DoorDash Q3 Earnings Miss Estimates, Revenues Increase Y/Y, Shares Fall

DoorDash DASH reported third-quarter 2025 earnings of 55 cents per share compared with the year-ago quarter’s earnings of 38 cents per share. The figure missed the Zacks Consensus Estimate by 19.12%.

Revenues increased 27.3% year over year to $3.45 billion, beating the consensus mark by 2.41%. The net revenue margin rose to 13.8% from 13.5% in the third quarter of 2024.

Following the results, DoorDash shares have plunged 9.84% in the pre-market trading.

DASH’s Q3 Details

In the third quarter of 2025, total orders increased 21% year over year to 776 million. The figure beat the Zacks Consensus Estimate by 0.69%. 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 25% year over year to $25 billion. The figure beat the consensus mark by 1.84%.

The adjusted gross profit was $1.81 billion, up 31.4% year over year. The adjusted gross margin expanded 160 bps on a year-over-year basis to 52.5%.

The contribution margin was 36.8% compared with 34.4% reported in the year-ago quarter.

Adjusted sales & marketing expenses rose 21.3% year over year to $542 million. Adjusted research & development expenses increased 37.8% year over year to $215 million. Adjusted general & administrative expenses increased 24.1% year over year to $299 million.

Adjusted EBITDA was $754 million, up 41.5% year over year. Adjusted EBITDA margin expanded 220 bps to 21.9%.

DASH’s Balance Sheet and Cash Flow

As of Sept. 30, 2025, DoorDash had $8.32 billion in cash and cash equivalents and short-term marketable securities compared with $7.74 billion as of June 30, 2025.

Cash flow from operations was $871 million in the third quarter compared with the previous quarter’s $504 million. Free cash flow was $723 million compared with the previous quarter’s figure of $355 million.

DASH’s Q4 Guidance

For the fourth quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $28.9-$29.5 billion. 

Adjusted EBITDA is expected to be in the range of $710-$810 million. 

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

Zacks Rank & Other Stocks to Consider

DoorDash currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Constellation Software CNSWF and Ceragon Networks CRNT, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Shares of Analog Devices have gained 11.1% year to date. Analog Devices is set to report fourth-quarter fiscal 2025 results on Nov. 25.

Shares of Constellation Software have lost 18.3% year to date. Constellation Software is slated to report third-quarter 2025 results on Nov. 11.

Shares of Ceragon Networks have lost 46.9% year to date. Ceragon Networks is set to report third-quarter 2025 results on Nov. 11. 

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

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