Key Takeaways:
Uber Technologies reported Q2 gross bookings of $58 billion, up 22% year over year and a fourth consecutive quarter above 20% growth, as Mobility, Delivery and Freight all advanced.
"The results give us the ability to continue investing from a position of strength across our priorities," Chief Executive Officer Dara Khosrowshahi said.
Revenue rose 12% to $14.2 billion, while non-GAAP EPS climbed 35% to 81 cents. GAAP EPS of $1.17 beat the consensus estimate by 41%. Trailing 12-month free cash flow exceeded $10 billion for the first time, and adjusted EBITDA rose 33% to $2.8 billion, a 4.9% margin on gross bookings.
Shares rose 6.5% after the results. Uber guided third-quarter gross bookings of $58.25 billion to $60.25 billion and non-GAAP EPS of 84 to 88 cents, below the consensus estimate of 90 cents.
Mobility gross bookings rose 22% to $29 billion, Delivery climbed 26% to $27.5 billion and Freight gained 25% to $1.6 billion. Trips rose 18% to 3.9 billion, with monthly active platform consumers up 16% to 208 million. Segment operating income reached $2.2 billion for Mobility and $1.1 billion for Delivery, while Uber for Business revenue grew 40%.
Uber is live with autonomous vehicles in seven cities and targets 15 by year-end, with launches including Nuro and Lucid in the Bay Area, Zoox in Las Vegas and Wayve in London and Tokyo. The company outlined a multiyear plan to invest about $10 billion in the AV ecosystem, with commitments involving as many as 120,000 vehicles. CFO Balaji Krishnamurthy said for every dollar Uber has invested in partners, those partners have raised an additional $2.50 from other investors.
Mobility revenue margin fell nearly 500 basis points year over year, with about 400 basis points tied to a U.K. business-model change that moved costs into cost of revenue. Uber reported softness in Brazil mobility trips as food-delivery rivals DiDi Food and Meituan compete for two-wheeler supply, though the company said it held share there.
Uber repurchased about $3.5 billion of stock in the first half, shifting capital toward M&A in the second quarter with about $4 billion deployed to acquire Delivery Hero shares. The Delivery Hero deal, expected to close in the second half of 2027, will expand Uber's reach to nearly 100 markets and roughly double the number of markets offering both mobility and delivery.
The guidance raise points to management's expectation that demand will hold through the World Cup-boosted summer. Investors will watch the Delivery Hero integration timeline and AV deployment economics on the next earnings call.
This article is for informational purposes only and does not constitute investment advice.
