Indonesian Ride-Hailing Giant GoTo Reports First-Ever Quarterly Profit
GoTo Group posted its first quarterly net profit of $12 million, marking a milestone for the Indonesian tech giant after years of heavy losses.
GoTo Turns Profitable After Three Years of Losses
GoTo Group, Indonesia's largest technology company by revenue, reported a net profit of 185 billion rupiah ($12 million) for the third quarter of 2025, its first positive quarterly result since listing on the Indonesia Stock Exchange in April 2022. The company posted a loss of 1.2 trillion rupiah in the same period a year earlier.
Revenue grew 18% year-over-year to 6.1 trillion rupiah, while adjusted EBITDA reached positive 412 billion rupiah, extending a streak of EBITDA profitability that began in the first quarter.
Cost Discipline Drives the Turnaround
GoTo's path to profitability involved aggressive cost reductions. The company cut its workforce by 22% over the past 18 months, reduced incentive spending by 41%, and consolidated overlapping operations between its ride-hailing (Gojek) and e-commerce (Tokopedia) divisions.
"GoTo's profitability milestone validates the thesis that Southeast Asian super-apps can generate sustainable returns," said Sachin Mittal, head of telecom and internet research at DBS Group in Singapore. "The question now is whether they can grow revenue while maintaining this cost discipline."
On-Demand Services Lead Growth
The on-demand services segment, which includes ride-hailing, food delivery, and logistics, generated revenue of 3.4 trillion rupiah, up 22%. Gross transaction value for the segment grew 16% as GoTo raised commission rates for drivers and merchants by an average of 2 percentage points.
Monthly transacting users across all GoTo platforms reached 44.2 million, a 6% increase year-over-year. GoPay, the company's digital payments arm, processed 182 trillion rupiah in total payment volume, growing 24%.
Tokopedia Restructuring Continues
The e-commerce division, operated as a partnership with TikTok Indonesia following the companies' merger in late 2023, contributed 1.8 trillion rupiah in revenue. GoTo holds a minority stake in the combined entity, with TikTok controlling operations and technology development.
CEO Patrick Walujo said the Tokopedia partnership was "performing in line with expectations" and that GoTo was focused on extracting synergies between e-commerce logistics and its GrabExpress delivery network.
Share Price and Valuation
Shares of GoTo surged 12.4% on the Indonesia Stock Exchange following the earnings release, closing at 82 rupiah. The stock has gained 38% from its all-time low of 50 rupiah reached in June but remains 70% below its IPO price of 338 rupiah.
At current levels, GoTo trades at approximately 2.5 times forward revenue, a significant discount to regional peers such as Grab Holdings (4.2 times) and Sea Ltd. (5.8 times). Analysts at Morgan Stanley initiated coverage with an overweight rating and a 12-month price target of 100 rupiah.
Outlook
GoTo guided for continued profitability in the fourth quarter and projected full-year adjusted EBITDA between 800 billion and 1 trillion rupiah. The company said it would evaluate potential minority stake sales or IPOs for its financial services division in 2026 to unlock shareholder value.
Indonesia's digital economy, valued at $82 billion in 2025 according to a Google-Temasek-Bain report, remains the largest in Southeast Asia and is projected to reach $130 billion by 2030.
