Instacart (CART 3.56%), reported its financial results on August 7, 2025. The standout news was GAAP revenue of $914 million, which exceeded consensus estimates by 2.01% (GAAP). The company also posted significant GAAP net income growth to $116 million, up 92% from the previous year. Orders increased sharply, counterbalancing a 5% drop in average order value. Analysts had expected lower GAAP revenue, and the higher-than-forecast GAAP results reflect continued momentum in retailer partnerships, expanding advertising capabilities, and operational efficiencies. Overall, the quarter delivered both top- and bottom-line gains, with the company maintaining a strong financial position despite margin pressures from strategic initiatives.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.41 | $0.38 | $0.20 | 105.0 % |
| Revenue (GAAP) | $914 million | $895.97 million | $823 million | 11.1 % |
| Adjusted EBITDA | $262 million | $208 million | 25.96 % | |
| Net Income (GAAP) | $116 million | $61 million | 90.2% | |
| Gross Transaction Value (GTV) | $9.08 billion | $8.19 billion | 10.8 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Instacart and Its Business Focus
Instacart connects consumers with grocery stores and retailers online, allowing customers to shop for groceries and household goods with options for delivery or pickup. It operates both a direct-to-consumer marketplace and, as of December 31, 2024, provides enterprise technology solutions to over 1,800 retail banners across North America. Its platform reaches nearly all households in the United States and Canada, driving business through both consumer orders and by powering online storefronts for brick-and-mortar grocery retailers.
Instacart has prioritized partnerships with retailers, enhancements in customer experience, growth in advertising capabilities, and workforce management. Success for the company hinges on maintaining deep ties with retail partners, continuously improving the shopping experience, expanding advertising for brands, and managing regulatory obligations around its gig workforce. These areas drive growth in gross transaction value, order frequency, and monetization of both consumer and business-facing products.
Quarterly Highlights: Growth and Operations
The company exceeded analyst expectations on GAAP revenue, reporting $914 million compared to an estimate of $895.97 million. GAAP net income surged to $116 million, up from $61 million in Q2 2024. Gross transaction value rose 10.8% to $9.08 billion compared to Q2 2024, reflecting a rise in order volume from 70.8 million to 82.7 million, a year-over-year growth of 17%. This marks a period in which a higher volume of smaller orders offset the impact of a 5% decline in average order value (AOV).
The AOV decline resulted from strategic initiatives, including adding restaurant delivery and lowering minimum basket sizes for Instacart+ members. Company statements indicate these smaller orders do not cannibalize larger baskets but are driving new use cases, such as midweek grocery fill-ins. Management highlighted that operational improvements and increased batching of orders—combining multiple orders in a single store trip—have protected gross profit per order, reportedly held above $8.
Adjusted EBITDA, a key measure of profit that removes certain non-cash or one-off items, reached $262 million, an increase of 26%. This outpaced year-over-year growth in revenue and GTV, evidence that cost efficiencies and economies of scale continue to support margin expansion. The company noted that its efficiency improvements allowed GAAP net income as a percent of revenue to increase to 13%, compared with 7% for Q2 2024. Notably, operating cash flow of $203 million decreased from $244 million in Q2 2024, owing to working capital movements.
Advertising and other revenue climbed to $255 million, increasing 12% year over year. Over 7,500 brands advertised on the Instacart Ads platform, which offers advertising at the moment of purchase. Innovations such as AI-powered universal campaigns and a growing network of retail partners using Carrot Ads technology (now at over 240 partners as of Q2 2025) helped drive both growth and platform resilience. The advertising business is key, as it enables consumer brands to reach shoppers with targeted promotions and recommendations during the purchase process.
Retailer Partnerships, Technology, and Product Expansion
Retailer collaboration was a focal point in the period. More than 40 new retailer integrations launched in the first half of fiscal 2025, up from over 30 in all of fiscal 2024. The Storefront and Storefront Pro product families, which give grocers their own online sales tools, saw significant adoption, supporting Instacart’s enterprise strategy. Expanded agreements with partners like Costco Business Centres, Pattison Food Group, and integrations with Publix further extended the company’s market reach.
Efforts to bring price parity between online and in-store shopping continued. Management noted that price-parity retailers on the platform are growing faster than those that rely on markups, as discussed in management commentary on recent trends through April 2025. Nearly two-thirds of top retailer orders now link to loyalty programs, according to Instacart management commentary, reaching a wide range of income levels.
The company rolled out more advanced personalization features, including AI-powered Smart Shop and virtual aisles, helping consumers find deals and compatible products. Improvements in fulfillment speed and order batching have cut average shopper fulfillment time by about 25% compared with four years ago. The push for affordability continued, including special credits for Costco executive members and lowering minimum basket sizes for Instacart+ users.
On the workforce side, Instacart reported that nearly two-thirds of orders are fulfilled by experienced shoppers, and it launched new shopper reward systems and retention tools. Regulatory issues around worker classification remain a watchpoint; however, the company also expanded its share buyback program by $250 million.
Looking Ahead: Guidance and Key Focus Areas
Instacart offered guidance for Q3 2025, projecting gross transaction value of $9.0 billion to $9.15 billion, representing expected year-over-year growth of 8% to 10%. The company anticipates Adjusted EBITDA between $260 million and $270 million. The company reaffirmed its strategy of focusing on higher order frequency and efficiency, stating that order growth will likely continue to outpace transaction value growth, implying ongoing pressure on average order size but continued expansion in engagement and operational effectiveness.
Regulatory concerns, particularly around gig worker classification and advertiser spending patterns in a shifting macroeconomic environment, remain ongoing factors that could influence future performance. CART does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
