to strengthen.

Thanks, Peter, and thanks, everyone. So that brings us to the end of our Q&A session and the overall presentation. I

Ill now turn the time over to Alex for his closing remarks.

Well, first of all, thank you all for joining us today. I guess there are 3 key takeaways from this call. First, it's hard to imagine an acquisition for Grab that generates as much revenue synergy as this. Atome is the leading independent digital lender in our region with mature credit models. -- they are built up for all the key products across most of our key markets. So it's a really direct fit with our because Grab has the largest on-demand platform, where digital lending penetration is still only 1% of our annual transacting users.

So together, we feel that we can grow that penetration to 10% over time. So think about that, that's a 10x opportunity in revenue synergies. Second is this disciplined capital allocation that Peter was talking about that we apply to every investment. This phase is funded entirely from cash and is expected to be accretive immediately to group adjusted EBITDA. While at the same time, our buyback program will retire more than 10% of shares outstanding at the completion of the program that's just been announced, demonstrating our focus on shareholder returns across the board. Finally, this is not a stand-alone fintech business. It's a core part of our ecosystem and will accelerate our data flywheel. So the injection of credit into the marketplace in this way creates a flywheel of deeper engagement with consumers more transactions and faster GMV growth for mobility, food and especially our fast-growing grocery and retail business. This new activity then feeds our credit models to enhance our credit performance even further as growth accelerates.

So the 3 key benefits to why we're doing this transaction and accelerating and leapfrogging our position in the digital lending market.

For further questions, please reach out to the IR team directly, and thank you again for joining us this evening.

Good day, everyone, and welcome to Grab's Second Quarter 2026 Earnings Call. I'm Ken Lek, Head of Strategic Finance and Investor Relations at Grab. And joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oey, Chief Financial Officer.

During this call, we will be making forward-looking statements. These statements are based on our current beliefs and expectations. Actual results can differ materially due to a number of risks and uncertainties as described on this earnings call in the earnings release and in our Form 20-F and other filings with the SEC. We do not undertake any duty to update any forward-looking statements. We will also be discussing non-IFRS financial measures on this call. These measures supplement, but do not replace IFRS financial measures. Please refer to the earnings materials for a reconciliation of non-IFRS to IFRS financial measures. For more information, please refer to our earnings press release remarks and supplementary presentations available on our IR website.

For today's call, Anthony will deliver opening remarks, after which we will open the floor for questions. As a reminder, we are accepting questions via e-mail at [email protected]. Do submit your questions as of time, and we will add them to the Q&A queue.

With that, I'll hand it over to Anthony.

Good day, everyone, and thank you for joining us. We delivered a record second quarter. Adjusted EBITDA grew 54% year-over-year to $168 million, more than twice our revenue growth rate with margin expanding to 16.9% of revenue from 13.3%, Our 18th consecutive quarter of adjusted EBITDA growth. On-demand GMV grew 21% year-over-year or 22% on a constant currency basis to $6.5 billion, and group MTUs, monthly transacting users reached another record high of 54 million, even as elevated fuel prices persisted across the region. On the strength of the first half, together with the consolidation of Super Bank and the acquisition of Stash we are raising our full year 2026 guidance, which Peter will take you through in detail.

Before turning to the business, a brief update on our Board. [indiscernible] Finance in connection with our proposed acquisition of Food Panda, Taiwan business. Dara joined us in 2018 in connection with the sale of Uber Southeast Asia business to grab that has been a valued voice in our boardroom for 8 years. On behalf of the Board and everyone at Grab, I want to thank him personally for his contributions. We maintain ongoing dialogue with Uber India capacity as a shareholder in Grab.

On our core business, we continue to demonstrate our ability to drive on-demand growth acceleration, and we are confident that a structural long-term moats we are investing in today will continue to expand our competitive advantage. [indiscernible] is the health of that growth, led by transactions and users not price. Tree structural moats are driving it. Regional penetration remains incredibly nice, giving us a massive runway. Our affordability initiatives are profitably unlocking new user segments and building durable daily habits. And engagement is deepening with daily transacting user growth, actively outpacing monthly transacting user growth. The clearest expression of our growth runway is groceries. Grab grew at 1.7x the rate of food deliveries this quarter as we push deeper into planned everyday grocery occasions by enhancing the value propositions of our off-line anchors, Grocer and Everis deepening supermarket partnerships and launching our own AI-powered grab shopping agent. We are driving higher purchase frequency, growing basket sizes and expanding our advertising opportunities, all while remaining disciplined in driving profitability expansion.

Our Financial Services segment is also fast approaching adjusted EBITDA profitability expected in the second half of 2026. Our lending playbook, acquiring users at minimal CAC customer acquisition costs, underwriting with proprietary and behavioral transaction data and funding loans with low cost deposits from our digital banks has enabled financial services to continue being our fastest-growing segment. We recently consolidated SuperBank, which now serves over 7.4 million customers and in July, we completed our acquisition of Stash, bringing a profitable AI-powered wealth platform and over $5 billion in AUM into our ecosystem. Underpinning all of this is our Grab AI intelligence layer, which now processes trillions of tokens every month.

Our cost per AI interaction with driver and merchant partners has approximately halved versus a year ago, while Monthly interactions grew tenfold, which is why we can deploy AI to every ecosystem partner rather than reserving it just for the premium tier and while we can continue to treat AI as a margin lever. Internally, our engineers now coexist with autonomous coating agents and standard practice, cutting time to market by up to 30% year-on-year, while bricks our internal analytics agent platform cumulatively saves our sales teams approximately 40,000 hours every quarter.

Ultimately, our second quarter results prove that our business model is successfully converting scale into expanding operating leverage. We ended the second half of the year with a disciplined operating posture and absolute confidence in our ability to keep compounding profitable durable growth. Thank you. Let's open it up for questions.

Thank you, Anthony. We will now begin the Q&A session, and we encourage you to submit your questions throughout the revenue via e-mail.

With that, our first question coming from several analysts, there from Morgan Stanley, Alicia from Citi, John from Barclays, Ranjan from JPMorgan and Tubi of Macquarie. Question is on our revised guidance, upgraded guidance question for Peter and Alex. Peter, are they mainly reflect -- is the revised guidance mainly reflecting the consolidation of SuperBank, or 2226 and second part for Alex, excluding SuperBank's consolidation were there any changes to the revised guidance based off our core business?

Sure. Great question. What you're seeing in the second half [indiscernible] momentum continuing from the second quarter. You saw where we saw great demand growth on our top line business. Our on-demand business continues to grow at over 20% plus now. If you look at the number of rides, was up 28% on a year-over-year basis. So you see momentum in transactions. And you saw also in the momentum in now. The number of users now touching the platform at $54 million. I'll let Alex talk a little bit more about that because that's a really important core factor as to how we feel about the second half of this year.

And the other thing that we're seeing is also about the Super Bank and also the stats consolidation into play. So you've got the on-demand business and our financial services momentum. You've got now the consolidation of Superbank as well as also staff into the mix, which is the second pillar of our revised guidance. Also at the same time, we are baking in some FX headwind into the business. We've got some of the currencies on ASEAN currencies unfortunately taking some pressure against the U.S. dollars and some of that also is mixed into the guidance itself. So I'll let Alex explain a little bit more around the momentum of the business.

Thanks, Peter. Yes. So the deliveries business accelerated again this time to 24% year-on-year growth on a constant currency basis. Fintech is now moving convincingly towards profitability in the second half, which is what we had guided for. And finally, we're getting Zillion growth of 18% from mobility despite the elevated fuel prices that we've seen since March. So this guidance upgrade from the prior $700 million to $720 million does reflect the factors in -- the fuel price support that we provided for drivers continuing through the second half. And it also includes the FX headwinds of between 2% to 3%, as Peter mentioned earlier.

So basically, in summary, the core business is performing well and is in line with the prior guidance. And the new guidance includes the addition of both Superbank and Stash consolidation and these additional FX headwinds that Peter mentioned.

All right. The next question comes from Alicia from Citi and John Duston our Financial Services business for Alex. After the consolidation of Superbank and completion of the Stash acquisition, what is management's near-term focus for the fintech business, should we be expecting the loan book growth to continue and as Superbank becomes more integrated into grabs ecosystem, how should we think about the future growth prospect of Indonesia's fintech business and profitability?

Okay. Yes. So first, we are on track to achieve profitability for Financial Services in the second half of 2026. I remember it was back in September '22 that we promised this to the market. So we're very pleased to be delivering on our commitments. We are managing risk prudently. So we expect the loan book to exceed $3 billion by the end of this year, including now the Super bank book as well. We are pleased with this consolidation of Super Bank in May and then Stash just in July. Grab has obviously been collaborating with Super banks since it was founded in 2022.

So we know the business very well. We know the book very well. In fact, there's been a clear focus on the ecosystem since the start for Superbank. So it enables us to lower the customer acquisition costs and improve underwriting because of the deep data science that we can do together with them. Since the app launched in 2024, June, Superbank has grown very rapidly. So we had 1 million customers within the first year. That's 2024. And today has over 7 million customers with daily transactions of above GBP 1 million. So with more than 60% of Superbank users also using Grab and OVO is very clear that, that ecosystem strategy is working very well.

Superbank is already delivering robust financials. So it's recorded its full year profitability last year in 2025 already. Efficiency ratios since then have continued to improve. So we've got pretax return on equity already hitting 5.7% in this quarter. And cost of income ratio is already now at 55% and continuing to decrease. Banks expect to continue to driving this ROE improvement, so by end of 2026, and the cost income ratios will continue to track down probably hitting below 50% by the end of the year.

The Stash acquisition, as I mentioned earlier, was completed in July. It's already profitable. It's a good team. We like them very much, and they've got strong capabilities that they bring to the group. The asset management growth has continued to accelerate. So we're at 22% asset management growth year-on-year this quarter, reaching USD 5.5 billion and the best thing about it with the subscription model is a very high retention rate with over 1 million active subscribers. So both good acquisitions, fully consolidated now and helping us drive towards this second half breakeven for financial services.

All right. So next question is for. So the question is about Uber and Grab's relationship. Question comes from Divya from Morgan Stanley, Peso HSBC, Jon from Barclays and Hussaini from Maybank. Can you comment around Uber's proposed acquisition of Delivery Hero and how that could impact the competitive landscape in Southeast Asia through Foodpanda?

Thank you for that question. on Uber specifically, we maintain ongoing dialogue with Uber in their capacity as a shareholder in grab. As shared in our previous public filings, Uber is restricted from competing with Grab in our core markets under 1 year following a full sale of its Grab shareholding. Regardless of that, our markets have always been competitive. Through the years, we have demonstrated steady gains in the category position across the region while driving profitable growth at the same time. Our competitive strength stems from structural advantages that are hard to disrupt. We have continued to deepen our penetration. We will record 54 million MTUs, as Peter shared and we are seeing the highest level of DTUs on our platform.

This is a result of our core focus on hyper local execution and strong partnership with governments across 8 distinct markets, which led us to win in the region. Grab Maps, for example, is 1 that we've shown hyper-local focus. We also continue to double down on our product-led strategy targeted around improving affordability and reliability for partners and consumers. Finally, we have a strong ecosystem flywheel that is reinforced by what Alex just talked about our growing financial service business, which enhances the LTV of our customers from cross-sell across all our core services.

Thanks, Anthony. Next question is on grocery delivery for Alex. So for Mark, are we hitting near the inflection point this quarter with further acceleration of user penetration and transaction volume growth. How should we be thinking about the growth trajectory of the Mart business and contribution to total GMV in 1 year's time? Question is from Alicia from Citi.

Okay. Thanks, Alicia. Thanks, Ranjan. Yes, it's true, grocery penetration is still nascent compared to deliveries overall. But of course, it's highly complementary to our food business and an important part also of our fintech distribution channel. So Grabar users grew 42% year-on-year. But even then, Mart still only consists of about 14% of our food user base, there's still lots of upside there. We spent the year really strengthening the foundations to create the best possible consumer experience. So leveraging both the off-line anchors like Gia Grocer and Everrise in Malaysia and also deepening our partnerships with leading supermarket chains in every country across the region. We've been able to put together a broad everyday assortment of SKUs and then we're also cross-selling organically using Grab More, which continues to improve in terms of its effectiveness as a cross-selling channel.

We've got also we've introduced an AI-powered grab shopping agent. So it's very, very convenient. It helps to build baskets for users and allows us to serve the recurring weekly shop better because of this easy automated basket building capability. Overall, Grab Mart grew GMV at 1.7x the rate of food deliveries this quarter. So we expect this kind of growth to outpace the overall deliveries portfolio. And obviously, therefore, it will end the year slightly higher proportion of deliveries GMV. Longer term, we can see that some of the global peers are reporting something like 30% or even higher for grocery penetration. So there's obviously lots of upside there when you compare against best-in-class outside of Southeast Asia, and we'll continue to target that kind of much higher growth for grocery going forward.

Most importantly for us, grocery already drives more frequent user behavior than food alone. And that's really important because we see that frequency expansion and transaction growth coming through this quarter with MTU growth at 54% year-on-year. So that really shows that consumers like the smart service and come back with multiyear kind of frequency increases for us. So we're scaling groceries deliberately, but we're doing it within our commitment to grow deliveries margins year-on-year. And you can see in this quarter, we did achieve that milestone also despite the large growth that we generated from groceries within the overall delivery segment.

Okay. Next question is from John from Barclays. It's in regards to Indonesia and the commission caps there. A question for Alex. What's the latest in regard to the regulations and commission capital mobility in Indonesia? Is there any potential that this set of regulations will spill over to be implemented for deliveries of for formulas in addition to 2b?

Right. Okay. So yes, so the 2-wheel taxi business or as we call it [indiscernible] Indonesia represents % of our total mobility GMV, so relatively small. It does contribute to positive adjusted EBITDA to our business today. The good news is that with the changes that have been implemented in July, we expect to be able to maintain this positive margin profile going forward for the Arjo business in Indonesia. It's very important that we continue to engage with ministries and with the driver groups themselves in terms of how the implementation goes into place because we are very focused on making sure that driver earnings remain sustainable and that, therefore, the Oda marketplace continues to remain healthy in Indonesia to provide earnings opportunities for those drivers.

The full year guidance I can confirm does assume that the commission structure remains as currently implemented for Oral only and there's no information that we have to suggest that anything otherwise will occur. So overall, therefore, reiterating our group mobility margins for the second half will remain within the historical range of between 8.5% and 9%.

Thanks, Alex. Sticking to mobility, this time a question on fuel prices. A question for Alex. What is your outlook for fuel prices and the timing for mobility margins to go back to the higher end of the range?

Well, I don't think any of us are going to stand here and and try to predict fuel price through the rest of the year. It's obviously a very volatile situation. But I'll tell you what we are committed to continuing to support our drivers no matter what happens. So we have committed $7 million already to build support programs since the spike began in March, and that's been successful because it has allowed us to keep the -- maintain the health of the marketplace with more drivers coming into the marketplace to drive for Grab. And that's really our goal is to support them through this difficult time and make sure that marketplace health continues to flourish.

It's already -- this kind of support through the rest of the year is already factored into our guidance. So just to confirm, mobility margins this quarter were 8.6%. In other words, very much within the 8.5% to 9% guidance range. We expect to stay within that range during the second half, no matter what happens with fuel prices. Obviously, if fuel prices go down, that will be supportive for us to improve from that point. So the monthly active drivers is up 19%, actually at an all-time high now. So we're very happy with the results of the support that we have put into the marketplace. It's a relatively small number, $7 million in comparison with our overall mobility business. So you can see that we've been very targeted in how we use that support. And therefore, we've been able to manage the margins accordingly.

Longer term, obviously, EVs are coming into the marketplace in Southeast Asia in a very rapid rate. We're being a catalyst for that because we think that this is a structural buffer for volatility in oil prices going forward. And it fundamentally reduces the total cost of ownership for drivers. So EVs actually have lower costs once the initial investment is made in the vehicle. So this quarter, for example, we announced 9 new fleet partnerships in Thailand. We've announced a new partnership with Olin in Indonesia. And we've expanded charging access through the app 4 drivers in the Philippines. So in nearly every market, we have examples of how we're becoming a positive catalyst for the introduction of cleaner vehicles into Southeast Asia.

Right. Sticking to mobility still a new question on mobility growth with Tanaro, specifically around the various metrics, GMV revenue and transactions. So mobility GMV grew 18% and while transactions grew at 28%, but revenue only grew by 12%. Can management help bridge the net take rate compression across lower average ticket size, product and country mix and higher driver incentives and should take rates stabilize or recover in second half? And how should we think about mobility revenue growth going forward?

I'll take that one. Give Alex a bit of a break. A lot that went on in the second quarter into the mobility business, and Alex actually referred to a lot of that. I think 1 critical metric that is 1 of the signals that we were watching for is the number of rights on the platform. Because we -- as fuel prices went up, this is going back in our March and April period, what were the number of drivers that can we see on the platform as well as what does it mean for the riders themselves because they still need to do the commute, they still need to go to point A to point B. So why we leaned in on a number of factors there. And that actually translated somewhat of the take rate that you're seeing here on the question itself. Alex talked about the $7 million that we leaned in. We're also leaning over and above that around partner incentives. And that was critical because we wanted to make sure that the supply was strong when it comes to drivers, and there were a few countries that we're leaned in quite hard. In Philippines, is onetime, Thailand was the other one, with Linden also in Singapore as well as in Vietnam.

Now this is critical because as we wanted to bring the supply up and we saw that in a number of drivers, the monthly active driver was up 19% on a year-over-year basis. We wanted to make sure the drivers were also earning and were not impacted. We actually saw our drivers' earnings up 4% on a year-over-year basis. Now on the -- based on marketplace, we want to make sure that the rides also are not impacted. What we saw was the number of rides were gone up 28%, yet the prices were actually being compressed, which is exactly what we wanted to do. We wanted to see the writers going -- still using our transport services, which they were while the average ticket size went down because we did implement a lot of the Sabre products well out there to keep the marketplace very healthy, and it worked. [indiscernible] of the mobility business. And we -- margin was 8.6%, so well within the historical ranges within what Alex talked about here.

So it's a combination of really what we saw in keeping the marketplace healthy, which is really critical, keeping mobility rights affordable for the customer, really important at the same time, more drivers on the platform, which we saw, and that's the setup that we want to see going into Q3 because we won't show with the oil, what the fuel crisis was going to end, but we want to have that setup going into the second half and which we're actually going through right now. And we're seeing very similar pattern on what we're seeing in terms of the second quarter with fuel prices in certain countries still a little bit elevated than we want it to be.

So shifting our attention now to share buyback and capital allocation question from Divya from Morgan Stanley [indiscernible] from Maybak. This is a question for Peter. Peter, you announced a $750 million share buyback taking total authorization up to $1.75 billion. How should investors think about the pace of execution and under what circumstances would you accelerate repurchases

Yes. So let's go back to the first half, we announced a $500 million buyback in February earnings. So out of that, we've executed roughly about $400 million off that 500 ml, which is some of this were accelerated, and we felt that it was constructive for us to go in, given where the share price is and some of them were also tied to contingent forward purchase. Now with the new $750 million, which takes the whole program up to $1.75 billion of cumulative buyback, we'll keep deploying against that with the same discipline and the same focus on pace, we'll execute where we continue to see a dislocation in the share price.

From a capital allocation framework, we remain very balanced between the organic growth that you're seeing in the business, which we're investing in, but also in M&A, which we keep a very high bar, but also returning capital back to our shareholders, which you are seeing also at the same time. We're focused on generating cash flow in the business, which also you see, which actually translates to long-term shareholder value.

All right. Next question is on autonomous vehicles from HSBC. A question for Anthony. Anthony Grab has done several partnerships and investments to be at the cutting edge of harbors vehicles and remote driving. Can you please update us on the progress of various pilots and commercial rollout time line in your region?

Thank you, Piyush, for that question. Let me take a step back and start off with some facts. This region remains 1 where driver partners are the Crux oil platform. So let me just share some numbers. Over 50% of all transactions in Southeast Asia are to well below $1 per ride, making AVs uneconomic goal for commercial rollout. And Singapore specifically is only 10% of all 4-wheel transactions regionally. In Singapore. Now to answer specifically your question, we are leading the pace of innovation. We aim to build a hybrid ecosystem at whatever pace regulators and communities are ready for.

We see global AV players as partners here. And as you said, many of them are we've partnered, we've invested with not just Western players but also Eastern players, which expands our options. Our edge beyond partnership is a decade of mapping POI, high-density, regulatory and customer relationships centered on trust that actually makes this work at scale. Since January, our AIR shuttle has served over 9,000 riders. We've moved through this deliberately with community rights first in 4 public operations in April. When we surveyed right call specific riders with the government, 99% said they'll recommend it to our friend.

But riders told us what they actually want the next modest nations, direct routes, flexible booking. So 2 weeks ago, we announced the next phase supported by our government, our riders will now be able to book their own EV go point to point and be able to go to directly straight to markets, pharmacies, scores, train stations instead of following a fixed loop. That opens the trial riders over the next few months and to the general public in Q4, we start charging commercial fares. That makes Bongo our first point-to-point revenue-generating autonomous service.

So we are building this the right way, focus on not just the software, but people as well. We set up a depot and bungle adding more vehicles this year and through Grab Academy in partnership with the government, we've already certified more than 20 of our own driver partners as safety operators, 6 of them have gone further and qualified as remote operators running fleet monitoring out of our EV operations command center. So when the EV moment comes in Singapore, we will be the most experienced hybrid operator in Southeast Asia.

All right. Thanks, Anthony. And now our final question of the day, specifically on Food Panda, Taiwan, question from Piers of HSBC, Navin from UBS and Jacklin from CIMB question for Peter. On Foodpanda Taiwan, can you share progress on your engagement with the regulators and the likely time line for the deal? What's the likely upfront integration cost for grab on deal completion? Is any upfront costs incorporated into your 2026 guidance?

Look, as much as I can say here is we remain on track with the progress on this transaction itself. We're keen to enter the Taiwan market. We're continuing to alternate the preparations behind the scenes. We continue to be in very close discussions with the Taiwanese regulators and also expect to close by the end of the year. .

Thanks, Peter. So with that, that brings us to the end of our Q&A session. I'll now turn the time over to Peter for his closing remarks.

Great. Look, before we wrap up, just to recap the headlines scale converted into profitability in this business. You saw the EBITDA growing more than twice as fast as revenue. Our revenue margin expanded 360 basis points as a group. Our EBITDA is an 18th straight quarter of consecutive growth now. We backed that with capital, $1.75 billion in cumulative buyback authorization since 2024 and and were reflected in our latest guidance, raising both revenue as well as EBITDA for the full year.

Financial Services is turning profitable in the second half is the next real catalyst for us. And as I always remind the Grab team, this is not a 1-quarter story. It's the trajectory that we're driving. So I want to thank everyone for joining us today. Anthony, Alex and I wanted to genuinely thank you to our drivers and to all our merchant partners, to all our users and customers, our grabbers and our shareholders for sticking with us. IR and myself will be on the road for the next few weeks. We will be in a very few countries, U.S. London, Hong Kong and also Hometown Singapore here. So reach out to us, if you want to meet, have a copy or have a conversation. We'd love to see that with you. See you all next quarter.

Good day, everyone, and welcome to Grab's First Quarter 2026 Earnings Call. I'm Douglas Eu, Director of Investor Relations and Strategic Finance at Grab. And joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oey, Chief Financial Officer.

During this call, we will be making forward-looking statements regarding future events including our business and financial performance. These statements are based on our current beliefs and expectations. Actual results could differ materially due to a number of risks and uncertainties as described on this earnings call in the earnings release and in our Form 20-F and our filings with the SEC.

We do not undertake any duty to update any forward-looking statements. We will also be discussing non-IFRS financial measures on this call. These measures supplement but do not replace IFRS financial measures. Please refer to the earnings material for a reconciliation of non-IFRS to IFRS financial measures for more information to refer to our earnings press release, remarks and supplemental presentation available on our IR website.

For today's call, Anthony will deliver opening remarks, after which we will open the floor to questions. As a reminder, we are accepting questions via e-mail at [email protected]. Do submit your questions ahead of time, and we will add them to the Q&A queue. And with that, I'll hand it over to Anthony.

Great. Thanks, Doug. Good day, everyone, and thank you for joining us. We set out to start 2026 strongly, and we delivered against the backdrop of our seasonally softest quarter due to Ramadan and Chinese New Year, on-demand GMV growth accelerated to 24% year-on-year, while group NGUs increased to 52 million.

In Financial Services, loan disposals grew 67% to exceed $1 billion for the first time, and we remain on track for our Financial Services segment to achieve adjusted EBITDA breakeven in the second half of this year. We also delivered our 17th consecutive quarter of adjusted EBITDA growth, expanding our trailing 12-month adjusted free cash flow to $489 million.

These results demonstrate the compound nature of our strategy, which is increasingly being accelerated by our investments in AI. What truly sets our AI capabilities apart however, is the proprietary data foundation we spent the last 14 years building to PowerDem. They grab operates as a system of record for local across Southeast Asia. We capture highly localized real-time data on how over 50 million users and partners interact across 8 markets.

Over the years, this has generated a proprietary data set of over 20 billion transactions. We feed these multimodal signals from hyper local mapping to in-store payment terminals into our AI Grab intelligence layer to optimize our own complex efficiency from dynamic pricing to last mile routing. Crucially, we paired this data advantage with our massive through physical fulfillment network. That closed loop system or ecosystem is our biggest competitive mode, which is why our AI investments translate directly into measurable financial outcomes.

We are already seeing significant tangible returns on these initiatives. For instance, I'm pleased to share partners who adopted Turbo, our AI-powered driving mode in our Grab driver app to optimize driver earnings and efficiency, saw a 23% uplift in earnings per online hour competitive driver partners who have not adopted a feature. This has contributed to Mobility transactions growth outpacing Mobility GMV growth with transactions up 28% year-on-year.

Within a year of launch, our merchant AIS system, Mai has been adopted by approximately half of our active single installment base, driving a 15% uplift in GMV for engaged users. This deeper engagement directly supports our ability to improve monetization with average advertiser spend growing 44% year-on-year as merchants see increasing measurable returns.

Following the launch of 13 new AI-powered experiences at Grab this year, we are turning external AI interfaces into our newest growth engines by acting as the essential fulfillment layer for Southeast Asia, we ensured whenever customers use AI agents to navigate the day, those interactions, act as proper funnel leads, drive transaction directly back to Grab.

We're also making steady progress on autonomous ecos. In April, we successfully transitioned our private trials to full paying public operations. Our AIR service deployment partnership with Verite is the first autonomous passenger service we deployed within a Southeast Asian residential estate. The fleet has clocked over 40,000 kilometers and have safely served several thousand public rights.

That said, the adoption of AVs in Southeast Asia remains nascent. We see governments and regulators taking a measured approach in implementing AVs, which we believe is the right approach to our region. We worked the new to incorporate AVs in our platform at a pace that reflects the trust communities place in us and our emphasis on customer safety.

To be clear, we do not expect anyone to be able to deploy impactful disruption to our human driver network in the near future. Yet we remain firm believers in the technology. This has shaped how we have made small investments ahead of the curve to forge international partnerships while doubling down on ensuring our Singapore pilot succeed.

We intend to be the most experienced local hybrid AV and human operator in Southeast Asia, one able to amplify the efforts of any AV software player in bringing the smoothest, safest and most cost-efficient service when we eventually scale up in partnership with governments in this region.

Now beyond AI and AVs, the structural health of our driver partner supply base remains our top priority. When fuel price volatility emerged in early March, we acted decisively to protect partner livelihoods by deploying targeted fuel rebates and proactively engage with regulators across our markets.

In April, we also launched the dual earnings tracker to provide our driver partners with greater transparency over the earnings. In 2025, partners earned over $15 billion on our platform, up 19% year-on-year.

Looking ahead, our record start to the year is a testament to the resilience of our ecosystem. Whether we are enriching AI to drive greater marketplace efficiencies today or piloting the autonomous networks of tomorrow, our focus remains on compounding sustainable growth and out serving our communities.

Despite macroeconomic uncertainties particularly regarding inflation and fuel prices, our platform is structurally stronger than ever. Against that backdrop, we reiterate our 2026 full year guidance. Group revenue of $4.04 billion to $4.10 billion and adjusted EBITDA of $700 million to $720 million.

Our first quarter provides us with a strong foundation. In March, we announced that we are advancing our buyback mandate with a $400 million salarated share repurchase program. This is a reflection of our conviction in grabs long-term value at these dislocated prices. Thank you so much. Let's open it up for questions.

Thank you, Anthony. We will now transition to the Q&A session. [Operator Instructions] Our first and most apps question comes from the line of several analysts DG at Morgan Stanley, Venu at Bernstein and Piyush of HSBC. And with regard to the fuel crisis. So the question is, what's the impact of the ongoing Middle East conflict and higher fuel prices across your various operating countries. Has it started to impact business performance in the second quarter? And can you quantify the impact? And what's our strategy to manage long-term fuel risk? So this is a question for Alex.

Thanks, Divya, Venu and Piyush. This is a critical topic. And as I said in my prepared remarks, Q1 results actually give us a good solid foundation entering the year. And as you saw from the slide pack, the demand trends in April have remained resilient. Our Mobility business in weekly average transaction volumes sustained at plus 32% year-on-year, and our deliveries business continues to see record high daily transacting users in April.

So it's a good start to the year. The business, in fact, is in a structurally more resilient position today than it has been through our history. Product innovations we have made have really targeted affordability and reliability. Group orders, for example, has GMV up 74% year-on-year, and we launched group rides at GrabX last month, which is a similar concept for sharing rides to reduce pricing for individual consumers.

And that's now available across all 6 of our core markets. GrabUnlimited, of course, is very good value for high-frequency customers, and it continues to account for 1/3 of our deliveries GMV. So all of these are highly affordable products, which keep the demand strong even when consumers are stretched. We're monitoring the fuel situation extremely closely. And of course, we will not hesitate to act for if needed.

In the medium term, we are committed to accelerate the EV transition to reduce our driver partners exposure to fuel price volatility. So for example, in Thailand and Philippines, we have a drive to own program that connects our drivers with OEMs like BYD and GIC, where we have deals of up to 70,000 vehicles available across 6 markets. with accessing to financing so they can own those more easily.

In Vietnam, we have secured preferential charging rates also through our charging network partners, eBoost and ChargePlus, which helps our drivers in the transition also. And finally, in Thailand, I am pleased to say that our total fleet supply has crossed EVs on the platform and demand for those consumers is also strong, where they can select that EV option, and that demand has grown by over 35% year-on-year. So this fuel crisis has become an opportunity in the sense that it helps us to accelerate that EV transition.

Thank you, Alex. So move on to the next question. The next question is on financial services and comes from Zhiwe, Macquarie and Venu, Bernstein. So for the Financial Services segment, the loan portfolio showed a modest quarter growth, but there was a step improvement to your segment adjusted EBITDA. Could you describe the factors that led to these improvements? And what can we expect in coming quarters and how do you intend to drive that? So this is a question for Alex again.

Thanks, Zhiwe, Venu. Yes, you're right. Strong EBITDA Financial Services, both quarter-on-quarter and year-on-year. 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. Revenue growth accelerated 43% year-on-year and 38% on a constant currency basis. And more than 1/3 of that incremental revenue dropped straight to the bottom line for financial services, demonstrating that operating leverage that we've been speaking about. .

The loan book growth is strong year-on-year. And importantly, the credit quality is improving alongside that. So loan disbursals grew 67% year-on-year to over $1 billion but the growth was modest. You're right, this quarter because of seasonal factors, and that's a normal factor for first quarter.

The ECL as a percentage of our gross loan portfolio has improved year-on-year to on that show, I think the improving quality of our credit models. We've been proactive on risk management, though. So we've been tightening for some sectors. And in other sectors where conventional lenders have stepped away, we've seen more opportunity.

In Q1, we applied those additional ECL overlays to account for that macroeconomic uncertainty with that selective tightening also part of our change in the risk appetite. Looking ahead, we do have some experience, of course, of managing these kinds of shocks to the macroeconomic situation. So our underwriting models have already been through the similar fuel price shock that we saw at the start of the Ukraine conflict not to mention COVID as well. And in both instances, our credit quality remained within our risk appetite throughout. So we continue to monitor the portfolio performance super carefully. 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. .

Thank you, Alex. So the next question is also another highly asked question, and it comes from several analysts. So from Alicia from Citi, Divya from Morgan Stanley, Zhiwei from Macquarie, Jones for Barclays and Piyush from HSBC. So regarding recent news in Indonesia. So an Indonesia's cap on rider commissions to 8%, can you clarify if that is applicable to what are the levers available to cushion the key negative impact from lower rider commission? What's the likely impact of profitability due to the proposed change? And what's the impact in the delivery segment, if any, from the proposed change and you can help to quantify it. So this is a very long questions. Well question for Alex.

Okay. Thank you to all of you, all of you or 5 of you question. Let me see if I can cover section by section. Okay. So it does appear that the immediate regulatory exposure is highly specific. So the recent announcements are explicitly focused on drivers, check online drivers, who are our 2-wheel ride hailing partners, so 2-wheeler ride-hailing partners . The 4-wheel drivers earn well above the minimum wage. And so we believe that they're less of a concern for government and regulators in Indonesia. .

That said, of course, we're engaging very proactively with the relevant ministries, and we try to seek absolute clarity and the technical aspects of how the decree will be implemented. It's essential we believe that, together with regulators, we shape a balanced implementation of these -- this decrease. So that our Indonesia and mobility marketplace remains healthy and that driver partners earnings remain well supported. It's worth noting, as I mentioned in my prepared remarks, that 2-wheel mobility, so the old drivers that the degree referred to in Indonesia is less than 6% of our total mobility GMV.

So drivers in Singapore represent less than 6% of our total mobility GMV. So we are, therefore, reiterating our expectations for Mobility margins to stabilize within the historical range and not to go outside of that range.

Thank you, Alex. So we'll move on to a related topic as well. This comes from the line of Venu from Bernstein, Sachin, DBS and Alicia from City. In relation to the 8% commission cap in Indonesia is the likelihood of consolidation now looking higher in Indonesia as well. Does the shift in policy in Indonesia change your near- to medium-term investment or resource and capital allocation priorities. So just a question for Peter.

Sure, yes. Look, I want to comment on specific M&A speculation. And -- but I'll speak to how we view our position in this evolving landscape. Within M&A, we always take into account the regulatory environment, it's really critical. And we want to work with the relevant agencies there also, because there's always synergies and dissynergies that we could accrue from any transactions. And as we've always spoken in many, many quarters, quarterly earnings, we always have a very high bar when it comes to M&A transaction itself.

We specifically to Indonesia, and also just our M&A portfolio, we've always been taking a very diversified approach. And you see that in the lungs of our businesses, and you see that our product continues to expand also broadly. We're entering a neither market, which also shows our diversification also in terms of geographies. So the way we always position the lens that we take is diversification and that's really important.

So specifically for Indonesia, as Alex just mentioned, it's really important that we have a very constructive and very healthy ecosystem both for our driver partners, consumers is also for our restructure specifically to Indonesia, our strategy for Indonesia remains fundamentally unchanged despite what we're seeing in the weekend and also the way we approach the strategies in Indonesia. Our Indonesian Mobility business continues to grow double digits year-over-year. remains very, very -- remained stable quarter-on-quarter in spite of the seasonal headwinds. And as I'm always reiterating that we're very highly disciplined in our capital allocation. So when we evaluate any strategic opportunity strictly through the lens of long-term shareholder value and also how can we diversify our grab business.

Thank you, Peter. So the next question comes from Alicia, Citi and Wei of Mizuho. So the question topic now moves back to the fuel crisis as well. Given the step-up in partner incentives to offset elevated fuel costs, how does this impact the demand elasticity and translated into revisions to your near-term financial outlook for mobility? Should we expect levels to remain elevated? Or do you see offsetting it levers such as EV adoption and cross-border rights that could bring incentives back down in the second half and support the sequential EBITDA ramp-up implied by your full year $700 million to $720 million guidance?

Thanks, Alicia. Wei. Great question. So yes, Q1, you can see that driver incentives was elevated. Two specific drivers there. One is and most importantly was the confluence of New Year and Ramadan within the first quarter, both in the first quarter this year, creating acute supply pressures as usual during those 2 festive periods. So it's -- the second factor was, of course, the fuel crisis. So towards the end of the quarter during March, we started a deliberate decision to support our driver partners with the abated fuel prices across some countries in the region.

So as we move into the second quarter, of course, festive-driven incentive pressure normalizes, but fuel does remain an important variable that we're watching very, very closely. The targeted earnings report was will continue through into the second quarter, but it no longer with the seasonal impact. We expect this first quarter to be a peak in the driver incentives.

We are reiterating the full year guidance, therefore, of $700 million to $720 million for adjusted EBITDA, assuming that peak and not that it's a run rate, but it's more like a peak. But I would say we've got multiple levers available to us, including, if necessary, more emphasis on advertising and financial services monetization to defend the overall margin trajectory for the full year of those fuel pressures persist through the full year.

In the medium term, if those elevated fuel prices continue, we would have to pass some more of the costs on to consumers. But of course, we'll grow that very judiciously because we want to maintain demand for our driver partners through this difficult time. Finally, I think it's worth emphasizing, we saw that the impact of AI marketplace optimization this quarter was very powerful. And we did use it to manage, for example, incentive spend for consumers. You can see that the incentive spend for consumers became more efficient during this quarter. And so going into the full year, we will also have that powerful capability at our disposal to try and manage some of the volatility and incentive spend.

Thank you, Alex. So the next question, the topic will now move into AI. This comes from Morris Stanley and Wei at Mizuho. On AI monetization, are you building toward a merchant and driver SaaS revenue stream that sits outside the current commission rate structure or is going to be remaining bundled into the existing take rate? What AI tools are you investing in mainly into this quarter? So this is a question for Anthony.

Thanks so much, Divya and Wei. Appreciate the question. Look, our approach to tools like merchant AI and driver AI assistant coach has been to solve everyday promise that our drivers and merchant partners face. There's no reason why our partners should not have access to these tools that will enable them to grow their customers and earnings.

If we get that right, the tools and the partnership right, we build something competitors can't easily replicate and it creates high loyalty, high engagement, which results in them choosing us as the our primary platform, not just because of the tech, but because of the trust and, of course, growing earnings for them.

This has translated into concrete results within our ecosystem. On a year-on-year basis, not only do we see the growth in a number of active merchant partners, but their earnings also grew 12% during the quarter. For our Mobility business, total active driver partners increased 4% quarter-on-quarter and 16% year-on-year to reach another all-time high in spite of macroeconomic uncertainty. So when we build these AI tools well and we may generally partner and outserve them, the economics tends to follow naturally.

Thank you, Anthony. So another highly asked question is on regional corporate costs and also related to AI. So this comes from several analysts, Jiong at Barclays, Wei at Mizuho, Divya, Morgan Stanley, Ranjan, JPMorgan. So regional corporate costs increased year-on-year to $114 million for the first quarter. Can you help us understand how much of the step-up is AI infrastructure costs, whether it's tokenization of cloud versus general inflation as well as FX? And how should we expect the AI spend to start translating into measurable cost savings elsewhere in the P&L that can offset this higher regional corporate cost run rate. So this is a question for Peter.

Sure. . I will Start by saying that the step-up that you saw in the first quarter of regional corporate costs was a conscious decision. We did that decision as a management team to invest in the AI infrastructure that we've been talking about for many quarters. And Anthony just answered the question regarding AI and what we will be deploying to our partners as well as now we're starting to deploy to our consumers also at the same time.

And that really underpins to the Grab intelligence line that we spoke a lot about actually a few weeks ago, at the GrabX event regarding the new 13 new product experience features that we're rolling out. So we are investing in our -- in the AI specifically towards tokenization stack that we saw in the first quarter and the cloud capacity that needs to run that powers those tokenization at the same time.

Now the early returns on those investments is critical also we can't discount because that's also showing up in the numbers. And Anthony just also shared some of those on the driver side and the merchant assist by where they're seeing the impact on earnings, which is really a critical part of that healthy ecosystem. If you look at the adoption of these driver system, which is now over 50%, and we generated over 1.25 million interaction in just 2 months since we rolled it out.

We've seen also for merchants that are using the AI assistant, their GMV is also up double digits on a year-over-year basis. So they're thriving as a merchant, and we're benefiting also as a platform from that. And this is the type of things that we want to see more and more coming out from these AI rollout, which is really critical. Now if you strip it all these AI investments, and we saw some tax headwind also from the weaker USD, the U.S. dollar and our underlying cost base, which is really important remains lean, disciplined. And that's been a mandate that how we run Grab. So I'm not expecting any further step-ups from regional cooper costs. We expect the regional copper cost to stabilize around the levels that you saw in the first quarter for the rest of 2026. .

Thank you, Peter. So the next question now moves to the share repurchase, and this comes from Ranjan of JPMorgan and Divya, Morgan Stanley. So Grab has announced that acceleration to repurchase $400 million of shares at the end of March itself. Nonetheless, the basic and diluted shares have increased quarter-on-quarter. So what is the impact of dilution from stock-based compensation? And with regard to the share repurchase program, would you consider upsizing this given the current stock price?

Okay. So I'll take this one. If you step back, when we announced a $500 million buyback program earlier this year. And I announced also a $250 million accelerated share repurchase and an additional $150 million in contingent forward purchase on the 24th of March. So a total of $400 million has been accelerated, which means only in the market for 5 to 5 trading days in Q1 itself. So you can't look at it in isolation.

Now both these programs are expected to be executed over the next 4 months. So I'll share a lot more in the next quarterly earnings when we look at the Q2 results. Now in terms of share count, it would have amount to roughly around 2% of our total share count, which will more than offset for the dilution from stock-based compensation. So that's how we're viewing it. As a reminder, there's still another $100 million left to go in the share buyback program, and we'll continue to have discussions around capital allocations with our Board.

Thanks, Peter. So the next question now moves to groceries. This question comes from Wei of Mizuho. So regarding to grocery contribution, you've mentioned that GrabMart is only 10% of deliveries GMV, but growing 1.7x faster than food. When you look at the grocery TAM in Southeast Asia and the economics of the Grab model itself, where does Grab model to be to basically to contribute to GV by 2028 to underpin the $1.5 billion EBITDA target? And at what point does become margin accretive the segment rather than the drag to the blended deliveries economics. So this is a question for Alex.

So GrabMart is an exciting segment. I mean, the TAM is very large, arguably larger than food delivery altogether. So we are doing a lot to accelerate the product innovation particularly the front end, the AI-powered shopping agent, which we think will transform the ease with which consumers can, for example, create a weekly shopping basket and then improve the targeting for grab more cross-sell as well. .

And by the way, Grab more grew more than double-digit quarter-on-quarter. So I think very, very good signs for both of those things. Overall, as a result, the MTUs going into grocery at 2.6x the rate of food MTU growth on a year-on-year basis. So that shows you that it's really expanding the top of our funnel, which is extra important in the age of AI in terms of generating data and deepening the long-term value relationships that we have with our consumers.

And then the order frequency that we saw were -- 1.8x higher than the food only users, which illustrates that long-term value enhancement that I was speaking about. So over the long term, the North Star is very clear. We've got global peers, who have achieved like 20% to 40% mark penetration as a percentage of their deliveries business overall. So it's definitely the right model that we're pursuing. And with regards to the 3-year guidance that you asked about, we expect that GrabMart will maintain its current growth momentum and outpace delivers growth throughout and for the higher basket sizes, the engagement and the lifetime value we can achieve reinforce our conviction to achieve a long-term sustainable economic alongside it as part of a comprehensive super app LTV relationship customers powered by AI.

So that's how we think about it rather than a stand-alone vertical by vertical. That's our -- the power of our approach and that power becomes enhanced in the AI world where our optimization across all those verticals to get to the right LTV customers is particularly powerful.

Thanks, Alex. So the next question we'll move to Financial Services. This comes from Ranjan of JPMorgan. So a 2-part question. So the first question is regarding the deposits. Deposits have remained flat quarter-on-quarter. The question is, what are the challenges that Grab is facing and growing deposit base. The second part of the question is on the loan book and securitization. So what Grab considers securitizing its loan book to free capital to grow the business forward as well. So perhaps the first question will be for Alex and deposits and Peter, a question on securitization.

Okay. Well, first of all, we actually don't have any issue at all in raise deposits. We've been really gratified at the trust that consumers have in the Grab brand, the grab ecosystem, our capabilities to protect their money. And if you look at the pricing of our deposits, we are never the most aggressive in the market. We're able to actually gather sufficient deposits to create the right shape of balance sheet.

So there's no point having excess deposits, particularly in this yield curve environment. So what you're seeing is that's carefully managing the level of deposits to make sure that we optimize for P&L purposes. If we needed to raise more deposits, we're very confident that we can do that. .

On the topic of securitization, it's a potential tool for us to be able to recapital recycle on a long-term basis, particularly as a loan will grow. Just to remind everyone, we have 2 parts of our lending book we have, the bank's piece also, which are backed by the customer deposits and then you've got also our Grab financial services, nonbanks, which is on balance sheet equity-wise. .

If you look at our current priority through scaling the lending through our digital banks, we have deposits of roughly $1.6 billion. They sell a lot of headroom in terms of the loan-to-deposit ratio that we could deploy towards those loans. And we are still done target to get to the $2 billion loan book by the end of the year. So our priority now is to use -- make sure that our digital banks capital structure is efficient, and those deposits are an important component of that. But long term, there could be options for us to recycle. That's not an immediate priority right now.

Thank you. So now we'll move on to the final question for today. This comes Piyush from HSBC. So regarding to Foodpanda Taiwan recently announced acquisition, can you share the progress and what are the key milestones to watch and likely timings of the milestones? So final question for Alex.

Well, maybe a very brief final answer then, Piyush, Thanks. So we're in the middle of the approval process for regulators. So no real updates today, but we'll make sure we provide updates as soon as we get any further feedback. Thank you. .

Okay. So thanks, everyone, for the questions. So that concludes today's earnings call. Let me hand over the time to Peter to deliver the closing remarks.

Thanks, everybody. Great, there's a lot going on, typically in Southeast Asia and in Grab. Hope you got a flavor in terms of how our performance are. Q1 to a fantastic start -- for us across all the financial fundamentals of our business. A lot of questions around fuel prices, obviously, which we hope we've addressed that. We are leaning in. We want to make sure our driver community are also benefiting and also I will be helping them along the way. And people are continuing to make sure that EV acceleration also happens within Southeast Asia. It's a great cast for that as far as in adoption. A lot of questions around Indonesia also around the 8% commission. Just to reiterate, our demand or 2-wheels business for Indonesia is less than 6% of our GMV. We continue to reiterate our full year guidance for the rest of the year. What makes us confident is the traction that we're seeing across the portfolios of our businesses today. So all the hard work.

Thank you very much for all the Grabbers. Thank you for all the support egos in the first quarter to all our driver partners, our merchants of all the things that we want to serve and help you also thrive. Thank you very much for the first quarter and also to our shareholders for our support. As usual, the IR team, Ken, Doug and I will be on the road over the next few weeks. We'll be in the U.S., Google across Asia, Singapore, Hong Kong and also in Australia. Don't please reach out to us if you want to meet with us or have a chat, have a coffee. We're more than happy to sit down with you. See you all next quarter.

Welcome to the Delivery Hero Taiwan divestment conference call.

[Operator Instructions]

I will now hand the call over to Andrea Ferraz Estrada to begin the presentation.

Hello, and welcome, everyone. Thank you for joining us on short notice for this update regarding the significant milestone in Delivery Hero's ongoing strategic review. Joining me today are Niklas Oestberg, CEO and Marie-Anne Popp, CFO of Delivery Hero. Following a brief presentation, we will open the floor for Q&A. Please note that we will be publishing our full year results on Thursday, and we will be hosting an analyst call on the day. We will, therefore, not be commenting on business performance or provide 2026 guidance for the Delivery Hero Group today. I will now turn the call over to Niklas. Please go ahead.

Thank you, Andrea, and thank you all for joining us today. We are pleased to announce the divestment of our food delivery operations in Taiwan to Grab for USD 600 million in cash. This marks a decisive first step in the strategic review we announced back in mid-December 2025. While our operational performance remains strong, we recognize that public markets have not fully reflected the intrinsic value of our global operations. This is our fifth asset monetization to date, and it allows us to crystallize fundamental value for a market-leading asset. Executing a successful carve-out like this is no easy feat, and I'd like to thank the team for many long nights over the past 9 months.

The negotiations had many ups and downs, but outcome is good for both Grab and Delivery Hero. Let me now hand over to Marie-Anne to brief us on the transaction details.

Thanks, Niklas. Let's look at what it means for our financials, balance sheet and capital structure. In full year 2025, the Taiwan business generated a GMV of EUR 1.5 billion, representing around 3% of the group's total GMV. This move significantly strengthened our capital structure, reducing our net leverage from approximately 2.7x to 2.2x. We anticipate the transaction will close in the second half of 2026, subject to the usual regulatory approvals. To ensure a seamless decoupling from our global infrastructure, Delivery Hero will provide support services for a migration period of up to 12 months following the close.

While Taiwan is a decisive first step, it is just one of several ongoing reviews. To protect the integrity of these processes, we will not provide interim updates. We will inform the market only when definitive agreements are signed. And with that, we can move on to questions. Operator, please go ahead.

[Operator Instructions]

Our first question comes from Joe Barnet-Lamb from UBS.

I'll open with one and get back into the queue. But yes, I just wanted to start with regard to your balance sheet. You obviously announced the issuance of a term loan a week or so back. There's been substantial debate in the market as to why you felt the need to issue $1.4 billion, $600 million or so more than the converts you explicitly stated you would buy back. The company line seem to be sort of prudent balance sheet management. But I think many investors struggled to get their heads around that. And obviously, that debate is only going to be exacerbated with an additional $600 million eventually coming from this sale. So can you give us a bit of an explanation for sort of the size of the term loan issuance? And maybe more broadly, why you feel the need to sit on such a substantial cash balance?

Sure. So yes, we have obviously raise the term loan a week ago. We're now expecting $600 million from this transaction. And I think the explanation for that would be similar and in line with what we said previously to focus on repaying existing debt and overall strengthening our capital structure. And with that, those amounts in our balance sheet, we deem that we can remain flexible. We can remain well prepared to respond to future opportunities or challenges, and this supports the long-term interest of the company and the stakeholders.

So I would say this is very much in line with what we communicated previously to overall optimize our debt structure, reduce it and strengthen the capital structure.

Our next question comes from Monique Pollard from Citi.

I just had one question, if I can. It was just around the profitability of that Taiwanese business and how we should think about the business going forward without it in? So I understand it's positive EBITDA before central costs. So should we think that the sort of net EBITDA impact is immaterial for losing that business? And are there any fees that you will get for the 12 months in which you help with the kind of service agreement of the asset?

Yes. So if we think about 2026, we indeed expect the impact to be marginal. So as mentioned on the country level, Taiwan contributes to adjusted EBITDA. And when you include the platform cost allocation, the impact is marginal. So that's the way to think about 2026. And then as mentioned, we expect to continue to provide Taiwan with technology for 2026 and the most part of 2027, and that would follow a normal approach to transitional services. And again, that would mean that the impact on the EBITDA and cash flow would be marginal for those years that for the period where we provide those transitional services.

And I think if you think beyond that, that's obviously been in quite a while. We would expect to have managed to adjust the cost level to the size of the business at that point in time. So again, I think about it as a marginal effect.

Our next question is from Luke Holbrook from Morgan Stanley.

Good afternoon. Congrats on getting the deal announced. Mine is just really, just on how you're thinking about the multiple and the value that Grab has paid compared to what Uber was effectively announced to be paying 18 months or so ago. Just trying to get your thinking on how that's changed and the multiple for this deal size?

Do you want to take this, Niklas or shall I go ahead?

Sorry, I was on mute. I'm happy to take it. So I repeat my answer. So every deal has certain uniqueness in it. And of course, the market is also different now versus back then. But I think the biggest difference we have here is that Uber was and still is operating in the market. So for them, this would have been incremental, gross profit contribution and so on. So therefore, of course, more value in that in market consolidation than someone now entering the market. If you look at someone entering market, you have to look at the value of that business as a stand-alone versus integrate into an existing business.

Yes, we think given the market environment and both multiple contractions and war, and other things going on. I think we managed to agree on a good deal that is a good boost for Grab, and leaves a lot of upside going forward, but also a good deal for us that is significantly incremental to at least the way delivery is valued today. So I think we can both be very happy with the outcome of the deal.

[Operator Instructions]

Our next question comes from Joe Barnet-Lamb from UBS.

Excellent. You referenced that the Taiwan small adjusted EBITDA positive precentral cost allocation. And you gave some color on total adjusted EBITDA in answer to Monique's question. But my understanding is there's a major tech hub in Singapore. And obviously, the businesses of that service sort of somewhat dwindling. So I guess the premise of my question is, is there a degree to which the sale of Taiwan potentially unlocks sort of a larger evolution in central costs and tech costs over time? If you can give a little bit more color on the evolution of central costs would be great.

Yes. I think, as I mentioned, right, for the transition period, that technology and product support will still be existing and be provided to the Taiwan hub, right? So I think that very much continuously the ongoing support to the hub that we have right now. I think over time, there will definitely be a process of adjusting the operations of that hub, right? But I think, again, for now, we have to reach the closing point of the transaction, and then we have to move into the post-closing migration period, which is designed to last up to 12 months.

So I think it is definitely a topic to obviously size the activities and operations of our tech hubs to the businesses they serve, but it's also an ongoing process as we still will have to continue to support that business for quite a while.

Our next question is from Silvia Cuneo from Deutsche Bank.

Just wanted to ask a question if you could tell us a little bit more about your market position in Taiwan versus competitors right now? Just other way to get a little bit of extra background as that will be helpful to understand the context for valuation of assets in the current market and the potential for the remaining portfolio. So yes, like what can you tell us about your Taiwan's position?

I think we have a very strong position in the Taiwan market. The business has been operating very well. And over the last couple of years, we have also significantly improved our profitability in the market. So we believe to have a very strong position in the market. There are some geographical differences with our main competitor, Uber. There will be some areas where they will be slightly larger, and there will be some areas where we will be larger. But I -- yes, I think overall, I think we have a very strong position.

This concludes the Q&A session. I will now hand back to Niklas Oestberg for closing remarks.

Yes. Well, thank you, everyone, for listening in. And yes, thank you also for everyone who's been working hard on this. It's a first good step then also big thanks to the Taiwan team for having built a tremendous business. And I believe there is a very exciting future ahead of you. I think Grab is an excellent owner. And yes, thank you very much, everyone.

[Audio Gap] 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 10x over the last 3 years, with airport rides driving over 10% of our Mobility GMV today.

GrabMart is growing 1.7x 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 GMV today.

The success of our merchants has always been at the heart of our mission. The powerful integrated suite of offerings that we 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 a 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 3 years, we have grown to 7.4 million deposit customers across our 3 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 U.S.-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 white list 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 have 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 head count 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 share with you our priorities for the future. We will work closer than ever with a merchant and driver partners, government agencies, corporate partners and Grab-ers 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 road map over the next 3 years.

Thanks, Alex. Anthony and Alex just laid a powerful strategic roadmap, focused on affordability, ecosystem-led lifetime values and Gen AI efficiency. I will now show you how that strategy is translating into our financial road map, which is driving durable, profitable growth at scale. Now what makes it particularly energized is how our execution over the past few years is already setting foundations to drive the financial outlook that we are setting today.

Let me first deep dive into our fourth quarter and 2025 results, which sets us up for the next chapter of our financial road map.

We delivered a strong finish for the year in the fourth quarter, characterized by product-led demand-driven growth. Our On-Demand GMV increased 21% year-over-year or 20% on a constant currency basis. with transactions outpacing GMV growth at 24% year-over-year. The strong volume growth is underpinned by our affordability and ecosystem expansion strategies that drive both user acquisition and also drive higher transaction frequency.

Our group revenue grew 19% or 17% year-over-year on a constant currency basis to $906 million. This is fueled by this GMV momentum and also driven by increasing contributions from our Financial Services. Now Financial Services also achieved our goals with our gross loan portfolio hitting $1.3 billion. and our net loan portfolio reaching $1.2 billion, well above our guidance of $1 billion, while maintaining healthy risk-adjusted returns.

Adjusted EBITDA reached $148 million for the fourth quarter marking our 16th consecutive quarter of EBITDA expansion. On a full year basis, adjusted EBITDA grew by 60% year-on-year to $500 million. These profitability is being powered by our robust top of the funnel growth and also our relentless focus on driving operating leverage as we scale. Finally, we generated $76 million in adjusted free cash flow for the quarter and $290 million for the full year, underscoring the efficiency of our platform.

The scalability of our ecosystem is delivering clear trend of accelerating top line growth, coupled with expanding profitability. And when we take a step back to review 2025, we hit several key milestones. Let me show you what they are.

First one, we have driven a strong acceleration in growth with On-Demand GMV growing by 21% year-over-year. We are able to do this as a result of years of effort to widen the top of the funnel and execute on the product-led strategies Alex just described. Our confidence in this momentum remains high because we are seeing a product-led and ecosystem-focused initiatives drive higher transaction frequency and also attract a broader user base than ever before.

Now as we continue to scale the ecosystem, it translates into operating leverage as we benefit from greater network scale efficiencies. From our first quarter of adjusted EBITDA profitability achieved in the third quarter of 2023, we subsequently recorded positive adjusted free cash flow for the full year 2024. And I'm also proud to announce that in 2025, we achieved our first full year of net profit.

As we look ahead, there are four core principles of our financial road map that will guide our execution in the medium term and serves as a framework for how we create long-term shareholder value.

Firstly, we remain focused on growing in a sustainable and durable manner. We're not chasing growth at any cost. Instead, we are driving relentless improvements to the affordability and reliability of our core offerings to capture a larger share of our addressable market and also employing the product-led and ecosystem-focused approach to cross-sell high-margin services like Financial Services.

Secondly, we will continue to drive improvements to operating leverage. Our priority is now to build on this foundation and compound the earnings growth of our ecosystem as we continue to benefit from the network efficiencies we've spent the last decade building.

Third, we are laser-focused on free cash flow conversion. We expect our adjusted free cash flow conversion rates to improve as our profitability grows and achieving operating leverage.

Finally, we will maintain a strong disciplined balance sheet. Our capital allocation framework is one which prioritizes organic growth with high returns and remaining disciplined on M&A while returning excess capital to shareholders.

Now let's look at how this all comes together in our guidance for 2026.

First, on the top line, we expect group revenues to grow between 20% to 22% year-over-year to $4.04 billion and $4.1 billion, accelerating from the 20% growth in 2025. This is not just a byproduct but larger base. It's a direct result of our sustained growth in our On-Demand GMV and Financial Services continuing to be our fastest-growing segment as we scale our loan portfolio.

Now on adjusted EBITDA, we expect to grow by 40% to 44% year-on-year, reaching $700 million to $720 million in 2026. This step-up in profitability reflects that network scale efficiencies and cost leverage we've been building into the platform.

This is supported by the continued growth in our On-Demand EBITDA, but also Financial Services segment moving towards EBITDA breakeven in the second half of the year. As we continue to lean into technology and Gen AI also to drive the corporate efficiency and the operating leverage in the business.

Now I would also like to outline how we are thinking about the next 3 years and the goals we are focused to achieve. For the next 3 years, we expect robust momentum in revenue growing at a 20% CAGR from 2025 to 2028, with adjusted EBITDA tripling from 2025 to reach $1.5 billion in 2028, and for adjusted free cash flow conversion to expand to 80%. Now let me discuss each of these in the next three slides.

Looking ahead through 2028, our revenue outlook is defined by a demand-led strategy across several high-velocity levers.

First, for our On-Demand segments, we are very focused on new user growth by expanding our footprint into noncapital cities while broadening at the same time our product suite to capture the untapped segments of the market. This expanding base gives us our larger foundations to drive retention and frequency. And furthermore, we expect a gradual increase in basket sizes.

Secondly, our Financial Services engine. We expect Financial Services to become an increasingly larger contributor to our total revenue base. By leveraging our proprietary ecosystem data, we can scale lending dispersal with high confidence in our credit costs, creating a high-margin revenue stream.

Finally, on MSME and merchant solutions. We see significant upside from merchant-focused initiatives specifically in advertising and omni-commerce solutions like dining. These are services that allow us to enhance our value proposition to merchants. Collectively, these strategic pillars provide a clear trajectory towards our 2028 revenue targets.

Now let's move on from revenue outlook to our EBITDA trajectory. Our focus is on driving operating leverage required to reach our target of $1.5 billion in adjusted EBITDA by 2028. Now to point it to context, this represents 3x growth from our 2025 performance and a more than doubling of the EBITDA we've guided for 2026.

This is anchored by three key pillars. First, On-Demand. Our primary driver for absolute EBITDA growth is expansional our top of the funnel. As we continue to expand this ecosystem, we are benefiting from compounding network scale efficiencies, particularly within fulfillment and fixed cost leverage. This enables us to track towards our long-term steady-state margins of 9% plus of Mobility and 4% plus for Deliveries.

Secondly, for our Financial Services, we are firmly on track to achieve EBITDA breakeven in the second half of 2026. And from that point onward, we will progressively expand margins. This transition will be fueled by the scaling of our loan book and the continuous maturation of our credit models, which allows us to grow interest income while keeping a tight lid on credit costs.

Finally, on corporate costs. While corporate costs will naturally increase as we scale, our focus is on driving operating leverage and ensuring that these costs grow at a significantly slower pace than group revenue. By executing across these three fronts, we will aim to become more efficient as our business scales.

As we scale both our top and bottom lines, we are entering a phase of accelerated free cash flow growth. The key takeaway here is our conversion efficiency. We expect that adjusted free cash flow conversion to move from 58% in 2025 to a target of 80% by 2028. This is driven by capital expenditures and taxes growing at a much slower rate than EBITDA.

While we remain disciplined in how we deploy capital into critical assets like our fleet, including autonomous vehicles, we are also aiming to decouple our revenue growth from our capital intensity. This ensures that even as we invest for the long term, we are seeing a much higher portion of our earnings converting directly into cash.

By 2028, we expect this efficiency to generate over $1.2 billion in full-year adjusted free cash flow. This level of cash generation allows us to self-fund our continued innovation while maintaining a strong balance sheet.

Finally, I want to discuss our capital allocation principles. As we move into this next chapter, our framework continues to be anchored on four priorities. First, we remain disciplined in investing for organic and profitable growth. We are ensuring that our core segments have the resources needed to capture the deep market opportunities that we see. And also we'll be prudent towards deploying capital where it generates the highest returns.

Second, we are staying highly selective on inorganic opportunities. We will maintain a high bar and only pursue acquisitions if they strategically accelerate our roadmap, bringing critical technology or talent and meet our strict return thresholds.

Third, we'll aim to maintain a strong balance sheet with ample liquidity. Our robust cash position is a competitive model. It ensures we can navigate macro volatility with ease while continuing to innovate.

And finally, where we have excess capital, we will continue to return capital to our shareholders. We're pleased to announce a new $500 million share repurchase program this quarter. This follows the completion of our previous $500 million share program last year and brings a total commitment to $1 billion in share repurchases.

To wrap things up, 2025 has been a milestone year for us. If our first decade was about proving that the Superapp model could work, then this past year was a critical proof point that we can scale this engine with durable growth and profitability. While we are proud of our progress, we recognize we are still in the early chapters of our long-term journey.

The graph that you see today is a fundamentally different company than the one that went public 4 years ago. We have reached a stage where growth and profitability are no longer a trade-off. We are driving significant top line expansion by maintaining strict discipline in our capital allocation.

What is most meaningful to me as well is that our financial progress is now the engine for our wider mission. By generating robust cash flow, we are in a strong position to deliver our triple bottom line.

We are delivering sustainable value for our shareholders by building a profitable compounding business enabling us to create positive societal impacts by expanding earnings opportunities for our partners and also at the same time, protecting the environment. We are more energized and ever to continue this work and keep growing the business for our users, our partners and shareholders.

Thank you for watching and listening to Anthony, Alex and I. I will now turn it over to Ken Lek as we begin the Q&A session.

Sure. We now open the call to questions. And as a reminder, to audience, please submit your questions via [email protected].

With that, our first question comes from the line of Pang Vitt from Goldman Sachs as well as Horng Han from CLSA. The question is about our EBITDA -- 2028 EBITDA guidance. Just a question for management. You provided a strong outlook of tripling EBITDA between 2025 and 2028. Could you outline the key assumptions by segment? And what are the biggest drivers to this step-up?

Let me take this one here, Horng Han and Pang. There's really two key themes. If you really step back and in the last 40 minutes, we've actually gone outlined what they are.

The first is sustainable growth. You're seeing the momentum of the revenue growth that you're seeing in the business, and that translates to what you see in the guide, the 2026 guide in terms of revenue, the 20% to 22%, and then also to even gone beyond that to 2028, where you see that 20% revenue CAGR growth from 2025 to 2028. So that's the first theme.

The second theme is operating leverage in the business and the cost structure. Now let's step back here. It's really -- if you look at how -- in terms of how we think about profitability, that $1.5 billion of EBITDA target that we're aiming for, there is four key things. The first thing On-Demand revenue. The On-Demand engine is working. And you see that continued momentum in driving user growth at the top of the end of the funnel that we're seeing right now.

Now that is going to translate into also absolute margin expansion and absolute margin dollar in the business. We are driving cost down so we can lower the cost of serving the business. That affordability that we're working on so focused on is working, and we're going to continue to extend that.

But to do that and drive margin at the same time, you've got to drive also a lowering of cost to set up. So we're going to go and continue to double down on driving that top line, but also lowering our cost to serve so that we can deliver margin improvement in both the Deliveries and the Mobility business. So that's the first critical pillar that we're going to drive.

The second one is around Financial Services. You're seeing the engine working now. You're seeing that loan book now continuing to scale. We clipped the $1 billion in terms of loan book. And what you're going to see is that as the business turns breakeven in the second half 2026, you'll enter into a new inflection point, and you're going to see that profitability continuing to grow.

We're very bullish in where Financial Services is going as that low -- as we lower the credit cost also of that business. And the risk-adjusted return that you're seeing is already tracking above our cost of capital. So you have the Financial Services segment and also the On-Demand business working together to really lift that operating margin in the business at the same time.

Now the third and the fourth is really a combination of operating leverage in the business, which is the corporate cost side of the house. And you're seeing that copper cost coming down. If you look at 2023, it was roughly about 17% as a percentage of revenue. In 2025, we just -- we've gone down to 11%. So you see a 600 basis points of margin improvement of that business.

So as we continue to drive cost in the business, whether we -- it's our cloud cost, whether it's the cost of funds or just using more AI to drive productivity in the business, you are going to see that absolute margin improve overall as a business.

So that's how you think about it. Two pillars, continuing to drive that growth across all our core segments of our business, drive operating leverage, and that generates the margin continued absolute dollar improvement to that $1.5 billion.

Okay. Our second question and then related one comes from Venugopal from Bernstein. And this is a question for Peter as well. What prompted us to provide a 2025 -- 2028 guidance, as such long-term guidance is typically not common? How predictable is the business model? And is this all going to be driven by organic growth?

So Venu, yes, it's all organic growth. That's what we've given out here today. If you look at the strategy, actually hasn't changed in terms of how we're going to continue that momentum. Just to earlier point of the previous question, we're continuing that momentum in the revenue side of the business.

And we feel that the timing is right. The last time that we provided a 3-year guidance was back in September 2022. And now the business has changed. The business has continued to scale, we're seeing a momentum, it's an inflection point. And we are seeing all the ingredients that we've been building over the last 2 years now are coming into action, and 2025 was the year demonstration of that. then we want to continue to expand that.

But we also we want to provide our investors our longer-term long-term financial roadmap, what are we heading for over the next 3 years? And really, the acceleration of growth that we're seeing, we're going to continue to maintain that. We clipped over 50 million of MTU today, and we think there is still a lot more MTUs that we can reach in South Asia.

If you look at the number of cities added in the last 4 years, we had over 400 cities. Imagine that in Southeast Asia, there are more than 400 cities. These are noncapital cities, and there are more cities that we want to go and enter and serve the Southeast Asians. So we want to continue to maintain that growth.

But at the same time also, we know that we have to grow the profitability and the free cash flow conversion. So we've given up all ourselves as a management team as well as Grab as a target to go for. And that is that $1.5 billion EBITDA that we want to reach in 2028 and the free cash flow conversion of our business.

We're on the right. All the cylinders are firing and the engine is going, which is great to see. And 2025 was a testament. We're able to demonstrate we can do that. And now we're in 2026, we're confident in the next 3 years.

All right. We'll move on to a few questions on Indonesia. The next question comes from Navin Killa from UBS as well as Pang Vitt from Goldman Sachs. A question for Alex. Is there any update on Indonesia's proposal to lower ride-hailing commissions? And if implemented, how would this impact take rates and segment margins? And what levers do you have to offset that potential pressure?

Okay. Thanks for this question, Navin and Pang. This is actually a great opportunity to clarify because there's been a lot of speculation in the media about what might happen in Indonesia.

So we can confirm that the government have not proposed any changes in commission caps. We're in close consultation with them. And we're aligned and committed to their ultimate goal, which is improving the welfare of drivers in Indonesia. So those of you that have been following closely will know that we have unveiled so social security initiatives for our hardworking drivers, plus Hari Raya bonus coming up as well.

And we're able to use the technology that we've developed, particularly AI and a product called Ride Guide, to help them get more productive so that they can get more orders and earnings for every hour that they choose to work.

We'll continue to do this because both ourselves and the government have aligned interest to develop a sustainable platform that operates reliably for our customers and affordably for our customers to enable us to continue to create and enhance livelihoods for driver partners and micro SMEs across Indonesia.

And then a follow-up question on the margins, I think, from Divya is coming up. So Ken, do you want to read the question?

So Divya asked a follow-up question in Indonesia. Also for Alex, could you provide updates on Grab's GMV growth and market share trends in Indonesia in the fourth quarter? Do you expect margins for Indonesia to be impacted by higher driver welfare costs in 2026?

Yes, Divya, thanks. So despite the macroeconomic headwinds, we have driven affordability as a key part of our strategy. and the product-led strategy in Indonesia. So we've been able to improve our category leadership across all verticals in Indonesia. It's growing about in line with the overall group and faster than the market in Indonesia. So we've been able to demonstrate a sustainable double-digit GMV growth for our On-Demand segment, and we've expanded the profitability year-on-year.

So in answer to your question, we do not expect margins to be impacted by the social programs that I just described because we're getting more operating leverage as we scale up in the country because of our scale.

So probably the most important aspect of the results in the fourth quarter for Indonesia were the increased velocity in Financial Services for us in the country. The highlight was, of course, the IPO of Superbank in December, which came out now, I think, with a $1.8 billion market cap and was incredibly successful, 300x oversubscribed with over 1 million shareholders.

And I believe at this point, we've got more shareholders in Superbank than any other stock on the IDX. So that's just an indication of the potential of the market for Financial Services, and we're just getting going now with an increase in velocity to be expected in 2026.

Okay. With that, we now have a two-pronged question from Piyush Choudhary from HSBC. We'll take the first question first before we pause for the second. So first question is for Anthony on our AV initiatives. So Grab has done various partnerships in cutting-edge AV companies. Can you provide an update on the progress of your various pilots? And apart from Singapore, do you see commercial rollout in other ASEAN countries in the next few years?

Great question, Piyush. Piyush, our long-term strategy is centered on a single goal of building supply resilience. We view AVs not as a replacement for our driver partners, but as a critical buffer to ensure 100% reliability. That is the key driver for customer retention, especially during peak hours or in underserved areas.

You may actually have seen us make, as you talked about just now, small minority investments. Now these position us in Southeast Asia in a way where we can have a geopolitical and technological [ hedge ] because we can partner global leaders across both U.S. and China ecosystems, whether it's a WeRide or [ May Mobility ] from the States or Momenta and even hardware leaders like [indiscernible] in LiDAR.

Now this agnostic approach allows us to leverage this unique position we are in with the ability to take the best technology from the world to adapt it to specific nuances of Southeast Asian infra.

Over the next 3 years, you asked, we see actually Singapore as our blueprint. You look at Ai.R. Ai.R is our first public AV shuttle service in Singapore's Punggol district. That's a great example. Ai.R has covered over 25,000 kilometers with zero safety critical incidents or near misses. This is the highest mileage recorded and the most data collected by any AV operator in Southeast Asia.

Our in-house fleet operations tooling will also enable real-time alerting for AV issues, which allows our operations center to respond quickly to potential incidents. And most importantly, we strongly reiterate our commitment to transitioning our driver partners into new and emerging roles as we move towards a hybrid human and autonomous fleet.

We are already retraining our strong Grab driver partners to form a pool of qualified safety operators during this pilot. They are part of our growing AV fleet operations ground team, which also comprises customer support and depot operations. And we do all this to ensure as we move to a hybrid fleet, we maintain our operational heart, while, as Peter just now shared, lowering our long-term cost per kilometer.

We will, of course, continue to work hand-in-hand with regulators like Singapore's Ministry of Transport to collectively define the safety standards and operational frameworks that allow driverless transport to coexist safely with traditional traffic.

Ultimately, we see this transition as a way to future-proof our platform and network, and we ensure that we can remain the most efficient marketplace as we lead Southeast Asia into its next chapter of mobility.

Thank you, Anthony. So second part of Piyush's question is a two-part question for Alex. How is the performance of the various new product initiatives you launched in 2025? And what are the key learnings from these rollouts? As for 2026, what new products could we potentially anticipate? So first part of the second question.

The second part of the question is, I note that Grab's MTUs has grown 15% year-over-year to now cross over 50 million users as of the fourth quarter of 2025. Could you share with us your outlook for MTU as a percentage of ATU penetration over the coming years?

Thanks, Piyush. Yes, you're right. At the start of 2025, we did say that we would be focusing on user growth and frequency. And it was indeed a key driver of our growth acceleration in 2025. I remember 2 years ago, we were talking about Grab being used by 1 in 20 of the folks here in Southeast Asia. Now we're at 1 in 15.

And I would make the same point, although we're growing very fast and penetrating very fast, we're still just scratching the surface. There's lots of upside left in this young, dynamic region for Grab to continue to penetrate.

So our GMV growth accelerated by 21% year-on-year, but the transaction growth, which is key, grew even faster at 24% year-on-year in this last fourth quarter. That MTU to annual transacting user penetration is at 37%, as Anthony said at the start of the presentation today, and that's an increase from last year. And ATUs, the overall base has grown even further to 129 million users now.

So the product strategy is working. We will continue. We updated the new product initiatives in Deliveries when we last updated at the half year, contributed to about 1/3 of our GMV. On a full-year basis, I can tell you that now is represented by almost half, so 46% year-on-year GMV growth from our new products, so a massive contribution.

Just to summarize what the product strategy has been and what we will continue to focus on, so the ladder pricing strategy is working. Affordability drives a lot better frequency. So Saver gives us 1.5 higher frequency than the average. And the high-value customers are here in Southeast Asia as well, less price sensitive, looking for limo rides to airports, et cetera. So we'll continue to grow at the top end of the ladder also, allowing us to manage the margin mix very nicely, as you saw in the overall results.

We like viral products for users. So we've been building viral products where usage brings in new users through the platform. So Group Order is a great example of that. We get to double the retention and frequency from Group Order that we get from the average. Family Account is another example of that. And then GrabMore, the cross-sell from food into GrabMart, is also operating extremely well for us to help build long-term value.

And then the last and probably the most important aspect is the focus on the merchants and their success. So now we've got a whole suite of integrated solutions, as I was describing earlier, that go from demand generation on delivery, dining in, loyalty as a service, all the way through to payments, fintech lending, et cetera.

We are the only provider in Southeast Asia that can bring all of those together for the merchants. And the more successful those merchants are with Grab, the more successful Grab will be in the long run as well.

In the future, we're not only talking about penetration of MTUs into ATUs, but we're now increasingly inside Grab talking about daily usage. We want Grab to be embedded in the daily lives of people in Southeast Asia every single day. So the frequency of once per day is how we think about the challenge in 2026, and we're making good progress towards that. Thank you.

Next question comes from Alicia Yap from Citi. This is a three-part question on our 3-year revenue guidance. So first part of the question could be, could you provide us with the breakdown by segment of how this will contribute to your revenue growth?

Second part to the question, could you also provide color on Deliveries EBITDA margin by 2028? And third part to the question, will you still achieve Financial Services breakeven by the second half of 2026? So all pointed questions, and this is a question for you, Peter.

Okay. Alicia, if you look at the top line, what you're going to see over the next 3 years is with the Financial Services of our business is going to be growing much faster than our On-Demand. And that's the product is just scaling. You've got the banks now on fire going really all out in building the loan book. We've clipped the $1 billion loan book. We expect to double that loan book by exiting 2022 -- 2026 and continue to increase from that.

So with the banks continuing to increase their penetration in the marketplace and also with some of the other products that they're coming up with, we expect that growth to continue to accelerate, outpacing the growth of our On-Demand business.

That's not to say that our On-Demand business will also continue to grow, which there will be. If you look at what Alex has been sharing across the product portfolio of our Deliveries business, we're seeing strong growth on our grocery business. which is growing 1.7x faster than our food business, and that will continue to also -- to be maintained and sustained as we get into 2026 and beyond in the Deliveries segment. We still have work to do also in affordability.

We're not stopping on affordability. There's still a lot of things that we want to do on the ride side of the house as well as on the Deliveries side that will continue to also fuel the momentum on the growth business of our On-Demand.

Margin, you'll see margin expansion, as I said earlier, when Pang asked about the margin side, the On-Demand business will continue to grow for that -- for both On-Demand. But also, you'll see the Financial Services margin continuing to grow faster than our On-Demand business also and also when it comes to the absolute margin versus our On-Demand portfolios of our business.

And then also, we're continuing to double down on our advertising business at the same time to supplement and complement our On-Demand business, which is really critical also as we continue to grow.

I think there was one more question from Alicia, which I haven't answered. I've lost track to that.

Fintech breakeven.

Fintech breakeven. That's right. Alicia, I can tell you right now, second half 2026 will happen.

All right. Thanks, Peter. So we're getting a couple of questions on AI from both Alicia from Citi as well as Navin from UBS. So Anthony, a question for you.

Given the rapid evolution of AI models and the increasing penetration of AI chatbots, what is management's view on the positioning of Grab's Superapp strategy in light of this? How does Grab anticipate potential shifts in user behavior and the use of AI chatbots as discovery funnels and ordering gateways, which could disrupt its services?

Great question, Navin and Alicia. Look, we view the evolution of AI not as a threat to the Superapp model, but as a high-velocity engine that will scale our model. Now to address your point on disruption, we see three strategic pillars that strengthen our position rather than pose a threat.

Let's talk about LLMs. LLMs are exceptional at discovery and digital commerce. We have now become embedded -- we, as Grab have now become embedded in the everyday lives of Southeast Asians. And this is the beauty of how we use and leverage this embedding.

The hyperlocal physical infrastructure that we've built by being embedded across Southeast Asia, it allows mobility, food delivery services to become our strong moat, and Grab has become the indispensable fulfillment partner. So LLMs can be a great channel, but we are the indispensable fulfillment partner.

We own real-time mapping, the merchant relationships and the fleet logistics across Southeast Asia. And these assets, these -- a lot of them are physical on-the-ground assets are incredibly difficult to disintermediate.

Number two, you mentioned earlier about search engines directing traffic. Now our partnerships with OpenAI now as our first lighthouse partner some time ago and Tropic aren't just for internal efficiency. They allow us to ensure that when a user asks a third-party AI, for example, how do I get home or what should I eat? Grab is the integrated fulfillment engine behind that answer.

I would say the third part, now for users, they want deep personalization, they want efficiency. So we are deploying semantic search and generative AI to turn our Superapp into a personalized concierge, if you may. We aren't just waiting for search, we are leveraging the data, we have leveraging generative AI and the best foundational models to predict intent.

For our ecosystem, with over 1,000 proprietary AI models, as Alex shared before, we're already powering merchants with our AI agent. We talked about Mai before. We're powering drivers with an AI Ride Guide that Alex talked about as a coach. We've dispatched over 90% of our rides are fully dispatched with AI, and we continue to improve our credit underwriting with AI. This has directly translated into higher retention and improved unit economics.

If you remember, from 2022 to 2024, headcount basically stayed flat, but revenues doubled. That's what we see. We've seen the power of AI.

Ultimately, we continue to build the AI-led operating system for Southeast Asia. We're excited to showcase the next generation of these tools at our upcoming GrabX Product Day. So we hope to see all of you there.

Okay. So the next question is actually on our new acquisition, Stash. As a reminder to the audience, we announced this morning that we are acquiring a digital investing platform Stash based in the U.S., which Alex shared more details on earlier. So two questions, one from Ranjan Sharma from JPMorgan and another from Venu Gopal from Bernstein.

So firstly, could you share with us management some of the financial metrics of this business, including its burn as well as near-term earnings? What did you pay for these assets on a valuation basis?

And second question, what does this signal? Is it a platform that's meant to be rolled out in Asia? Or is it a formal entry into the U.S. market? Does our 2028 guidance include contributions from Stash?

Lots of questions there. Let me just start, our long-term strategy remains very rooted in Southeast Asia. We still have a lot of work to do in Southeast Asia. It's our core markets, and there's still a lot of products and users that we want to touch with, whether it's across all our different segments of our business today.

Now why did we do Stash? It's really a unique asset. If you look at the trend of when we do acquisitions, if we looked at the last unique asset that we acquired was around Supermarkets, the Jaya and Everrise, we see Stash as a very unique asset with a few things. One is it's got a very strong IP. It's got a strong talent pool and a platform that we don't have today.

If you look at Financial Services as a business, what do we have? We have a very strong payments, we have a strong lending business, which is continuing to scale, we have a big deposit base over 7 million customers on the deposit side on the banking side of the house. What's missing? We don't have an investing platform today. And that's really critical for us as we continue to complete the full picture of Financial Services in Southeast Asia or also in other parts of the market where Stash operates today.

Now it is a positive EBITDA business today. It is generating free cash flow positive, and we see this business generating $60 million in EBITDA in 2028. So it's an accretive business that we see. But really, it's important that we also serve our user base today, not only in extending loans, but also teaching them how to save. It's critical in terms of our mission for the underserved, especially on Financial Services.

So we're very excited to have the Stash family joining us. We expect to close this transaction sometime in Q3 or Q4. It's a great team. We already have over 1 million customers that we are continuing to serve that they have continued to prove that, that product works. And as they continue to build that product set out, they're going to continue to penetrate the U.S. market, but also over time, we'll introduce the product here in Southeast Asia.

We're getting several questions now from various analysts on our grocery strategy. So notably questions from Jiong from Barclays, Divya from MS, Wei from Mizuho and Sachin from Bank of America. This is likely a question for you. Alex, can you provide us with an update on our grocery strategy and recent growth trends? What changes are you seeing in the competitive landscape across Southeast Asia? And how do you plan to invest capital into this vertical?

Okay. Thanks. So our most upvoted question. Well, first of all, let me start with the market opportunity. In ASEAN, the modern retail penetration is less than 40% of the overall grocery market. And then online grocery penetration is even lower at less than 3% in the majority of our markets. That compares with much higher numbers in U.S., China, U.K. of 15%, 20%, even 30% in some of those markets.

So for Grab, currently, [ Mart ] is only 10% of our Deliveries GMV, although it is growing a lot faster at 1.7x faster than food year-on-year. So we're starting to get a lot of traction.

The way that we are growing is that we are adding selection that is adjacent to the food consumption that we see. So beverages and groceries make a lot of sense when you're ordering food. And we're getting the input from the searches and the behaviors of customers on the food side to understand how to expand the SKU selection and using Grab more to do the cross-sell from food users into [ Mart ]. And when we do that, we see that the higher frequency is 1.5x and the spend is 1.5x when they're just a food-only user.

We're also improving the integration with our partners using tech, and that's helped us to improve the reliability. So the fulfillment rate and the customer experience is getting better and better. So those of you out there that haven't used GrabMart, please give it a go, and you'll see this tremendous improvement in selection and the availability of those items.

When we do that, we get higher engagement, we get higher long-term value, and that reinforces our conviction to invest in this space, but we're investing with discipline. So we can get sustainable returns because we're leveraging our on-demand capabilities. We're growing supply chain by integrating more deeply using our tech with the partners in each market, so we can leverage their supply chain assets, and that improves the financial performance.

And then finally, we can enhance monetization through the Financial Services capabilities that we talked about earlier, so the pay later capabilities, moving into installment loans. So you can see that we've got multiple levers to monetize, and that means that we can invest with discipline and continue to grow rapidly in the grocery space at the same time.

Okay. With that, we now have time for one last question. The final question comes from Divya from Morgan Stanley on our capital allocation strategy. So Peter, this is one for you. The cash on our balance sheet is notable, and it will build up further with our improving free cash flow outlook. While we welcome the share repurchase, it does contribute a very small amount of your total capital you have today.

Where do you expect to allocate capital if there are no opportunities for inorganic growth in the region? Are there new geographies to consider?

If you look at the -- there's one slide I had in my remarks earlier about capital allocation. And it hasn't actually changed. If you look at the previous comments that I made around capital allocation to what I just presented also, it hasn't changed a lot because we've been consistent in terms of how we think in capital allocation.

When it comes to inorganic opportunities, we're going to be continuing to be very disciplined. And that high bar is so important. So for every opportunity that we look at in using every dollar that we deploy, and you've seen a couple of examples that we deployed those assets, whether it's the Stash or whether it's the supermarkets.

We've also deployed certain capital around our autonomous vehicles product roadmap, robotics also; those come with a very high threshold in terms of valuing those companies, but also the synergies we can extract as well as the tech and the talent that we can bring into the ecosystem. So that lens, Divya is going to continue to maintain. It's not going to change.

The priority for us continues to be in organic growth, our existing businesses. And the banks is one that we're continuing to make sure that the scalability and the expansion continues. And it's where we do see opportunities in organic growth, we are going to double down.

We talked about -- Alex just talked about supermarket or grocery, the opportunity there that we see in modern retail in terms of where we can penetrate more. And we will have a high bar also when it comes to those organic opportunities, so we'll continue to deploy those.

Now the share repurchase program is important to us as we return capital back to our shareholders. So $1 billion, our wall is not small that we've continued to make sure that we bring the commitment back to shareholders. We'll continue to evaluate that over time.

But the -- what I want to finish up is that it's important that we always continue to have a strong balance sheet. That ample liquidity is important because it gives us flexibility, Divya. It gives us the leverage also in terms of how we can invest in the right areas. So we're going to continue to maintain the very strong capital allocation framework.

All right. With that, it brings us to the end of our Q&A session. I'll now turn the time over to Peter for his closing remarks.

Great. Well, I know it's been a lot longer than our traditional calls and also this format is a little bit different. But I thought it was important for Anthony, Alex and I here to really just go to a little bit more details in terms of how we think about the business over the next 3 years.

We are entering an inflection point as a business overall. The business that you look at today is very different to what we were 14 years ago, 10 years ago and when we went public. And that's important because we are going to continue to execute and out serve.

If you look at the number of the results that we just posted, what did we do? We exited 2025, much more stronger top line growth, profitability and our first year net profit. And our 3-year guidance is that reflection of our confidence. We want to go to continue to drive sustainable and profitable growth.

Now I just want to also just thank you to all the partners, the drivers and the merchants that we serve today. I had the opportunity of visiting a few cities in the last 3 weeks, and it's just been another just sobering moment for me just to talk to those drivers and the merchants and the sweat that they put through and the effort and the sacrifice that they put in into the Grab ecosystem. So thank you to all the drivers and the merchants out there who are our beloved partners.

To all our customers, we have over 50 million monthly transacting users today. Thank you for continuing to support Grab, and I hope we are fulfilling the products and the services that you're continuing to use to the Grab-ers for the mighty effort in 2025 and to also for our shareholders for their continued support.

The IR team and myself will be on the road over the next few weeks. Look us up, visit us, knock on our doors, give us a call. We'll be in the U.S. and across Asia in different parts. We'd love to meet up and sit down with you also as we go through our journey of 2026 and also go through our 3-year guidance.

So thank you again for listening and for watching us all today. See you at the next quarter.

Ladies and gentlemen, thank you for joining us today. My name is Tyler, I will be your conference operator for this session. Welcome to Grab's Third Quarter 2025 Earnings Results Call. [Operator Instructions]. I will now turn it over to Douglas Eu to start the call.

Good day, everyone, and welcome to Grab's Third Quarter Earnings Call. I'm Douglas Eu, Director, Investor Relations and Strategic Finance at Grab. And joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oey, Chief Financial Officer.

During this call, we will be making forward-looking statements about future events including our future business and financial performance. These statements are based on our current beliefs and expectations. Actual results could differ materially due to a number of risks and uncertainties as described on this earnings call in the earnings release and in our Form 20-F and other filings with the SEC. We do not undertake any duty to update any forward-looking statements.

We will also be discussing non-IFRS financial measures on this call. These measures supplement, but do not replace IFRS financial measures. Please refer to the earnings materials for a reconciliation of non-IFRS to IFRS financial measures. For more information, please refer to our earnings press release, remarks and supplemental presentation available on our website.

And with that, I will turn the call over to Anthony to deliver his opening remarks before we open it up for questions.

Thank you so much, Doug. Really appreciate everyone being here with us. This quarter marks another vital step forward in our journey, not just in our financial performance, but in how we are building a more resilient tech-driven platform for the long term. Our growth was a key standout this quarter, accelerating to new records as product-led innovations drove nearly a $6 million year-over-year increase in monthly transacting users to $48 million. This fueled a 24% year-on-year increase in on-demand GMV or 20% on a constant currency basis. At the same time, we continue to maintain cost discipline and leverage our ecosystem scale to drive profitable growth.

Group adjusted EBITDA rose 51% year-on-year to a new record of $136 million, marking our 15th consecutive quarter of sequential profitability improvement. Our adjusted free cash flow also improved by $185 million year-on-year to EUR 283 million on a trailing 12-month basis. Now these achievements are the direct result of our consistent focus on improving accessibility, affordability and reliability. This has enabled us to continue growing earnings for our driver and merchant partners, while expanding our marketplace, bringing new users on the platform and deepening engagement and loyalty among our user base.

As we head into the final stretch of 2025, we expect to exit the year on a high note. We remain on track for our financial services loan portfolio to exceed $1 billion and for full year on-demand GMV growth to accelerate from 2024 levels. As a result, both our Mobility and Delivery segments are well on track to exit the year at record GMV levels.

With our teams executing with focus and AI unlocking new growth and efficiency frontiers at unprecedented speed. We are confident in our ability to drive sustainable long-term value for our users, partners and shareholders.

With that, I'll now open the call for questions. Operator?

[Operator Instructions]. And your first question comes from the line of Pang Vitt with Golden Sachs.

Two questions from me. Number one, on the competitive landscape. Can you help us discuss some of the lasers that you've seen on the competitive landscape, especially in Indonesia, you delivered a strong 24% year-on-year in your on-demand service overall wondering whether there's any color you can share for what is the growth you have achieved in Indonesia? And what have led to your strong outperformance versus peers? That's question number one.

Question number two, can you discuss further on your latest update in guidance? What have led you to increase the guidance? And can you help us break down estimate by segment?

Alex here. Let me take your first question, and Peter will take the second question. On Indonesia, it's a key market for us. Our business continues to perform strongly there. It remains a very competitive market. But what we're seeing is that the product-led growth strategy that we've been talking about for the last few quarters is driving an increase in MTUs for both deliveries and mobility, particularly the affordability, strategy is bringing in a lot of Grab bike and Grab car saver users at the lower end of the pricing ladder. And at the top end, Indonesia still has a lot of wealthy customers, and we've launched Grab executive there for mobility, and there's a lot of domestic tourism and business travel, which is helping drive our high-value rides and our priority food delivery services.

We're also growing GrabMart, which is helping to drive those elevated levels of the delivery GMV growth that we're seeing. So overall, it's a reflection of microcosm of what we're doing across the group. I would say you can't see these in the numbers, but I can tell you that there's strong growth in Indonesia, and a strong sequential margin improvement as well. So we're very comfortable with what we're doing in terms of the market position and our penetration of the overall opportunity in Indonesia, which remains huge and something we continue to be excited about as we invest in that country.

Pang, on your guidance question, look, you've seen our numbers from Q1 to Q3, how we've been performing, we're continuing to have that consecutive quarter-on-quarter growth in our EBITDA guidance, and part of that is the top line growth that you're seeing in the business that Alex just talked about. You've got that nice momentum in our deliveries business, growing at 26% clip. You've got our mobility business also growing at 20%. So -- and let's not forget also our financial service is growing at 40% revenue and our loan book continues to hit all-time high. So you've got nice momentum just overall from the top line side. But also at the same time, we continue to be very disciplined on our cost structure. You see our regional corporate costs increasing only 8% on a year-over-year basis. But what's more important now that we're seeing about 150 basis points improvement in operating leverage as a percentage of revenue of our regional corporate costs. And that gets critical as we continue to make sure that we're spending in the right areas.

So we expect the strong top line growth to continue into the quarter where fourth quarter is usually our strongest quarter, we're on track to make sure that we deliver all the things that Alex mentioned about affordability, reliability, accessibility. And so with that, we are more confident in raising our EBITDA guidance to the $490 million and $500 million for the full year 2025, I do want to caveat that as we enter into Q1, which is around the corner for us. It's 1 of our more softer season, which is really very traditional for us. So -- but we do expect to maintain that profitable growth going into 2026.

Your next question comes from the line of Alicia Yap with Citigroup.

Congratulations on the solid set of results. Two questions. First, could you elaborate a little bit on your MTU growth? Have you seen any major differentiations in terms of the user profile you added this quarter compared to last few quarters. For example, is that more female this quarter, any more of the younger generations or any like the second or the lower-tier cities that contributed to the bigger additions of the new user this quarter? So any metrics that you could share would be helpful.

And then second question is, given the successful conversions of the product-led innovations to drive the order growth and also the higher frequency per user as well as your explorations into the GrabMart and also the grocery business, so following few quarters of the accelerated GMV growth for your delivery business, how should we be thinking about the growth rate for the fourth quarter this year and also into 2026? Should the growth rate be normalizing around maybe mid- to high teens or would that be possible to stay above the 20% growth for 2026?

And then if you are able to grow faster than the high teens or even 20% mark, would that mean your margins expansion will be more gradual or even potentially see margin flattish or declining for next year?

Thanks, Alicia, for those questions. Let me take those 2. So MTU growth, as you saw on demand MTUs grew 14% year-on-year. In fact, DTUs grew even faster. So our daily transaction are growing faster than our monthly transactions. So we are succeeding in our goal of being part of the daily lives of Southeast Asian. On demand transactions, the actual transactions grew 27%. So you can clearly see that increase in frequency effect as well. And this is very much part of our strategy for driving the flywheel of increased demand, increased supply, improved quality of services and driving further demand after that.

In terms of the demographics, saver deliveries obviously have been instrumental in acquiring new users, growing frequency as well over the past few quarters. So almost 1/3 of our deliveries MTUs, joining the platform, the new MTUs are coming through Saver deliveries. So that's an important driver of the flywheel again this quarter. It's similar for transport, where we see Grab bike saver and Grab car saver also bringing in a lot of MTUs. At the same time, as I mentioned earlier, when I was answering Bang's question, the high-value services are also growing fast. So high-value rides grew 66% year-on-year. And then priority delivery is also growing fast. So we're seeing growth at both ends of the pricing ladder, which is healthy. But the critical thing is that we're also being successful in cross-selling and retaining these new users to build long-term value, long-term customer value.

So what you can see overall, if you look at the GMV per MTU, so despite the strong growth in MTUs, the GMV spend per MTU grew 7% year-on-year. So I think that shows that your affordability strategy is both bringing in new customers, but also with our cross-sell is allowing us to deepen the value for each of those customers. So this growth effect is distributed both across big and small cities, you asked about that. But I would say that it skews to younger customers for the Saver products. But it does show that our product-led flywheel for deliveries and mobility is spinning faster and faster.

And then your next question about growth rates going forward. We still feel that the -- our MTU penetration of Southeast Asia is low, when you consider the size of the population and the growing spending power. So when you look at what's driving these elevated growth levels in the last three quarters where we've managed to accelerate quarter after quarter, you can see that there are three elements, which I feel are all sustainable going forward. One is the product-led viral growth. Without increasing consumer incentives, we're able with group orders and family accounts to bring in new users, so the ecosystem is self-generating and bringing in new users on its own. We've also got this very strong GU base, Grab Unlimited is the biggest subscription program, paid subscription program in Southeast Asia. The users grew again 14% year-on-year to another all-time high. So they now represent over 20% of our delivery MTU base. This is also a sustainable driver of future growth. And then we have this adjacent Grab Mart opportunity where now we have this functionality called Grab more where a food user can just add on a grocery order to the food delivery that they're about to receive, proving to be very popular, and that will allow us to penetrate more and more of our large food base so that we can keep GrabMart growing. It's already growing at 1.5x the size of food, but we think there's potential to increase that penetration.

In terms of the margin impact, we will be disciplined in driving sustainable growth, but also focusing on the absolute EBITDA growth. If you look at the margins this quarter, in fact, they've improved both for mobilities and for deliveries. As we've said in prior quarters, sometimes we'll launch new products and we'll promote those new products, and that will mean margins dip down. But overall, you can see that the margins this quarter have recovered to the average levels for the year. So there's no change in our margin outlook that we stated for the longer term. We still expect to get deliverers to 4% plus and mobility to 9% plus.

So we believe we can do this while not sacrificing growth. As you heard earlier, we expect fourth quarter on-demand GMV to grow sequentially from the third quarter. So we will exit 2025 at record GMV levels and make a healthy entry into 2026. And we do expect margins for deliveries to continue to grow from these levels into next year even while we invest into new product initiatives and the grocery growth where we're seeing stronger and stronger traction.

Your next question comes from the line of Navin Killa with UBS.

I had a couple of questions. One is with regards to your balance sheet. Obviously, strong cash balance, you raised the CBs earlier this year, and the business continues to be free cash flow positive. So how should we think about the use of this cash going into the next 12 to 18 months? And then secondly, in the context of some of the growth conversations that we have had, just wanted to understand how you are seeing the macro environment. And I mean, if you were to split this growth for this year between, let's say, macro market share gains and the impact of some of these initiatives that we have launched around new products, how would you qualitatively think of these three factors driving the growth?

Navin, it's Peter here. Let me kick it off with your first question around capital allocation, and I'll ask Anthony to chime in around the macro -- your question about macro. On the capital allocation framework, no change in terms of how we're thinking about it. And we've always been our focus as always on three pillars. The first 1 is around investing for organic growth. And you're seeing that in the business, the profitability of our business and the growth that you're seeing and some of that came from also some product adjacencies and tuck-ins that we've done as part of that profitable growth that you're seeing. But the organic growth has been really critical. One way that we've been deploying the balance sheet is on our loan book. If you look at the loan dispersal for Q3, for an example, we hit roughly $3.5 billion on an annualized basis on that dispersal. So Q3 alone was up roughly about 56% on a year-over-year. And that's a majority of that is on our balance sheet itself. So it's a great use of capital for us. It heals a higher rate of return. Actually, it returns above our average cost of capital for us, and we'll continue to use that balance sheet as we recycle those loans. That's just 1 example in terms of organic. We're also obviously deploying some of those capital in terms of investing in terms of new products that were earmarking for 2026.

On the second pillar is around what we call very highly selective M&A, which are more opportunistic and those are a lot more where it's more speculative also. But those have a very high bar, as you know, and we've always talked about this. But where we have been investing in some of the longer-term bet that we're looking at for things such as autonomous vehicles. And we've deployed some of those capital in making in those critical investments that we're leaning into. You've seen the announcement that we made with ride for an example, may mobility as part of our strategic pillar in terms of making sure that we are the pioneer and we're leaning in, in terms of autonomous vehicles deployment here in Southeast Asia. But overall, as a framework that M&A is a very high bar for us, and we want to make sure that the synergies that we can extract is of a greater value.

And then third, where there's excess capital, Navin, we'll obviously look at returning it to our shareholders. So those remain critical. Those 3 things that we believe in the recent capital raise that it will give us strategic flexibility in the interest of our investors. We'll continue to look at and explore those longer-term growth that Alex mentioned and how do we create the best value for our shareholders. But we are always, always prudent in terms of how we are managing our capital and our balance sheet. So hopefully, that answers the question. Anthony, on the macro.

Thanks, Peter. And thanks, Navin, for a really good question, especially on the macro environment. So look, in Southeast Asia, there's been a lot of positive focus recently. As many of you are aware, Malaysia hosted the ASEAN Summit earlier this week, and President Trump visited a region to finalize trade negotiations with several of the Southeast Asian countries. I wanted to call out was the peace agreement between Thailand and Cambodia. These have been 2 very significant and positive events for the region, and we are seeing signs of tourism recovery in Thailand as the country heads into its seasonally strongest quarter of the year.

Now to Navin, your second part of your question, are we seeing weakness in consumption? The short answer is no. Our platform is proving to be highly resilient. We're not seeing a broad-based slowdown. In fact, our model is built for this exact environment point to 2 key reasons. One, our strategy is countercyclical. The uncertainty in many ways actually accelerates our flywheel. We are seeing a healthy increase in partners coming into our gig platform to find income. And that, of course, improves supply. This also enables us to reduce wait times and hunt reliability and most importantly, it lowers prices values as our users, which our users really appreciate. This increases our affordability and grows the overall user base, as you saw in our numbers, which is our key strength.

Also, our focus on affordability is paying off. So this is a new. Our focus on affordability, which we began in 2023, with products like Saver delivery, Saver transport, that was explicitly designed for this purpose. These services are now essential for users, enabling them to manage their wallets effectively. So this makes us a must-have service not a nice to have, which protects us from a pullback in discretionary spending. Look, but the reality is we may not be immune to macro trends, but our strategy is designed to be resilient and even opportunistic in this landscape.

So we continue to reinforce this by partnering with governments as well. For instance, in Indonesia, we've been running what we call the Gota Masa Dean, which is a future cities program in partnership with the Ministry of medium small and micro enterprises, where we have worked to support small businesses and digital upscaling across nearly 20 cities. And in Vietnam, our EV launch is really to design to drive better NPS and also lower partners costs. These on-site projects, they strengthen our ecosystem and create a more sustainable, profitable business for the long term. So we are confident in our strategy and our outlook.

Your next question comes from the line of Venugopal Garre with Bernstein.

Two questions from me. First question, is more something that you discussed earlier in the call about the Grab mart business, the grocery business, which is outpacing the growth of full delivery. I wanted to really understand in terms of regions that are driving that growth for you, especially geographic regions and more importantly, I want to understand what are those big initiatives that you would need to incrementally take to make this a much, much larger segment? The reason I'm asking this is because grossery on an absolute basis is perhaps still relatively smaller in terms of penetration compared to the overall TAM that is there in the region. So newer models like with Commerce, any thoughts around any change in landscape around the models that you might use to really scale up this business? That's the first question.

The second 1 is more of a follow-up on the investment side of question that was discussed. I wanted to understand the investments that you have done in the autonomous tech company. This is largely to secure tech? Or is it more in the nature of financial investment? And more importantly, could you also outline the current progress with respect to the rollout on autonomous.

Thanks, Venu. This is Alex. Let me take the first question. I think Anthony will take the question about AVs. So you're right. Our deliveries -- our Groceries business, GrabMart, is relatively small compared to the rest of deliveries. It's only about 10% of deliveries GMV today. So it's very small compared to the TAM that you correctly identified is out there. We are seeing GrabMart grow across all markets. And 1 of the drivers for that is the rollout of GrabMore, this capability that allows customers to add groceries to their food orders for the same delivery cost, proving to be very, very powerful for cross-sell into groceries. So GrabMark continues to outperform, growing 1.5x faster than food delivery segment. And we've also seen that the users of both food and mart demonstrate order frequencies that are 1.8x higher than food-only users. So we know that it's a great driver of stickiness and loyalty and long-term value.

In terms of the various business models, we are experimenting about -- with some of the newer business models that would open up more TAM for us. So in Malaysia, where we have Jira we are experimenting with quick commerce around certain Jie stores where we can really sweat the inventory and store assets. So without increasing our fixed cost we're able to drive up the volume of orders quite significantly. Even though the experiments there are primarily grocery focused, but we have seen a nice step-up in demand when quick delivery is an option for customers. So I think there's something to build on there, and we've started to experiment in 1 or 2 other countries as well like Indonesia, where we work very closely with certain partners. So yes, I think watch this space, very early days for us. Grocery focus, but we are definitely exploring new models which can help us unlock future large TAM.

Now Anthony, on AVs.

Yes. Thank you, Venugopal. Let me talk about the plans and our strategy regards to AVs. Now our recent AV investments are all very deliberate. It's part of our long-term strategy to lead the adoption of AV and remote driving across Avis Asia and to secure the technology supply chain through strategic partnerships. While AVs are already a reality in parts of the world, we expect a longer ramp-up to mainstream adoption in Southeast Asia for a few reasons. One, Southeast Asia is still behind in the cost curve. Labor costs in Southeast Asia are significantly lower compared to the U.S. with Singapore being an exception. Now we believe, therefore, it will require considerable time for the unit economics to reach parity with human drivers.

Second, the crossover point will occur when AVs become safer and even cheaper than alternative options before we see a huge transformation in the way current transportation is served. Now as the largest mobility platform in Southeast Asia, AVs and remote driving are something we must lean into. We'll continuously learn about the technical optimization of AV performance on our platform. We'll also maintain a hybrid fleet approach for the foreseeable future and intend to collaborate very closely with regulators across Southeast Asia. Now 1 of our top priorities as part of this I would say, essential part of this strategy is to work alongside regulators to upscale our driver partners as part of this shift.

Our focus is to find the new jobs that will be required as we shift towards a hybrid transport world. We see new kinds of jobs emerging. For example, drivers could be remote safety drivers, data labelers, they could change lidars, cameras and so forth. So as we lean into AVs and remote driving with several partnerships already under our belt and more underway, we remain very excited about the longer-term opportunity to build capabilities to operate a word-class hybrid human and autonomous fleet to deliver the best experiences for our customers.

Your next question comes from the line of Wei Fong with Mizuno Securities.

I have 1 quick 1 on the Financial Services segment. We've seen very strong growth there, right, but with sizable bad loan provisions, of course. I was just wondering if management can talk about what you have learned about the newly acquired customers in recent quarters? And how you are fine tuning your risk provisions going forward? That's it.

Thanks, Wei. Let me take that one. You're right. We are accelerating our financial services growth, and we are reaffirming our goal to exceed a $1 billion loan book after excluding credit loss provisions by the end of 2025. And -- you can see in these -- in this quarter, there's been an acceleration of loan dispersals. So we're now at a $3.5 billion run rate on an annualized basis, growing 56% year-on-year, so very strong underlying growth.

We do see, as you mentioned in your question, an increase in the expected credit losses coming out of the models that we run to make sure that we're providing well for the future growth. It's a natural consequence of that growth. it's an upfront provisioning that occurs in the lending -- accounting of lending. And it's obviously offset against the revenue generation from those loans over their lifetime. So you should expect with this kind of accelerated growth that the ECLs will run through the P&L and sit on the balance sheet as you're seeing in the current quarter.

What I would say though is if you look at the underlying performance of the Financial Services business without taking those provisions into account, then our Financial Services segment adjusted EBITDA improved actually quarter-on-quarter and year-on-year by about $4 million quarter-on-quarter and EUR 17 million year-on-year -- that's an important measure for you to see because it underlies that if we -- if we don't need to pull down all of those provisions, it underlies how we're getting operating leverage out of the growth of the business.

You asked what we were learning from the customers. We are, in many ways, a data science company. So we are learning every single second of every single day from how our models ingest all of the different data points that we can generate through our ecosystem. Unlike banks, we can access a lot of unconventional markers of likelihood to repay that allow us to underwrite segments of the population in Southeast Asia that currently cannot access credit. These are often known as underbanked, unbanked. So a lot of what we do is about financial inclusion, bringing people into the market, allowing them to actually establish a credit record. About 1/3 of our customers could not access data because they weren't on a credit bureau -- could not access credit because they weren't on a credit bureau prior to borrowing from Grab and our financial subsidiaries. This is very important to us and very much aligned with our mission.

The repayment record actually from those customers is very pleasing. They know that when they repay us, they start to establish a credit record and they start to, therefore, become included in the financial and economic prosperity of Southeast Asia. So we're very pleased to learn more about those customers and to bring them into the financial services domain for the first time.

So the credit models every time we launch a new product, the credit models obviously take time to be established. But what you're seeing this quarter is that across the banks and GFI where you're starting to see that we've got credit models maturing. We've got new models being launched all the time. We're increasing the cycle speed with which our data science improves these models. So that's why going into this fourth quarter, if you run the numbers, we're predicting an acceleration of the loan book size. And we also are indicating that, that acceleration will continue into 2026.

Your next question comes from the line of Mark Mahaney with Evercore ISI.

Two questions, please. One, on the consumer incentives. Just talk about how we should think about where those will hold going forward. There's been a little bit of volatility, some leverage on quarter, deleverage another quarter. Is it -- are you running them at a level that you think sustainable going forward? Or do you think we should expect to see leverage against those in the future?

And then second, just talk about advertising intensity or what I mean by that is advertising revenue, the ramp that you're seeing? Just a little more color on where that is now? How much -- any new pockets of strength in there and how to think about growth for that particular segment over the next year or 2?

Mark, Alex here. Let me take that. On consumer incentives, you can see it's come down a little bit this quarter. We think that we can keep it at around this level going forward because we're getting a lot of boost from the viral product rollouts that we've been doing. And so we find that the incentive level doesn't have to be as high despite the fact we're accelerating growth for both deliveries and the mobility also staying relatively high and transaction volumes in mobility going up to 30%. That's all been achieved with a reduction in incentives quarter-on-quarter. But I would say for -- in terms of modeling, you can assume that the incentives stay at around this level on the consumer side.

In fact, this quarter, we've had to actually boost the driver incentives slightly because the growth in demand was so high. We needed to make sure that we can maintain the fulfillment quality and reliability of our services. So you can see that in contrast, there's a slight increase in driver incentives.

So going to the core question, these incentives can go up and down a little bit quarter-to-quarter. But in terms of modeling steady state, I'd say we're about the right levels where we are today.

The ads piece. The bigger we get, the more interesting we get for advertisers, whether those be the merchants on the platform or FMCG customers who want to advertise across the platform as well. I think for the food side, we see continued penetration of advertising. So we expect that to continue to move up gradually into next year. We've got total -- the total number of quarterly active advertisers joining our self-serve platform actually increased 15% year-on-year. So we're continuing to see new advertisers coming on to the platform, which is great. Many of them coming in through our self-serve capabilities. And then the average spend of the active advertisers on that self-serve platform grew 41%. So once people try the platform, they see it, it works very well for them in terms of ROS and they start to increase their spend. So these are both lead indicators of what we expect, which is a continued increase in the penetration of our deliveries GMV with ads.

As we grow the Grab Mart business, which we've talked about a lot on this call, we expect to be able to attract more and more FMCG advertisers. And there, if you look at some of the models in other parts of the world, you can see the penetration of advertising for grocery -- online grocery businesses is actually even higher than online food businesses. So that's something that as the scale increases, we should be able to improve as well. So we're very bullish about the advertising part of our business. In fact, I would say it's a key driver of margin growth in the longer run.

Your next question comes from the line of Divya Gangar with Morgan Stanley.

I had 2 questions. One is actually a continuation of what you just said, Alex, on the advertising being a driver for deliveries. So my question is on deliveries margins path to 4%. Could you talk about how different are the margins across countries just qualitatively and the role of some of these countries lifting up the overall portfolio margins. In the past, we've thought that Indonesia has been a drag, but looking at the competitive dynamics there, the margins for delivery seem to be relatively healthy in Indonesia at least for our competitor. So trying to understand how we look at that path to 4% from an advertising country-wise perspective as well as Grab Mart and how dilutive that is to margins? So that's my first question.

And my second question is on financial services. Now that we're closer to the breakeven year for fintech, could you maybe just share the framework and the milestones we need to hit over the next 6 months to be able to meet the target? And what do you see as the key risks? Also, if you can talk about some typical use cases that you're seeing for this loan book expansion, especially on the digital bank side, that would be helpful.

Thanks, Divya. Yes. In general, the Mart business has a lower margin than the food deliveries at this point. But of course, that's a lot because of the speed of growth. And also because the dynamic with the FMCG advertisers is such that we get more valuable to them, the larger we are. So although we have a lot of interest from efficacy advertisers, I think we're relatively small compared to some other venues still in terms of commerce in general. And therefore, it's important that we continue this growth. And I think that's where you start to see improved margin on the Grab Mart side.

In terms of Indonesia, I can confirm Indonesia continues to grow strongly again for us. Our deliveries business in Indonesia grew in the high teens in this year-on-year for this past quarter. So although the margin is stable, we're actually able to generate a lot of growth from that situation. And like I was just saying, we feel that it's important to get larger in order to really realize the full opportunity from the Mart business.

In other markets, for example, Malaysia, we've already -- of around 4%, and that's where we're starting to experiment with some of these other models around Instant Commerce, as I mentioned earlier because there, we can generate a lot more growth from entering into these adjacent markets based on the asset configuration that we have with Gyros doing very, very well in Malaysia, for example. So there are some differences across markets. You're absolutely right. But we're adopting a portfolio approach. So we're making sure we achieve our margin targets not just across different countries, but also across the verticals so that we can produce this kind of high growth but also maintain our margin progression towards those long-term targets that we've shared with you over the past quarters and years.

Moving to Financial Services. Yes, we're coming now towards our breakeven year. I can confirm that we are reiterating that we will break even overall as a segment in the second half. So it's a combination of banks and GFN and that the banks will break even in the fourth quarter. The milestones really relate to loan disposal growth, which, as you can see, is accelerating now through this annualized run rate of $3.5 billion in this current quarter. We started to see that the credit models are maturing nicely. We now have flexi loan products available for consumers in all 3 of the bank markets. We've just launched also a flexi loan product through our non-bank financial company in the Philippines, just in this last quarter. So we are able also to serve personal loan needs in other parts of the region beyond where we have those 3 banks using GFN as the vehicle.

We can share expertise about the credit modeling across those countries, which has proven to be very, very successful. As I said, we are really a data science company. So the way in which those models advance is super important to us.

You can see that EBITDA can fluctuate as the ECLs flow through the P&L and into the balance sheet. So I think the key thing to watch there is that the segment adjusted EBITDA excluding the credit loss provisions is continuing to improve. So that gives us line of sight and confidence that we're going to hit those breakeven targets. So the key thing for you to watch is the loan dispersal growth. We are seeing operating leverage on the cost base, too. So we're confident that we can continue to manage the cost very tightly going into 2026.

In terms of U.S., I think the last part of your question was asking about the different use cases. We are serving on the SME side, we're serving merchants that are on the Grab ecosystem. So we have tremendous line of sight of cash flows. And therefore, the credit models have a unique advantage relative to a conventional bank that wouldn't have line of sight of those cash flows. So small businesses will be a big focus for us. The unbanked and underbanked as I mentioned, particularly gig workers were able to finance them very, very accurately. And you can see that -- well, I think we've said that the risk-adjusted returns from our lending activities are actually comfortably above our cost of capital, and they remain above that. And even as we grow at these rates, in fact, the returns improved slightly quarter-on-quarter. So we are continuing to grow very rapidly, but at the same time within the risk appetite that we've set for ourselves because of the performance of these credit models.

I hope that helps in terms of some scenarios where we can provide unique capabilities to help the progress of Southeast Asia by bringing the -- bringing more and more people into the financial inclusion sphere.

And your final question comes from the line of Jiong Shao Jan Shao with Barclays.

Great. And congrats on a very strong set of results. So first question is really the follow-up on the previous 1 on the food margins. I think in the last quarter, you talked about Q4 delivery margins should be up sequentially from Q3. I want to confirm that's still the case, but more importantly, looking into 2026, just want to get a better understanding on the sort of the pace of the margin expansion for the food business? And what are some of the factors may kind of make it faster or slower in terms of expanding the margins for the delivery business for '26.

And my second question is around another way to monetize the delivery business. I think a couple of quarters ago, you may have talked about some of your thoughts around in-store kind of newer monetization, I recall you might have mentioned something to stop at these trials in '26. I was just wondering if there's any update around that? What may be the sort of the modality around that type of in-store monetization.

Jon, let me take the food margin question that you asked about. The way we approached deliveries is a portfolio play. And Alex kind of alluded also earlier when he answered the question to Divya. So as you know, the portfolio of delivery product is quite broad and quite wide competitive to say to our mobility business. So if you look at it, we have the food business, and we have the MAT which is a composite of the grocery business, but also there are some other parts of the non-grocery that we also serve there. We also have other forms of food products that we have, things like group orders. We have also dine out those omni commerce product features that we've also deployed in the marketplace. So it's a real broad portfolio.

So the way we think about it is the margins that you'll see in our overall deliveries is better to look at it as an overall deliveries business. It continues to be optimized. Now there will be times from quarter-to-quarter where we will invest and lean in into -- in adopting a product or when there's a product launch, and you've seen that in the previous quarters. But overall, food margin as our core business today continues to see improvement overall, which is exactly what we want to see because it's the most mature is about all deliveries, portfolio of products today.

Where we are starting to invest also and also scale is in the area of grocery delivery or mart liberties that we've spoken a lot about is still underpenetrated. It's 10% from our overall deliveries business. We also have other products that we're pushing. If you look at our -- the cross-selling that we're doing also across our different footprint and mark products also, it continues to increase. And we want to see more adoption of those other products that we've introduced from the beginning of this year. So as a strategy overall, it's a portfolio play. You'll see that we'll -- as a mixture of portfolio, those margins will be pretty much on an upward trajectory, but the mix between those margins will change quite a fair bit because again, the way that we're just on strategy in terms of scaling our deliveries business, that growth that you're seeing is a combination of those factors that you see on our portfolio play.

At the same time, also as the countries in each of our countries also continue to execute, you'll see also the margin profile of those countries also looks somewhat a little bit also from our portfolio, different from country to country as we put on the gas on certain things, and we pull back on certain things also at the same time. So -- but overall, the trajectory is moving up in the right direction. It's a portfolio that you'll see and the monetization that comes with that also becomes really critical. And that's where Mark asked the question on Divya on advertising also is really important because the advertising piece is a wrapper that goes around our deliveries play, which is really critical. And we're bringing in more and more advertisers on the platform itself.

So I hope that gives you a bit of a clarity. We don't do any in store. We don't have any in-store in terms of off-line retail or anything upside except for the Jia portfolio that we have in the supermarket business. We do have certain gray stores that we use today, which is really important. But in terms of how we work with the off-line retailers, especially is in the area of making sure we're bringing in more traffic to our food merchants. So the dine out that we do today brings today the -- all the ingredients for a user to transact from an online grab app to an off-line experience, whether it's through the in-store dining that we serve today, where they're also the reservation system that we're using now on the graph app also that omnicommerce play becomes really important in terms of monetization, but also our merchants are also continuing to increase their earnings and traffic at the same time.

That concludes today's question-and-answer session. I will now turn the call back to Peter for closing remarks.

Well, thanks very much, everyone, for dialing into the call. We always appreciate your time. Anthony, Alex and I would like to express all our appreciation to -- especially through our driver community all our merchant partners and also to our users and shareholders for their continued trust on all of our herein grab. I also want to thank you to all app team were a great quarter. Thank you all, and we're looking forward to closing the year stronger than ever. We'll be on the road together with the IR team, Ken, Doug and I -- we'll do our usual hitting the road, bringing the pavements. So we'll be attending various IR conferences across Europe, the U.S. and Hong Kong and Singapore over the next coming weeks. So if you wish to meet up, please just reach out to the IR team. We would love to see you in person. Until then, we'll speak at the next quarter earnings. Thanks, everyone.

This concludes Grab's Third Quarter 2025 Earnings Conference Call. Thank you for your participation. You may now disconnect.