Uber Posts Record Growth But Misses Wall Street Targets

Uber Technologies Inc. kicked off 2026 with a whirlwind of news, releasing its fourth quarter and full-year 2025 financial results on February 4, 2026, alongside a surprise executive shakeup and a candid look at the company’s evolving future. While the ride-hailing giant posted record-breaking numbers in several key areas, investors reacted skittishly to missed profit expectations and mixed guidance, sending Uber’s stock price tumbling in early trading, as reported by Dow Jones.

Uber’s fourth quarter numbers paint a picture of a company firing on all cylinders. According to Business Wire, quarterly trips soared by 22% year-over-year, reaching a staggering 3.8 billion rides and deliveries. The company’s base of Monthly Active Platform Consumers grew 18%, and each user took 3% more trips on average—a sign that Uber’s ecosystem is becoming stickier for its users. Gross Bookings, a measure of the total value of rides and deliveries booked through the platform, also jumped 22% to $54.1 billion, while revenue climbed 20% to $14.4 billion.

Uber CEO Dara Khosrowshahi didn’t hold back his enthusiasm, stating, “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.” He added, “We enter 2026 with a rapidly growing topline, significant cash flow, and a clear path to becoming the largest facilitator of AV trips in the world.”

Profitability metrics also impressed. The company’s GAAP income from operations more than doubled, up 130% year-over-year to $1.8 billion. Adjusted EBITDA—a closely watched measure of core profitability—grew 35% to $2.5 billion, representing a margin of 4.6% on gross bookings, up from 4.2% in the prior year. Net cash provided by operating activities reached $2.9 billion for the quarter, with free cash flow at $2.8 billion. Uber ended 2025 with $7.6 billion in unrestricted cash, cash equivalents, and short-term investments.

Zooming out to the full year, Uber’s growth story remains robust. Total trips for 2025 hit 13.6 billion, up 20% from 2024. Gross bookings reached $193.5 billion, a 19% increase, and revenue rose 18% to $52.0 billion. The company’s GAAP income from operations nearly doubled to $5.6 billion, while adjusted EBITDA for the year grew 35% to $8.7 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,” outgoing CFO Prashanth Mahendra-Rajah commented, calling Uber “a once-in-a-generation company with enormous opportunity still ahead.”

Yet, the financial celebration was tempered by a forecast that didn’t quite meet Wall Street’s lofty expectations. For the first quarter of 2026, Uber anticipates gross bookings between $52.0 billion and $53.5 billion—translating to 17% to 21% year-over-year growth on a constant currency basis. Non-GAAP EPS is projected between $0.65 and $0.72, signaling 37% growth at the midpoint, and adjusted EBITDA is forecasted between $2.37 billion and $2.47 billion. Despite these healthy numbers, analysts and investors had hoped for even more, especially given Uber’s recent momentum. As a result, the company’s shares slid after the earnings release, as noted by Dow Jones.

Adding to the day’s drama, Uber announced a major leadership change at the top of its finance team. Prashanth Mahendra-Rajah, who has served as CFO for less than three years, will step down from his post on February 16, 2026, though he’ll remain as a senior finance adviser through July 1. Stepping into the CFO role is Balaji Krishnamurthy, a six-year Uber veteran and current vice president of strategic finance and investor relations. Krishnamurthy is well known within the company—and among industry watchers—as a vocal proponent of driverless vehicle technology, an area Uber continues to bet on heavily.

In a statement, Krishnamurthy expressed confidence in Uber’s trajectory: “After five years of 20%+ growth, we are entering 2026 with strong momentum, while remaining solidly on track to deliver on our three-year growth and profit outlook. With large and growing free cash flows, over the coming years we will invest with discipline across a multitude of opportunities, including positioning Uber to win in an AV future.”

The timing of Krishnamurthy’s promotion did not go unnoticed. As Bloomberg reported, his appointment signals Uber’s ongoing commitment to autonomous vehicles, a sector that remains both tantalizing and fraught with uncertainty. Robo-taxis and AV trips are seen as a potentially transformative force for Uber’s business model, promising lower costs and higher margins—but the technology is still maturing, and regulatory and public acceptance hurdles remain.

Uber’s results by business segment offer further insight into its strengths and challenges. Mobility—the company’s core ride-hailing business—saw gross bookings rise 20% to $27.4 billion in Q4 2025, while Delivery (think Uber Eats) surged 26% to $25.4 billion. Freight, however, was a rare soft spot, with gross bookings down 1% year-over-year. Revenue followed a similar pattern: Mobility up 19%, Delivery up 30%, and Freight essentially flat.

Across the board, Uber’s segment profitability improved. Mobility’s adjusted EBITDA increased 25% to $2.2 billion, Delivery’s jumped 40% to $1.0 billion, and even Freight, despite its booking dip, narrowed its operating loss. Corporate costs and platform R&D expenses rose 16%, reflecting ongoing investment in technology and infrastructure.

The company’s balance sheet remains solid, with total assets climbing to $61.8 billion by year-end and total equity rising to $27.9 billion. Uber’s free cash flow for 2025 hit $9.8 billion, up 42% from the prior year, underscoring its ability to fund new initiatives without tapping external capital.

Still, Uber’s leadership was careful to temper expectations. The company’s earnings release included the usual slate of forward-looking statements, cautioning that actual results may differ due to risks ranging from competition and regulatory changes to macroeconomic factors like inflation and interest rates. Uber’s management also highlighted the limitations of non-GAAP financial measures, urging investors to consider them alongside traditional GAAP metrics.

For those eager to dig deeper, Uber held a live webcast of its earnings call on the morning of February 4, offering investors and analysts a chance to quiz executives on everything from financial strategy to the future of autonomous vehicles.

As Uber heads into 2026, the company finds itself at a crossroads—balancing impressive growth, a changing leadership team, and the tantalizing but uncertain promise of driverless technology. Investors and industry watchers alike will be keeping a close eye on whether Uber can maintain its momentum and deliver on its ambitious vision in the months ahead.