Uber to offer $1 billion in exchangeable senior notes

SAN FRANCISCO - Uber Technologies, Inc. (NYSE: UBER), currently valued at $191.86 billion and trading near its 52-week high, revealed plans to offer $1 billion in exchangeable senior notes due in 2028, targeting qualified institutional buyers. The private placement may also see an additional $150 million in notes, contingent on market conditions and other factors. According to InvestingPro analysis, Uber operates with a moderate level of debt and maintains a GREAT financial health score.

The notes, exchangeable for cash or Aurora Innovation, Inc. (NASDAQ: AUR) Class A common stock, will be secured by liens on certain pledged reference property held by Uber’s subsidiary, Neben Holdings, LLC. Specific terms, including the interest rate and initial exchange rate, will be set upon pricing the offering. With a current debt-to-equity ratio of 0.51, this offering aligns with Uber’s moderate debt management strategy.

Uber’s use of the net proceeds is slated for general corporate purposes, which could encompass strategic investments, although no specific allocations have been determined.

The notes and the guarantee by Neben Holdings have not been registered under the Securities Act or state securities laws, and thus, may not be offered or sold in the U.S. without registration or an exemption.

This announcement follows Uber’s ongoing mission to expand its services and market presence since its inception in 2010, which has seen the company revolutionize urban mobility and logistics. The strategy appears effective, with Uber achieving 17.6% revenue growth in the last twelve months. For deeper insights into Uber’s financial health and growth prospects, InvestingPro subscribers have access to 12 additional exclusive ProTips and comprehensive financial metrics.

It is important to note that this press release contains forward-looking statements, which involve risks and uncertainties. These statements are not guarantees of future performance, and actual results may differ materially. Potential investors are cautioned not to place undue reliance on these forward-looking statements.

The information is based on a press release statement from Uber Technologies, Inc.

In other recent news, Uber Technologies Inc. reported mixed but solid first-quarter earnings for 2025, with earnings before interest, taxes, depreciation, and amortization (EBITDA) slightly surpassing consensus estimates, despite a minor shortfall in gross bookings. Revenue aligned closely with some analysts’ expectations, missing consensus by just 0.8%, while EBITDA exceeded projections by 1%. Following these results, several analyst firms have adjusted their price targets for Uber, reflecting varied levels of confidence in the company’s performance and future prospects. DA Davidson raised its price target to $98, citing steady demand and stable trip growth in Uber’s Mobility segment.

TD Cowen also increased its price target to $96, maintaining a Buy rating, and highlighted Uber’s favorable guidance for the second quarter. RBC Capital Markets raised its target to $94, noting Uber’s robust customer growth and strong incremental profit margins, alongside the company’s advancements in autonomous vehicle technology. Cantor Fitzgerald set a new price target of $96, emphasizing Uber’s healthy consumer growth and strategic initiatives, including its progress with autonomous vehicles.

Benchmark, however, maintained a Hold rating, noting a slight miss in gross bookings and revenue but acknowledging potential benefits from Uber’s strategic focus on membership and cross-pollination. Despite some deceleration in Mobility gross bookings, analysts generally express optimism about Uber’s growth trajectory and strategic positioning in the market.

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