0001792789-26-000037
SEC filingDoorDash's Q1 2026 revenue surged 33% YoY to $4.0B, driven by 27% order growth and Deliveroo acquisition, though net income margin compressed 20 bps.
DoorDash delivered strong top-line growth in Q1 2026, with revenue increasing 33% YoY to $4.0 billion, driven by a 37% surge in Marketplace GOV to $31.6 billion. Total Orders rose 27% to 933 million, fueled by consumer growth and the acquisition of Deliveroo. However, revenue grew slower than GOV due to a decline in Net Revenue Margin, which fell 30 bps to 12.8% as lower consumer fees and the Deliveroo mix offset gains from advertising and reduced credits.
On the cost side, cost of revenue (ex-D&A) increased 33% to $2.0 billion, in line with revenue growth, driven by higher order management and platform costs. Sales and marketing expenses rose 27% to $746 million, reflecting increased advertising and personnel costs. Research and development and general and administrative expenses both grew 30%, to $398 million and $432 million, respectively, due to higher personnel and third-party software costs. Depreciation and amortization jumped 77% to $269 million, primarily from amortization of acquired intangibles. Restructuring charges totaled $48 million, compared to $1 million in the prior year, related to country closures.
GAAP gross profit margin slipped from 48.7% to 48.2%. Income from operations was essentially flat at $151 million, resulting in operating margin of 4.0% versus 5.0% a year ago. Net income attributable to DoorDash common stockholders decreased to $184 million from $193 million, with net income margin as a percentage of GOV falling 20 bps to 0.6%. Interest income fell 31% due to lower balances and rates.
Adjusted EBITDA, a non-GAAP metric, grew 28% to $754 million, driven by Contribution Profit expansion. Contribution Profit rose 35% to $1.38 billion, with Contribution Margin improving to 34.2% from 33.6%.
The MD&A does not provide segment-level financials. DoorDash operates through its Marketplaces (DoorDash, Wolt, Deliveroo) and Commerce Platform. The overall performance reflects strong order growth across geographies, with Deliveroo acquisition adding scale. The company highlighted increased advertising revenue and reductions in credits as positives, offset by higher consumer fee concessions and mix shift.
No specific forward guidance was provided in the MD&A. Management emphasized continued investment in non-U.S. operations, technology, and Dasher capacity. The company maintains a strong liquidity position with $6.4 billion in cash, cash equivalents, and investments, along with an $800 million undrawn credit facility. A new $5.0 billion share repurchase program was authorized, with $4.8 billion remaining as of March 31, 2026. The company expects to fund operations and growth from existing resources for at least the next 12 months.
DoorDash’s balance sheet remains strong as of March 31, 2026, with total liquidity of $6.4B (cash and cash equivalents $4.575B, short-term investments $0.958B, long-term investments $0.849B). Restricted cash of $0.3B and funds held at payment processors $0.6B add further flexibility. Total debt stands at $2.725B from the 0% convertible notes due 2030, with no outstanding revolver borrowings. Shareholders’ equity increased to $10.2B (up from $10.0B at year-end) driven by stock-based compensation and net income, partially offset by share repurchases and OCI losses.
No material purchase commitments were disclosed in the Notes. The company has a $800M revolving credit facility (undrawn) and $582M in outstanding surety bonds/letters of credit. Contract liabilities totaled $0.5B, primarily from unredeemed gift cards and prepayments. Legal contingencies are accrued at $0.3B, largely related to Dasher classification and tax audits.
In February 2025, DoorDash authorized a $5.0B share repurchase program (inclusive of $876M remaining from prior authorization). During Q1 2026, the company repurchased 1.1M shares for $162M at an average price of $146.93, leaving $4.8B in remaining authorization. No dividends were paid. Capital expenditures totaled $174M (4.3% of revenue), split between property & equipment ($57M) and capitalized software ($117M). Debt activity was limited to amortization of issuance costs; no new borrowings or repayments occurred.
DoorDash operates as a single reportable segment. Geographic revenue disclosure shows U.S. revenue of $3.104B (77% of total) and international revenue of $0.932B (23%), up sharply from 12% in the prior year quarter due to the Deliveroo acquisition. No individual foreign country exceeded 10% of consolidated revenue.
Operating cash flow of $594M significantly exceeded net income of $183M, indicating robust cash generation from operations. The primary adjustments from net income to CFO include $269M of depreciation and amortization and $231M of stock-based compensation. Capex of $174M (57M on property and equipment, 117M on capitalized software) represented 29% of CFO, a moderate intensity level.
Working capital was a net use of cash: accounts payable declined $123M, accrued expenses fell $27M, while accounts receivable increased $57M. This contrasts with the prior year where working capital was a net source. Investing activities also included purchases of investments and maturities, resulting in net cash used in investing of only $98M.
Financing activities included $162M of share repurchases. Free cash flow is not explicitly stated but CFO minus capex would be $420M, more than covering the repurchases. Overall, cash flow quality appears healthy with operating cash flow covering capital expenditures and returning capital to shareholders.