Grab Holdings Limited (GRAB) Cash Flow Statement

The OCF/NI ratio of 0.35 in 2026Q2, down from 1.83 in 2025Q2, indicates that reported net income is not being fully converted to cash, largely due to negative working capital changes. This suggests that accruals, possibly from incentive accruals or loan provisioning, are inflating earnings relative to cash generation. Investors should monitor whether this gap narrows as the company scales its financial services segment.

The FCF margin of 7.2% in 2026Q2, while positive, is a sharp decline from the 29.2% and 42.2% margins in 2024Q4 and 2024Q3, respectively. This suggests that the company's cash generation is not yet stable, with significant quarter-to-quarter volatility. The recent positive FCF appears driven by lower capex and improved operating cash flow, but the sustainability is questionable given the working capital drag.

The capex/revenue ratio of 2.8% in 2026Q2, while still low, is the highest in the ten-quarter period, suggesting a deliberate increase in investment, possibly in data centers or autonomous vehicle technology. This is a positive sign for growth, but investors should watch whether this leads to higher depreciation and maintenance capex in the future, which could pressure FCF.

The extreme swings in working capital, from positive contributions in 2024 to negative in 2025 and 2026, suggest that Grab's cash flow is heavily influenced by the timing of payments to drivers and merchants, as well as loan disbursements in its financial services segment. This volatility makes it difficult to assess the true cash-generating ability of the core business. Investors should adjust for these swings to evaluate the underlying trend.

The $400M buyback in 2026Q1, funded by existing cash reserves, suggests management confidence in the business's long-term prospects, but it comes at a time when operating cash flow was negative (-$19M). This indicates a reliance on the balance sheet to fund shareholder returns, which may not be sustainable if FCF does not improve. Investors should monitor whether buybacks continue at this pace.

While cumulative net income is positive, the cumulative operating cash flow of $1.0B is actually higher, indicating that cash generation has been stronger than earnings in aggregate. However, the recent quarters show a reversal, with net income exceeding OCF, suggesting that accruals are now inflating earnings. This divergence warrants monitoring, as it may indicate that the company is recognizing revenue or deferring costs in ways that boost reported profitability.