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Uber (UBER) reported robust 2Q25 earnings, with adjusted EBITDA surging 35% yr/yr to a record $2.1 bln, hitting the high end of its guidance range, while Gross Bookings rose 18% in constant currency to $46.8 bln, aligning with prior expectations. The company also announced an ambitious $20 bln share repurchase program, signaling strong confidence in its ride-hailing and delivery businesses, underpinned by a record trailing 12-month free cash flow of $8.5 bln. Despite these bullish developments, UBER is selling off sharply, driven by profit-taking after a strong run (shares are up 48% year-to-date) and investor concerns about the potential earnings impact of its aggressive autonomous vehicle strategy, which could disrupt driver-based revenue models in the long term.

• Trip growth remained a key strength, with 3.3 bln trips completed in Q2, up 18% yr/yr, reflecting robust consumer engagement across UBER’s platform. CEO Dara Khosrowshahi emphasized sustained consumer strength, stating no visible demand weakness, and projected even stronger trip growth in Q3. This optimism is reflected in UBER’s Q3 Gross Bookings guidance of $48.25-$49.75 bln, implying 17-21% yr/yr growth in constant currency, signaling continued momentum in both Mobility and Delivery segments despite macroeconomic uncertainties.
• The Mobility segment delivered $20.55 bln in Gross Bookings, up 18% in constant currency, driven by market share gains against competitors like Lyft (LYFT) and increased demand for high-margin trips, such as airport transfers. Strength in premium offerings, including Uber Black and Uber Comfort, along with growing adoption of Uber One memberships (36 mln members contributing over 40% of combined Mobility and Delivery Bookings), bolstered profitability. Enhanced driver supply and platform improvements, like Rider Verification, further supported trip frequency and service reliability.
• The Delivery segment posted $18.13 bln in Gross Bookings, up 20% in constant currency, fueled by UBER’s expansion into new verticals like grocery and retail, which now account for a growing share of Delivery revenue. Despite intense competition from DoorDash (DASH) and macroeconomic pressures, the segment’s resilience was evident, with Adjusted EBITDA margins improving to 2.8% from 1.7% a year ago, driven by higher advertising revenue and better cost leverage from increased order volumes. UBER’s platform integration, including cross-promotion via Uber One and a unified app experience, has deepened consumer engagement.
• Adjusted EBITDA growth of 35% to $2.1 bln was propelled by improved operating leverage, with the Adjusted EBITDA margin expanding to 4.5% of Gross Bookings from 3.9% a year ago, reflecting disciplined cost management and higher-margin trip growth. For Q3, UBER guided to Adjusted EBITDA of $2.19-$2.29 bln, implying 30-36% yr/yr growth, driven by continued scale in Mobility and Delivery, enhanced by Uber One’s cross-platform engagement and advertising revenue growth. Investments in technology and platform integration, alongside a focus on premium services, are key to sustaining profitability, though AV development costs remain a potential headwind.

UBER’s strong Q2 performance and confident Q3 outlook underscore its ability to drive profitable growth at scale, bolstered by both its Mobility and Delivery segments and a massive $20 bln share repurchase program. However, the stock’s post-earnings selloff reflects a sell-the-news reaction as investors lock in gains and weigh the long-term implications of Uber’s robotaxi ambitions.