DoorDash (DASH) Q2 Revenue Jumps 25%

DoorDash (DASH 1.10%), a leading on-demand delivery platform serving restaurants, grocery stores, and convenience retailers, reported its second quarter 2025 results on August 6, 2025. The company delivered strong financial performance, posting GAAP revenue of $3.3 billion, comfortably ahead of the $3.16 billion GAAP consensus estimate. DoorDash also turned a profit with GAAP net income of $285 million and GAAP diluted EPS of $0.65, beating the analyst target of $0.44. Total orders and marketplace volume reached all-time highs. The results marked a robust quarter, though Free cash flow came in lower than last year. and management highlighted continued challenges abroad and ongoing regulatory compliance burdens.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

DoorDash’s Business and Growth Focus

DoorDash connects millions of consumers, merchants, and Dashers (its delivery partners) through a marketplace platform operating in over 30 countries. Its core business is facilitating food and goods delivery from restaurants and retail partners through its app and logistics network. Users can browse, order, and have items delivered to their door.

DoorDash’s recent focus has centered on expanding its platform to new geographies and verticals, such as grocery and convenience, while maintaining a strong restaurant delivery offering. Membership programs like DashPass in the U.S. and Wolt+ internationally have been adopted to drive user loyalty and higher order frequency. The company also pursues differentiated offerings through investments in advertising, automation, and service quality, aiming to improve merchant value and user retention. Key factors for ongoing success include competitive positioning, efficient marketplace operations, regulatory compliance, continued technological innovation, and Dashers’ satisfaction.

Quarter Highlights: Growth, Efficiency, and Marketplace Expansion

During Q2 2025, DoorDash set new records for total orders, Marketplace Gross Order Value (GOV), revenue, and GAAP net income. Total orders climbed to 761 million, rising 20% from the prior year, while Marketplace GOV totaled $24.2 billion, a 23% increase year-over-year. DoorDash credited this growth to strong consumer demand, higher DashPass and Wolt+ membership levels, and a broader merchant selection.

Profit margins improved as operational efficiency gains took hold. The company’s net revenue margin expanded to 13.5%, compared to 13.3% in Q2 2024. GAAP gross profit reached $1.61 billion, up 35%, while Adjusted EBITDA, a measure of operating profitability that excludes certain non-cash items, increased by 52% to $655 million. These improvements in net revenue margin were driven by logistics efficiency, rising advertising revenue, and a reduction in credits and refunds as a share of Marketplace GOV. However, DoorDash noted that some volume shifted toward categories with lower margins.

DoorDash made progress on several fronts. Membership programs drove engagement, with average order frequency at an all-time high and retention increasing year-over-year. International order growth outpaced the U.S. market, and the company added tens of thousands of new merchant partners. On the technology side, DoorDash invested in advertising products, acquired adtech platform Symbiosys, and advanced its automation efforts by piloting delivery robots and drones. Intellectual property protection also strengthened, with 244 U.S. patents and 56 registered trademarks as of December 2024.

Despite the progress, Free cash flow fell 21% year-over-year to $355 million, down from $451 million a year ago. Management attributed this to the timing of working capital needs and indicated it expects a reversal in the second half of 2025. GAAP general and administrative expenses dropped 21% year-over-year, partly due to fewer regulatory, tax, and office lease expenses, though the company continues to highlight regulatory risks, especially as its international exposure increases. DoorDash has not repurchased shares under its $5 billion authorization announced earlier this year.

Product Families and Segment Trends

Restaurant delivery, DoorDash’s original product family, remains its largest and strongest-performing segment, particularly in the U.S. Order growth in this area was described as “notable,” with DashPass memberships contributing to record-high order frequency. The company continued to expand in grocery delivery, with over a quarter of users now placing both grocery and restaurant orders as of Q1 2025. Grocery orders saw rising basket sizes as customers became more habituated to the service.

Advertising offerings contributed to growing revenue. DoorDash’s automation investments, including delivery robots and drones, are still in early phases but are starting to show up in its capital spending. Management emphasized further work is needed to improve the quality, affordability, and convenience of both food and non-food delivery services.

Looking Ahead: Guidance and Priorities

For Q3 2025, management forecasts Marketplace GOV in the range of $24.2 to $24.7 billion and adjusted EBITDA between $680 million and $780 million, suggesting continued sequential growth in profitability. Expectations include ongoing investment in new product categories, international market expansion, and technological innovation. The guidance does not factor in the proposed acquisition of Deliveroo, as the deal is pending regulatory approval and not yet finalized.

Management underscored that material levels of investment in new categories and foreign expansion will persist. 2025 stock-based compensation expense is set to be between $1.0 billion and $1.1 billion, and depreciation and amortization expense is expected to be $660 million to $700 million.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.