Instacart — Second Quarter 2026 Earnings Summary

Financial Performance

• Gross Transaction Value (GTV) reached $10,351 million, a 14% increase year-over-year.
• Total revenue was $1,043 million, up 14% year-over-year, representing 10.1% of GTV.
• Transaction revenue grew 13% year-over-year to $746 million (7.2% of GTV).
• Advertising and other revenue increased 16% year-over-year to $297 million (2.9% of GTV).
• GAAP gross profit was $751 million, up 11% year-over-year, representing 7.3% of GTV and 72% of total revenue.
• GAAP net income was $111 million, a 4% decrease year-over-year, representing 1.1% of GTV and 11% of total revenue.
• Adjusted EBITDA was $313 million, up 19% year-over-year, representing 3.0% of GTV and 30% of total revenue.
• Operating cash flow was $493 million, up 143% year-over-year.
• Free cash flow was $480 million, up 156% year-over-year.
• The company repurchased $325 million in shares during the quarter.

Guidance and Future Outlook

• Q3 2026 GTV guidance is set at $10,300–$10,550 million, with a midpoint of $10,425 million.
• Q3 2026 Adjusted EBITDA guidance is set at $320–$340 million, with a midpoint of $330 million.
• The midpoint of the Q3 2026 GTV outlook represents 14% year-over-year growth.
• The midpoint of the Q3 2026 Adjusted EBITDA outlook represents 19% year-over-year growth.
• For fiscal 2026, the company expects steady annual Adjusted EBITDA growth that outpaces GTV growth, though this rate is expected to moderate year-over-year as the company reinvests to accelerate growth engines.
• The company has widened GTV and Adjusted EBITDA guidance ranges to reflect increased operating scale.
• No forward-looking GAAP equivalent or reconciliation is provided for the Adjusted EBITDA guidance due to uncertainty regarding reconciling items such as stock-based compensation, legal accruals, and tax reserves.

Business Segments and Product Lines

• Orders totaled 90.3 million, up 9% year-over-year.
• The company activated net-new customers at its fastest year-over-year growth rates since 2022.
• New personalization features include health tags, nutrition scores, and an enhanced replacement model.
• Acquired Arpalus, a computer vision company specializing in grocery inventory intelligence.
• Expanded the "no markup" marketplace model with partners including Grocery Outlet, Ace Hardware, Calgary Co-op, Tractor Supply Company, and World Market.
• Launched Storefront Pro with new partners Calgary Co-op and Dierbergs.
• Signed AI Solutions partners including Stew Leonard's, The Save Mart Companies, Woodman's, and Harmon's for Agentic Analytics and white-label AI assistants.
• Scaled in-store technologies Caper and FoodStorm with partners including Weis Markets, Wakefern, Morrisons (U.K.), Costco, Big Y, and Sprouts.
• The AI assistant pilot is generating orders with an average value exceeding the industry-leading $115.
• Integrated with Google Gemini as the first grocery partner, enabling shoppable carts via natural conversation and AI Mode in Google Search.
• Introduced Immersive Feed, a shoppable short-form vertical video experience.
• Expanded self-service ad partnerships with Pinterest to include all brand advertisers.

Market and Competitive Landscape

• Instacart partners with more than 2,200 retail banners representing nearly 100,000 stores.
• The company continues to drive momentum with retailers moving to no markups on its marketplace.
• Advertising revenue growth (16%) is outpacing GTV growth (14%).

Risks and Challenges

• Forward-looking statements are subject to risks including the ability to forecast performance, attract and engage customers/retailers/brands/shoppers, and manage increasing business scale and complexity.
• Risks include evolving macroeconomic conditions, the ability to maintain profitability and profitable growth, competition, and legal and regulatory developments.
• GAAP results may be significantly affected by reconciling items such as stock-based compensation, legal accruals, and tax reserves.

Management Commentary and Tone

• CEO Chris Rogers stated the business is "performing incredibly well" with meaningful growth acceleration over the past three quarters.
• Rogers highlighted broad-based strength across the marketplace and enterprise platform, emphasizing the reinforcement of capabilities in customer experience, enterprise technology, and the advertising ecosystem.
• CFO Emily Reuter noted "broad-based strength" across the platform and operating model, citing double-digit GTV and revenue growth.
• Reuter confirmed the company is driving efficiencies while reinvesting in growth, delivering strong net income and expanding Adjusted EBITDA and operating cash flow.
• Management expressed confidence in returning the majority of free cash flow to shareholders via share repurchases in 2026.

Other Key Points

• The company ended the quarter with $1 billion in cash and similar assets.
• GAAP gross margin decreased to 72% from 74% in the prior year period.
• GAAP net income as a percent of total revenue decreased to 11% from 13% in the prior year period.
• The company hosts a conference call and audio webcast for investors on the day of the release.