Uber Q1 2025 earnings: Net Income hits $1.8bn as free cash flow soars 66%

How Did Uber Perform Financially in Q1 2025?

Uber Technologies, Inc. (NYSE: UBER) reported a strong set of results for the first quarter of 2025, with notable gains in profitability and cash flow generation. Total revenue grew 14% year-over-year to $11.5 billion, while gross bookings reached $42.8 billion, reflecting an 18% increase on a constant currency basis. The company delivered net income of $1.8 billion, reversing a net loss of $654 million in the same period a year earlier. This improvement included a $51 million pre-tax benefit from revaluations of Uber’s equity investments, in contrast to a $721 million headwind in Q1 2024.

Adjusted EBITDA climbed 35% year-over-year to $1.9 billion, representing a margin of 4.4% on gross bookings, up from 3.7% in the prior-year quarter. Net cash provided by operating activities grew 64% to $2.3 billion, and free cash flow surged 66% to $2.25 billion. These results indicate continued success in Uber’s push for profitable scale and capital efficiency.

Which Segments Drove Uber’s Q1 Growth?

The Mobility segment maintained its leadership position, generating $21.2 billion in gross bookings and $6.5 billion in revenue—growing 13% and 15% year-over-year, respectively. On a constant currency basis, Mobility bookings rose by 20%, indicating broad geographic demand strength. Segment adjusted EBITDA for Mobility grew 19% to $1.75 billion.

The Delivery segment also performed strongly, with bookings of $20.4 billion and revenue of $3.78 billion, marking growth of 15% and 18% respectively. Delivery’s adjusted EBITDA rose 45% year-over-year to $763 million, driven by efficiency gains and platform expansion.

However, the Freight segment experienced a decline, with gross bookings down 2% to $1.26 billion and revenue falling slightly to $1.26 billion. Freight’s adjusted EBITDA improved from a $21 million loss to a $7 million loss, reflecting gradual cost optimisation in a subdued logistics environment.

Monthly Active Platform Consumers (MAPCs) grew 14% to 170 million, while trips increased 18% year-over-year to 3.0 billion. These figures underscore Uber’s continued platform engagement and network effect advantages.

What Is Uber’s Q2 2025 Guidance?

Uber forecasts Q2 2025 gross bookings in the range of $45.75 billion to $47.25 billion, suggesting 16% to 20% year-over-year growth on a constant currency basis. Management expects a 1.5 percentage point FX headwind overall, and a 3 percentage point headwind to Mobility growth.

Adjusted EBITDA for Q2 is projected between $2.02 billion and $2.12 billion, representing growth of 29% to 35% over the prior-year quarter. These targets reflect management’s confidence in sustained operating leverage, supported by ongoing user activity and cross-platform engagement.

How Is Uber Investing in Technology and Future Readiness?

Uber CEO Dara Khosrowshahi pointed to the company’s growing focus on next-generation technology, including autonomous vehicles. He referenced five new self-driving-related announcements made in the past week, although specific partnership or operational details were not provided in the earnings release. These investments signal Uber’s longer-term vision to reduce dependence on human-driven vehicles and redefine urban transport efficiency.

The company also continues to deploy artificial intelligence across pricing, delivery logistics, and customer service functions. These tools are aimed at enhancing user experience while improving cost structure. As Uber further automates key processes, it positions itself as not just a mobility service but a global logistics and data-enabled platform.

How Did the Stock Market React to Uber’s Q1 Results?

Despite the strong profit and free cash flow figures, Uber’s stock fell approximately 4% in pre-market trading following the earnings release, closing around $81.87. The dip reflected investor concerns around slightly lower-than-expected top-line results. Analysts had forecast $11.62 billion in revenue and $42.99 billion in gross bookings; Uber posted $11.53 billion and $42.82 billion, respectively.

This minor shortfall, while not impacting long-term trends, introduced caution among investors who were anticipating a clean beat. However, the broader sentiment remains constructive, given the company’s consistent execution on profitability targets and margin expansion.

What Are Institutional Investors Doing With Uber Stock?

Uber continues to receive strong institutional backing. In a high-profile move, Pershing Square Capital Management, led by Bill Ackman, disclosed a $2.3 billion stake in the company in early 2025. The hedge fund acquired over 30 million shares, citing Uber’s robust earnings trajectory and leadership under Dara Khosrowshahi as primary investment drivers.

Ackman described Uber as significantly undervalued and highlighted its potential in autonomous technology and global logistics. The strategic position from Pershing Square has since reinforced broader institutional confidence in the stock.

Passive investors and index-linked funds also remain key shareholders, with Uber’s inclusion in the S&P 500 enhancing its exposure to long-only strategies and broad-based fund flows.

How Are Analysts and the Broader Market Reacting?

Analysts responded to Uber’s Q1 2025 performance with a mix of optimism and caution. While the 83 cents in earnings per share beat consensus estimates and the adjusted EBITDA margin improved, the slight revenue miss has prompted analysts to revise their short-term forecasts marginally.

Currently, most analysts hold a ‘Hold’ or ‘Buy’ rating, but they emphasise the importance of watching whether Uber can sustain top-line momentum while continuing its capital-light expansion strategy. The key concern remains execution in Freight and macro volatility that could affect ride-hailing demand in select international markets.

What Do Foreign and Domestic Flows Say About Broader Sentiment?

While Uber is a U.S.-listed stock, broader institutional flow trends offer insight into investor risk appetite. On May 7, 2025, Foreign Institutional Investors (FIIs) were net buyers in Indian equities, purchasing ₹2,585.86 crore worth of stock. Domestic Institutional Investors (DIIs) also showed bullish sentiment with ₹2,378.49 crore in net purchases.

Though not directly tied to Uber, such data indicates a supportive global risk-on environment, with institutions favouring growth assets. Companies like Uber—operating across borders and offering a blend of technology and real-world infrastructure—are well-positioned to benefit from this broader equity inflow cycle.

What Lies Ahead for Uber in 2025?

Uber’s Q1 2025 results confirm its ability to generate free cash flow and expand profitability even amid FX volatility and Freight headwinds. With a multiyear roadmap in place and consistent user growth across core markets, the company appears well-positioned for sustained earnings expansion.

Investors will be closely watching execution on technology bets, particularly around autonomous driving and AI-enabled logistics, which could drive a new phase of margin growth. With a strong balance sheet, institutional backing, and growing platform utility, Uber has the strategic and financial capacity to consolidate its leadership in the global mobility and delivery sectors.