Indonesian digital giant GoTo Group has announced its second-quarter 2025 financial results, touting “record-breaking performance” across key metrics.
While the headlines celebrate significant growth in gross transaction value (GTV), net revenue, and a move to positive EBITDA and adjusted EBITDA, a deeper dive into the figures reveals a more complex picture, particularly concerning the company’s reliance on “pro-forma” reporting and the underlying challenges in its core segments.
The pro-forma pivot: A key reporting strategy
GoTo’s press release prominently features “pro-forma” numbers for its group-level performance, explicitly stating that these figures assume Tokopedia and its related delivery and fulfilment businesses under GoTo Logistics were deconsolidated as of 1 January 2024. This accounting adjustment significantly impacts the reported growth rates and profitability, potentially presenting a more favourable view of the remaining business.
Also Read: GoTo posts record Q1 but adjusted metrics tell only half the story
While the company heralded a 23 per cent year-on-year (YoY) increase in net revenue to US$260 million (Rp4.3 trillion) based on pro-forma figures for Q2 2025, the “actual” figures tell a different story. According to the “actual” table, net revenue growth for the quarter was a more modest 18 per cent YoY, a noticeable five percentage point difference.
The discrepancy is even more pronounced for the six-month period ended 30 June 2025, where the pro-forma net revenue growth was 30 per cent YoY, compared to a significantly lower 11 per cent YoY under actual reporting. This substantial divergence suggests that without the deconsolidation, GoTo’s overall revenue growth trajectory appears less robust.
Furthermore, while the pro-forma net loss for Q2 2025 was reported at US$13.42 million (Rp222 billion), the actual loss for the period was considerably higher at US$22.66 million (Rp375 billion), marking an 80 per cent reduction from the previous year’s loss but still a substantial figure. The positive “profit from operations” of US$1.27 million (Rp21 billion) is also a pro-forma figure.
EBITDA positivity amidst continued net losses
GoTo highlighted that its Group adjusted EBITDA reached US$25.8 million (Rp427 billion) and was positive for the third consecutive quarter. Group EBITDA also turned positive, reaching US$17.65 million (Rp292 billion).
These achievements are attributed mainly to “stronger revenue performance and better cost management”. The company also reported positive adjusted operating cash flow of US$18.9 million (Rp313 billion).
However, it is crucial to note that both adjusted EBITDA and EBITDA are non-Indonesian Financial Accounting Standards (IFAS) financial measures. GoTo itself clarifies that these measures “have certain limitations in that they do not include the impact of certain expenses that are reflected in GoTo Group’s consolidated financial statements that are necessary to run GoTo Group’s business”.
Despite the positive adjusted EBITDA and EBITDA, the company continues to report a net loss for the period. While the net loss saw a significant reduction of 77 per cent YoY (pro-forma) or 80 per cent YoY (actual), the fact remains that GoTo is yet to achieve overall net profitability.
Segment performance: Strengths and undercurrents
Fintech: This segment appears to be a strong performer for GoTo. It achieved a record adjusted EBITDA of US$5.3 million (Rp88 billion), marking its third consecutive quarter of profitability. Core GTV grew by 46 per cent YoY to US$4.97 billion (Rp82.2 trillion) driven by consumer payments, and net revenue soared by 76 per cent YoY to US$84.6 million (Rp1.4 trillion), underpinned by loan book expansion and payment transaction growth.
Lending revenue, in particular, saw a massive 130 per cent YoY increase to US$53.13 million (Rp879 billion), with consumer loans outstanding principal expanding by 90 per cent YoY to US$398.97 million (Rp6.6 trillion). The segment’s strategic collaborations, including the introduction of GoPay Pinjam on TikTok Shop, GoPay’s partnership with Telkomsel for data packages for TikTok users, and the co-branded Telkomsel Wallet by GoPay, point to robust ecosystem integration and potential for continued growth.
On-demand services: This segment delivered a record adjusted EBITDA of US$19.82 million (Rp328 billion), a 264 per cent YoY increase. While this is a substantial improvement, the nuances within its sub-segments are noteworthy.
Mobility: The gross transaction value (GTV) grew by 10 per cent to US$362.65 million (Rp6 trillion). However, the press release reveals that this adjusted EBITDA improvement of 16 per cent YoY to US$11.06 million (Rp183 billion) was achieved “against a backdrop of intensified competition that prompted the use of strategic, targeted incentives to protect market share”. This indicates that profitability in mobility is being sustained while navigating competitive pressures, possibly at the expense of deeper margins.
Delivery: GTV grew by 8 per cent to US$622.54 million (Rp10.3 trillion). The segment saw a significant improvement in adjusted EBITDA, reaching US$11.24 million (Rp186 billion). While GoTo states it “increased wallet share among higher-income users while widening reach across the broader consumer base”, it also noted that merchant-funded promotion spend rose by a substantial 118 per cent YoY. This highlights a growing reliance on merchant contributions to promotions, which, while beneficial for GoTo’s immediate margins, could potentially strain merchant relationships or their own profitability in the long run if not managed carefully. Advertising revenue, though growing, remains a small fraction at 1.8 per cent of Food GMV.
Strategic moves and outlook
GoTo has actively pursued cost efficiency, notably completing a complex cloud migration to Alibaba Cloud and Tencent Cloud, which is projected to reduce annual cloud spend by more than 50 per cent. The company has also established new tech hubs in China to leverage engineering expertise and accelerate its product roadmap.
Its investment in AI is evident with the launch of Sahabat-AI’s 70-billion-parameter foundation model, which is trained and hosted in Indonesia and supports multiple local languages.
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Despite the underlying complexities, GoTo maintains a solid cash position of US$1.1 billion (Rp18.2 trillion) as of 30 June 2025.
The company has reaffirmed its full-year 2025 Group adjusted EBITDA guidance of US$84.6-96.7 million (Rp1.4-1.6 trillion) and remains confident in meeting its targets. However, this outlook is explicitly subject to “various uncertainties and risks including increasing market competition, cost inflation, macroeconomic conditions and other variables”.
In essence, while GoTo Group’s Q2 2025 results demonstrate notable operational improvements and strong segment growth, particularly in Fintech, the heavy reliance on pro-forma reporting, the continued presence of net losses despite positive EBITDA, and the strategic manoeuvres in competitive markets suggest that the journey to sustainable, overall profitability remains a challenging one.
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