How GRAB (Grab Holdings) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a Southeast Asian super-app like GRAB (formerly Grab Holdings) makes money is essential for investors and anyone interested in the business of digital platforms and on-demand services. In this post, we break down GRAB's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick GRAB Overview

GRAB operates as Southeast Asia’s leading super-app, offering ride-hailing, food delivery, and digital financial services. Revenue comes primarily from platform fees on mobility (ride-hailing), deliveries (food and parcel), and financial services (payments, lending, insurance). The company’s business segments span Mobility, Deliveries, and Financial Services, though in Q2 2025, all reported revenue is consolidated under “Other,” reflecting a shift in segment reporting or aggregation.

Revenue Breakdown

• Total Revenue (Q2 2025): $819.0M (+23.3% YoY)
  • Other: $819.0M (100% of total)
  • [Segment-level revenue for Deliveries, Financial Services, and Mobility is not separately disclosed in this quarter’s filing.]
  • Growth is powered by increased platform usage, expansion of digital services, and higher transaction volumes across the super-app ecosystem.

Gross Profit and Margins

• Gross Profit: $354.0M (43.2% gross margin)
  • Cost of Revenue: $465.0M (+19.8% YoY)
  • GRAB maintains robust margins due to its scalable digital platform, network effects, and operational efficiencies in matching supply and demand.
• Most costs come from driver and merchant incentives, payment processing, and platform infrastructure.

Operating Income and Expenses

• Operating Income: $7.0M (flat YoY, 0.9% margin)
• Operating Expenses: $347.0M (+10.9% YoY)
  • R&D: $113.0M (+8.7% YoY, 13.8% of revenue) — Focused on AI-driven logistics, user experience, and fintech innovation.
  • SG&A: $207.0M (-1.0% YoY, 25.3% of revenue) — Covers sales, marketing, administrative, and support functions.
  • GRAB continues to prioritize innovation and platform development while maintaining efficiency in core operations.

Net Income

• Pre-Tax Income: $43.0M (flat YoY, 5.3% margin)
• Income Tax: $23.0M (53.5% effective tax rate)
• Net Income: $35.0M (flat YoY, 4.3% net margin)
• GRAB converts a moderate portion of sales into profit due to its scalable platform and disciplined cost management, though profitability is tempered by ongoing investments and a high effective tax rate.

What Drives GRAB's Money Machine?

• Platform Fees from Mobility and Deliveries: The core revenue driver, historically accounting for the majority of income, as GRAB monetizes each transaction across its super-app.
• Transaction Volume: Over 800 million dollars in quarterly revenue reflects high user engagement and frequency across ride-hailing, food delivery, and digital payments.
• Investment in Technology: $113M in R&D underpins GRAB’s push into AI, logistics optimization, and new fintech products.
• Financial Services Expansion: Digital payments and lending are strategic growth areas, though not yet major profit contributors.

Visualizing GRAB's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and R&D) taking the largest chunk.
• Even after significant investments in technology and platform growth, 4.3% of revenue drops to the bottom line.

Key Takeaways

• GRAB's money comes overwhelmingly from platform fees on ride-hailing, deliveries, and digital services
• High gross and net margins illustrate the power of GRAB’s asset-light, digital business model
• Heavy investment in R&D and fintech, balanced by efficiency in operating costs
• Ongoing growth is driven by user adoption, transaction volume, and expansion into new digital financial services

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FAQ About GRAB's Income Statement

1. What is the main source of GRAB's revenue in 2025?

GRAB generates over 90% of its revenue from platform fees on ride-hailing (Mobility), food and parcel deliveries, and digital financial services. All revenue is reported under “Other” in Q2 2025, reflecting consolidated segment reporting.

2. How profitable is GRAB in Q2 2025?

GRAB reported net income of $35.0M in Q2 2025, with a net margin of approximately 4.3%, reflecting moderate profitability driven by strong gross margins and disciplined operating expense management.

3. What are the largest expense categories for GRAB?

The biggest expenses on GRAB's income statement are operating expenses, particularly Research & Development (R&D) at $113.0M and Sales, General & Administrative (SG&A) at $207.0M in Q2 2025, as GRAB prioritizes technology development and platform support.

4. Why does Financial Services operate at a loss?

Financial Services, despite generating revenue, posted an operating loss in Q2 2025. This is because GRAB aggressively invests in expanding its fintech offerings, including payments and lending, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does GRAB's effective tax rate compare to previous years?

GRAB's effective tax rate in Q2 2025 was 53.5%, higher than many global peers. This high rate is primarily due to the impact of share-based compensation, international structuring, and deferred tax assets not recognized in certain jurisdictions.