CFO Ravi Inukonda said his expectations for full-year 2026 EBITDA have not changed since the prior call. He said DoorDash expects 2026 EBITDA margin to be “up slightly compared to 2025, excluding Deliveroo,” and reiterated that Deliveroo is expected to produce about $200 million of EBITDA for the year.More broadly, Xu said the company’s business outside the U.S. is growing faster than in the U.S.—which he noted had “two of the fastest-growing quarters in 2025 in the last four years”—and that DoorDash is con ...

DoorDash (NasdaqGS:DASH) Q4 2025 Earnings call February 18, 2026 05:00 PM ET Company ParticipantsAndrew Boone - Managing DirectorEric Sheridan - Managing DirectorJosh Beck - Managing DirectorJustin Patterson - Managing Director of Equity ResearchJustin Post - Managing DirectorLee Horowitz - Co-Head of Internet Equity ResearchMark Mahaney - Senior Managing DirectorRavi Inukonda - CFOShweta Khajuria - Managing Director of Global InternetTony Xu - Co-Founder, Chairman, and CEOWeston Twigg - Head of Finance and ...

Financial Data and Key Metrics Changes - The company expects 2026 EBITDA margin to be slightly up compared to 2025, excluding Deliveroo, which is projected to contribute about $200 million of EBITDA [10][11][39] - The U.S. restaurant business contribution margin was up year-over-year in Q4, with expectations for continued margin improvement in 2026 [41][42] Business Line Data and Key Metrics Changes - New verticals, including retail and grocery, had a strong quarter and year, with 30% of miles in the U.S. coming from categories outside of restaurants [24][48] - The company aims to increase the percentage of miles from grocery and retail to 100% over time, with improvements in selection and efficiency driving growth [24][41] Market Data and Key Metrics Changes - The company reported high growth rates in the grocery sector, with no significant impact from competition, particularly from Amazon [47][50] - The company is expanding its capabilities with DashMart Fulfillment Services to enhance quality and compete effectively against larger players [50] Company Strategy and Development Direction - The company is focused on building an operating system for local commerce, integrating software, warehousing, and delivery infrastructure to support small and medium businesses [19][22] - Investments are being made in autonomous delivery platforms, with a vision for a fleet of vehicles to serve both urban and suburban areas [39][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position in Europe, highlighting faster growth compared to the U.S. and successful integration of Deliveroo [8][9] - The management emphasized the importance of maximizing long-term free cash flow through strategic investments in technology and service offerings [11][12] Other Important Information - The company is making significant investments in its global tech stack, with expectations for improved efficiency and feature development velocity [60][76] - The DashPass program is seen as critical for driving consumer engagement and order frequency, with plans to enhance its value proposition [66][69] Q&A Session Summary Question: Competitive intensity in Europe and investment levels for 2026 and 2027 - Management noted strong positioning in Europe and faster growth post-Deliveroo acquisition, with consistent investment levels expected [8][10] Question: Details on longer distance and higher effort deliveries - Management discussed the evolution of Dashers and the integration of software to support complex deliveries, emphasizing the need for improved pay models [18][22] Question: Strategy for autonomous delivery platform - Management outlined plans for a fleet of delivery vehicles, emphasizing the orchestration of deliveries between Dashers and autonomous vehicles [39][40] Question: Reasons for lower unit economics improvement in U.S. restaurant business - Management indicated that while margins are improving, the pace will be slower due to ongoing investments and seasonal factors [41][42] Question: Growth in grocery and perishables amid competition - Management reported continued high growth rates in grocery, asserting that consumer preference for choice supports their strategy [47][50] Question: Insights from Deliveroo acquisition - Management highlighted early successes and identified numerous small improvements that can enhance customer offerings [58][59] Question: Update on storefront software business and tech stack timing - Management confirmed positive integration with SevenRooms and expects significant tech stack benefits to materialize throughout 2026 [72][76]

DoorDash (NasdaqGS:DASH) Q4 2025 Earnings call February 18, 2026 05:00 PM ET Speaker13Hello, everyone. Thank you for joining us, and welcome to the DoorDash Q4 2025 earnings call. After today's opening statement, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. I will now hand the call over to Weston Twigg. Please go ahead.Speaker18All right. Thanks, Elizabeth. Good afterno ...

Core Viewpoint - DoorDash, Inc. (NASDAQ:DASH) is positioned as a leading global local commerce platform, with ongoing investments aimed at enhancing its competitive edge and expanding its market presence, despite short-term profitability pressures [3][4]. Group 1: Financial Performance and Market Position - Guggenheim has lowered its price target for DoorDash to $275 from $280 while maintaining a Buy rating, reflecting expectations of continued investment spending impacting margins until 2027 [1]. - DoorDash commands approximately 56% market share in the U.S. food delivery sector, showcasing its category leadership and potential for long-term growth [4]. Group 2: Strategic Initiatives and Expansion Plans - The company is accelerating its expansion in Europe, leveraging acquisitions like Deliveroo and Wolt to enhance its operational scale and market expertise [3]. - DoorDash is investing in next-generation capabilities, including DashMart Fulfillment Services and autonomous delivery initiatives, which are expected to improve efficiency and unit economics over time [3]. Group 3: Growth Metrics - DoorDash has achieved an average revenue growth of over 64% over the past five years, positioning it among high-growth e-commerce stocks [4].

Investment Rating - The report maintains a "Buy" rating for DoorDash with a target price of $280.60 [6]. Core Insights - DoorDash reported a total gross order value (GOV) of $25.02 billion for Q3 2025, a year-over-year increase of 25.1%, exceeding consensus expectations by 1.9% [1]. - Revenue reached $3.45 billion, up 27.3% year-over-year, also surpassing expectations by 2.6%, driven by significant growth in monthly active users and improvements in average order value and frequency [1][2]. - GAAP net profit was $240 million, below the expected $290 million, while adjusted EBITDA was $750 million, a 42% year-over-year increase, aligning closely with expectations [1][3]. - The company anticipates a short-term profit pressure due to rising operational costs and planned reinvestments of several hundred million dollars in 2026, which are expected to benefit long-term growth [1][3]. Summary by Sections Performance Overview - In Q3 2025, DoorDash's order volume reached 776 million, a 21% year-over-year increase, exceeding expectations by 0.4% [2]. - The average order value (AOV) also surpassed expectations, contributing to the overall GOV exceeding forecasts [2]. Growth Drivers - Growth is driven by a resurgence in core categories, particularly in the U.S. restaurant sector, where GOV growth reached a three-year high [2]. - The international business is expanding robustly, with growth rates in several countries outpacing local competitors, and the integration of Deliveroo is expected to enhance scale and synergy [2]. Cost and Profitability - The increase in operational costs led to a GAAP net profit of $240 million, which was lower than the anticipated $290 million [3]. - The company’s expense ratio for Q3 2025 was 38.6%, higher than the expected 38.0%, primarily due to seasonal increases in rider costs and a higher proportion of low-margin international business [3]. Financial Projections - Revenue forecasts for 2025-2027 are adjusted to $13.76 billion, $17.34 billion, and $21.25 billion, reflecting increases of 4%, 8%, and 12% respectively [4]. - Adjusted EBITDA projections for the same period are revised to $2.8 billion, $3.7 billion, and $4.7 billion, with slight downward adjustments due to lower-than-expected Q4 guidance [4]. Valuation - The report suggests a valuation premium for DoorDash, switching to a 2026 valuation based on a 30x EV/EBITDA multiple, resulting in a target price of $280.60 [4].

Core Viewpoint - DoorDash reported mixed third-quarter results, with strong demand for food delivery but earnings falling short of analyst expectations, leading to a significant drop in stock price [1][12]. Financial Performance - DoorDash earned 55 cents per share for the September-ended quarter, a 44% increase year-over-year, but below the expected 68 cents per share [2]. - Sales rose 27% to $3.45 billion, surpassing analyst estimates of $3.36 billion [2]. - The total value of orders on DoorDash's platforms grew 25% year-over-year to $25 billion, exceeding the forecast of $24.5 billion [3]. Future Guidance - For the current quarter, DoorDash projected a gross order value of $29.2 billion, higher than the analyst projection of $26.55 billion [4]. - The adjusted EBITDA forecast for Q4 is $760 million, which is below the analyst estimate of $807 million [4]. Investment Strategy - DoorDash plans to invest "several hundred million dollars more" in new initiatives and platform development in 2026 compared to 2025 [5]. - The investments aim to create a global technology platform to unify DoorDash's app with those of Wolt and Deliveroo, enhancing efficiency in feature deployment [6]. Product Development - Recent product launches include a delivery robot named Dot and DashMart Fulfillment Services, which partners with retailers like CVS for rapid delivery [7]. Analyst Sentiment - Despite concerns over new investments impacting growth, some analysts maintain a positive outlook, citing DoorDash's strong execution and improving margins in its core business [9][11]. - Analysts have adjusted their price targets for DoorDash stock, with JPMorgan lowering it to 300 from 325 and Truist to 330 from 340 [10]. Stock Market Reaction - Following the earnings report, DoorDash stock fell over 14% to 203.64, marking a significant decline from its record high of 285 reached on October 16 [12].

Core Insights - Kroger is expanding its delivery capabilities by partnering with DoorDash's DashMart Fulfillment Services, which will allow the grocer to reach urban areas where its stores are not present [4][9] - The partnership builds on Kroger's existing relationships with DoorDash and other delivery services, enhancing its e-commerce strategy [8][9] - DashMart, launched five years ago, now operates over 100 locations and provides a fulfillment service for retailers, allowing them to offer quick delivery without significant infrastructure costs [6][7] Group 1 - Kroger is utilizing DashMart facilities for online order fulfillment, indicating a shift towards using stores for picking and packing e-commerce orders [3] - The fulfillment service will enable Kroger to offer groceries and household items through DoorDash, joining other retailers like CVS and Party City [9] - The announcement follows Kroger's expansion of DoorDash delivery to all 2,700 of its stores, highlighting the grocer's reliance on third-party delivery services [9] Group 2 - DoorDash's DashMart provides a "turnkey model" for retailers, allowing them to enhance their digital presence without incurring high costs for new infrastructure or technology [7] - The timeline and specifics of when Kroger will start utilizing DashMart facilities remain unclear, as the partnership is still in its early stages [5] - Kroger's previous collaborations with DoorDash include sushi and floral delivery, and it also has a long-standing relationship with Instacart and Uber for delivery services [8]

Core Insights - DoorDash has launched a new fulfillment service called DashMart Fulfillment Services, leveraging its DashMart network and a new delivery robot named Dot [1][6] Group 1: DashMart Fulfillment Services - The service utilizes DoorDash's DashMart locations for inventory management, picking, packing, and delivery, providing retailers with a logistics solution without the need for their own infrastructure [2][3] - CVS Pharmacy and Party City are the first retailers to adopt this service, with Kroger expected to follow soon [1] - DashMart locations serve as additional sales channels for brands and local businesses, offering consumers access to a variety of products including groceries and household essentials [2][4] Group 2: Delivery Robot - Dot - Dot is a self-designed, all-electric delivery robot capable of navigating various terrains, including bike lanes and sidewalks, and can carry up to 30 pounds of cargo [6][7] - The robot is designed for quick neighborhood deliveries, traveling at speeds of up to 20 mph, and is compact enough to fit through most doorways [7] - The introduction of Dot aims to reduce the reliance on full-sized vehicles for small deliveries, thereby decreasing traffic and fossil fuel emissions [7]

Core Insights - DoorDash aims to enhance local commerce through innovative solutions that empower merchants, consumers, and Dashers, with a focus on solving real problems [1][2] New Features and Innovations - The introduction of "Going Out" allows users to make reservations, earn in-store rewards, and access exclusive offers, enhancing the dining experience and helping restaurants attract customers [3][4] - The "Dot" autonomous delivery robot is designed for local commerce, capable of traveling at up to 20 mph and engineered for safety, currently being tested in the Phoenix metro area [6][8] - "SmartScale" technology helps restaurants improve order accuracy, reducing missing item claims by up to 30%, with Panera Bread being the first national restaurant to adopt it [9][21] Retail and Grocery Expansion - DoorDash is launching "DashMart Fulfillment Services" to help retailers manage inventory and delivery, with CVS, Party City, and Kroger already participating [11][12] - Starting October 1, nearly 2,700 Kroger stores will be available on DoorDash, making it the largest grocery partner on the platform, offering a wide range of products with delivery in as little as an hour [12] Enhanced User Experience - The app will feature AI-powered recommendations, personalized content, and new tools for Dashers to improve their experience and earnings [14][18] - Partnerships with platforms like Yelp will enhance the discovery of restaurants and streamline the ordering process [14]