Uber Misses Q3 Profit Estimates, Gives Cautious Forecast for Holiday Quarter

In Focus

• Uber has missed Q3 operating profit expectations
• Ride-hailing firm attributes its weak profit to legal and regulatory costs
• Firm issues strong gross books for Q4
• Uber stock dropped by nearly 8%

Uber’s holiday quarter forecast remained cautious despite solid demand for its ride-hailing and food delivery services fueled by growing use of its membership program. According to Reuters, the company also fell short of profit expectations.

Uber Adjusted Profit Forecast for Q4

Uber’s operating income for the third quarter stood at $1.11 billion, which is much lower compared to the $1.61 billion projected by analysts, according to data from Visible Alpha.

The ride-hailing firm adjusted its profit forecast for the current quarter to the range of $2.41 billion to $2.51 billion. The forecast is slightly lower than the $2.48 billion expected.

Uber attributed its weak profit to undisclosed regulatory and legal issues. In July 2025, the government of India announced a ride-hailing overhaul to structure and the mobility sector and improve transparency. With operations in about 125 cities across India, the new rules apply to Uber.

Following the earnings report, Uber stock dipped by close to 8% in premarket trading. This year alone, the company’s share price has risen by over 60%.

Bookings Forecast Within Analyst Range

According to Uber CEO Dara Khosrowshahi, Uber One membership is boosting bookings by encouraging customers to request more grocery and food deliveries. The company reported higher quarterly revenue and bookings than expected.

Uber forecasted Q4 gross bookings to range between $52.25 billion and $53.75 billion against analyst expectations of $52 billion. The forecast includes the total dollar value of rides, deliveries, and other services, driven by Uber membership growth.

Uber’s third-quarter gross bookings stood at $49.74 billion, which is slightly higher than the $48.73 billion projected by analysts. Its revenue increased 20% to reach $13.47 billion, surpassing the $13.28 billion projection.

Uber’s Q3 Earnings at a Glance

• Uber’s reported a 29% increase in its delivery segment
• The company said Uber One fosters cross-platform usage
• Uber One also fosters customer retention

Uber’s Future Outlook

In the July-September quarter, Uber reported a 29% sales increase in its delivery unit, with sales in its freight business remaining constant.

Khosrowshahi said customer retention rates increased by 35% among customers who use multiple Uber services. Such customers also spend three times more compared to other customers. In July 2025, Uber Eats added live chat and AI tools to boost merchant-customer experience. Using this feature, restaurants and stores can talk directly with customers about their orders.

The company reported that about 20% of its active customers in markets where delivery and rides exist use them together. This number is expected to increase as Uber holiday travel demand grows.

Starting the first quarter of 2026, Uber will do away with the adjusted EBITDA, replacing it with adjusted profit forecasts as it seeks to apply mature firm practices.