Business

Uber Announces $20 Billion Share Buyback Programme

Uber Technologies, THE San Francisco-based multinational transportation company that provides ride-hailing services, courier services, food delivery among others, on Wednesday announced the authorisation of a $20 billion stock buyback.

Uber’s Chief Financial Officer Prashanth Mahendra-Rajah said that the announcement of a new $20 billion share repurchase authorisation underscores their confidence in the business, following yet another quarter of strong top and bottom-line performance.

“Our trailing twelve-month free cash flow hit a new all-time high of $8.5 billion and we remain committed to driving durable, profitable growth,” he added.

The company’s CEO Dara Khosrowshahi said that their platform strategy was working, with record audience, frequency, and profitability across Mobility and Delivery but they were still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.

Financial and Operational Highlights

Announcing the financial results for Q2 of 2025, the company said that trips during the quarter grew 18% y-o-y to 3.3 billion, driven by Monthly Active Platform Consumers (MAPCs) growth of 15% y-o-y and monthly Trips per MAPC growth of 2% y-o-y.

Gross Bookings grew 17% y-o-y to $46.8 billion, or 18% on a constant currency basis. Revenue grew 18% y-o-y to $12.7 billion, and 18% on a constant currency basis.

The company said that the income from operations grew 82% y-o-y to $1.5 billion and net income attributable to Uber Technologies was $1.4 billion, which includes a $17 million net headwind (pre-tax) from revaluations of Uber’s equity investments.

Adjusted EBITDA grew 35% y-o-y to $2.1 billion. Adjusted EBITDA margin as a percentage of Gross Bookings was 4.5%, up from 3.9% in Q2 of 2024. Net cash provided by operating activities was $2.6 billion and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $2.5 billion.

Unrestricted cash, cash equivalents, and short-term investments were $7.4 billion at the end of the second quarter, the company said.

Outlook for Q3

The company expects gross bookings of $48.25 billion to $49.75 billion, representing growth of 17% to 21% y-o-y on a constant currency basis. The outlook assumes a neutral to modestly positive FX impact to total reported y-o-y growth.

“As a reminder, our outlook includes the contribution from the close of the Trendyol Go acquisition; excluding this, our growth outlook would be 16% to 20% y-o-y on a constant-currency basis (consistent with the prior quarter).

Uber anticipates aAdjusted EBITDA of $2.19 billion to $2.29 billion, which represents 30% to 36% y-o-y growth.

Global Business Magazine

Recent Posts

UAE Unveils Landmark R&D Tax Incentive Framework to Boost Innovation Economy

New regime offers up to 50% tax relief, setting the stage for research-led growth and…

6 days ago

Dubai’s Bankers Assess Post-Conflict Reality as Economic Pressures Mount

Tourism slowdown, real estate stress, and financial volatility drive calls for policy intervention Nearly a…

7 days ago

Dubai Strengthens Supply Chain Resilience: Dubai Chambers, DP World & Dubai Customs Engage 100 Companies

In a strategic move to reinforce global trade resilience and enhance logistics efficiency, Dubai Chambers,…

1 week ago

Dubai Real Estate Sales Plunge Over 40% Amid Middle East Conflict, Investors Turn Cautious

Dubai’s once-booming real estate sector is witnessing a sharp slowdown, with property sales dropping by…

1 week ago

Dubai luxury property market brings developer sales of AED10.92 billion in March

Keturah analysis shows developer transaction volume climbed 42% YoY with a week of the month remaining…

1 week ago

ED Flags Indians Buying Dubai Property via Credit Cards: FEMA & RBI Rules Explained

In a significant regulatory development, the Enforcement Directorate (ED) has begun scrutinizing Indian residents who…

2 weeks ago