Uber (UBER) - Q2 2025 Earnings Call
Concise AI-driven summaries of earnings and conference calls, highlighting the numbers, context, and signals that matter most.
Call Details
Title of the call: Uber Second Quarter 2025 Earnings Conference Call
Date held: August 6, 2025
Management team members present:
Dara Khosrowshahi, Chief Executive Officer
Prashant Mahindra Raja, Chief Financial Officer
Balaji Krishnamurti, Vice President, Investor Relations
Call Summary
Financial Performance
Dara Khosrowshahi highlighted that Q2 2025 marked “another quarter of new records” with all-time highs in audience and frequency.
Uber’s trips and gross bookings increased by 18%, showcasing robust growth.
They achieved record highs for adjusted EBITDA, GAAP operating income, and free cash flow.
The adjusted EBITDA growth is expected to continue with a low to mid-30s percentage growth in Q3.
With a successful quarter, Uber announced a new $20 billion share repurchase authorization to enhance shareholder value.
Guidance
Uber projects continued strong growth with high teens bookings growth projected into Q3 2025.
They are focusing on supercharging their platform strategy under the leadership of Andrew McDonald newly appointed as COO.
The company is optimistic about increasing the percentage of consumers active across both mobility and delivery services, currently less than one in five.
Capital Allocation
Uber announced a $20 billion share repurchase authorization aiming to emphasize their focus on value creation for shareholders.
Prashant Mahindra Raja emphasized that they have already executed over 60% of their previous authorization, showcasing their commitment to capital return.
A considerable portion of Uber’s free cash flow will be dedicated to continuing buybacks.
Macro & Demand Trends
Uber reported healthier audience growth at 15% due to the introduction of lower-cost products in developing markets and premium product growth.
The lower-cost product, ‘Moto’, saw $1.5 billion in gross bookings with a growth rate of 40%.
Only about 20% of consumers in their top 10 markets use their services on a monthly basis, pointing to significant growth potential.
AI Trends
Dara Khosrowshahi highlighted that AI is playing a critical role in delivering “magical experiences” by hyper-personalizing promotions.
Larger AI models are aiding in optimizing cross-platform promotions by using consumer history and seasonal data.
Uber is actively exploring data collection opportunities and externalizing their tech capabilities, such as Uber AI solutions.
Autonomous Vehicle (AV) Trends
Autonomous operations expanded in Austin, with new launches in Abu Dhabi and Atlanta, and partnerships announced with several leading companies including Waymo and Baidu.
Dara noted that while the commercialization of AVs will take time, Uber is leading in the commercial deployment of AVs.
Average Waymo utilization in test areas is higher than 99% of their traditional drivers, reflecting strong consumer engagement.
NOTABLE QUOTES:
“Q2 was another quarter of new records for Uber, as we achieved all-time highs.”
“We announced the new $20 billion share repurchase authorization as part of our sustained focus on value creation.”
“Our autonomous momentum continues at Uber speed.”
“The vast majority of our competition is only monoline in terms of the business that they run.”
“The deployment that we’re observing is very, very small.”
“Our platform strategy is in the second inning.”
“Autonomous vehicles are very busy and producing economic value.”
“We’re in a great position to secure OEM partnerships.”
“Surge savings is an opportunity for members to save during those surges.”
“Expect us to continue on the barbell strategy.”
Q&A SUMMARY:
Q: Eric Sheridan (Goldman Sachs), How are platform initiatives evolving in terms of consumer knowledge and supply?
A: Dara Khosrowshahi explained that while executing platform strategies is challenging, it is showing strong retention rates with consumers using both mobility and delivery. He described a super app model that’s evolving but optimized for both mobility and delivery. The COO role aligning both divisions under Andrew McDonald permits a more aggressive platform approach.
Q: Brian Nolak (Morgan Stanley), What drove the core platform’s recent audience growth, and any updates on AV rides?
A: Dara described introducing lower-cost products and premium options targeting various consumer demographics as key growth drivers. He noted the potential for expansion, with only 20% monthly active penetration in top markets. On AV progress, both Austin and Atlanta launches with Waymo were highlighted for high utilization rates.
Q: Michael Morton (Moffitt Nathanson), Concerns about the Neuro and Lucid partnership affecting Waymo relations?
A: Dara emphasized their role as a supply-led company, integrating more partners to better the service ecosystem. He highlighted the importance of investing in both software and hardware players while ensuring financial flexibility for investments in AV development.
Q: Justin Post (Bank of America), Focus on broadening partnerships with OEMs and Tesla’s expansion implications?
A: Dara explained accelerated AD software development due to AI models and the significant potential for OEM partnerships. While Tesla’s utility remains small, Uber foresees a multi-participant marketplace with diverse models and partnerships without a winner-takes-all outcome.
Q: Doug Enmuth (JP Morgan), Consumer response to pricing changes and buyback policy clarification?
A: Dara described positive reactions to pricing adjustments due to insurance savings, leading to improved U.S. transaction growth. Prashant provided clarity on buyback strategy, with a focus on significant shareholder returns linked directly to free cash flow allocation.
Q: Ross Sandler (Barclays), Quantifying the vehicle commitment in partnerships and Waymo’s asset-light model.
A: Prashant outlined a balanced investment approach favoring shareholder returns while funding strategic AV projects. Dara discussed execution excellence with current deployments and various business models employed across partnerships like with Waymo.
Q: Benjamin Black (Deutsche Bank), Opportunities in U.S. mobility and tech capabilities externalization.
A: Dara emphasized both low-cost and premium offerings within a successful barbell strategy. On tech capabilities, he pointed to efforts in AI developments and external partnerships geared towards diverse applications, including AV data collection and delivery fulfillment options.
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