DoorDash Inc.

10/30/2026 | Press release | Distributed by Public on 10/30/2026 14:13

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements that are based on current plans, expectations, and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, those identified below and those discussed in the section titled "Risk Factors" and other sections of this Quarterly Report on Form 10-Q. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.
Overview
Our mission is to grow and empower local economies. We aim to do this by providing services that reduce friction in local commerce and help merchants better connect with consumers in their communities.
Our primary offerings include the DoorDash Marketplace, the Wolt Marketplace, and the Deliveroo Marketplace (together, our "Marketplaces"), and our Commerce Platform. Our Marketplaces operate in over 40 countries and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. We also offer advertising as a value-added service through our Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement and drive incremental revenue.
Our Marketplaces seek to attract and retain consumers based primarily on the selection, convenience, quality, affordability, and service we provide. Our Marketplaces also offer our consumer membership programs, DashPass, Wolt+, and Deliveroo Plus, which aim to lower transactional friction by reducing the delivery and service fees we charge, while providing additional membership benefits.
In addition to our Marketplaces, we offer our Commerce Platform, which is a suite of services that help empower merchants to build, operate, and grow their businesses on their own channels. Within our Commerce Platform, we offer white-label delivery fulfillment services ("Drive") as well as services that help merchants establish online ordering, build branded mobile apps, manage reservations and in-store dining, manage consumer relationships, enable tableside order and pay, and improve customer support.
We were incorporated in Delaware in 2013 as Palo Alto Delivery Inc. In 2015, we changed our name to DoorDash, Inc. and, on September 18, 2026, we completed our conversion from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Nevada. Our principal executive offices are located at 303 2nd Street, South Tower, 8th Floor, San Francisco, California 94107.
Financial and Operational Highlights
We use the below financial and operational metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. As we grow our business and expand our offerings, our success and the financial performance of our business will be dependent upon many factors. These factors include, but are not limited to, those highlighted in this Quarterly Report on Form 10-Q, as well as the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake, such as our recent and continued
investment in our non-U.S. operations, in our global technology platform, and to increase system capacity for Dashers and in support of longer distance and higher effort deliveries. Certain of these and other factors may not be within our control.
Three Months Ended September 30,
(in millions, except percentages) 2025 2026
Total Orders 776 993
Total Orders Y/Y growth 21 % 28 %
Marketplace GOV $ 25,015 $ 33,941
Marketplace GOV Y/Y growth 25 % 36 %
Revenue $ 3,446 $ 4,616
Revenue Y/Y growth 27 % 34 %
Net Revenue Margin 13.8 % 13.6 %
GAAP gross profit $ 1,689 $ 2,311
GAAP gross profit as a % of Marketplace GOV 6.8 % 6.8 %
Contribution Profit(1)
$ 1,268 $ 1,780
Contribution Profit as a % of Marketplace GOV 5.1 % 5.2 %
GAAP net income attributable to DoorDash, Inc. common stockholders $ 244 $ 466
GAAP net income attributable to DoorDash, Inc. common stockholders as a % of Marketplace GOV 1.0 % 1.4 %
Adjusted EBITDA(1)
$ 754 $ 1,060
Adjusted EBITDA as a % of Marketplace GOV 3.0 % 3.1 %
Weighted-average diluted shares outstanding
442 440
(1)Contribution Profit and Adjusted EBITDA are non-GAAP financial measures. For more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with GAAP, see the section titled "Non-GAAP Financial Measures."
Total Orders. We define Total Orders as all orders completed through our Marketplaces and Commerce Platform over the period of measurement.
In the third quarter of 2026, Total Orders increased to 993 million, or 28% growth compared to the same quarter of 2025. The increase in Total Orders was driven primarily by growth in the number of consumers and the acquisition of Deliveroo plc ("Deliveroo").
Marketplace GOV. We define Marketplace GOV as the total dollar value of orders completed on our Marketplaces, including taxes, tips2, and any applicable consumer fees, including membership fees related to DashPass, Wolt+, and Deliveroo Plus. Marketplace GOV does not include the dollar value of orders, taxes and tips, or fees charged to merchants for orders fulfilled through our Commerce Platform.
In the third quarter of 2026, Marketplace GOV increased to $33.9 billion, or 36% growth compared to the same quarter of 2025, driven primarily by growth in Total Orders and an increase in average order value3 on our Marketplaces.
Net Revenue Margin. We define Net Revenue Margin as revenue expressed as a percentage of Marketplace GOV.
In the third quarter of 2026, Net Revenue Margin decreased to 13.6% from 13.8% in the same quarter of 2025, primarily due to the acquisition of Deliveroo. In the third quarter of 2026, fees charged to consumers as a percentage of Marketplace GOV decreased compared to the same quarter of 2025 and were offset by increased contribution from advertising revenue and reductions in discounts and promotions as a percentage of Marketplace GOV.
Contribution Profit. We define Contribution Profit as our gross profit less sales and marketing expense plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing expenses, (iii) allocated overhead included in cost of revenue and sales and marketing expenses, and (iv) inventory write-off related to restructuring. Gross profit is defined as revenue less (i) cost of revenue, exclusive of depreciation and amortization and (ii) depreciation and amortization related to cost of revenue.
2 Dashers receive 100% of tips.
3 Calculated as the total value of Marketplace GOV divided by the total number of orders completed on our Marketplaces in the period of measurement.
We use Contribution Profit to evaluate our operating performance and trends. We believe that Contribution Profit is a useful indicator of the economic impact of orders fulfilled through DoorDash as it takes into account the direct expenses associated with generating and fulfilling orders.
In the third quarter of 2026, Contribution Profit increased to $1.8 billion, compared to $1.3 billion in the same quarter of 2025, driven primarily by growth in revenue, partially offset by increases in cost of revenue and sales and marketing expenses.
Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) attributable to DoorDash, Inc. common stockholders, adjusted to include net income (loss) attributable to redeemable non-controlling interests, and exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other (income) expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.
Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business.
In the third quarter of 2026, Adjusted EBITDA increased to $1.1 billion from $754 million in the same quarter of 2025, driven primarily by growth in Contribution Profit, partially offset by increases in adjusted research and development expense and adjusted general and administrative expense.
Free Cash Flow. We define Free Cash Flow as cash flows from operating activities less purchases of property and equipment and capitalized software and website development costs.
In the third quarter of 2026, we generated net cash provided by operating activities of $994 million and Free Cash Flow of $787 million, up from $871 million and $723 million, respectively, in the same quarter of 2025. The increase in Free Cash Flow was driven primarily by an increase in net cash provided by operating activities, partially offset by increases in purchases of property and equipment and capitalized software and website development costs.
Results of Operations
The following table summarizes our historical condensed consolidated statements of operations data:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Revenue $ 3,446 $ 4,616 $ 9,762 $ 13,106
Costs and expenses:(1)
Cost of revenue, exclusive of depreciation and amortization shown separately below 1,687 2,171 4,803 6,270
Sales and marketing 576 765 1,769 2,332
Research and development 355 499 1,012 1,432
General and administrative 400 426 1,120 1,396
Depreciation and amortization(2)
169 312 480 876
Restructuring charges 1 1 2 51
Total costs and expenses 3,188 4,174 9,186 12,357
Income from operations 258 442 576 749
Interest income, net 71 37 169 106
Other income (expense), net (81) 5 (28) 27
Income before income taxes 248 484 717 882
Provision for (benefit from) income taxes 5 19 (2) 35
Net income including redeemable non-controlling interests 243 465 719 847
Less: net loss attributable to redeemable non-controlling interests (1) (1) (3) (3)
Net income attributable to DoorDash, Inc. common stockholders $ 244 $ 466 $ 722 $ 850
(1)Costs and expenses included stock-based compensation expense as follows:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Cost of revenue, exclusive of depreciation and amortization $ 39 $ 39 $ 109 $ 122
Sales and marketing 27 29 86 87
Research and development 132 145 389 447
General and administrative 60 55 191 189
Restructuring charges - - - 3
Total stock-based compensation expense $ 258 $ 268 $ 775 $ 848
(2)Depreciation and amortization related to the following:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Cost of revenue $ 70 $ 134 $ 184 $ 358
Sales and marketing 27 82 83 243
Research and development 67 88 197 251
General and administrative 5 8 16 24
Total depreciation and amortization $ 169 $ 312 $ 480 $ 876
The following table sets forth the components of our condensed consolidated statements of operations data as a percentage of revenue:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2026 2025 2026
Revenue 100 % 100 % 100 % 100 %
Costs and expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below 49 % 47 % 49 % 48 %
Sales and marketing 17 % 17 % 18 % 18 %
Research and development 10 % 11 % 10 % 11 %
General and administrative 12 % 9 % 12 % 11 %
Depreciation and amortization 5 % 7 % 5 % 7 %
Restructuring charges - % - % - % - %
Total costs and expenses 93 % 91 % 94 % 95 %
Income from operations 7 % 9 % 6 % 5 %
Interest income, net 2 % 1 % 2 % 1 %
Other income (expense), net (2) % - % - % - %
Income before income taxes 7 % 10 % 8 % 6 %
Provision for (benefit from) income taxes - % - % - % - %
Net income including redeemable non-controlling interests 7 % 10 % 8 % 6 %
Less: net loss attributable to redeemable non-controlling interests - % - % - % - %
Net income attributable to DoorDash, Inc. common stockholders 7 % 10 % 8 % 6 %
Comparison of the Three and Nine Months Ended September 30, 2025 and 2026
Revenue
We generate a substantial majority of our revenue from orders completed through our Marketplaces and the related commissions charged to partner merchants and fees charged to consumers. Commissions from partner merchants are based on an agreed-upon rate applied to the total dollar value of goods ordered in exchange for using our Marketplaces to sell the partner merchants' products. Fees from consumers are for the use of our Marketplaces and to arrange for delivery services. Our revenue reflects commissions charged to partner merchants and fees charged to consumers less (i) Dasher payout and (ii) refunds, credits, and promotions, which includes certain discounts and incentives provided to consumers.
We also generate revenue from membership fees paid by consumers for DashPass, Wolt+, and Deliveroo Plus, and our advertising products, which are recognized as part of our Marketplaces revenue.
In addition, we generate revenue from other sources, including our Commerce Platform. Drive generates the majority of revenue within our Commerce Platform. We generate revenue from Drive by collecting per-order fees from merchants to arrange for delivery services that fulfill demand generated through their own channels.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Revenue $ 3,446 $ 4,616 34 % $ 9,762 $ 13,106 34 %
Revenue increased by $1.2 billion, or 34%, during the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by a 36% increase in Marketplace GOV.
Revenue increased by $3.3 billion, or 34%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by a 36% increase in Marketplace GOV.
Cost of Revenue, Exclusive of Depreciation and Amortization
Cost of revenue primarily consists of (i) order management costs, which include payment processing charges, net of rebates issued from payment processors, costs associated with cancelled orders, insurance expenses, costs related to placing orders with non-partner merchants, and costs related to first party product sales, for which we take control of inventory, (ii) platform costs, which include costs for onboarding merchants and Dashers, costs for providing support for consumers, merchants, and Dashers, and technology platform infrastructure costs, and (iii) personnel costs, which include personnel-related compensation expenses related to our local operations, support, and other teams, and allocated overhead. Personnel-related compensation expenses primarily include salary, bonus, benefits, and stock-based compensation expense. Allocated overhead is determined based on an allocation of certain shared costs, such as facilities (including rent and utilities) and information technology costs, among all departments based on employee headcount.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Cost of revenue, exclusive of depreciation and amortization $ 1,687 $ 2,171 29 % $ 4,803 $ 6,270 31 %
Cost of revenue, exclusive of depreciation and amortization, increased by $484 million, or 29%, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily attributable to an increase of $320 million in order management costs and an increase of $117 million in platform costs, both driven primarily by growth in Total Orders.
Cost of revenue, exclusive of depreciation and amortization, increased by $1.5 billion, or 31%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily attributable to an increase of $934 million in order management costs and an increase of $353 million in platform costs, both driven primarily by growth in Total Orders.
Sales and Marketing
Sales and marketing expenses primarily consist of advertising and other ancillary expenses related to merchant, consumer, and Dasher acquisition, including certain consumer referral credits and Dasher referral fees paid to the referrers to the extent they represent fair value of acquiring a new consumer or a new Dasher, brand marketing expenses, personnel-related compensation expenses for sales and marketing employees, and commissions expense including amortization of deferred contract costs, as well as allocated overhead.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Sales and marketing $ 576 $ 765 33 % $ 1,769 $ 2,332 32 %
Sales and marketing expenses increased by $189 million, or 33%, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by an increase of $127 million in advertising expenses and an increase of $59 million in personnel-related compensation expenses.
Sales and marketing expenses increased by $563 million, or 32%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by an increase of $345 million in advertising expenses and an increase of $199 million in personnel-related compensation expenses.
Research and Development
Research and development expenses primarily consist of personnel-related compensation expenses related to data analytics and the design of, product development of, and improvements to our platform, as well as expenses associated with the licensing of third-party software and allocated overhead.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Research and development $ 355 $ 499 41 % $ 1,012 $ 1,432 42 %
Research and development expenses increased by $144 million, or 41%, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by an increase of $104 million in personnel-related compensation expenses and an increase of $75 million in third-party software expenses, partially offset by an increase in capitalized software and website development costs of $48 million.
Research and development expenses increased by $420 million, or 42%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by an increase of $398 million in personnel-related compensation expenses and an increase of $183 million in third-party software expenses, partially offset by an increase in capitalized software and website development costs of $186 million.
General and Administrative
General and administrative expenses primarily consist of legal, tax, and regulatory expenses, which include litigation settlement expenses and sales and indirect taxes; personnel-related compensation expenses related to administrative employees, which include finance and accounting, human resources and legal; chargebacks associated with fraudulent credit card transactions; professional services fees; transaction-related costs; impairment expenses; bad debt expense; and allocated overhead.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
General and administrative $ 400 $ 426 7 % $ 1,120 $ 1,396 25 %
General and administrative expenses increased by $26 million, or 7%, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by an increase of $24 million in personnel-related compensation expenses.
General and administrative expenses increased by $276 million, or 25%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by an increase of $135 million in legal, tax, and regulatory expenses and an increase of $127 million in personnel-related compensation expenses.
Depreciation and Amortization
Depreciation and amortization expenses primarily consist of depreciation and amortization expenses associated with our property and equipment and intangible assets. Depreciation primarily includes expenses associated with equipment for merchants, computer equipment and software, office equipment, and leasehold improvements. Amortization includes expenses associated with our capitalized software and website development costs, as well as acquired intangible assets.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Depreciation and amortization $ 169 $ 312 85 % $ 480 $ 876 83 %
Depreciation and amortization expenses increased by $143 million, or 85%, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by an increase of $77 million in amortization expense for acquired intangible assets and an increase of $56 million in amortization expense related to capitalized software and website development costs.
Depreciation and amortization expenses increased by $396 million, or 83%, during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by an increase of $242 million in amortization expense for acquired intangible assets and an increase of $118 million in amortization expense related to capitalized software and website development costs.
Restructuring Charges
Restructuring charges primarily consist of employee termination costs and other costs related to the closures of operations in certain countries, in each case, associated with restructuring activities.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Restructuring charges $ 1 $ 1 - % $ 2 $ 51 *
*Percentage not meaningful
Restructuring charges were not material in both the third quarter of 2026 and the same quarter of 2025.
Restructuring charges increased by $49 million during the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by employee termination costs and other costs related to the closure of operations in certain countries as part of restructuring activities announced in the first quarter of 2026.
Interest Income, Net
Interest income, net primarily consists of interest earned on our cash, cash equivalents, and investments, net of interest costs, as well as interest earned on cash held in escrow under an escrow agreement (the "Escrow Agreement") entered into during the second quarter of 2025 in connection with the acquisition of Deliveroo; the escrowed cash was released upon the closing of the acquisition in October 2025.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Interest income, net $ 71 $ 37 (48) % $ 169 $ 106 (37) %
Interest income, net decreased by $34 million, or 48%, for the third quarter of 2026, compared to the same quarter of 2025. The decrease was primarily driven by interest earned during the third quarter of 2025 on cash held in escrow under the Escrow Agreement.
Interest income, net decreased by $63 million, or 37%, for the first nine months of 2026, compared to the same period of 2025. The decrease was primarily driven by interest earned during the first nine months of 2025 on cash held in escrow under the Escrow Agreement.
Other Income (Expense), Net
Other income (expense), net primarily consists of changes in the fair value of the deal-contingent forward contract (the "Deal-Contingent Forward"), which was entered into during the second quarter of 2025 in connection with the acquisition of Deliveroo and was subsequently settled upon the closing of the acquisition in October 2025. Other income (expense), net also includes adjustments to non-marketable investments, including impairment, as well as gains and losses from transactions denominated in a currency other than the functional currency.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Other income (expense), net $ (81) $ 5 * $ (28) $ 27 *
*Percentage not meaningful
Other income (expense), net increased by $86 million, for the third quarter of 2026, compared to the same quarter of 2025. The increase was primarily driven by a change in fair value of the Deal-Contingent Forward recognized during the third quarter of 2025.
Other income (expense), net increased by $55 million, for the first nine months of 2026, compared to the same period of 2025. The increase was primarily driven by gains from transactions denominated in currencies other than the functional
currency, adjustments to non-marketable investments, and a change in fair value of the Deal-Contingent Forward recognized during the first nine months of 2025.
Provision for (benefit from) Income Taxes
We are subject to income taxes in the U.S. and foreign jurisdictions in which we do business. Foreign jurisdictions have different statutory tax rates than those in the U.S. Additionally, certain of our foreign earnings may also be taxable in the U.S.
Accordingly, our effective tax rate is subject to significant variation due to several factors, including variability in our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in our stock price, intercompany transactions, changes in how we do business, acquisitions, investments, tax audit developments, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains and losses, changes in statutes, regulations, case law, administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, the impact of discrete items and non-deductible expenses varies depending on the amount of pre-tax income or loss.
We have a valuation allowance for our net deferred tax assets in the U.S., the U.K., and Finland. We expect to maintain these valuation allowances until it becomes more-likely-than-not that the benefit of our deferred tax assets will be realized by way of expected future taxable income in the U.S., the U.K., and Finland.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 % Change 2025 2026 % Change
Provision for (benefit from) income taxes $ 5 $ 19 * $ (2) $ 35 *
*Percentage not meaningful
The provision for income taxes for both the third quarter of 2026 and the same quarter of 2025 was primarily attributable to pre-tax book income resulting in state and foreign income taxes.
The provision for income taxes for the first nine months of 2026 was primarily attributable to pre-tax book income resulting in state and foreign income taxes. The benefit from income taxes for the first nine months of 2025 was primarily attributable to a one-time tax benefit from the release of a portion of the U.S. valuation allowance in connection with the acquisitions that occurred during the year, offset by state and foreign income tax expenses.
For additional information, see Note 11 - "Income Taxes" included in Part I, Item 1, "Notes to Condensed Consolidated Financial Statements" of this Quarterly Report on Form 10-Q.
Non-GAAP Financial Measures
We use adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our business and financial performance. We believe that these non-GAAP financial measures provide useful information to investors about our business and financial performance, enhance their overall understanding of our past performance and future prospects, and allow for greater transparency with respect to metrics used by our management in their financial and operational decision making. We are presenting these non-GAAP financial measures to assist investors in seeing our business and financial performance through the eyes of management, and because we believe that these non-GAAP financial measures provide an additional tool for investors to use in comparing results of operations of our business over multiple periods and with other companies in our industry.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Thus, our adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and
development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow to their respective related GAAP financial measures. We encourage investors and others to review our business, results of operations, and financial information in its entirety, not to rely on any single financial measure, and to view adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow in conjunction with their respective related GAAP financial measures.
Adjusted Cost of Revenue
We define adjusted cost of revenue as cost of revenue, exclusive of depreciation and amortization, excluding stock-based compensation expense and certain payroll tax expense, allocated overhead, and inventory write-off related to restructuring. We exclude stock-based compensation as it is non-cash in nature and we exclude allocated overhead as it is generally a fixed cost and is not directly impacted by Total Orders. We believe excluding such expenses provides a better period-to-period comparison of the core operating performance of our business.
The following table provides a reconciliation of cost of revenue, exclusive of depreciation and amortization, to adjusted cost of revenue:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Cost of revenue, exclusive of depreciation and amortization $ 1,687 $ 2,171 $ 4,803 $ 6,270
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense (39) (39) (110) (122)
Allocated overhead (12) (20) (30) (57)
Adjusted cost of revenue $ 1,636 $ 2,112 $ 4,663 $ 6,091
Adjusted Sales and Marketing Expense
We define adjusted sales and marketing expense as sales and marketing expenses excluding stock-based compensation expense and certain payroll tax expense and allocated overhead. We exclude stock-based compensation as it is non-cash in nature and we exclude allocated overhead as it is generally a fixed cost and is not directly impacted by Total Orders. We believe excluding such expenses provides a better period-to-period comparison of the core operating performance of our business.
The following table provides a reconciliation of sales and marketing expense to adjusted sales and marketing expense:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Sales and marketing $ 576 $ 765 $ 1,769 $ 2,332
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense (28) (30) (87) (88)
Allocated overhead (6) (11) (18) (30)
Adjusted sales and marketing $ 542 $ 724 $ 1,664 $ 2,214
Adjusted Research and Development Expense
We define adjusted research and development expense as research and development expenses excluding stock-based compensation expense and certain payroll tax expense and allocated overhead. We exclude stock-based compensation as it is non-cash in nature and we exclude allocated overhead as it is generally a fixed cost and is not directly impacted by
Total Orders. We believe excluding such expenses provides a better period-to-period comparison of the core operating performance of our business.
The following table provides a reconciliation of research and development expense to adjusted research and development expense:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Research and development $ 355 $ 499 $ 1,012 $ 1,432
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense (133) (145) (390) (447)
Allocated overhead (7) (11) (21) (29)
Adjusted research and development $ 215 $ 343 $ 601 $ 956
Adjusted General and Administrative Expense
We define adjusted general and administrative expense as general and administrative expenses excluding stock-based compensation expense and certain payroll tax expense, certain legal, tax, and regulatory settlements, reserves, and expenses, transaction-related costs (primarily consists of acquisition, integration, and investment related costs), impairment expenses, and including allocated overhead from cost of revenue, sales and marketing, and research and development. We exclude stock-based compensation as it is non-cash in nature and we exclude certain legal, tax, and regulatory settlements, reserves, and expenses, transaction-related costs, as well as impairment expenses, as these costs are not indicative of our operating performance. We believe excluding such expenses provides a better period-to-period comparison of the core operating performance of our business.
The following table provides a reconciliation of general and administrative expense to adjusted general and administrative expense:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
General and administrative $ 400 $ 426 $ 1,120 $ 1,396
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense (61) (55) (193) (189)
Certain legal, tax, and regulatory settlements, reserves, and expenses(1)
(48) (16) (106) (159)
Transaction-related costs (17) (20) (48) (46)
Office lease impairment expenses - - (7) (1)
Allocated overhead from cost of revenue, sales and marketing, and research and development 25 42 69 116
Adjusted general and administrative $ 299 $ 377 $ 835 $ 1,117
(1)We exclude certain costs and expenses from our calculation of adjusted general and administrative expense because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, and our historical Dasher pay model and pay practices, (ii) reserves and settlements or other resolutions for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, and (iii) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls. We believe it is appropriate to exclude the foregoing matters from our calculation of adjusted general and administrative expense because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management's budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in California and similar legislation.
Contribution Profit
We use Contribution Profit to evaluate our operating performance and trends. We believe that Contribution Profit is a useful indicator of the economic impact of orders fulfilled through DoorDash as it takes into account the direct expenses associated with generating and fulfilling orders. It is not a financial measure of total company profitability and it is neither intended to be used as a proxy for total company profitability nor imply profitability for our business. We define
Contribution Profit as our gross profit less sales and marketing expense plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing expenses, (iii) allocated overhead included in cost of revenue and sales and marketing expenses, and (iv) inventory write-off related to restructuring. We define gross margin as gross profit as a percentage of revenue for the same period and we define Contribution Margin as Contribution Profit as a percentage of revenue for the same period.
Gross profit is the most directly comparable financial measure to Contribution Profit. The following table provides a reconciliation of gross profit to Contribution Profit:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 2025 2026
Revenue $ 3,446 $ 4,616 $ 9,762 $ 13,106
Less: Cost of revenue, exclusive of depreciation and amortization (1,687) (2,171) (4,803) (6,270)
Less: Depreciation and amortization related to cost of revenue (70) (134) (184) (358)
Gross profit $ 1,689 $ 2,311 $ 4,775 $ 6,478
Gross Margin 49.0 % 50.1 % 48.9 % 49.4 %
Less: Sales and marketing $ (576) $ (765) $ (1,769) $ (2,332)
Add: Depreciation and amortization related to cost of revenue 70 134 184 358
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing 67 69 197 210
Add: Allocated overhead included in cost of revenue and sales and marketing 18 31 48 87
Contribution Profit $ 1,268 $ 1,780 $ 3,435 $ 4,801
Contribution Margin 36.8 % 38.6 % 35.2 % 36.6 %
Adjusted Gross Profit
We define Adjusted Gross Profit as gross profit plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue, (iii) allocated overhead included in cost of revenue, and (iv) inventory write-off related to restructuring. Gross profit is defined as revenue less (i) cost of revenue, exclusive of depreciation and amortization and (ii) depreciation and amortization related to cost of revenue. Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue for the same period.
The following table provides a reconciliation of gross profit to Adjusted Gross Profit:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except percentages) 2025 2026 2025 2026
Gross profit $ 1,689 $ 2,311 $ 4,775 $ 6,478
Add: Depreciation and amortization related to cost of revenue 70 134 184 358
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue 39 39 110 122
Add: Allocated overhead included in cost of revenue 12 20 30 57
Adjusted Gross Profit $ 1,810 $ 2,504 $ 5,099 $ 7,015
Adjusted Gross Margin 52.5 % 54.2 % 52.2 % 53.5 %
Adjusted EBITDA
Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) attributable to DoorDash, Inc. common stockholders, adjusted to include net income (loss) attributable to redeemable non-controlling interests and exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii)
interest income, net, (ix) other (income) expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.
The following table provides a reconciliation of net income attributable to DoorDash, Inc. common stockholders to Adjusted EBITDA, and a reconciliation of net income including redeemable non-controlling interests to Adjusted EBITDA:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Net income attributable to DoorDash, Inc. common stockholders $ 244 $ 466 $ 722 $ 850
Add: Net loss attributable to redeemable non-controlling interests (1) (1) (3) (3)
Net income including redeemable non-controlling interests $ 243 $ 465 $ 719 $ 847
Certain legal, tax, and regulatory settlements, reserves, and expenses(1)
48 16 106 159
Transaction-related costs 17 20 48 46
Office lease impairment expenses - - 7 1
Restructuring charges 1 1 2 51
Provision for (benefit from) income taxes 5 19 (2) 35
Interest income, net (71) (37) (169) (106)
Other (income) expense, net 81 (5) 28 (27)
Stock-based compensation expense and certain payroll tax expense(2)
261 269 780 846
Depreciation and amortization expense 169 312 480 876
Adjusted EBITDA $ 754 $ 1,060 $ 1,999 $ 2,728
(1)We exclude certain costs and expenses from our calculation of Adjusted EBITDA because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, and our historical Dasher pay model and pay practices, (ii) reserves and settlements or other resolutions for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, and (iii) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls. We believe it is appropriate to exclude the foregoing matters from our calculation of Adjusted EBITDA because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management's budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in California and similar legislation.
(2)Excludes stock-based compensation related to restructuring, which is included in restructuring charges in the table above.
Free Cash Flow
We define Free Cash Flow as cash flows from operating activities less purchases of property and equipment and capitalized software and website development costs.
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2026 2025 2026
Net cash provided by operating activities $ 871 $ 994 $ 2,010 $ 2,532
Purchases of property and equipment (63) (90) (203) (208)
Capitalized software and website development costs (85) (117) (235) (375)
Free Cash Flow $ 723 $ 787 $ 1,572 $ 1,949
Net cash used in investing activities $ (173) $ (317) $ (1,274) $ (603)
Net cash provided by (used in) financing activities
$ 1 $ (22) $ 2,379 $ (1,091)
Credit Facility
On November 19, 2019, we entered into a revolving credit and guaranty agreement with certain lenders, which, as most recently amended and restated on August 5, 2026 (the "Credit Agreement"), provides for a $2.0 billion unsecured revolving credit facility maturing on August 5, 2031, with a sublimit for the issuance of letters of credit in an aggregate face amount of up to $800 million. As of September 30, 2026, we were in compliance with the covenants under the Credit
Agreement. The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our and/or certain of our subsidiaries' ability to, among other things, incur debt, incur liens, and undergo certain fundamental changes, in each case, subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a maximum senior net leverage ratio of 3.50 to 1.00, measured quarterly, determined in accordance with the terms of the Credit Agreement. As of December 31, 2025 and September 30, 2026, no revolving loans were outstanding and $61 million and $327 million of letters of credit were issued under our revolving credit facility, respectively.
Liquidity and Capital Resources
As of September 30, 2026, our principal sources of liquidity were cash, cash equivalents, and investments of $6.8 billion, which consisted of cash and cash equivalents of $5.1 billion, short-term investments of $929 million, and long-term investments of $805 million. Additionally, funds held at payment processors of $660 million represent cash due from our payment processors for cleared transactions with merchants and consumers, as well as funds remitted to payment processors for Dasher payout. Cash and cash equivalents consisted of cash on deposit with banks as well as institutional money market funds, commercial paper, certificates of deposit, U.S. Treasury securities, and time deposits. Investments consisted of certificates of deposit, commercial paper, corporate bonds, U.S. government agency securities, and U.S. Treasury securities.
We have generated significant operating losses from our operations as reflected in our accumulated deficit of $4.5 billion as of September 30, 2026. We have historically funded our operations from cash from operations as well as the issuance of equity securities, including in our initial public offering in December 2020. We have also completed debt financings, such as our past issuance of $2.75 billion aggregate principal amount of 0% Convertible Senior Notes due 2030 (the "2030 Notes") in May 2025. We intend to use the net proceeds from the 2030 Notes for general corporate purposes. For additional information regarding the 2030 Notes, see Note 8 - "Convertible Notes, Net" included in Part I, Item 1, "Notes to Condensed Consolidated Financial Statements" of this Quarterly Report on Form 10-Q.
To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash, cash equivalents, and investments, along with the available borrowings under our revolving credit facility, will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months and beyond.
In February 2025, we announced the authorization of a share repurchase program for the repurchase of shares of our Class A common stock in an aggregate amount of up to $5.0 billion, which is inclusive of the remaining share repurchase authority of $876 million under the share repurchase program that we previously announced in February 2024. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We have entered into, and may, from time to time, enter into, Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. We may or may not repurchase any portion of the total authorized amount, and the timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. As of September 30, 2026, $4.0 billion remained available under the repurchase authorization.
Our future capital requirements will depend on many factors, including, but not limited to, our growth, our ability to attract and retain merchants, consumers, and Dashers that utilize our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, the expansion of sales and marketing activities, the timing and extent of spending for policy and worker classification initiatives, and the occurrence of certain conditions triggering the 2030 Notes' conversion feature or our repurchase of some or all of the 2030 Notes. Unless earlier repurchased, redeemed or converted, the 2030 Notes will mature on May 15, 2030. Before November 15, 2029, noteholders will have the right to convert the 2030 Notes only upon the occurrence of certain events. From and after November 15, 2029, noteholders may convert their 2030 Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. We will have the right to elect to settle conversions either in cash or in a combination of cash and shares of our Class A common stock, provided that, at least the principal amount of the 2030 Notes being converted will be paid in cash, which could adversely affect our liquidity.
Further, we have in the past entered into, and may in the future enter into, arrangements to acquire or invest in businesses, products, services, and technologies. For example, we recently entered into an Agreement and Plan of Merger (the "Merger Agreement") to acquire Instacart for a total value of $65.00 for each Instacart share, or an equity
value of approximately $17 billion. Instacart stockholders will have the right to elect to receive, for each Instacart share: (i) $65.00 in cash, (ii) 0.3372 shares of our common stock, or (iii) a mix of $48.75 in cash and 0.0843 shares of our common stock, in each case, subject to a cap on the total stock consideration issuable by us equal to 25% of the aggregate consideration and certain proration mechanics. We expect to fund the cash portion of the consideration with cash on hand and proceeds from debt financing. In connection with the entry into the Merger Agreement, we entered into a commitment letter with JPMorgan Chase Bank, N.A. ("JPMorgan"), pursuant to which JPMorgan committed to provide a 364-day senior unsecured bridge term loan facility in an aggregate principal amount of up to $13.0 billion, subject to the satisfaction or waiver of customary conditions. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, financial condition, and results of operations could be adversely affected.
The following table summarizes our cash flows for the periods indicated:
Nine Months Ended September 30,
(in millions) 2025 2026
Net cash provided by operating activities $ 2,010 $ 2,532
Net cash used in investing activities (1,274) (603)
Net cash provided by (used in) financing activities 2,379 (1,091)
Foreign currency effect on cash and cash equivalents, and restricted cash and cash equivalents 63 (21)
Net increase in cash and cash equivalents, and restricted cash and cash equivalents $ 3,178 $ 817
Operating Activities
Cash provided by operating activities was $2.5 billion for the first nine months of 2026. This consisted of net income including redeemable non-controlling interests of $847 million, adjusted for non-cash depreciation and amortization expense of $876 million, non-cash stock-based compensation expense of $847 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $109 million, amortization of deferred contract costs of $66 million, and other net non-cash expenses of $10 million, partially offset by $223 million net outflows from changes in operating assets and liabilities primarily driven by changes in accounts receivable, net, payments for operating lease liabilities, changes in funds held by payment processors, other assets, and accounts payable, partially offset by changes in accrued expenses and other current liabilities.
Cash provided by operating activities was $2.0 billion for the first nine months of 2025. This consisted of net income including redeemable non-controlling interests of $719 million, adjusted for non-cash stock-based compensation expense of $775 million, non-cash depreciation and amortization expense of $480 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $83 million, amortization of deferred contract costs of $55 million, non-cash office lease impairment expenses of $7 million, and other net non-cash expenses of $57 million, offset by $166 million net outflows from changes in operating assets and liabilities primarily driven by changes in prepaid expenses and other current assets, other assets and accounts receivable, net, and payments for operating lease liabilities, partially offset by changes in accrued expenses and other current liabilities.
Investing Activities
Cash used in investing activities was $603 million for the first nine months of 2026, which consisted of purchases of investments of $780 million, cash outflows for capitalized software and website development costs of $375 million, purchases of property and equipment of $208 million, purchases of non-marketable equity securities of $192 million, and cash paid for acquisitions, net of cash acquired, of $58 million, partially offset by proceeds from maturities and sales of marketable securities of $1.0 billion and other investing activities of $9 million.
Cash used in investing activities was $1.3 billion for the first nine months of 2025, which consisted of cash paid for acquisitions, net of cash acquired, of $1.2 billion, purchases of marketable securities of $1.1 billion, purchases of property and equipment of $203 million, cash outflows for capitalized software and website development costs of $235 million, and purchases of non-marketable equity securities of $5 million, partially offset by proceeds from maturities and sales of marketable securities of $1.5 billion.
Financing Activities
Cash used in financing activities was $1.1 billion for the first nine months of 2026, which primarily consisted of repurchases of our Class A common stock of $1.0 billion, payments of acquisition-related deferred cash consideration of $40 million, and other financing activities of $6 million, partially offset by proceeds from exercise of stock options of $4 million.
Cash provided by financing activities was $2.4 billion for the first nine months of 2025, which primarily consisted of proceeds from issuance of the 2030 Notes of $2.7 billion, proceeds from issuance of warrants of $341 million, and proceeds from exercise of stock options of $8 million, partially offset by purchase of convertible note hedges of $680 million and other financing activities of $10 million.
Critical Accounting Estimates
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected.
There have been no material changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Income Taxes
As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, we maintain a valuation allowance against our U.S. federal and state net deferred tax assets. Given our U.S. profitability, including income in prior years and income through the first nine months of 2026, as well as anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available in a future period to reach a conclusion that the U.S. valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of U.S. federal and state deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded. The exact timing and amount of any potential valuation allowance release are subject to change on the basis of our level of sustained U.S. profitability, as well as the amount of our tax deductible stock-based compensation, which is dependent upon our publicly traded share price and macroeconomic conditions, among other factors.
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