Southeast Asia’s Grab Holdings will repurchase up to $400 million worth of shares over the next four months, deploying most of a $500 million buyback programme approved by its board in February.
In a statement, the Nasdaq-listed ride-hailing and delivery company said it entered into a $250 million accelerated share repurchase agreement with JPMorgan Chase Bank and a contingent forward purchase agreement worth up to $150 million with Morgan Stanley.
Under the accelerated share repurchase, Grab will pay $250 million upfront and receive an initial delivery of about 54.9 million Class A ordinary shares, or around 80% of the total shares expected to be repurchased based on the stock’s last closing price.
The final number of shares under that deal will be determined by the volume-weighted average price of Grab shares over the term of the agreement, minus a customary discount, per the announcement.
The transaction is expected to be completed by the second quarter of 2026. The repurchases will be funded from existing cash reserves, Grab said.
“The $250 million accelerated share repurchase and up to $150 million contingent forward purchase reinforce our commitment to providing sustainable, long-term value to shareholders,” said Peter Oey, chief financial officer of Grab.
He added that Grab saw the “current share price dislocation as a clear opportunity to enhance shareholder value,” while pointing to what he described as a strong business performance and confidence in the company’s long-term growth trajectory.
Under the contingent forward purchase agreement, Grab may acquire additional Class A shares, with the total amount capped at $150 million.
The number of shares eventually bought will depend on the company’s share-price performance during the contract period, with settlement scheduled for July 2026, Grab said.
Following completion of the two transactions, Grab will have used $400 million of the $500 million authorisation, leaving $100 million available for further repurchases.
“Our trajectory toward our 2028 $1.5 billion Adjusted EBITDA and 80% Adjusted Free Cash Flow conversion targets also underscores the operational leverage we are now realising,” Oey said.
Grab said it had gross cash liquidity of $7.4 billion and net cash liquidity of $5.4 billion as of Dec. 31, 2025, which Oey said would allow the company to keep “a disciplined approach to capital allocation” while investing in growth and returning excess cash to shareholders.
The share buyback comes as Grab hit a long-awaited milestone in 2025, closing the year in the black.
The Nasdaq-listed company reported a net profit of $200 million for the year ended December 31, 2025, reversing a $158 million loss in 2024. Revenue rose 20% year-on-year to a record $3.37 billion, while adjusted EBITDA jumped 60% to $500 million. Adjusted free cash flow was 58% of adjusted EBITDA at $290 million by the end of the year.
In the fourth quarter alone, Grab posted a profit for the period of $153 million, up from $11 million a year earlier, as revenue climbed 19% to $906 million. On-demand gross merchandise value (GMV) grew 21% to $6.1 billion.
Deliveries remained Grab’s largest business in 2025, while financial services was the fastest-growing segment, albeit from a smaller base.
Over the next three years, the company is targeting 20% compound annual revenue growth and $1.5 billion in adjusted EBITDA by 2028, with adjusted free cash flow conversion of 80%.
On Monday, Grab announced that it has reached an agreement to acquire Delivery Hero’s foodpanda business in Taiwan for $600 million in cash.
The deal, conducted on a cash-free and debt-free basis, marks Grab’s expansion into its ninth market and its first territory outside of Southeast Asia.
