DoorDash (DASH) Q4 2025 Earnings Report

DoorDash Shares Rally After Q4 Earnings Disappoint, But Investors Eye Long-Term Strategy

DoorDash’s stock saw a significant rebound, climbing 14% in after-hours trading on Wednesday, defying an initial dip triggered by the food delivery giant’s fourth-quarter financial results and forward-looking guidance that fell short of analyst expectations. The stock had initially shed 10% following the release of the company’s earnings report.

The company reported earnings per share of 48 cents, missing the LSEG consensus estimate of 59 cents. Revenue for the quarter came in at $3.96 billion, also slightly below the $3.99 billion expected by analysts. Despite these figures, revenue still represented a robust 38% increase compared to the $2.87 billion recorded in the same period last year.

On the operational front, DoorDash reported a 32% year-over-year increase in total orders, reaching 903 million. Marketplace Gross Order Value, a key metric indicating the total dollar value of transactions, surged by 39% to $29.7 billion. These figures suggest continued strong demand for the platform’s services, even as the company navigates a more cautious investor sentiment.

It’s worth noting that analyst estimates had already been tempered in the preceding quarter, following a disappointing third-quarter performance that had raised concerns about the company’s growth trajectory and spending.

During the earnings call, CEO Tony Xu expressed confidence in the company’s strategic investments, highlighting the strong performance of Deliveroo, the British food delivery platform acquired last year. Xu indicated that Deliveroo is achieving faster growth while maintaining profitability, a positive sign for the integration and synergy potential within DoorDash’s expanded global footprint.

In a letter to shareholders, Xu elaborated on DoorDash’s commitment to enhancing user experiences through the development of new products and systems. He specifically pointed to the ongoing efforts to create a unified technology platform that integrates DoorDash, Deliveroo, and Wolt. This ambitious endeavor, described as a “massive and expensive undertaking,” is designed to streamline operations and foster innovation across the company’s diverse markets.

Xu acknowledged that the company could have opted for a less adaptable codebase that would have been quicker and cheaper to implement, especially concerning the integration of artificial intelligence. However, he emphasized that such shortcuts could have had detrimental consequences for customers, underscoring a long-term vision focused on sustainable growth and superior user engagement.

Looking ahead, DoorDash provided first-quarter guidance that indicated continued caution. The company forecasts adjusted EBITDA to be between $675 million and $775 million, falling below the StreetAccount estimate of $802 million. This outlook has contributed to investor apprehension regarding DoorDash’s expenditure plans.

These concerns were amplified last quarter when the company disclosed its intention to invest “several hundred million dollars” in its global technology platform and initiatives such as autonomous delivery. This announcement had previously led to DoorDash’s worst trading day on record. At that time, Xu defended the company’s spending, asserting that DoorDash possesses a strong track record of successful business investments that fuel future growth.

Financially, DoorDash reported a net income of $213 million, or 48 cents per share, a notable increase from the $141 million, or 33 cents per share, reported in the prior year. Despite the recent volatility, the company’s ability to consistently grow revenue and order volume, coupled with its strategic investments in a unified global platform, suggests a potential for long-term value creation that investors are now reassessing. The stock has experienced a more than 20% decline year-to-date, presenting a potential entry point for those who believe in the company’s strategic direction.