DASH Q2 Earnings Beat Estimates, Revenues Increase Y/Y, Shares Rise

Core Insights - DoorDash (DASH) reported Q2 2025 earnings of $0.65 per share, a significant improvement from a loss of $0.38 per share in the same quarter last year, exceeding the Zacks Consensus Estimate by 54.76% [1][8] - Revenues for the quarter increased by 24.9% year over year to $3.28 billion, surpassing the consensus mark by 3.80% [1][8] - The net revenue margin improved to 13.5% from 13.3% in Q2 2024 [1] Q2 Performance Details - Total orders rose by 20% year over year to 761 million, beating the Zacks Consensus Estimate by 1.36% [3][8] - Marketplace Gross Order Value (GOV) increased by 23% year over year to $24.2 billion, exceeding the consensus by 2.67% [3][8] - Adjusted gross profit reached $1.71 billion, up 32.4% year over year, with an adjusted gross margin of 52.2%, expanding by 300 basis points [3][4] Financial Metrics - Contribution margin improved to 34.9% from 31.4% in the previous year [4] - Adjusted sales and marketing expenses rose by 20.9% year over year to $568 million [4] - Adjusted EBITDA was $655 million, reflecting a 52.3% year-over-year increase, with an adjusted EBITDA margin of 19.9%, up 360 basis points [4] Balance Sheet and Cash Flow - As of June 30, 2025, DoorDash had $7.74 billion in cash and cash equivalents and short-term marketable securities [5] - Cash flow from operations was $504 million in Q2, down from $635 million in the previous quarter [5] - Free cash flow decreased to $355 million from $494 million in the previous quarter [5] Q3 Guidance - For Q3 2025, DoorDash anticipates Marketplace GOV to be between $24.2 billion and $24.7 billion [6] - Adjusted EBITDA is expected to range from $680 million to $780 million [6] - The company projects stock-based compensation expenses between $1 billion and $1.1 billion for 2025 [6]