Instacart — Third Quarter 2026 Earnings Summary

Financial Performance:

• Gross Transaction Value (GTV) reached $10,528 million, a 15% increase year-over-year.
• Total revenue was $1,095 million, up 17% year-over-year, representing 10.4% of GTV.
• Transaction revenue grew 14% year-over-year to $764 million (7.3% of GTV).
• Advertising and other revenue increased 23% year-over-year to $331 million (3.1% of GTV).
• GAAP gross profit was $786 million, up 14% year-over-year, representing 7.5% of GTV and 72% of total revenue.
• GAAP net income was $147 million, up 2% year-over-year, representing 1.4% of GTV and 13% of total revenue.
• Adjusted EBITDA was $342 million, up 23% year-over-year, representing 3.2% of GTV and 31% of total revenue.
• Operating cash flow was $324 million, up 13% year-over-year.
• Free cash flow was $307 million, up 13% year-over-year.
• GAAP gross margin was 72%, down from 74% in the prior year period.
• GAAP net income as a percent of total revenue was 13%, down from 15% in the prior year period.

Guidance and Future Outlook:

• Instacart has suspended its financial guidance and withdrawn previously issued long-term guidance due to the pending acquisition by DoorDash.
• The earnings conference call scheduled for November 5, 2026, has been cancelled.

Business Segments and Product Lines:

• Orders totaled 91.4 million, a 10% increase year-over-year.
• The company partners with over 2,200 retail banners representing nearly 100,000 stores.
• Instacart is building an operating system for grocery that integrates ecommerce, fulfillment, in-store technology, retail media, and AI Solutions.

Market and Competitive Landscape:

• Management describes online grocery as an underpenetrated category where the company is in the early stages of realizing the potential of its grocery technology.
• The company aims to transform the grocery industry by strengthening and growing the businesses of its partners.

Risks and Challenges:

• Risks include the possibility that the merger with DoorDash may not be completed within the expected timeframe or at all.
• Potential risks involve the inability to receive regulatory or stockholder approval, failure to satisfy closing conditions, and legal actions against the company or its board.
• Operational risks include disruption of management time and resources, difficulty in attracting and retaining key personnel, and the potential for a termination fee obligation.
• Other risks include evolving macroeconomic conditions, competition, and the ability to maintain customer, retailer, brand, and shopper relationships post-announcement.

Management Commentary and Tone:

• CEO Chris Rogers stated that Q3 was the company's best quarter as a public company, citing solid consumer demand, deepening customer engagement, and expanding profitability.
• Management expressed confidence in the company's fundamentals and its purpose-built grocery technology.

Other Key Points:

• Instacart entered into a definitive agreement to be acquired by DoorDash in a cash-and-stock transaction with an equity value of approximately $17 billion.
• The company repurchased $230 million in shares during the quarter.
• Instacart ended the quarter with $1 billion in cash and similar assets.
• Deferred revenue increased to $221 million as of September 30, 2026, from $211 million as of December 31, 2025.
• Total liabilities increased to $1,010 million as of September 30, 2026, from $974 million as of December 31, 2025.
• Stockholders' equity was $2,567 million as of September 30, 2026, compared to $2,518 million as of December 31, 2025.