DoorDash Q4 Earnings Miss Estimate, Revenues Increase Y/Y, Shares Rise

DoorDash DASH reported fourth-quarter 2025 earnings of 48 cents per share compared with the year-ago quarter’s earnings of 33 cents. The figure missed the Zacks Consensus Estimate by 17.24%.

Revenues increased 38% year over year to $3.96 billion, missing the consensus mark by 0.37%. The net revenue margin dropped to 13.3% from 13.5% in the fourth quarter of 2025.

Following the results, DoorDash shares are up by 6.8% at the time of writing this article.

DASH’s Q4 Details

In the fourth quarter of 2025, total orders increased 32% year over year to 903 million. The figure beat the Zacks Consensus Estimate by 1.69%. Total orders were driven by growth in consumers, average consumer engagement and the acquisition of Deliveroo.
 

DoorDash, Inc. Price, Consensus and EPS Surprise

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

Marketplace GOV increased 39% year over year to $29.7 billion. The figure beat the consensus mark by 1.64%.

The adjusted gross profit was $2.08 billion, up 41.4% year over year. The adjusted gross margin expanded 140 bps on a year-over-year basis to 52.6%.

The contribution margin was 35.5% compared with 33.7% reported in the year-ago quarter.

Adjusted sales & marketing expenses rose 34.1% year over year to $676 million. Adjusted research & development expenses increased 65.1% year over year to $274 million. Adjusted general & administrative expenses surged 48.7% year over year to $351 million.

Adjusted EBITDA was $780 million, up 38% year over year. Adjusted EBITDA margin was flat at 19.7%.

DASH’s Balance Sheet and Cash Flow

As of Dec. 31, 2025, DoorDash had $5.78 billion in cash, cash equivalents and short-term marketable securities compared with $8.32 billion as of Sept. 30, 2025.

The cash flow from operations was $421 million in the fourth quarter compared with $871 million in the prior quarter. Free cash flow was $254 million compared with the previous quarter’s figure of $723 million.

DASH Initiates 1Q26 & FY26 Guidance

For the first quarter of 2026, DoorDash anticipates Marketplace GOV to be in the range of $31.0-$31.8 billion. 

Adjusted EBITDA is expected to be in the range of $675-$775 million.

For 2026, DoorDash expects stock-based compensation expense between $1.3 billion and $1.4 billion. Depreciation and amortization expense is anticipated to be in the range of $1.1 billion to $1.2 billion.

Zacks Rank & Stocks to Consider

DoorDash currently carries a Zacks Rank #3 (Hold).

Micron Technology MU, MongoDB MDB, and Credo Technology Group CRDO are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Micron Technology shares have gained 308% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

MongoDB shares have returned 25.2% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.  
 
Credo Technology Group shares have gained 79.4% in the past 12-month period. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.
 

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

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