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

DoorDash DASH reported second-quarter 2025 earnings of 65 cents per share against the year-ago quarter’s loss of 38 cents per share. The figure beat the Zacks Consensus Estimate by 54.76%.

Revenues increased 24.9% year over year to $3.28 billion, beating the consensus mark by 3.80%. The net revenue margin rose to 13.5% from 13.3% in the second quarter of 2024.

Following the results, Dash shares have gained 8.93% in the pre-market trading. The uptick can be attributed to strong order growth and rising Marketplace GOV.

DASH’s Q2 Details

In the second quarter of 2025, total orders increased 20% year over year to 761 million. The figure beat the Zacks Consensus Estimate by 1.36%. Total orders were driven by growth in consumers and average consumer engagement.

DoorDash, Inc. Price, Consensus and EPS Surprise

DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote

Marketplace GOV increased 23% year over year to $24.2 billion. The figure beat the consensus mark by 2.67%.

The adjusted gross profit was $1.71 billion, up 32.4% year over year. The adjusted gross margin expanded 300 bps on a year-over-year basis to 52.2%.

The contribution margin was 34.9% compared with 31.4% reported in the year-ago quarter.

Adjusted sales & marketing expenses rose 20.9% year over year to $568 million. Adjusted research & development expenses increased 29.5% year over year to $202 million. Adjusted general & administrative expenses increased 21.3% year over year to $290 million.

Adjusted EBITDA was $655 million, up 52.3% year over year. Adjusted EBITDA margin expanded 360 bps to 19.9%.

DASH’s 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.

Cash flow from operations was $504 million in the second quarter compared with the previous quarter’s $635 million. Free cash flow was $355 million, lower than the previous quarter’s figure of $494 million.

DASH’s Q3 Guidance

For the third quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $24.2-$24.7 billion. 

Adjusted EBITDA is expected to be in the range of $680-$780 million. 

For 2025, DoorDash expects stock-based compensation expense between $1 billion and $1.1 billion. Depreciation and amortization expense is expected to be roughly between $660 million and $700 million.

Zacks Rank & Other Stocks to Consider

DoorDash currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Autodesk ADSK, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Autodesk have gained 3.3% year to date. Autodesk is set to report second-quarter fiscal 2026 results on Aug. 28.

Shares of Applied Materials have gained 11.1% year to date. Applied Materials is slated to report third-quarter fiscal 2025 results on Aug. 14.

Shares of Cisco Systems have rallied 16.9% year to date. Cisco Systems is set to report fourth-quarter fiscal 2025 results on Aug. 13.  

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This article originally published on Zacks Investment Research (zacks.com).

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