Q4 guidance: Marketplace GOV $28.9–$29.5 B; Adj. EBITDA $710–$810 M
Next quarter consensus: EPS $0.79 on revenue $4.35 B
Quarter Highlights
Growth remained strong in U.S. restaurant orders (+21% YoY) and international markets, aided by the Deliveroo acquisition.
Advertising revenue and improved unit economics boosted margins to 13.8%.
However, management revealed plans to raise investment “by several hundred million dollars” in 2026 for new initiatives including:
DashMart Fulfillment Services
Autonomous Delivery Platform & robot ‘Dot’
A new global technology platform under development
The company cautioned that near-term margins will compress as it prioritizes long-term growth.
Stock also reacted to Deliveroo integration costs, higher stock-based compensation ($1.1 B FY 2025), and management comments signaling continued reinvestment rather than near-term profit maximization.
Financial Summary
Metric
Q3 2025
Q3 2024
YoY Change
Revenue
$3.45 B
$2.71 B
+27%
Net Income
$244 M
$162 M
+51%
Diluted EPS
$0.55
$0.38
+45%
Adjusted EBITDA
$754 M
$533 M
+41%
Marketplace GOV
$25 B
$20 B
+25%
Total Orders
776 M
643 M
+21%
Free Cash Flow
$723 M
$444 M
+63%
Key Takeaways
Core delivery business remains robust, but profit growth lags spending ramp-up.
Guidance implies flat-to-down sequential EBITDA, hinting at margin pressure from Deliveroo and new tech investments.
Investors appear wary that higher reinvestment may delay free-cash-flow acceleration.
Stock dropped after hours as the market focused on rising costs and limited near-term leverage, despite another revenue and order record.
