We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DoorDash Q3 Earnings Miss Estimates, Revenues Increase Y/Y, Shares Fall
Read MoreHide Full Article
Key Takeaways
DoorDash's Q3 earnings of $0.55 missed estimates but rose from $0.38 a year earlier.
Revenue climbed 27.3% year over year to $3.45B, beating the consensus mark by 2.41%.
Q3 orders rose 21% and adjusted EBITDA jumped 41.5% as margins expanded.
DoorDash (DASH - Free Report) reported third-quarter 2025 earnings of 55 cents per share compared with the year-ago quarter’s earnings of 38 cents per share. The figure missed the Zacks Consensus Estimate by 19.12%.
Revenues increased 27.3% year over year to $3.45 billion, beating the consensus mark by 2.41%. The net revenue margin rose to 13.8% from 13.5% in the third quarter of 2024.
Following the results, DoorDash shares have plunged 9.84% in the pre-market trading.
DASH’s Q3 Details
In the third quarter of 2025, total orders increased 21% year over year to 776 million. The figure beat the Zacks Consensus Estimate by 0.69%. Total orders were driven by growth in consumers and average consumer engagement.
Marketplace GOV increased 25% year over year to $25 billion. The figure beat the consensus mark by 1.84%.
The adjusted gross profit was $1.81 billion, up 31.4% year over year. The adjusted gross margin expanded 160 bps on a year-over-year basis to 52.5%.
The contribution margin was 36.8% compared with 34.4% reported in the year-ago quarter.
Adjusted sales & marketing expenses rose 21.3% year over year to $542 million. Adjusted research & development expenses increased 37.8% year over year to $215 million. Adjusted general & administrative expenses increased 24.1% year over year to $299 million.
Adjusted EBITDA was $754 million, up 41.5% year over year. Adjusted EBITDA margin expanded 220 bps to 21.9%.
DASH’s Balance Sheet and Cash Flow
As of Sept. 30, 2025, DoorDash had $8.32 billion in cash and cash equivalents and short-term marketable securities compared with $7.74 billion as of June 30, 2025.
Cash flow from operations was $871 million in the third quarter compared with the previous quarter’s $504 million. Free cash flow was $723 million compared with the previous quarter’s figure of $355 million.
DASH’s Q4 Guidance
For the fourth quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $28.9-$29.5 billion.
Adjusted EBITDA is expected to be in the range of $710-$810 million.
For 2025, DoorDash expects stock-based compensation expense to be approximately $1.1 billion. Depreciation and amortization expense is expected to be roughly $700 million.
Image: Bigstock
DoorDash Q3 Earnings Miss Estimates, Revenues Increase Y/Y, Shares Fall
Key Takeaways
DoorDash (DASH - Free Report) reported third-quarter 2025 earnings of 55 cents per share compared with the year-ago quarter’s earnings of 38 cents per share. The figure missed the Zacks Consensus Estimate by 19.12%.
Revenues increased 27.3% year over year to $3.45 billion, beating the consensus mark by 2.41%. The net revenue margin rose to 13.8% from 13.5% in the third quarter of 2024.
Following the results, DoorDash shares have plunged 9.84% in the pre-market trading.
DASH’s Q3 Details
In the third quarter of 2025, total orders increased 21% year over year to 776 million. The figure beat the Zacks Consensus Estimate by 0.69%. Total orders were driven by growth in consumers and average consumer engagement.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
Marketplace GOV increased 25% year over year to $25 billion. The figure beat the consensus mark by 1.84%.
The adjusted gross profit was $1.81 billion, up 31.4% year over year. The adjusted gross margin expanded 160 bps on a year-over-year basis to 52.5%.
The contribution margin was 36.8% compared with 34.4% reported in the year-ago quarter.
Adjusted sales & marketing expenses rose 21.3% year over year to $542 million. Adjusted research & development expenses increased 37.8% year over year to $215 million. Adjusted general & administrative expenses increased 24.1% year over year to $299 million.
Adjusted EBITDA was $754 million, up 41.5% year over year. Adjusted EBITDA margin expanded 220 bps to 21.9%.
DASH’s Balance Sheet and Cash Flow
As of Sept. 30, 2025, DoorDash had $8.32 billion in cash and cash equivalents and short-term marketable securities compared with $7.74 billion as of June 30, 2025.
Cash flow from operations was $871 million in the third quarter compared with the previous quarter’s $504 million. Free cash flow was $723 million compared with the previous quarter’s figure of $355 million.
DASH’s Q4 Guidance
For the fourth quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $28.9-$29.5 billion.
Adjusted EBITDA is expected to be in the range of $710-$810 million.
For 2025, DoorDash expects stock-based compensation expense to be approximately $1.1 billion. Depreciation and amortization expense is expected to be roughly $700 million.
Zacks Rank & Other Stocks to Consider
DoorDash currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Constellation Software (CNSWF - Free Report) and Ceragon Networks (CRNT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Shares of Analog Devices have gained 11.1% year to date. Analog Devices is set to report fourth-quarter fiscal 2025 results on Nov. 25.
Shares of Constellation Software have lost 18.3% year to date. Constellation Software is slated to report third-quarter 2025 results on Nov. 11.
Shares of Ceragon Networks have lost 46.9% year to date. Ceragon Networks is set to report third-quarter 2025 results on Nov. 11.