Ride sharing and on-demand delivery platform Uber (NYSE:UBER) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 20.4% year on year to $13.47 billion. Its GAAP profit of $3.11 per share was significantly above analysts’ consensus estimates.
Is now the time to buy Uber? Find out by accessing our full research report, it’s free for active Edge members.
Uber (UBER) Q3 CY2025 Highlights:
- Revenue: $13.47 billion vs analyst estimates of $13.27 billion (20.4% year-on-year growth, 1.5% beat)
- EPS (GAAP): $3.11 vs analyst estimates of $0.69 (significant beat)
- Adjusted EBITDA: $2.26 billion vs analyst estimates of $2.27 billion (16.8% margin, 0.7% miss)
- Operating Margin: 8.3%, down from 9.5% in the same quarter last year
- Free Cash Flow Margin: 16.6%, down from 19.6% in the previous quarter
- Monthly Active Platform Consumers: 189 million, up 28 million year on year
- Market Capitalization: $208 billion
Company Overview
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE:UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Uber’s 19.5% annualized revenue growth over the last three years was impressive. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, Uber reported robust year-on-year revenue growth of 20.4%, and its $13.47 billion of revenue topped Wall Street estimates by 1.5%.
Looking ahead, sell-side analysts expect revenue to grow 16.5% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and implies the market sees success for its products and services.
Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.
Monthly Active Platform Consumers
User Growth
As a gig economy marketplace, Uber generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Over the last two years, Uber’s monthly active platform consumers, a key performance metric for the company, increased by 14.7% annually to 189 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
In Q3, Uber added 28 million monthly active platform consumers, leading to 17.4% year-on-year growth. The quarterly print was higher than its two-year result, suggesting its new initiatives are accelerating user growth.
Revenue Per User
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns in transaction fees from each user. This number also informs us about Uber’s take rate, which represents its pricing leverage over the ecosystem, or "cut" from each transaction.
Uber’s ARPU growth has been subpar over the last two years, averaging 2.4%. This isn’t great, but the increase in monthly active platform consumers is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Uber tries boosting ARPU by taking a more aggressive approach to monetization, it’s unclear whether users can continue growing at the current pace. 
This quarter, Uber’s ARPU clocked in at $71.25. It grew by 2.5% year on year, slower than its user growth.
Key Takeaways from Uber’s Q3 Results
It was great to see Uber increase its number of users this quarter. We were also happy its number of monthly active platform consumers outperformed Wall Street’s estimates. On the other hand, its EBITDA slightly missed. Overall, this print was mixed. Investors were likely hoping for more, and shares traded down 4.1% to $95.66 immediately after reporting.
Is Uber an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.