Wolf Money(Grab 1Q 26 earnings call summary)

 

I sat through the half hour earnings call. Here are the summaries. 

The two main questions regarding Indonesia imposing an 8% maximum cap on riders’ fees and high fuel prices affecting their business.

The new fees cap are only specific targeting those 2 wheelers. It only affect 6% of their total mobility GMV. So far the 4 wheelers are unaffected by the rule change.

Questions on rising fuel were frequently discussed. The management is helping partners to convert into EVs, especially those markets without fuel subsidies, like Thailand and the Philippines. If those fuel prices continue to be high, the cost will be passed on to users. They will be most willing to help their drivers directly first. Passing on cost to users will be last resort. Through AI implementation across their businesses, it helps drivers and company managed costs through increase productivity. The management guides for costs to stay flat throughout the year. 

Grab Financial is gaining operating leverage. The arm is on track to achieve break even on ebitda basis by 2H of 2026. Credit losses are within expectations, they have been more prudent in dispersing out loans. The flat growth in deposits reflects the higher interest rate environment. Credit costs continue to improve. The units losses improved from USD -30m to USD -17m in first Q1

On M&A, Grab continues to be disciplined with M&A. They have a very high bar on targeted acquisition.

Management is forecasting ebitda of USD 700m to USD 720m for the full year. 

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