UBER · 10-Q · 2026Q3 · Full report
Operating Expense Trends
Uber Technologies, Inc · 2026-11-04 · Importance 34 · Surprise 30 · In source text
Third-quarter operations and support expense increased 19% to $2.1 billion, including a $114 million increase in employee compensation; nine-month expense rose 16%, including $277 million of additional compensation. Sales and marketing expense rose 22% to $1.6 billion in the quarter and 24% to $4.4 billion year to date, driven by higher consumer discounts and promotions, advertising, and compensation. General and administrative expense fell 11% to $1.0 billion in the quarter as legal and non-income-tax accruals declined $320 million, but increased 11% to $2.8 billion year to date, including higher compensation and professional-services costs.
Key facts
- Nine-month 2026 cost of revenue included an $834 million increase in Carrier payments and incentives due to increased Freight Gross Bookings. source
- Q3 2026 cost of revenue included a $342 million increase in legal, non-income tax, and regulatory reserve changes and settlements. source
- Nine-month 2026 Sales and Marketing expenses increased $860 million or 24%, including a $389 million increase in consumer discounts, a $279 million increase in indirect advertising and marketing, and a $194 million increase in employee compensation costs. source
- Nine-month 2026 cost of revenue increased $765 million or 3%, including a $1.6 billion increase in Courier payments and incentives. source
- Effective July 1, 2026, Uber changed its network-cost allocation methodology; certain network costs previously in cost of revenue are now recorded in operating expenses. source
- Q3 2026 cost of revenue included a $430 million increase in Courier payments and incentives due to increased Delivery Gross Bookings in certain markets. source
- Nine-month 2026 cost of revenue included a $301 million increase in credit card processing costs and a $129 million increase in network costs. source
- Q3 2026 Sales and Marketing expenses increased $286 million or 22%, including a $141 million increase in consumer discounts, promotions, credits and refunds and a $91 million increase in employee compensation costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.8% | Nine-month 2026 Sales and Marketing expenses increased $860 million or 24%, including a $389 million increase in consumer discounts, a… |
| operating_income | negative | realized | -5.2% | Nine-month 2026 cost of revenue increased $765 million or 3%, including a $1.6 billion increase in Courier payments and incentives. |
| operating_income | negative | realized | -2.9% | Q3 2026 cost of revenue included a $430 million increase in Courier payments and incentives due to increased Delivery Gross Bookings in… |
| operating_income | negative | realized | -2.0% | Nine-month 2026 cost of revenue included a $301 million increase in credit card processing costs and a $129 million increase in network… |
| operating_income | negative | realized | -1.9% | Q3 2026 Sales and Marketing expenses increased $286 million or 22%, including a $141 million increase in consumer discounts, promotions,… |
| operating_income | positive | realized | +0.9% | Q3 2026 General and Administrative expenses decreased $136 million or 11%, primarily due to a $320 million decrease in legal and… |
| operating_income | negative | realized | -0.9% | Nine-month 2026 cost of revenue included a $301 million increase in credit card processing costs and a $129 million increase in network… |