Company Overview - Instacart is the leading grocery technology company in North America, partnering with over 1,800 retail banners to facilitate online shopping, delivery, and pickup services from nearly 100,000 stores across the continent [4]. - The company enables approximately 600,000 Instacart shoppers to earn by picking, packing, and delivering orders on a flexible schedule [4]. - Instacart offers a suite of enterprise-grade technology products and services to retailers, enhancing their e-commerce experiences and providing advertising services [4]. Leadership Changes - Josh Silverman, CEO of Etsy, has joined Instacart's Board of Directors, bringing extensive experience in leading marketplace and technology companies [2][3]. - Silverman has a proven track record of scaling consumer platforms and is expected to contribute significantly to Instacart's growth and impact [2]. - The current Board of Directors includes notable figures such as Chris Rogers (CEO of Instacart), Fidji Simo (CEO of Applications at OpenAI), and other industry leaders [3]. Strategic Focus - Instacart aims to deepen its value across the grocery ecosystem, leveraging technology to transform how consumers shop for groceries [2]. - The company is committed to increasing nutrition security and making healthy choices easier for consumers through its Instacart Health initiative [4].

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section identifies forward-looking statements, their nature, and associated risks and uncertainties, advising against undue reliance on them - This section identifies forward-looking statements, their nature, and associated risks and uncertainties, advising against undue reliance on them[11](index=11&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Part I - Financial Information](index=5&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Maplebear Inc. (Instacart), including balance sheets, statements of operations, comprehensive income, redeemable convertible preferred stock and stockholders' equity, and cash flows, along with detailed notes on business description, significant accounting policies, revenue disaggregation, fair value measurements, investments, property and equipment, business combinations, goodwill and intangible assets, accrued liabilities, commitments and contingencies, redeemable convertible preferred stock, stockholders' equity, income taxes, net income per share, related party transactions, restructuring, and segment information [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in millions) | Metric | Dec 31, 2024 (in millions) | Jun 30, 2025 (in millions) | Change (in millions) | % Change | | :-------------------------------- | :------------------------- | :------------------------- | :------------------- | :--------- | | Total Assets | $4,115 | $4,433 | $318 | 7.7% | | Total Liabilities | $836 | $942 | $106 | 12.7% | | Total Stockholders' Equity | $3,093 | $3,299 | $206 | 6.7% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in millions, except EPS) | Metric | 3 Months Ended Jun 30, 2024 (in millions) | 3 Months Ended Jun 30, 2025 (in millions) | Change (in millions) | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | :--------- | | Revenue | $823 | $914 | $91 | 11.1% | | Gross Profit | $623 | $678 | $55 | 8.8% | | Income from Operations | $52 | $124 | $72 | 138.5% | | Net Income | $61 | $116 | $55 | 90.2% | | Basic EPS | $0.22 | $0.43 | $0.21 | 95.5% | | Diluted EPS | $0.20 | $0.41 | $0.21 | 105.0% | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (in millions) | Metric | 3 Months Ended Jun 30, 2024 (in millions) | 3 Months Ended Jun 30, 2025 (in millions) | Change (in millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | | Net Income | $61 | $116 | $55 | | Change in foreign currency translation adjustments | $0 | $7 | $7 | | Total other comprehensive income (loss) | $0 | $7 | $7 | | Comprehensive income | $61 | $124 | $63 | [Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Redeemable%20Convertible%20Preferred%20Stock%20and%20Stockholders'%20Equity) - Total stockholders' equity increased from **$3,093 million** as of December 31, 2024, to **$3,299 million** as of June 30, 2025. Key changes include net income of **$106 million** (Q1 2025) and **$116 million** (Q2 2025), stock-based compensation of **$77 million** (Q1 2025) and **$117 million** (Q2 2025), and common stock repurchases of **$94 million** (Q1 2025) and **$111 million** (Q2 2025)[33](index=33&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in millions) | Metric | 6 Months Ended Jun 30, 2024 (in millions) | 6 Months Ended Jun 30, 2025 (in millions) | Change (in millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | | Net cash provided by operating activities | $349 | $501 | $152 | | Net cash used in investing activities | $0 | $(156) | $(156) | | Net cash used in financing activities | $(1,055) | $(175) | $880 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(712) | $176 | $888 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Business](index=12&type=section&id=1.%20Business) - Maplebear Inc. (Instacart) operates a technology platform connecting retailers, end users, advertisers, and shoppers in the U.S. and Canada, facilitating grocery and non-grocery transactions, offering advertising services, and providing SaaS solutions to retailers[41](index=41&type=chunk) [2. Significant Accounting Policies](index=12&type=section&id=2.%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP and SEC rules for interim information, consistent with annual statements. No significant changes to accounting policies from the **2024 10-K**[42](index=42&type=chunk)[44](index=44&type=chunk) - Management uses estimates and assumptions for revenue recognition, legal contingencies, and income taxes, considering macroeconomic trends like inflation and interest rate fluctuations[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - The company is evaluating the impact of new FASB ASUs on income tax disclosures (ASU 2023-09, effective after Dec 15, 2024) and expense disaggregation (ASU 2024-03, effective after Dec 15, 2026)[50](index=50&type=chunk)[51](index=51&type=chunk) [3. Revenue](index=13&type=section&id=3.%20Revenue) Revenue Disaggregation (in millions) | Revenue Type | 3 Months Ended Jun 30, 2024 (in millions) | 3 Months Ended Jun 30, 2025 (in millions) | % Change | 6 Months Ended Jun 30, 2024 (in millions) | 6 Months Ended Jun 30, 2025 (in millions) | % Change | | :----------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Transaction | $595 | $659 | 10.8% | $1,198 | $1,309 | 9.3% | | Advertising and other | $228 | $255 | 11.8% | $445 | $502 | 12.8% | | Total Revenue | $823 | $914 | 11.1% | $1,643 | $1,811 | 10.2% | - Deferred revenue, primarily from Instacart+ memberships, is expected to be recognized within one year. **$151 million** of revenue was recognized from deferred revenue balance as of Dec 31, 2024 during the six months ended June 30, 2025[55](index=55&type=chunk) - No customers accounted for **10%** or more of accounts receivable as of June 30, 2025, indicating reduced concentration risk compared to December 31, 2024 (Customer A: **10%**, Customer E: **16%**)[57](index=57&type=chunk) [4. Fair Value Measurements](index=14&type=section&id=4.%20Fair%20Value%20Measurements) Fair Value of Financial Assets (in millions) | Asset Type | Dec 31, 2024 (Level 1) | Dec 31, 2024 (Level 2) | Jun 30, 2025 (Level 1) | Jun 30, 2025 (Level 2) | | :---------------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Money market funds | $849 | $0 | $1,173 | $0 | | U.S. government and government agency debt securities (Cash equivalents) | $0 | $35 | $0 | $20 | | U.S. government and government agency debt securities (Short-term marketable securities) | $0 | $91 | $0 | $109 | | **Total** | **$849** | **$126** | **$1,173** | **$129** | - Investments in U.S. government and government agency debt securities are classified as Level 2, valued using observable market data[61](index=61&type=chunk) [5. Investments](

Core Insights - Instacart is experiencing a significant shift in consumer behavior, with total orders increasing by 17% year over year in Q2 2025, indicating a rise in utility provided to customers [2][6] - The company is focusing on price visibility and offer targeting, rewarding retailers for aligning in-store and online prices, which enhances consumer confidence in value [3][5] - Artificial intelligence is integral to Instacart's strategy, personalizing search results and informing promotional tools, with over 600 brands utilizing its ads API [4] Financial Performance - Gross transaction value increased by 11% to $9.08 billion, while revenue rose to $914 million, and adjusted EBITDA surged by 69% to $215 million [6] - Adjusted earnings reached $0.41 per share, surpassing Wall Street expectations [6] Strategic Direction - Instacart has raised its Q3 revenue guidance and reaffirmed profitability targets, although a leadership transition is imminent with CEO Fidji Simo stepping down in August [7] - The future growth of Instacart will depend on its ability to connect pricing, discovery, and personalization for a digitally native shopper base [7]

Group 1 - The core viewpoint of the article highlights that Maplebear, the parent company of grocery delivery platform Instacart, experienced a significant stock increase of over 11.3% after reporting strong second-quarter earnings [1] - Maplebear's second-quarter revenue grew by 11% year-over-year to $914 million, surpassing analyst expectations of $896 million [1] - Adjusted EBITDA for the second quarter increased by 26% year-over-year to $262 million, also exceeding the forecast of $242 million [1] Group 2 - The company's gross transaction value (GTV) rose by 11% year-over-year to $9.081 billion, exceeding the upper limit of the guidance range of $8.85 billion to $9.15 billion [1] - The number of orders increased by 17% year-over-year to 82.7 million, driven by a reduction in the minimum purchase amount for free delivery earlier this year [1] - For the third quarter, the company expects GTV to be between $9 billion and $9.15 billion, above the anticipated $8.96 billion, with adjusted EBITDA projected to be between $260 million and $270 million, also exceeding expectations [1]

Core Insights - Maplebear (CART) reported revenue of $914 million for the quarter ended June 2025, reflecting an 11.1% increase year-over-year and a surprise of +2.11% over the Zacks Consensus Estimate of $895.1 million [1] - The company's EPS for the quarter was $0.41, compared to $0.20 in the same quarter last year, resulting in an EPS surprise of +5.13% against the consensus estimate of $0.39 [1] Financial Performance Metrics - Gross Transaction Value (GTV) reached $9.08 billion, exceeding the average estimate of $8.94 billion from nine analysts [4] - Total orders amounted to 82.7 million, surpassing the seven-analyst average estimate of 80.63 million [4] - Revenue from advertising and other sources was reported at $255 million, slightly below the average estimate of $255.27 million from nine analysts [4] - Revenue from transactions was $659 million, exceeding the nine-analyst average estimate of $640.78 million [4] Stock Performance - Over the past month, Maplebear's shares have returned -0.6%, while the Zacks S&P 500 composite has increased by +1.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - Maplebear (CART) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.20 per share a year ago, representing an earnings surprise of +5.13% [1] - The company posted revenues of $914 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.11%, and up from $823 million in the same quarter last year [2] - Over the last four quarters, Maplebear has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Maplebear shares have increased approximately 15.2% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $918.47 million, and for the current fiscal year, it is $1.73 on revenues of $3.67 billion [7] Industry Outlook - The Internet - Commerce industry, to which Maplebear belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Maplebear's stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) growth of 11% year over year, driven by a 17% increase in orders, although the average order value decreased by 5% year over year [20][22] - GAAP net income reached $116 million, up 92% year over year, while adjusted EBITDA was $262 million, reflecting a 26% year over year increase [22][24] - Stock-based compensation increased to $105 million, up $39 million quarter over quarter, with expectations for a decrease in Q3 [23][24] Business Line Data and Key Metrics Changes - Advertising and other revenue grew by 12% year over year, remaining flat at 2.8% of GTV, indicating resilience despite a pullback from one of the largest brand partners [21][22] - The company has scaled advertising revenue to over $1 billion in annual run rate, increasing the number of active brand partners from 4,000 to over 7,500 [13][22] Market Data and Key Metrics Changes - The company continues to lead in share of sales among digital-first players, with its share being more than three times larger than the next competitor [11][12] - The company is seeing strong user growth and higher order frequency, particularly among new customers acquired in 2025 [8][31] Company Strategy and Development Direction - The company is focused on enhancing its interconnected ecosystem, which allows for scalable tools that help retailers innovate and compete [10][11] - The strategy includes deepening retail partnerships and expanding into new categories, such as alcohol and restaurant orders through partnerships like Uber Eats [30][31] - The company aims to maintain its leadership position by meeting customers' full grocery needs, particularly in the big basket segment [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the strength of its operating model and the ability to deliver value for retailers and customers [13][25] - The leadership transition to Chris Rogers as the new CEO is seen as a positive step for the company's future growth [17][18] Other Important Information - The company has made strategic acquisitions to enhance its enterprise offerings and has repurchased over $1.6 billion worth of shares [15][24] - AI technology is integrated into the company's operations, with over 80% of code deployed in Q2 being AI-assisted [16] Q&A Session Summary Question: Competitive landscape and supply improvements - Management discussed the importance of onboarding more retailers and deepening existing partnerships to enhance supply and improve conversion rates [28][30] Question: Growth composition between grocery and restaurants - Management clarified that the addition of restaurant orders has contributed to overall order growth, with expectations for moderation in Q3 [34][36] Question: Interest in the Instacart platform and enterprise pipeline - Management highlighted the focus on Storefront Pro and the ability to upsell additional services to existing retailers [44][46] Question: CPG environment and advertising outlook - Management noted ongoing uncertainty in the CPG environment but emphasized the resilience of their advertising revenue and the potential for emerging brands to gain market share [52][56] Question: Affordability initiatives and customer retention - Management explained that their affordability strategy is broad-based and includes various initiatives to enhance customer retention and engagement [103][106]

Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) growth of 11% year over year, driven by a 17% increase in orders, despite a 5% decrease in average order value [18][20] - GAAP net income reached $116 million, up 92% year over year, while adjusted EBITDA was $262 million, reflecting a 26% year over year increase [20] - Stock-based compensation increased to $105 million, up $39 million quarter over quarter, with expectations for a decrease in Q3 [21] Business Line Data and Key Metrics Changes - Advertising and other revenue grew by 12% year over year, remaining flat at 2.8% of GTV, indicating resilience in the advertising platform [19][20] - The company has scaled advertising revenue to over $1 billion in annual run rate, increasing the number of active brand partners from 4,000 to over 7,500 [12] Market Data and Key Metrics Changes - The company continues to lead in share of sales among digital-first players, with its share being more than three times larger than the next competitor [10] - The company is onboarding new storefront partners at an accelerated pace, with 40 net new retailers added this year compared to 30 last year [28] Company Strategy and Development Direction - The company is focused on enhancing its interconnected ecosystem, which allows for scalable tools that help retailers innovate and compete [9] - The strategy includes deepening retail partnerships and expanding into new categories, such as alcohol and restaurant orders, to drive user growth and order frequency [28][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to remain a category leader despite competitive pressures, citing strong retention rates among new customers [12][29] - The company anticipates GTV for Q3 to range between $9 billion and $9.15 billion, reflecting year-over-year growth of 8% to 10% [22] Other Important Information - The company has made significant investments in AI, with over 80% of code deployed in Q2 being AI-assisted, which has improved operational efficiency [14] - The company has bought back over $1.6 billion worth of shares, demonstrating confidence in its execution capabilities [13] Q&A Session Summary Question: Comments on competitive landscape and consumer behavior - Management highlighted the importance of onboarding more retailers and deepening existing partnerships to drive growth and improve customer retention [27] Question: Composition of order growth between grocery and restaurants - Management noted that the addition of restaurant orders has contributed to higher order frequency, but they expect some moderation in growth as they lap the first full quarter of restaurant contributions [33][34] Question: Interest in the Instacart platform and enterprise pipeline - Management emphasized the focus on Storefront Pro and the ability to upsell additional services to existing retailers, indicating strong interest in their enterprise solutions [42][45] Question: Update on advertising revenue and CPG environment - Management acknowledged ongoing uncertainty in the CPG environment but noted that emerging brands are gaining share, which is beneficial for the advertising business [52][56] Question: Affordability initiatives and customer retention - Management clarified that their affordability strategy is broad-based and includes various initiatives beyond just lowering the minimum basket size, which has allowed for overall GTV growth [105] Question: Gains from batching and AI efficiency - Management discussed how gains from batching have allowed for reinvestment in customer incentives and operational efficiencies, with no immediate plans to impact OpEx from AI deployment [72][76]

Core Insights - Instacart reported Q2 2025 GAAP revenue of $914 million, exceeding estimates by 2.01% and showing a year-over-year growth of 11.1% [1][2][5] - GAAP net income reached $116 million, a 90.2% increase from the previous year, reflecting strong operational performance [1][2][5] - The company experienced a 5% decline in average order value, but this was offset by a significant increase in order volume, rising from 70.8 million to 82.7 million, a 17% year-over-year growth [5][6] Financial Performance - EPS (GAAP) for Q2 2025 was $0.41, up 105% from $0.20 in Q2 2024 [2] - Adjusted EBITDA reached $262 million, a 25.96% increase from $208 million in Q2 2024 [2][7] - Gross Transaction Value (GTV) increased by 10.8% to $9.08 billion compared to Q2 2024 [2][5] Business Model and Strategy - Instacart connects consumers with grocery stores and retailers, offering delivery and pickup options, and provides enterprise technology solutions to over 1,800 retail banners [3] - The company focuses on partnerships with retailers, enhancing customer experience, and expanding advertising capabilities [4][9] - New retailer integrations increased significantly, with over 40 launched in the first half of fiscal 2025 [9] Operational Efficiency - Operational improvements and increased order batching have helped maintain gross profit per order above $8 [6][7] - Advertising revenue climbed to $255 million, a 12% year-over-year increase, with over 7,500 brands utilizing the Instacart Ads platform [8] - The company has implemented advanced personalization features and improved fulfillment speed, reducing average shopper fulfillment time by about 25% [11] Future Outlook - For Q3 2025, Instacart projects GTV between $9.0 billion and $9.15 billion, indicating expected year-over-year growth of 8% to 10% [13] - The company anticipates Adjusted EBITDA between $260 million and $270 million, reaffirming its strategy of focusing on higher order frequency and efficiency [13] - Regulatory concerns regarding gig worker classification and advertising spending patterns are ongoing factors that may influence future performance [14]

Core Insights - The outgoing CEO Fidji Simo will step down to join OpenAI, while Chris Rogers, who joined Instacart in 2019, will take over as CEO [1][2] Financial Performance - Instacart's gross transaction value increased by approximately 11% year-over-year to $9.08 billion, exceeding the FactSet estimate of $8.93 billion [3] - Net income more than doubled from the previous year to $116 million, equating to 41 cents per share [3] - The company anticipates gross transaction value for the current quarter to be between $9 billion and $9.15 billion, surpassing analyst forecasts of $8.93 billion [4] Operational Metrics - Orders rose by 17% year-over-year to 82.7 million [4] - The average value per order decreased by 5%, attributed to a lower free delivery threshold for Instacart+ members [4] - Shares of Instacart have increased by 17% year-to-date [4] Strategic Initiatives - Instacart is leveraging artificial intelligence to enhance personalization and expedite feature launches [3]