Grab’s US$235M ‘profit’ headline hides a biz still burning cash where it matters most

Grab's projected US$235 million profit for Q2 2026 appears impressive, but a closer look reveals a company still burning cash where it matters most. The bulk of that profit is due to a one-time gain from consolidating Indonesia's Superbank onto its balance sheet, and a favorable tax movement. Operating profit, which reflects the money made from core businesses like deliveries, mobility, and financial services, was a paltry US$19 million on US$997 million revenue - margin under 2%.

Even Grab's own fine print acknowledges this is a one-time accounting trick and profits for the second half are expected to be more variable. Moreover, a substantial US$307 million gain from financial assets was partially offset by a US$183 million loss, largely due to revaluing US$1.5 billion convertible notes. The company is allegedly spending more on incentives (US$706 million) to maintain growth, but this could be a sign of reliance on subsidies rather than operational efficiency.

Grab's fintech arm remains unprofitable, with losses primarily driven by expected credit losses at its loan portfolio, which has doubled year-on-year. Operating cash flow fell year-on-year, suggesting momentum is stalling despite a respectable trailing-twelve-month free cash flow figure. The company's decision to authorize another US$750 million in share repurchases raises questions about whether this is the best use of cash for a business with persistent financial service losses and mounting loan defaults.