Uber shares tumble as Q4 earnings miss estimates

Investing.com -- Uber Technologies, Inc. (NYSE: UBER) reported fourth-quarter 2025 earnings that fell short of analyst expectations, sending shares tumbling more than 5% on Wednesday despite strong revenue growth and record cash flow generation.

The ride-hailing and delivery giant posted adjusted earnings per share of $0.71, missing the analyst consensus of $0.80 by 11%. Revenue came in at $14.4 billion, slightly above the $14.32 billion analysts had expected and representing a 20% increase from the same period last year. The company’s quarterly trips grew 22% YoY to 3.8 billion, while gross bookings rose 22% to $54.1 billion.

"Uber accelerated into another record-breaking quarter, with more than 200 million monthly users completing more than 40 million trips every day—our largest and most engaged consumer base ever," said CEO Dara Khosrowshahi in a statement.

Despite the earnings miss, Uber reported record quarterly operating cash flow of $2.9 billion and free cash flow of $2.8 billion, up 65% YoY. Adjusted EBITDA grew 35% YoY to $2.5 billion, with margin as a percentage of gross bookings improving to 4.6% from 4.2% in Q4 2024.

The company’s guidance for the first quarter of 2026 also fell short of expectations. Uber forecasts non-GAAP EPS of $0.65 to $0.72, below the analyst estimate of $0.75, though this still represents 37% growth YoY at the midpoint. Gross bookings are projected to be between $52.0 billion and $53.5 billion, representing 17% to 21% growth on a constant currency basis.

By segment, Mobility revenue increased 19% YoY to $8.2 billion, while Delivery revenue jumped 30% to $4.9 billion. Freight revenue remained flat at $1.27 billion.

"Our performance this year reflects the significant power of our platform strategy, with $193 billion in Gross Bookings and $10 billion in free cash flow," said CFO Prashanth Mahendra-Rajah, who is stepping down from his position.

Following the report, William Blair analysts stated that "2025 marks the fifth straight year Uber has grown gross bookings 20%-plus as the company accelerates growth in this metric for its second consecutive quarter."

"Fourth quarter 2025 was another solid execution quarter. Uber continues its momentum in adoption as it adds more customers during the fourth quarter of 2025 than any quarter post-COVID," added the firm. "The stock is down about 4% pre-market despite a good quarter, likely due to operating income being slightly below the Street and EPS missing due in part to negative income tax impacts. First-quarter EBITDA guidance is also slightly below the Street, along with EPS."

You May Also Be Interested In

• Morgan Stanley upgrades Robinhood, sees 43% upside
• IMAX Corporation (IMAX) Reiterated at Buy by StoneX: Potential for Upside to Q3 Estimates
• Agnico Eagle invests C$57M in Radisson Mining via private placement