As Uber Technologies Inc. (UBER) released its financial results for the first quarter of 2025, the ride-hailing giant found itself navigating an increasingly complex landscape. The company reported quarterly earnings on May 7, 2025, swinging to a profit as it continued to make headway in cost-cutting and squeezed more out of its delivery business. Yet, slowing growth in its rideshare segment and lackluster bookings sent a chill through investors and analysts eager for signs of renewed hypergrowth.

Mixed Signals: Earnings Beat, Bookings Miss

Uber said revenue for the quarter ended March 31 jumped 16% year-over-year to $11.7 billion, outpacing analyst expectations. Adjusted EBITDA, a closely watched measure of profitability, was $1.2 billion—up from $761 million a year ago. “This was our strongest quarter ever on an adjusted EBITDA basis,” CEO Dara Khosrowshahi said on the company’s earnings call, according to CNBC.

Yet, even as revenues grew, total gross bookings—a key metric that captures the value of all rides and deliveries before expenses—rose only 15% to $39.6 billion, falling short of Wall Street’s estimates. As Bloomberg reported, “The company’s mobility bookings were up 22% to $19.6 billion in the quarter, but missed analysts’ estimates of $20 billion.” Investor disappointment surfaced immediately: Uber’s stock fell as much as 9% in early trading following the report.

“We delivered strong results in Q1, with Gross Bookings up 15% year-over-year in constant currency, led by our Delivery segment and continued strength in Mobility,” said Khosrowshahi in a press release.

The Shifting Ride-Hailing Landscape

Rideshare—what Uber calls its “Mobility” segment—has long been the company’s backbone. Now, that segment is showing signs of maturing. As The Wall Street Journal noted, “The company’s rides business grew slower than it did in recent quarters, as Uber faced tough comparisons to early 2024, when travel demand was rebounding from pandemic lows.”

Delivery, Uber’s second act, is rising as a growth driver. “Revenue from delivery rose 17.5% year-over-year to $3.97 billion in the first quarter, surpassing Wall Street expectations,” Seeking Alpha reported. Uber Eats has become “a profit engine, turning a segment long seen as a cash burn into a consistent contributor.”

Investor Caution and Forecasts

Despite missing gross bookings estimates, Uber offered an upbeat forecast. For Q2 2025, the company projected gross bookings between $40.5 billion and $41.5 billion, and adjusted EBITDA of $1.45 billion to $1.53 billion. “Our outlook for Q2 shows continued momentum, and we remain confident in our path to sustainable, profitable growth,” Khosrowshahi said in a statement.

Still, some analysts voiced concern. RBC Capital analyst Brad Erickson expressed caution on Bloomberg, noting, “Growth in key Mobility markets is taking longer than expected to reaccelerate, while competitive concerns stick around in Delivery.”

Operational Highlights and Risks

Uber has been aggressively cutting costs, shedding unprofitable units, and focusing on core businesses. As part of these efforts, it has expanded its partnership with Waymo on robotaxis in select U.S. cities—though analyst and investor expectations for material impact remain muted in the near term. The company also continues to face regulatory headwinds: tariffs on Chinese-made robotaxis and ongoing tensions with city governments over driver status and pay loom large.

Uber’s cash position remains robust. At the end of Q1, it reported $5.8 billion in cash and cash equivalents, according to its earnings press release.

The Path Forward

Looking ahead, Uber says it plans to “lean into” its most promising businesses, including delivery of non-food items and higher-margin transport options. As Khosrowshahi told investors on the call, “Our focus is on profitable growth while investing in product innovation and category expansion.”

But the road ahead could be bumpy. Macroeconomic uncertainty, intensifying competition from Lyft and DoorDash, and potential regulatory changes all pose risks.

Still, Uber’s Uber-first philosophy—focusing on core rideshare and delivery—appears to be winning favor with analysts looking for signs of financial discipline in a sector long defined by breakneck growth and steep losses. As Wedbush analyst Dan Ives told CNBC, “Uber’s execution has been very strong, with profitability and margins headed in the right direction. The question now is all about sustaining the growth path.”

For Uber, that’s a question that will loom over every quarterly report to come.