Slow Research Academy › Uber › Unit 9 “Risks and What to Track”, lesson 2
Adjustments to make before valuing Uber: taxes, equity remeasurement and stock-based compensation
This unit asks: What could change this business's profits, and what to watch next?
Strip out the one-time tax benefit and equity remeasurement from Uber's profit and treat stock-based compensation as a cost; after that, operating income moves mainly with Gross Bookings and segment profit ÷ Gross Bookings.
In 2025, Uber's reported net income was about $10.05 billion, roughly 80% more than the year's $5.57 billion of operating income.
For most companies net income is lower than operating income, because tax still has to be paid.
If you take reported net income straight from the statements to measure what Uber is worth, the number does not reflect how the business operates.
Remove two kinds of one-time items from reported net income and keep stock-based compensation as a cost
Getting from reported net income to a profit that reflects the operations takes three adjustments.
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