Instacart Earnings: Double-Digit Growth Driven by Marketplace Scale and AI Expansion
- Hardik Shah
- Nov 10
- 4 min read
TLDR
• Revenue Strength: Orders up 14% and Gross Transaction Value (GTV) up 10% year-over-year, reaching $9.17 billion.
• Margin Trends: Adjusted EBITDA rose 22% to $278 million, supported by disciplined cost control.
• Forward Outlook: Management guided Q4 GTV growth of 9–11% and reaffirmed long-term confidence with a $1.5 billion share repurchase expansion.
Business Overview
Instacart (Maplebear Inc.) is North America’s leading online grocery technology and fulfillment platform, connecting consumers, retailers, and brands through its marketplace, enterprise solutions, and advertising ecosystem. The company powers over 350 retailer e-commerce storefronts, collaborates with 1,800 retail banners, and supports more than 7,500 consumer packaged goods (CPG) brands through its Carrot Ads network. Instacart’s mission extends beyond delivery—it serves as a technology and enablement partner helping retailers compete online and in-store.
Instacart Earnings
Instacart delivered another quarter of profitable growth:
Orders: 83.4 million, up 14% year-over-year (YoY).
Gross Transaction Value (GTV): $9.17 billion, up 10% YoY.
Revenue: $939 million (+10% YoY), or 10.2% of GTV.
Transaction Revenue: $670 million (+10%), flat as % of GTV at 7.3%.
Advertising & Other Revenue: $269 million (+10%), or 2.9% of GTV.
GAAP Net Income: $144 million (+22%), 15% of revenue.
Adjusted EBITDA: $278 million (+22%), 30% of revenue.
Operating Cash Flow: $287 million (+$102 million YoY).
CFO Emily Reuter credited “strong operational performance, disciplined execution, and resilient customer demand” for driving margin expansion.
Forward Guidance
Q4 GTV: $9.45–$9.6 billion (+9–11% YoY).
Adjusted EBITDA: $285–$295 million.
Advertising Growth: Expected 6–9% YoY amid macro moderation by larger brands, but management reiterated double-digit growth targets for 2026.
Capital Allocation: Instacart expanded its share repurchase program by $1.5 billion and will initiate a $250 million accelerated buyback, reflecting confidence in long-term value creation.
Operational Performance
Instacart continues to strengthen execution across its three business pillars; Marketplace, Enterprise Platform and Advertising Ecosystem.
Marketplace
Instacart’s marketplace remains its growth engine. CEO Chris Rogers noted,
“Our marketplace is healthy and growing… unit economics are positive and continue to strengthen across all basket sizes.”Fresh and fast delivery remains a differentiator: 75% of orders arrive in under 90 minutes, and 25% of priority orders in under 30 minutes.
Affordability is another key focus: retailers offering price parity with in-store pricing grew 10 percentage points faster than those that did not. Instacart+ members also benefit from lower basket minimums and loyalty-linked savings.
Enterprise Platform
Enterprise offerings—Storefront, Fulfillment, Carrot Ads, Caper Carts, FoodStorm, and new AI Solutions—are now deployed across 350 grocers. Rogers emphasized:
“We are not just a marketplace. We are a technology and enablement partner for the grocery industry.”
Recent expansions include Kroger reaffirming Instacart as its primary delivery partner, and new partnerships with Restaurant Depot, Merchants Distributors, and Cub Grocery & Liquor. International expansion is underway following the acquisition of Wynshop, which powers storefronts in Europe and Australia.
Advertising Ecosystem
Instacart Ads continues to scale with 7,500+ brand partners. New partnerships with TikTok, Pinterest, and Uber Eats extend reach beyond the core marketplace. The introduction of AI-powered ad relevance systems and automated creative tools has increased engagement and efficiency. Rogers highlighted that brands advertising on Instacart “see a 25% boost in sales on average”.
Market Insights
Instacart’s advertising mix is broadening to include off-platform activations, in-store digital placements (via Caper Carts), and retail media collaborations like Hy-Vee RedMedia. Its partnership with TikTok positions it as the first end-to-end retail media network enabling CPGs to connect social engagement directly to purchase intent.
Consumer Behavior & Sentiment
Affordability and convenience remain key purchase drivers. The platform’s focus on same-as-in-store pricing, loyalty integration, and AI-powered recommendations is driving engagement and retention. The Instacart+ membership program continues to expand, encouraging higher order frequency and larger baskets.
CEO Rogers emphasized,
“Affordability is the number one reason why people churn off the platform—and the biggest opportunity to grow adoption.”
Strategic Initiatives
AI Solutions: Newly launched suite including Cart Assistant and Catalog Engine, delivering personalized and efficient experiences for grocers and shoppers.
Enterprise Expansion: Deepening integrations with major retailers (Kroger, Wakefern) and extending to international markets.
Advertising Innovation: Carrot Ads expansion to 240+ partner sites, with AI-generated landing pages and new out-of-aisle impression metrics.
B2B Growth: Business-focused ordering and invoicing tools for wholesalers like Restaurant Depot and Gordon Food Service.
Capital Allocation
Instacart remains disciplined:
Cash and equivalents: $1.9 billion.
Stock-based compensation: $82 million (down $24 million QoQ).
Ongoing repurchases: $67 million in Q3, with $1.65 billion total capacity available.
The Bottom Line
Instacart is executing with strength across all fronts — scaling its marketplace, deepening retailer integrations, and leading retail media innovation. The company’s balanced mix of growth and profitability, combined with AI-driven differentiation, positions it well for durable expansion.
Investors should watch for:
AI monetization across enterprise offerings.
Ad revenue reacceleration to double-digit growth in 2026.
International expansion traction via Wynshop and Caper Carts.
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