Since 2023 Q1 Grab has taken gross margin from 29.14% to 43.35%, held revenue growth inside a +18% to +24% band for five straight quarters, and crossed into GAAP profit. Over the same five quarters its free cash flow ran +$57M, +$55M, −$154M, +$23M, −$69M. The first two facts are a turnaround; the third is the half of the Rule of 40 this site is built on, and it has not settled on a side of zero.
Grab reports Q2 2026 after the US close tonight, Monday, August 3 — a date the company confirmed on July 8, not an estimate. It is also the first company on our never-covered list — the ten we named last week — to get an article, which means the record comes before the opinion. Here is what our data holds going in.
The record
| Quarter | Revenue | Revenue YoY | Gross margin | Free cash flow | FCF margin |
|---|---|---|---|---|---|
| 2025 Q1 | $773M | +18.4% | 41.91% | $57M | 7.4% |
| 2025 Q2 | $819M | +23.3% | 43.22% | $55M | 6.7% |
| 2025 Q3 | $873M | +21.9% | 43.76% | −$154M | −17.6% |
| 2025 Q4 | $906M | +18.6% | 43.82% | $23M | 2.5% |
| 2026 Q1 | $955M | +23.5% | 43.35% | −$69M | −7.2% |
Two of these five columns tell a good story, and one tells a harder one.
What is genuinely working
Revenue growth is steady, not spectacular, and it is holding — five quarters in a tight +18% to +24% band, with the most recent quarter (+23.5%) at the top of that range rather than the bottom. There is no deceleration staircase here of the kind we flagged at Hims; Grab's growth line is roughly flat and roughly healthy.
The quieter, more impressive number is gross margin. Go back to the start of the series and Grab's gross margin was 29.14% in 2023 Q1. It is 43.35% now — better than fourteen points of expansion, from a business that was famous for burning money to acquire riders and drivers. That is the operational story: a Southeast-Asian super-app that has actually learned to keep more of each dollar of revenue.
Earnings followed, if barely. Grab's diluted EPS series ran negative through most of 2024, then held at $0.01 for four straight quarters, then reached $0.04 in 2025 Q4 — the best print in the file. One caveat we will not paper over: our EPS series stops at 2025 Q4, so we do not hold a 2026 Q1 figure, and we are not going to invent one to complete the sentence.
The metric we are named after
This is a Rule of 40 site, and the Rule of 40 is revenue growth plus free-cash-flow margin. For Grab, the first half is fine and the second half is the problem.
Look at the free-cash-flow column above and the honest word is volatile: +$57M, +$55M, −$154M, +$23M, −$69M. It swings from meaningfully positive to sharply negative and back inside five quarters, and the two most recent data points straddle zero, with the latest below it. So even with revenue growth around 23.5%, a negative FCF margin drags Grab's Rule of 40 well under the line the site is built around — the operational improvement in gross margin has not yet turned into durable cash generation.
That is the tension a first-time reader should carry into the print: a top line growing in the low-20s and a gross margin that tripled off its 2023 floor, sitting on top of a cash-flow line that has not decided which side of zero it lives on.
What to watch tonight
These are open questions, not forecasts — we are not publishing an expected revenue or EPS number, because we hold no consensus figure we can source.
- Whether free cash flow strings two positive quarters together. The single most useful thing this print could do for our score is post a second consecutive positive FCF quarter, which the series has not managed since early 2025. One more −$69M and the volatility is the story.
- Whether gross margin holds ~43%. It has plateaued in the low-40s for a year after tripling off 29%. Another leg up would be the signal; a slide back toward the 30s would undercut the whole operational thesis.
- Whether revenue growth stays in the low-20s. +23.5% is the top of the recent band. A print that holds there says the growth is durable; a drop toward the high-teens would make 2026 Q1 look like the peak.
- A 2026 Q1 EPS figure to close our own gap. Our EPS series ends at 2025 Q4's $0.04; the release will carry the quarter we are missing.
The bottom line
For a first article, the fair verdict is a split one. Grab has done the hard part of the turnaround that is visible in the accounts — growth held in the low-20s, gross margin up fourteen points, GAAP profit reached. What it has not yet shown is the part this site cares about most: that the improved economics convert to cash reliably rather than in every other quarter. Tonight the number to watch is not the top line, which has been dependable, but the free-cash-flow line, which has not.
Figures are from our stored Grab series, which runs through 2026 Q1 for revenue, gross margin and free cash flow, and through 2025 Q4 for diluted EPS. Growth rates and free-cash-flow margins are our own arithmetic on those series; free cash flow is operating cash flow minus capital expenditure, the same definition applied to every company on this site. We hold no consensus revenue or EPS estimate for Grab, so none is quoted above.