On Aug. 6, San Francisco, CA-based Uber Technologies UBER released rosy second-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. 

The question that naturally arises after the upbeat results is whether investors should rush and buy the stock of the company, which provides ride-hailing, food delivery and freight (leasing vehicles to third parties) services through its Mobility, Delivery and Freight segments, respectively, now. Let us delve deeper to answer the question.

Highlights of UBER’s Q2 Earnings

Uber’s second-quarter 2025 earnings per share of 63 cents outpaced the Zacks Consensus Estimate by a penny and improved 34% year over year. Total revenues of $12.65 billion outpaced the Zacks Consensus Estimate of $12.45 billion. The top line jumped 18% year over year on a reported and a constant-currency basis.

With economic activities normalized in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand, with segmental revenues increasing 18% in the June quarter on a constant-currency basis.

With customer traffic picking up, gross bookings from the unit were highly impressive, aiding the second-quarter results. Gross bookings from the Mobility segment in the June quarter increased 18% year over year on a constant-currency basis to $23.7 billion.

Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the June quarter rose 20% year over year on a constant-currency basis to $21.7 billion.

Uber saw a 15% increase in its monthly active platform consumers to 180 million users in the second quarter. The platform recorded 3.3 billion trips, marking an 18% year-over-year rise, driven by both ride-hailing and delivery services. The company reported a free cash flow of $2.48 billion in the quarter, highlighting its financial bliss.

In several international regions, Uber Eats has overtaken ride-hailing in popularity. The company is focused on increasing cross-platform usage, encouraging customers to use both ride and delivery services to boost overall engagement and revenues.

The earnings beat by Uber in the June quarter enabled it to maintain its excellent earnings surprise record. Uber has outpaced the Zacks Consensus Estimate in the past four quarters, the average beat being nearly 200%.

Uber Technologies Price & EPS Surprise

Uber Technologies price-eps-surprise | Uber Technologies Quote

Uber’s Q3 Guidance Strong

For the third quarter of 2025, the company expects gross bookings of $48.25 billion to $49.75 billion, indicating year-over-year growth of 17-21% on a constant-currency basis. The outlook assumes a neutral to modestly positive foreign exchange impact.

The adjusted EBITDA is estimated to be $2.19-$2.29 billion, suggesting year-over-year growth of 30-36%.

UBER’s Price Performance Is Impressive

Uber has navigated the recent tariff-induced stock market volatility well, registering a 47.9% year-to-date gain, while the Zacks Internet-Services industry has moved up 5.9%. Uber’s main competitor, Lyft LYFT, has risen 8.5% in the same timeframe. Another industry player, DoorDash DASH, has performed better than Lyft and Uber year to date, soaring 53.9%. 

YTD Price Performance Comparison

Uber Shares Overvalued

From a valuation perspective, Uber is relatively expensive. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 27.3, above the industry’s 19.8. The company has a Value Score of C. Meanwhile, Lyft looks too cheap at a forward earnings multiple of 11.25, whereas DoorDash’s P/E sits at 86.08. Lyft and DoorDash have a Value Score of C and F, respectively.

UBER’s P/E F12M Vs. Industry, LYFT & DASH

How to Play Uber Post-Q2 Earnings?

Agreed that Uber’s valuation is anything but tempting. The company’s high debt levels and concerns pertaining to currency represent further headwinds. However, not all is gloom and doom for this dominant ride-sharing company.

The company’s diversification efforts and shareholder-friendly approach are praiseworthy. Uber’s large size (market capitalization of $186.57 billion) positions it well to overcome turbulent times, such as the current one. Diversification is imperative for big companies to reduce risks, and Uber has excelled in this area.

The company has engaged in numerous acquisitions, geographic and product diversifications and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. 

Prudent investments enable Uber to extend its services and solidify its comprehensive offerings. Moreover, Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. Uber now partners with 20 companies in the autonomous vehicle, delivery and freight space. By adopting this approach, the company has avoided the massive R&D costs associated with developing autonomous systems independently.

Uber’s scale, targeted market expansions and diversification strategies position it well for long-term growth. Given its solid long-term potential, retaining this Zacks Rank #3 (Hold) stock appears prudent. Meanwhile, new investors may consider waiting for a more attractive entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

[NEW YORK] Lyft shares slid in late on Wednesday (Aug 6) trading after the ride-hailing company reported revenue that fell short of Wall Street’s expectations, stoking concerns about its efforts to expand globally.

The company reported revenue of US$1.59 billion in the three months ended Jun 30, slightly missing analysts’ expectations of US$1.61 billion. And while the number of rides completed on the platform hit an all-time high, they too fell short of projections. Shares of the company were down about 7.2 per cent at about US$12.97 in after-markets trading.

The results landed just hours after Uber Technologies issued a better-than-expected forecast for the third quarter and exceeded Wall Street’s expectations on gross bookings. However, the company’s own ride-share unit recorded US$23.8 billion in bookings, falling slightly below expectations, also driving the company’s shares down on Wednesday.

The disappointing results of ride-hailing companies such as Uber and Lyft are offering a glimpse into discretionary consumer spending at a time when the economy is already flashing warning signs. Just last week, US employment numbers painted a much weaker picture of the labour market than previously reported, and inflation-adjusted consumer spending, which accounts for about two-thirds of US economic activity, fell in the first half of the year.

Lyft’s sales miss overshadowed what was otherwise a strong quarter. The company’s net income totalled US$40.3 million in the second quarter, more than double the US$18.1 million that analysts had expected. Gross bookings gained 12 per cent from a year earlier, roughly in line with estimates. The number of active passengers hit a record.

In the third quarter, Lyft said that it expects gross bookings to rise to as high as US$4.8 billion and projected adjusted earnings of US$125 million to US$145 million. The company’s outlook includes the integration of Freenow, the European taxi app it recently acquired, beginning Aug 1.

Since attaining consistent positive free cash flow in the past year, Lyft has been working on growing globally. It has expanded into the ten most populous Canadian cities, as well as Puerto Rico. Last week, the company formally entered nine new European markets, including the UK and Germany, after completing its acquisition of Freenow.

As part of this expansion, Lyft announced this month a partnership with Baidu to begin deploying autonomous vehicles in Europe. Initial launches are planned for Germany and the UK in 2026, pending regulatory approval, with Lyft using Baidu’s robotaxis.

Last month, Uber announced a deal in which it will feature Baidu’s driverless cars on the Uber app, but the initial deployment later this year is planned for Asia and the Middle East, not Europe.

Lyft is also working towards offering its first driverless rides in Atlanta later this year with May Mobility. The firm’s also planning US deployments in 2026 with Intel-backed Mobileye Global and Benteler Group.

Lyft separately announced on Wednesday a new partnership that would allow United Airlines Holdings members to earn miles on rides. BLOOMBERG

Israel’s urban landscape faces chronic traffic congestion, scarce parking, and limited public transit. High import taxes and complex regulations further complicate ride-hailing growth.

Yet even in this constrained environment, opportunities exist. As Eugene Suslo, CEO of Onde.app, puts it:

“Complexity doesn’t preclude progress – it needs operational flexibility and local understanding.”

Structural barriers to growth are real, though solvable

Precise pick-ups, flexible rates between zones, and a smart route optimization algorithm improve operational efficiency, decreasing drivers’ idle times and passengers’ waiting times. Real-time analytics and AI recommendations for better performance ensure company growth, while safety features, which white-label ride-hailing solutions like Onde offer – drivers’ checkup, SOS button, Follow My Ride – guarantee a safer experience for both passengers and drivers.

“Our partners aren’t trying to outspend global giants,” says Suslo. “They’re building local trust and adapting to regional nuances.”

Insights from nearby markets

Israel at a crossroads