0001792789-25-000020
SEC filingRevenue grew 27% YoY driven by 25% Marketplace GOV growth, with contribution profit margin expanding to 5.1% of GOV.
Revenue for the third quarter of 2025 increased 27% year-over-year to $3.45 billion, outpacing Marketplace GOV growth of 25%. This outperformance was driven by improved logistics efficiency, higher advertising revenue, and a reduction in credits and refunds as a percentage of GOV. Gross margin improved to 49.0% from 47.4%, reflecting better cost management and mix. Operating income surged to $258 million (7% margin) from $107 million (4% margin) due to revenue growth outpacing cost increases. Net income attributable to common stockholders rose to $244 million from $162 million.
Contribution Profit increased to $1.27 billion (5.1% of GOV) from $930 million (4.6% of GOV), driven by revenue growth partially offset by higher cost of revenue and sales and marketing expenses. Adjusted EBITDA grew to $754 million (3.0% of GOV) from $533 million (2.7% of GOV), as contribution profit gains were partly offset by higher adjusted R&D and G&A expenses.
Free Cash Flow nearly doubled to $723 million from $444 million, driven by strong operating cash flow of $871 million.
The MD&A does not provide standalone segment financials. The business operates primarily through its Marketplaces (DoorDash and Wolt) and Commerce Platform (including Drive). Total Orders grew 21% YoY to 776 million, with Marketplace GOV reaching $25.0 billion, up 25%. Growth was broad-based, driven by increases in both consumer base and average engagement. Advertising revenue continued to be a key margin driver, contributing to Net Revenue Margin expansion to 13.8% from 13.5%.
Management did not provide explicit forward guidance but highlighted strategic priorities including the recent acquisition of Deliveroo (completed October 2, 2025) to strengthen its global position. The company believes its existing liquidity of $5.1 billion in cash and marketable securities, along with the $800 million revolving credit facility, is sufficient for at least the next 12 months. The share repurchase program has $5.0 billion remaining. Management noted potential future operating losses and capital needs for growth initiatives, but emphasized confidence in the business's ability to generate cash.
DoorDash generated $2,010 million in operating cash flow for the nine months ended September 30, 2025, compared to $1,614 million in the prior year, a 24.5% increase. Net income (including redeemable non-controlling interests) swung from a loss of $22 million to a profit of $719 million, but CFO was significantly boosted by non-cash charges: stock-based compensation ($775M), depreciation and amortization ($480M), and reduction of operating lease ROU assets ($83M).
Capex intensity rose considerably: purchases of property and equipment totaled $203 million (vs $72M) and capitalized software costs reached $235 million (vs $160M), totaling $438 million. This investment is aligned with platform growth. Working capital changes consumed $298 million, driven by increases in accounts receivable and other assets, partially offset by accrued expenses.
The company engaged in significant financing activities, raising $2,720 million from convertible notes (net of issuance costs) and $341 million from warrants, while purchasing $680 million in convertible note hedges. No share repurchases occurred in 2025, compared to $224 million in 2024. Investing activities also included $1,198 million for acquisitions. Overall, cash and equivalents increased by $3,178 million to $7,399 million.