DoorDash (DASH) Q3 2025 Earnings Preview

DoorDash, trading under the ticker DASH, recently released its third-quarter earnings, revealing a mixed bag for investors. While revenue surpassed expectations, earnings per share fell short, and the company announced significant planned spending for 2026. The announcement triggered a 9% drop in the stock price, highlighting investor concerns about profitability amidst aggressive growth initiatives.

Here’s a breakdown of the company’s performance versus LSEG estimates:

• Earnings: 55 cents per share vs 69 cents per share expected
• Revenue: $3.45 billion vs $3.36 billion expected.

Management addressed the earnings miss directly in their release. “We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works,” the company stated, signaling a long-term view focused on strategic growth over immediate profit gains.

The core of this investment lies in developing a new global tech platform designed to bolster DoorDash’s operational efficiency and expand its service offerings. While progress was made throughout 2025, the company anticipates an acceleration of this platform’s development in 2026. This comes with associated costs in the short run. The September unveiling of “Dot,” DoorDash’s autonomous delivery robot, further underscores the company’s commitment to innovation and automation in the last-mile delivery space. The development and deployment of such technology signals a proactive approach to addressing rising labor costs and improving delivery speed in the long term. However the operational effectiveness and customer adoption rate will be critical factor of success.

Despite the earnings miss, DoorDash demonstrated strong top-line growth. Revenue for the food delivery platform jumped 27% year-over-year. Net income also saw a significant increase, rising to $244 million, or 55 cents per share, compared to $162 million, or 38 cents per share, in the same quarter last year.

Total orders surged to 776 million during the quarter ending September 30, exceeding FactSet’s estimate of 770.13 million. While order volume continues its upward trend, the market is paying close attention to average order value and customer acquisition costs, which will ultimately determine the sustainability of DoorDash’s growth trajectory.

Looking ahead, DoorDash projects Adjusted EBITDA for the fourth quarter to range between $710 million and $810 million, with a midpoint of $760 million. This falls short of the $806.8 million anticipated by analysts polled by FactSet, further contributing to investor unease. The lower-than-expected guidance suggests potential headwinds, including increased competition and ongoing investments in new markets and technologies.

DoorDash recently completed its acquisition of British food delivery company Deliveroo on October 2, in a deal valued at approximately $3.9 billion. This acquisition marks a significant step in DoorDash’s international expansion strategy, providing it with a strong foothold in the European market. The integration of Deliveroo’s operations and technology presents both opportunities and challenges. Synergies in logistics and technology could lead to cost savings, while navigating regulatory differences and cultural nuances in different European markets poses a significant hurdle.

The company anticipates a depreciation and amortization expense of $700 million for the fiscal year, excluding acquisition-related expenses. Additionally, a stock-based compensation expense of $1.1 billion is projected for fiscal 2025. These expenses reflect DoorDash’s continued investment in its workforce and infrastructure, but will also weigh on overall profitability.

DoorDash anticipates Deliveroo contributing $45 million to adjusted EBITDA in Q4 and approximately $200 million to adjusted EBITDA in 2026. These figures are contingent on successful integration and market conditions within Deliveroo’s operating region. Investors will be analyzing the impact of the Deliveroo acquisition on DoorDash’s overall financial performance in the coming quarters and beyond.