10-Q · May 6, 2026
DoorDash, Inc. posted Q1 2026 results with revenues of $4.036 billion, marking a 33% increase year-over-year, but falling slightly short of the $4.145 billion consensus estimate. EPS came in at $0.42, beating…
Earnings analysis · 10-Q
DASH earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
DoorDash delivered strong third-quarter operating momentum, with revenue up 34% year over year to $4.616 billion, operating margin expanding to 9.0%, diluted EPS of $1.06, and free cash flow of $787 million. Growth was…
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DoorDash delivered strong third-quarter operating momentum, with revenue up 34% year over year to $4.616 billion, operating margin expanding to 9.0%, diluted EPS of $1.06, and free cash flow of $787 million. Growth was broad at the platform level, with Marketplace GOV up 36% and Total Orders up 28%, while management cited consumer growth, Deliveroo, higher average order value, advertising, and lower discounts as key drivers. The outlook is financially constructive, but the approximately $17 billion Instacart transaction, up to $13.0 billion of bridge financing, Deliveroo integration, and international regulatory exposure materially increase execution and balance-sheet risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.06
- Segment
- Marketplaces and Commerce Platform are disclosed as the company’s primary offerings, but the filing does not provide separate revenue or operating results by segment. Total Orders increased 28% year over year to 993 million and Marketplace GOV increased 36% to $33.9 billion.
What stood out
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Revenue and marketplace volume accelerated
Third-quarter revenue increased 34% year over year to $4.616 billion, versus $3.446 billion in the prior-year quarter, and increased from $4.45 billion in Q2 2026. Marketplace GOV grew 36% year over year to $33.9 billion, while Total Orders increased 28% to 993 million.
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Operating leverage improved materially
GAAP gross margin improved to 50.1% from 49.0% year over year, while operating margin expanded to 9.0% from 7.0%. Operating income increased to $442 million from $258 million.
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Profitability and EPS strengthened
Net income attributable to DoorDash common stockholders increased to $466 million from $244 million, and diluted EPS was $1.06 versus $0.55 in Q3 2025 and $0.46 in Q2 2026.
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Adjusted EBITDA reached $1.1 billion
Adjusted EBITDA increased to $1.060 billion from $754 million year over year, with Adjusted EBITDA margin rising to 3.1% of Marketplace GOV from 3.0%. Management attributed the increase primarily to higher Contribution Profit.
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Strong cash generation continued
Operating cash flow increased to $994 million from $871 million year over year, while free cash flow increased to $787 million from $723 million. Quarterly capital spending was $207 million, consisting of $90 million of property and equipment purchases and $117 million of capitalized software and website development costs.
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Liquidity remains substantial
Liquidity totaled $6.8 billion at September 30, 2026, including $5.1 billion of cash and cash equivalents, $929 million of short-term investments, and $805 million of long-term investments. No revolving loans were outstanding, although $327 million of letters of credit had been issued under the $2.0 billion facility.
What to watch
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Instacart creates major financing risk
DoorDash entered an agreement to acquire Instacart for approximately $17 billion. The company expects to fund the cash portion with cash on hand and debt financing and has a commitment for up to $13.0 billion of 364-day bridge financing; additional equity or debt financing may also be required.
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Deliveroo integration adds execution risk
The filing identifies new integration and control demands following the Deliveroo acquisition: DoorDash is integrating Deliveroo into its internal control process, and controls may be changed. Deliveroo’s integration also contributed to the decline in net revenue margin to 13.6% from 13.8% year over year.
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Italian regulatory investigation remains unresolved
The filing highlights a February 2026 action in which the Milan Public Prosecutor placed DoorDash’s operations in Italy under temporary judicial administration pending an investigation into Deliveroo rider pay practices. The company cannot predict the outcome, creating regulatory and worker-classification exposure in international operations.
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Investment and amortization burden increased
Research and development expense increased 41% year over year to $499 million, while depreciation and amortization increased 85% to $312 million, including $77 million of higher amortization for acquired intangibles and $56 million related to capitalized software and website development costs.
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Capital allocation competes with liquidity needs
Nine-month financing cash flow was negative $1.091 billion, primarily because of $1.0 billion of share repurchases. The company also has $2.75 billion of 0% convertible notes due 2030, whose conversion or cash settlement could reduce liquidity or dilute shareholders.
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Tax expense and valuation uncertainty
The company recorded $35 million of income tax expense in the first nine months of 2026 compared with a $2 million tax benefit in the prior-year period, and it continues to maintain valuation allowances against U.S., U.K., and Finland deferred tax assets.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance, nor does it compare the company’s outlook with a prior outlook. Management states that cash, cash equivalents, investments, and available revolver capacity should be sufficient for working capital and capital expenditures for at least the next 12 months and beyond.
Earlier filings 4
10-K · May 6, 2026
DoorDash, Inc. posted strong financial results in 2025, with revenues reaching $13.7 billion, up 28% year-over-year. The company has expanded its service offerings significantly through acquisitions, including Deliveroo…
10-K · February 18, 2026
DoorDash, Inc. reported significant growth in 2025, with total revenue reaching $13.7 billion, up 28% from the previous year. The company also achieved a net income of $935 million, marking a notable recovery from a…
10-Q · November 6, 2025
DoorDash reported a strong Q3 2025 with a 27% YoY increase in revenue to $3.45 billion, although it missed EPS expectations at $0.55 vs. $0.68 consensus. The company's gross margin improved to 51% while operating margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.