DoorDash Reports Strong Revenue Growth Despite Earnings Miss

2025-11-07 companies

San Francisco, Thursday, 6 November 2025.
DoorDash’s Q3 2025 revenue rose by 27% to €3.45 billion, yet earnings per share fell short of expectations, causing a 19% drop in stock price.

Financial Performance and Market Reaction

DoorDash, Inc. (NASDAQ: DASH) reported a strong revenue increase of 27% year-over-year in the third quarter of 2025, totaling €3.45 billion. Despite surpassing revenue expectations, earnings per share (EPS) fell short, recording $0.55 against an anticipated $0.68, leading to a 19% decline in stock price [1][2]. The revenue growth was supported by a 25% rise in Marketplace Gross Order Value (GOV) to $25 billion and a 21% increase in total orders, reaching 776 million [3][4].

Strategic Investments and Future Projections

DoorDash emphasized its strategic investments aimed at long-term growth, including the recent acquisition of Deliveroo, valued at approximately $3.9 billion, completed on October 2, 2025 [5]. The company expects Deliveroo to contribute positively to its future growth, estimating a $45 million contribution to adjusted EBITDA in Q4 2025 and about $200 million in 2026 [6]. DoorDash is also focusing on new product initiatives, such as its Autonomous Delivery Platform, as part of its global technology expansion efforts [7].

Challenges and Market Dynamics

Despite the robust revenue growth, DoorDash faces challenges in aligning its earnings with market expectations. This earnings miss reflects broader market dynamics, with some of its restaurant partners like Chipotle and Cava experiencing financial strain due to economically constrained consumer spending [8]. Furthermore, the company anticipates continued high expenditure in 2026, with plans to invest ‘several hundred million dollars’ in new initiatives and development [9].

Looking Ahead

DoorDash projects significant growth for the upcoming year, expecting to exceed $100 billion in combined sales for merchants and Dashers in 2026 [10]. The company’s forward-looking statements express confidence in its strategic direction, despite the immediate market reaction to its Q3 earnings report. As the company continues to invest in its platform and expand its market presence, it remains focused on maximizing long-term free cash flow per share [11].

Sources

financial growth DoorDash