Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) of $9.85 billion for Q4 2025, representing a 14% year-over-year increase, marking the strongest growth in three years [21] - Orders reached 89.5 million, up 16% year-over-year, while the average order value decreased by 1% year-over-year [21] - GAAP net income was $81 million, down 46% year-over-year, primarily due to higher G&A expenses related to non-recurring legal matters [23] - Adjusted EBITDA grew 20% year-over-year to $303 million, with operating cash flow of $184 million, also up 20% year-over-year [23] Business Line Data and Key Metrics Changes - Advertising and other revenue grew 10% year-over-year, driven by strong GTV performance and an increase in active brand partners to over 9,000 [22] - Transaction revenue grew 13% year-over-year, representing 7.1% of GTV, which remained flat year-over-year [21] - The enterprise platform powered more than 380 grocery e-commerce sites, with significant growth opportunities identified [9] Market Data and Key Metrics Changes - The company noted that grocery remains a massive and fragmented market, still early in its online journey, which presents significant growth opportunities [7] - The company has expanded its reach to more than 2,200 retail banners across nearly 100,000 locations [8] Company Strategy and Development Direction - The company's strategy focuses on being the trusted platform for grocery needs, providing technology for grocers, and being the preferred advertising ecosystem for brands [8] - The company is leveraging generative AI to enhance execution across its platform, driving efficiency and compounding advantages [8][14] - The company aims to accelerate its growth and capitalize on the omnichannel transformation of grocery [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive durable, profitable growth, citing strong momentum and a positive outlook for Q1 2026 [6][24] - The company anticipates GTV for Q1 2026 to range between $10.125 billion and $10.275 billion, representing year-over-year growth of 11%-13% [25] - Management acknowledged the competitive landscape but emphasized the company's strong market position and differentiation [39] Other Important Information - The company will transition to an annual shareholder letter starting Q1 2026, aiming for a more holistic assessment of its long-term strategy [3] - The company repurchased $1.4 billion of shares in 2025, including $1.1 billion in Q4 alone [24] Q&A Session Summary Question: How should we think about the scope of the opportunity in marketplace and enterprise adoption? - Management highlighted that both marketplace and enterprise segments are growing, with enterprise providing deeper strategic conversations and technical integrations with retailers [30] Question: What has driven the acceleration in business metrics? - Management noted strong user growth and engagement, with 26 million customers using the platform in 2025 and record retention rates [36] Question: Can you discuss the stronger-than-expected advertising performance? - Management attributed the strong advertising performance to GTV growth and a diversification strategy that has expanded the advertising ecosystem [46] Question: How are you approaching international growth? - Management expressed optimism about international markets, noting that many retailers are still underdeveloped in e-commerce, presenting a significant opportunity [50] Question: What is the strategy regarding price parity initiatives? - Management indicated that retailers adopting price parity tend to outperform those with markups, and they are actively discussing pricing strategies with partners [60] Question: What updates can you provide on Instacart+ adoption? - Management reported that Instacart+ continues to represent the majority of GTV and orders, with paid members showing higher engagement and retention [67]

Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) of $9.85 billion for Q4 2025, representing a 14% year-over-year increase, marking the strongest growth in three years [20] - Orders reached 89.5 million, up 16% year-over-year, while the average order value decreased by 1% year-over-year [20] - GAAP net income was $81 million, down 46% year-over-year, primarily due to higher G&A expenses related to non-recurring legal matters [22] - Adjusted EBITDA grew 20% year-over-year to $303 million, with operating cash flow of $184 million, also up 20% year-over-year [22] Business Line Data and Key Metrics Changes - Advertising and other revenue grew 10% year-over-year, driven by strong GTV performance and an increase in active brand partners to over 9,000 [21] - The enterprise segment powered more than 380 grocery e-commerce sites, with significant growth opportunities identified for both new and existing partners [8][31] Market Data and Key Metrics Changes - The company operates in a highly fragmented grocery market that is still early in its online journey, presenting substantial growth opportunities [5] - The competitive landscape includes major players like Amazon and DoorDash, but the company maintains a leading share among digital-first players, particularly in large basket transactions [36][38] Company Strategy and Development Direction - The company's strategy focuses on being the trusted platform for grocery needs, enhancing technology for grocers, and expanding its advertising ecosystem [6] - Generative AI is being leveraged to increase operational efficiency and enhance the value of first-party data [6][13] - The company aims to accelerate its growth and capitalize on the omnichannel transformation of grocery [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive durable, profitable growth, citing strong momentum and a favorable operating environment [4][18] - The outlook for Q1 2026 anticipates GTV growth between 11%-13%, with advertising revenue expected to grow 11%-14% year-over-year [24] Other Important Information - The company plans to shift to an annual shareholder letter starting Q1 2026 to better reflect long-term strategy [2] - A significant share repurchase program was executed, totaling $1.4 billion in 2025, including $1.1 billion in Q4 alone [23] Q&A Session Summary Question: How should we think about the scope of the opportunity in marketplace and enterprise adoption? - Management emphasized that both marketplace and enterprise segments are growing, with enterprise providing deeper strategic conversations and technical integrations with retailers [29][30] Question: What has driven the acceleration in business metrics? - The acceleration is attributed to strong user growth, engagement, and multiple growth initiatives working together, including enhancements in product selection and partnerships [34][35] Question: How is advertising performing in the fourth quarter? - Advertising revenue grew 10%, driven by GTV strength and diversification across supply and demand, with over 9,000 brands now advertising on the platform [41][43] Question: What are the plans for international growth? - The company is excited about international opportunities, leveraging existing technology and partnerships to expand into underdeveloped markets [48][49] Question: What is the status of Instacart Plus adoption? - Instacart Plus continues to grow, representing the majority of GTV and orders, with members showing higher engagement and retention [64][66]

Core Insights - Instacart has formed a nationwide partnership with 1-800-Flowers.com, marking the first pure-play floral partnership on the Instacart App, aimed at enhancing customer access to fresh flowers and gifts for Valentine's Day [1][2] Partnership Details - The partnership allows customers across the U.S. to order fresh bouquets and gifts from 1-800-Flowers.com through the Instacart App, with delivery from over 700 participating florist locations [1][2] - Instacart customers can pre-order specialty bouquets starting February 9, with same-day orders available on February 14 in select markets [2] Market Trends - Purchase data from 2025 indicates a significant increase in orders for Combination Flower Bouquets and Fresh Cut Roses, which surged by over 1,000% on February 14 [2][7] Customer Experience - The partnership aims to provide customers with more flexibility and variety in gifting, aligning with Instacart's commitment to convenience and reliability [2] - 1-800-Flowers.com will join the Instacart App without any markup, ensuring customers receive the same value as purchasing directly [3] Company Background - Instacart partners with over 1,800 retailers to facilitate online shopping and delivery services across nearly 100,000 stores in North America [4] - 1-800-Flowers.com operates a diverse e-commerce platform featuring multiple brands and aims to inspire customers to connect through thoughtful gifting [5][6]

Core Viewpoint - Instacart, facing scrutiny over its pricing practices, has seen its stock rebound despite a recent FTC penalty of $60 million for deceptive advertising and other issues [4][5][7]. Group 1: Pricing Practices and Investigations - A joint investigation by Consumer Reports and Groundwork Collaborative revealed that Instacart conducted pricing experiments leading to different prices for identical items, raising concerns about transparency [3][4]. - The FTC's $60 million penalty was imposed due to allegations of false advertising, failure to provide refunds, and unlawful subscription processes, which occurred shortly after the pricing investigation [4]. Group 2: Stock Performance and Market Reaction - Instacart's stock has underperformed the market this year but has increased over 31% since its year-to-date low on November 6 [5]. - Following the news of the pricing investigation, the stock initially dropped nearly 6% but quickly rebounded by the same percentage in subsequent days, indicating investor confidence [5][6]. Group 3: Customer Base and Technology Utilization - Instacart serves approximately 14.9 million customers, an increase from 14.4 million in 2024, and employs around 600,000 shoppers [6]. - The company utilizes AI for pricing tests to assess consumer price sensitivity, although these tests have drawn regulatory scrutiny [7].

Core Insights - Instacart has partnered with Merchants Distributors, LLC (MDI) to provide e-commerce solutions to independent grocers within MDI's network, enabling them to offer same-day delivery and utilize Instacart's Storefront Pro [1][2][3] Company Overview - Instacart is a leading grocery technology company in North America, collaborating with over 1,800 retail banners to facilitate online shopping, delivery, and pickup services from nearly 100,000 stores [5] - Merchants Distributors, LLC, founded in 1931, is a privately-owned wholesale grocery distributor based in Hickory, NC, supplying over 600 retail food stores across multiple states and exporting to over 30 countries [6][7] Partnership Details - The partnership aims to enhance the shopping experience for customers by allowing independent grocers to adopt Instacart's platform, which includes advanced customization capabilities and access to data analytics tools [2][3] - Storefront Pro will provide MDI's independent retail partners with full-stack fulfillment technologies for pickup and delivery, as well as access to Instacart Carrot Ads for monetizing their digital and physical presence [2][3] Market Positioning - With the introduction of Storefront Pro, MDI's independent retailers will join over 600 retail banners already utilizing Instacart's white-label e-commerce solutions, positioning them to improve customer engagement and unlock new growth opportunities [3]