Uber Technologies, Inc. (NYSE:UBER) saw its shares drop sharply in premarket trading after reporting fourth-quarter 2025 earnings that missed Wall Street expectations, even as the company delivered strong revenue growth and record cash generation.
The ride-hailing and delivery group posted adjusted earnings per share of $0.71, coming in 11% below the analyst consensus of $0.80. Revenue totaled $14.4 billion, slightly ahead of the $14.32 billion expected by the market and up 20% from the same quarter a year earlier. During the period, total trips increased 22% year on year to 3.8 billion, while gross bookings rose 22% to $54.1 billion.
“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,” CEO Dara Khosrowshahi said in a statement.
Despite the earnings miss, Uber reported record quarterly operating cash flow of $2.9 billion and free cash flow of $2.8 billion, representing a 65% increase from a year earlier. Adjusted EBITDA climbed 35% year on year to $2.5 billion, with margins improving to 4.6% of gross bookings from 4.2% in the fourth quarter of 2024.
Investor sentiment was also weighed down by the company’s outlook for the first quarter of 2026. Uber forecast non-GAAP earnings per share of $0.65 to $0.72, below analysts’ expectations of $0.75, although the midpoint still implies 37% growth year on year. Gross bookings are projected to range between $52.0 billion and $53.5 billion, equating to constant-currency growth of 17% to 21%.
By business segment, Mobility revenue rose 19% year on year to $8.2 billion, while Delivery revenue surged 30% to $4.9 billion. Freight revenue was flat at $1.27 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,” said CFO Prashanth Mahendra-Rajah, who is set to step down from his role.