DoorDash Earnings: Record Orders and Revenue Drive Profit Surge
- Hardik Shah
- 3 days ago
- 3 min read
TLDR
Revenue Strength: Revenue grew 25% year-over-year (Y/Y) to $3.3 billion, driven by increased order volume and consumer engagement.
Margin Trends: Net Revenue Margin rose to 13.5%; Adjusted EBITDA margin held steady at 2.7% of Gross Order Value (GOV).
Forward Outlook: Q3 GOV guided to $24.2–$24.7 billion, with Adjusted EBITDA expected between $680–$780 million.
Business Overview
DoorDash (NASDAQ: DASH) operates a global local commerce platform across more than 30 countries, serving food delivery, grocery, and broader retail categories. The business leverages logistics, a robust merchant network, and growing subscription programs like DashPass and Wolt+ to drive scale and retention.
Doordash Earnings Q2'25
Total Orders: 761 million, up 20% Y/Y
Marketplace GOV: $24.2 billion, up 23% Y/Y
Revenue: $3.3 billion, up 25% Y/Y
Net Revenue Margin: 13.5%, up from 13.3% in Q2 2024
GAAP Net Income: $285 million vs. a loss of $157 million last year
Adjusted EBITDA: $655 million, up 52% Y/Y
Free Cash Flow: $355 million, impacted by working capital timing
Key drivers included improved Dasher efficiency, lower refund/credit rates, and increased contribution from advertising revenue.
Forward Guidance
Q3 2025 GOV: $24.2B–$24.7B
Adjusted EBITDA: $680M–$780M
Risks & Opportunities:DoorDash flagged potential macro risks, including FX volatility, global consumer demand shifts, and geopolitical exposure. The acquisition of Deliveroo is expected to close in Q4 2025 but is not included in current guidance due to regulatory review uncertainties.
Operational Performance
U.S. order growth accelerated, especially in the restaurant category.
DashPass engagement drove average order frequency to an all-time high.
International markets outpaced U.S. growth, with record Wolt+ signups and improved unit economics.
Improvements in logistics, delivery speed, and personalization contributed to performance.
“Our teams have executed well across the board. The improvements we made over the last few years continue to compound, fueling both U.S. and international growth.” - Tony Xu, CEO
Market Insights
DoorDash surpassed $1B annualized revenue in advertising, now one of the fastest-growing segments.
Management emphasized discipline in scaling ads, with strong merchant return-on-ad-spend (ROAS) and consumer conversion.
International segment saw share gains across most markets with expanding category offerings.
Consumer Behavior & Sentiment
DashPass and Wolt+ members reached all-time highs.
Both new and mature cohorts showed improved retention and order frequency.
Consumers responded positively to enhanced value, affordability, and personalization.
Older DashPass cohorts (5–6 years) are still increasing engagement.
Strategic Initiatives
Investments in AI are reshaping personalization, logistics, and onboarding processes.
Acquisitions of Symbiosis and SevenRooms aim to deepen advertising tech and SaaS offerings, respectively.
Management reiterated a focus on building long-term margin dollars, not just short-term unit profits.
“We’re deploying capital where ROI is high — from engineering talent to new verticals — while driving strong leverage across the P&L.” - Ravi Inukonda, CFO
Capital Allocation
No repurchases yet under $5 billion buyback authorization from February 2025.
Free cash flow expected to rebound in H2 2025 as working capital reverses.
Issued $2.7 billion in convertible notes; strong liquidity with $3.9 billion cash on hand.
The Bottom Line
DoorDash’s Q2 performance underscores the strength of its multi-category platform and consumer loyalty. Growth in DashPass/Wolt+, expanding ad revenue, and execution in international markets present long-term upside.
Investors should monitor:
Deliveroo integration and international market performance.
Continued improvements in order frequency and cohort engagement.
Margin trajectory and free cash flow conversion in the second half of 2025.
--