DoorDash — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total Orders increased 28% year-over-year (Y/Y) to 993 million; excluding Deliveroo, growth was 17% Y/Y.
• Marketplace Gross Order Value (GOV) increased 36% Y/Y to $33.9 billion; excluding Deliveroo, growth was 23% Y/Y.
• Revenue increased 34% Y/Y to $4.6 billion; excluding Deliveroo, growth was 23% Y/Y.
• GAAP net income attributable to common stockholders increased 91% Y/Y to $466 million.
• Adjusted EBITDA increased 41% Y/Y to $1,060 million, representing 3.1% of Marketplace GOV.
• Net cash provided by operating activities was $994 million, up 14% Y/Y.
• Free Cash Flow was $787 million, up 9% Y/Y.
• Net Revenue Margin was 13.6%.
• GAAP cost of revenue (exclusive of depreciation and amortization) was $2,171 million, representing 6.4% of Marketplace GOV.
• GAAP sales and marketing expense was $765 million, representing 2.3% of Marketplace GOV.
• GAAP research and development expense was $499 million, representing 1.5% of Marketplace GOV.
• GAAP general and administrative expense was $426 million, representing 1.3% of Marketplace GOV.
• Cash and cash equivalents were $5,053 million as of September 30, 2026.
• Total liabilities were $9,853 million as of September 30, 2026.
• Convertible notes, net, were $2,728 million as of September 30, 2026.

Guidance and Future Outlook:

• Q4 2026 Marketplace GOV guidance is $35.4 billion to $36.4 billion.
• Q4 2026 Adjusted EBITDA guidance is $900 million to $1,100 million.
• Full-year 2026 stock-based compensation expense is expected to be approximately $1.2 billion.
• Full-year 2026 depreciation and amortization expense is expected to be approximately $1.2 billion, including $450 million of amortization of acquired intangible assets.
• Year-end timing for merchant payments is expected to reduce reported 2026 Free Cash Flow by $700 million to $800 million compared to 2025.
• Outlook assumes aggregate consumer demand and key foreign currency rates remain relatively stable.
• Management anticipates significant ongoing investment in new categories, international markets, system capacity, and the global technology platform.

Business Segments and Product Lines:

• U.S. restaurant category Marketplace GOV growth accelerated slightly in Q3 2026 compared to Q2 2026, driven by growth in order rates among mature cohorts and new consumers.
• U.S. grocery and retail category Marketplace GOV grew at more than double the pace of the U.S. restaurant category Y/Y.
• DashPass paid memberships continued to grow, contributing to a 9% reduction in transaction fees per order in the U.S. restaurant category over the last two years.
• Restaurant reservations through the U.S. marketplace grew over 340% quarter-over-quarter (Q/Q) in existing geographies during Q3 2026, with over 10% of reservations coming from new consumers.
• International marketplaces drove accelerated Y/Y growth in Marketplace GOV and Total Orders.
• New merchant partners were announced in U.S. grocery and retail categories to support broader selection.
• DoorDash is advancing its global technology platform and innovating in merchant services, AI, and autonomy.
• DashMart project continues to manage inventory for third-party grocers, achieving 99%+ fulfillment accuracy and delivering more than 10 minutes faster on average compared to traditional grocery store delivery.

Market and Competitive Landscape:

• The U.S. restaurant category saw strong growth in new consumers and order rates among mature cohorts despite a challenging Y/Y comparison.
• International operations are improving efficiency through the diffusion of operating insights and product innovations.
• The company views consistent growth in the U.S. marketplace as a signal of underlying demand trends and the ability to produce increased value through product innovation.

Risks and Challenges:

• Consumer spending in any geography could deteriorate relative to the outlook, potentially driving results below expectations.
• Increasing international exposure heightens risks associated with foreign markets, including geopolitical and currency risks.
• The proposed acquisition of Instacart is subject to regulatory approvals, including expiration of the Hart-Scott-Rodino waiting period and approvals in Canada and Israel.
• Integration of Instacart and realization of anticipated synergies involve execution risks.
• Forward-looking statements involve substantial risks and uncertainties, including potential termination of the merger agreement, financing conditions, and market price fluctuations.

Management Commentary and Tone:

• Management expressed pleasure with execution through the first nine months of 2026 and excitement about contributions to local economies.
• The company stated it has "significant work ahead" to improve existing services, complete the global technology platform implementation, and build next-generation services.
• Management emphasized a focus on winning the battle for "atoms" (physical network) over "bits" (digital personal assistants), while still investing in AI agents like Ask DoorDash and Text DoorDash.
• Regarding Instacart, management believes combining reach will enable the best logistics and software infrastructure for grocery delivery, with expected efficiencies to be reinvested into the network.
• Management expects to invest more than 100% of total synergies in the first year after the Instacart close, followed by positive net synergies in year two and beyond.

Other Key Points:

• DoorDash announced a definitive agreement to acquire Instacart for $65.00 per share, representing an equity value of approximately $17 billion.
• The acquisition consideration will be paid in at least 75% cash and up to 25% DoorDash common stock, subject to election and proration mechanics.
• The transaction is expected to close in the end of 2027 or the first half of 2028.
• Stockholders holding about 19% of Instacart's outstanding shares have agreed to vote in favor of the transaction.
• DoorDash expects to fund the cash portion with cash on hand and proceeds from debt financing, targeting a capital structure that maintains investment-grade ratings.
• The company targets a multi-year path to $500 million or more of annual synergies, net of investments.
• In February 2025, the board authorized a $5.0 billion stock repurchase program; year-to-date through October 28, 2026, the company repurchased 6.8 million shares for $1.0 billion, leaving approximately $4.0 billion remaining.
• Management intends to stop disclosing quarterly results excluding Deliveroo beginning in Q4 2026.
• The company is not providing GAAP net income outlook or a reconciliation of Adjusted EBITDA to GAAP net income due to uncertainty regarding legal, tax, and regulatory expenses.