UBER

Uber has crossed from a cash-burning growth story into a structurally profitable, asset-light compounder, and the price hasn't fully caught up. The five-year arc is decisive: revenue went from $17.5B (FY2021, a $496M loss) to $52.0B in FY2025 (+18.3% YoY), with net losses of -$9.14B in FY2022 flipping to $10.1B of net income. The MD&A confirms the engine is volume, not financial engineering — MAPCs grew to 202M (+18%), trips +20%, and Gross Bookings reached $193.5B (+19%), so revenue growth rests on a widening, network-effected user base rather than price. With capex of only $336M against $10.1B of operating cash flow, this is a genuinely capital-light model that converts growth into cash.

The single most important number is the gap between operating income (+98.8% to $5.57B) and net income (+2.0% to $10.1B). The flat net-income line is misleading: FY2024's $9.86B was inflated by large below-the-line equity-stake revaluations, so the near-doubling of operating income — plus Adjusted EBITDA +35% to $8.73B and free cash flow +42% to $9.76B — is the true measure of the business improving. Operating margin is still only 10.7%, which is a feature, not a flaw: there is visible runway for further operating leverage. On the balance sheet, $7.11B cash against $10.5B long-term debt (and zero current debt), 37.2% ROE, and a manageable 1.25x liabilities/equity leave it well-financed, even with a still-negative -$10.6B retained-earnings deficit (a legacy of the loss years, now shrinking).