$GRAB: Profitable growth keeps compounding — Q1 revenue +19%, operating margin +550 bps, net margin +1,540 bps

Grab delivered strong quarter. Revenue grew 18.6% YoY to $906M, with gross profit up 19.6% and gross margin expanding to 44%.

SG&A fell to 23% of revenue, down 750 bps YoY. R&D fell to 10% of revenue, down 210 bps YoY. Operating income reached $52M, up from near breakeven last year, with operating margin expanding to 6%.

Net income was $153M, up 1,291% YoY, and net margin reached 17%.

Growth is still healthy underneath the margin expansion.

Deliveries revenue grew 22.9% YoY. Mobility revenue grew 19.5% YoY. Deliveries GMV grew 24.9%. Mobility GMV grew 23.2%. MTUs increased 16% to 51.6M.

Segment EBITDA also shows better operating leverage.

Deliveries EBITDA grew 39.7%, with margin up 210 bps to 17%. Mobility EBITDA grew 24.5%, with margin up 240 bps to 59%. Financial Services remains loss-making, but margin improved sharply by 2,410 bps YoY.

The positive read-through: Grab is still growing GMV and users while taking costs down as a percentage of revenue. Margin expansion is not coming from revenue stagnation. It is coming alongside demand growth, better marketplace efficiency, advertising, financial services, and AI-driven optimization.

But, is FY26 guidance too conservative, or is management signaling pressure ahead?

Q1 revenue beat estimates, but FY26 revenue guidance of $4.07B sits slightly below the $4.10B estimate. EBITDA guidance of $710M is also below the $717M estimate.

Free cash flow margin was only 3%, down 2,660 bps YoY. Partner incentives rose 41.9%, faster than revenue. Share count increased 5.3% YoY, though the $400M accelerated buyback should help offset dilution.

Overall, $GRAB is showing a cleaner earnings profile: double-digit top-line growth, expanding margins, stronger segment profitability, and early signs of operating leverage in Financial Services.