Grab Holdings (NASDAQ:GRAB) reported $235 million in profit for the second quarter of 2026, up from $20 million a year earlier. On the surface, that looks like the moment Southeast Asia’s biggest super-app finally turned profitable at scale. But most of that jump came from a one-time gain from consolidating Superbank, which the company put at $307 million. That gain is larger than the entire profit, so the real question is how much the business earns without it.
The company runs one app that millions of people across Southeast Asia use to hail rides, order food and groceries, and borrow or pay. The core is healthy, since revenue grew 22% to $997 million and adjusted EBITDA rose 54% to $168 million. So the headline overstated the quarter without hiding a strong business, and the stock now hinges on whether Grab’s push into lending pays off. Investors who want more stocks that fit this profile can find Grab in our recent list 10 Best Future Stocks to Buy for the Next 5 Years.
Deliveries and Fintech Are Pulling Ahead
Deliveries revenue grew 21% in the second quarter, and Financial Services grew 59%, the fastest of the three segments. Financial Services is also the smallest, so its pace can change the whole company’s profile. That matters because the longer record is faster than the latest quarter. Revenue grew about 48% a year over the past five years, so 22% is a slower pace, though it comes off a much larger base. Margins need the same care, because the Superbank gain sits inside the past 12 months. Over that stretch, the company kept about 8.8% of its sales as operating profit, yet its net margin is about 16%.
A $1.49 Billion Bet on Lending
Atome Financial, a buy-now-pay-later and consumer lending platform in five Southeast Asian markets, is the target of a $1.49 billion cash deal for a 60% stake. Atome carries a $1 billion gross loan portfolio, and Grab’s goal is more than $6 billion across Financial Services by 2028. If you’re interested in fintech investing, check out 10 Most Promising Fintech Stocks to Buy Now. Lending adds a risk that ride-hailing never carried, which is borrowers who fall behind on repayments. A bigger loan book means bigger potential credit losses, and that is the heart of the bear case.
Indonesia adds a second worry, since Bloomberg reported that the government capped ride commissions at 8%, down from about 20%. Grab’s chief operating officer said two-wheel riders are under 6% of its Indonesian mobility volume, which limits the damage. Neither worry looks large enough to break the story yet. Grab produced $450 million in adjusted free cash flow over the past 12 months, and it said the Atome purchase comes entirely from existing cash, so the share buyback continues.
Investors Are Pricing Grab on Adjusted Earnings
At about 21.8 times forward adjusted earnings, the stock sits above a sector median of about 19 times, roughly 14.5% higher. A forward P/E compares the share price with the profit analysts expect over the coming year, so it isn’t flattered by a gain that won’t repeat. No five-year average is available, so it’s unclear whether that premium is high for Grab itself. Hedge funds look cautious rather than gone, with 48 holding the stock at the end of the second quarter of 2026. That is down from 50 at the end of the first quarter, which suggests mild hesitation, not an exit.
Short sellers are more pointed, with 7.60% of the float sold short. They borrow shares and sell them, hoping to buy them back cheaper. A short seller’s case would rest on the same two points as the bear case: how much of the profit repeats, and how Atome’s loans perform. For investors looking for cheaper growth names, our list of 10 Undervalued Growth Stocks to Buy Now is worth a look.
The $235 million overstated what Grab earns, yet the app behind it is still growing about a fifth a year and now has a lending arm to prove. The shares carry a premium to the sector for that bet, so you’re paying up for loan growth that hasn’t been tested at this scale. The number to watch is how Atome’s loan book performs after the deal closes, which the company expects by the third quarter of 2027.
While we acknowledge the risk and potential of GRAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GRAB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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This article is originally published at Insider Monkey.
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