Uber posted strong third-quarter results with 20 per cent revenue growth and a 33 per cent jump in adjusted EBITDA, though rising costs and a cautious fourth-quarter outlook weighed on investor sentiment.
BNN Bloomberg spoke with David Lara, senior equity research analyst at Punto Casa de Bolsa, about Uber’s strong fundamentals, delivery expansion and the challenges posed by higher administrative expenses and tightening margins.
Key Takeaways
- Uber’s revenue rose 20 per cent year over year to US$13.5 billion, driven by growth in both Mobility and Delivery.
- Adjusted EBITDA reached US$2.3 billion, up 33 per cent from a year earlier, as cash flow hit a record US$2.2 billion.
- Delivery revenue surged 29 per cent, while Europe and the Middle East saw 30 per cent growth amid new partnerships.
- G&A expenses rose 88 per cent year over year, mainly due to compliance and legal costs, pressuring margins.
- Uber guided for continued double-digit growth in Q4, with EBITDA expected between US$2.41 billion and US$2.51 billion.
Read the full transcript below:
ANDREW: Uber posted a pretty good quarter, but the ride-hailing giant seems to have worried investors with its fourth-quarter profit forecast. The midpoint of the range trails the average estimate. Let’s get more from David Lara, senior equity research analyst at Punto Casa de Bolsa. Thank you very much for joining us, David. What was your reaction to these Uber numbers and forecasts? The Street seems a little worried.
DAVID: Yeah, our line is that it was a strong quarter. Gross bookings and revenue came in ahead of our expectations. However, there’s something with the margins that’s concerning the market. We can see it in the pre-market, so I think that’s the main concern. General and administrative expenses have nearly doubled, and that’s made the market nervous.
ANDREW: Broadly, maybe we’ll put up a five-year chart for Uber. And I guess we should acknowledge this is a weak morning for tech stocks generally, so that may be accelerating the sell-off in the pre-market. What’s your take more broadly on Uber — are you bullish on the name?
DAVID: Yeah, I’m still bullish. The fundamentals remain solid. One of the main concerns was the delivery sector in recent quarters. It has been the value creator for the company, but with all the other consumer stocks, I was concerned about what to expect from the results. However, it stayed solid with strong growth year over year. So I think the main part of Uber’s revenue remains solid, and I stay bullish on the company.
ANDREW: Is that right that G&A expenses were up 88 per cent year over year? That sounds like a big rise.
DAVID: Yeah, mainly due to higher compliance and legal reserve charges, which impacted the operating margin. That margin only grew five per cent year over year, so it was severely affected. However, both of the main revenue drivers — delivery and mobility — grew at a good pace.
ANDREW: And they reported 3.5 billion trips year over year, up 22 per cent. I mean, that’s amazing — billions of people taking Ubers.
DAVID: Yeah. In the conference, they said that even though they operate at great scale, only 20 per cent of consumers use both mobility and delivery, and 30 per cent have never tried Uber Eats. So they still have significant runway for cross-platform growth, which could drive more expansion in the future.
ANDREW: And delivery too. You mentioned both pillars doing well — gross bookings of almost $50 billion. Can you give us a sense of whether most delivery business is still restaurants, or are people buying groceries and other items now?
DAVID: They’re collaborating in many markets, especially in Europe. They’ve partnered with local companies that have a stronger presence there — in both restaurants and groceries. So they’re expanding very well. In the last quarter, Europe and the Middle East grew about 30 per cent, so expansion is aggressive in those regions.
ANDREW: Your firm is based in Mexico City, and I know Uber is available there. Is it popular with you and other residents?
DAVID: Yeah, of course it’s popular. They’ve had some legal battles, mainly because they still can’t operate in all airports in Mexico. They’re working on that. Some of these legal issues are natural for a company like Uber, but they’re trying to resolve them.
ANDREW: And they’re not allowed to go to the airports — is that the taxi lobby trying to keep them out?
DAVID: Yeah, mainly it’s the taxi drivers’ associations that don’t want Uber to take part of their market share.
ANDREW: And finally, self-driving cabs — do you think we’ll all be riding in those within five years?
DAVID: Totally. They said at the conference just minutes ago that markets with deeper integration, like Atlanta, are showing stronger growth, reinforcing Uber’s belief that autonomy can be both a product and a broader lever. So I believe in autonomous.
ANDREW: David, thank you very much for joining us.
DAVID: Thank you for having me.
ANDREW: David Lara, senior equity research analyst at Punto Casa de Bolsa, an investment manager based in Mexico City.
---
This BNN Bloomberg summary and transcript of the Nov. 4, 2025 interview with David Lara are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
