DoorDash (DASH) Reports Strong Financials but Stock Drops 11%
Key Points
- EPS: $0.55 vs est $0.68
- Revenue: $3.45 B vs $3.95 B est (+27% YoY)
- Net Income: $244 M (+51% YoY)
- Adjusted EBITDA: $754 M (+41% YoY)
- Orders: 776 M (+21% YoY)
- Marketplace GOV: $25 B (+25% YoY)
- Free Cash Flow: $723 M (up vs $444 M prior year)
- 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.