Uber reported Q4 earnings and the market sold it off 7% despite the business growing at 22%. Gross bookings hit $54.1 billion, up 22% year-over-year. Revenue climbed 20% to $14.4 billion. Free cash flow reached $2.8 billion for the quarter and $10 billion for the full year. Uber Q4 2025 results

The problem? EPS came in at $0.71 versus consensus estimates of $0.79-$0.83. That 9-12 cent miss was enough to trigger a selloff despite every other metric showing a company that's scaled, profitable, and compounding. Uber earnings miss estimates

Here's what actually happened: Uber took a $1.6 billion pre-tax hit from equity investment revaluations and negative tax impacts. Strip out the accounting noise, and the underlying business performed exactly as expected—maybe better. But Wall Street was pricing in perfection, and "good but not perfect" traded like "bad."

The operating metrics were strong. Trips grew 22% year-over-year to 3.8 billion. Monthly active users increased 18%, and trip frequency per user went up. GAAP operating income hit $1.8 billion, up 130% year-over-year. Adjusted EBITDA reached $2.5 billion with a 4.6% margin on gross bookings, up from 4.2% a year ago. Uber Q4 financial metrics

This isn't a company struggling to find product-market fit. This is a scaled platform growing double digits while generating billions in free cash flow. The gig economy works—Uber's proving it quarter after quarter by creating flexible work opportunities for millions of drivers while delivering convenient transportation and delivery for hundreds of millions of users. Lyft reported similar growth metrics in their Q4 report, though they blamed weather for softer Q1 guidance.

But the stock dropped because Q1 2026 guidance disappointed. Uber forecast EPS of $0.65-$0.72 versus analyst expectations of $0.75. Gross bookings guidance came in at $52-53.5 billion, which is still 17-21% year-over-year growth, but not enough to offset the margin pressure narrative. Weak Q1 guidance

Here's what bugs me: the market's obsessed with quarter-over-quarter EPS expansion, but Uber's management is optimizing for network dominance and long-term TAM expansion. They're investing in cheaper ride options, autonomous partnerships, and delivery infrastructure. That expands the addressable market but compresses near-term margins. The Street sees margin pressure. Management sees TAM expansion. Classic tension.

Mobility revenue grew high teens. Delivery revenue jumped roughly 30% year-over-year to around $4.9 billion. Delivery is now a real second pillar, not a pandemic experiment that fizzles. The dual-engine growth model is working—riders and eaters both growing at scale.

Cash generation is undeniable. Operating cash flow hit $2.9 billion in Q4. Free cash flow reached $2.8 billion for the quarter and $10 billion for the full year, up 42% year-over-year. Uber's not burning cash to grow anymore. It's printing cash while growing 20%+. Record cash flow

The equity investment revaluation hit is accounting noise. Uber holds stakes in companies like Aurora, Didi, Grab, and others. When those valuations move, it flows through the P&L. In Q4, those investments got marked down by $1.6 billion. That's not an operating problem—it's mark-to-market accounting on illiquid equity stakes. But it hit EPS, and the market punished the stock.

I'm pro-gig economy and bullish on Uber's execution. The platform is scaled, profitable, and growing faster than most companies at this size. The miss wasn't operational—it was accounting adjustments and softer guidance driven by strategic investments in cheaper products and autonomous tech. Those are long-term positives, not execution failures.

Here's what I think happens: Uber shows Q2 margins stabilizing, autonomous partnerships scaling, and trip frequency continuing to climb. If that happens, the narrative flips from "margin pressure" to "strategic investment paying off." If margins compress further and growth decelerates, then the selloff was justified. But right now, this looks like a market overreacting to one quarter of softer EPS while ignoring the fact that the core business is compounding at 20%+ with $10 billion in annual free cash flow.

The gig economy isn't slowing down. Uber's not slowing down. The stock just got cheaper because Wall Street wanted $0.80 EPS and got $0.71. If you're long-term oriented, this looks like noise. If you're trading quarters, the message is clear: don't overpay for perfect margin expansion when management's willing to trade near-term leverage for TAM expansion and network dominance.

Uber's past the existential phase. The debate now is about the shape of the growth curve, not whether the model works. The model works. The stock just needed a reminder that growth at scale costs money.