DoorDash Q3 Earnings Miss Estimates, Revenues Increase Y/Y, Shares Fall

DoorDash DASH reported third-quarter 2025 earnings of 55 cents per share compared with the year-ago quarter’s earnings of 38 cents per share. The figure missed the Zacks Consensus Estimate by 19.12%.Revenues increased 27.3% year over year to $3.45 billion, beating the consensus mark by 2.41%. The net revenue margin rose to 13.8% from 13.5% in the third quarter of 2024.Following the results, DoorDash shares have plunged 9.84% in the pre-market trading.DASH’s Q3 DetailsIn the third quarter of 2025, total orders increased 21% year over year to 776 million. The figure beat the Zacks Consensus Estimate by 0.69%. Total orders were driven by growth in consumers and average consumer engagement.DoorDash, Inc. Price, Consensus and EPS Surprise DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. QuoteMarketplace GOV increased 25% year over year to $25 billion. The figure beat the consensus mark by 1.84%.The adjusted gross profit was $1.81 billion, up 31.4% year over year. The adjusted gross margin expanded 160 bps on a year-over-year basis to 52.5%.The contribution margin was 36.8% compared with 34.4% reported in the year-ago quarter.Adjusted sales & marketing expenses rose 21.3% year over year to $542 million. Adjusted research & development expenses increased 37.8% year over year to $215 million. Adjusted general & administrative expenses increased 24.1% year over year to $299 million.Adjusted EBITDA was $754 million, up 41.5% year over year. Adjusted EBITDA margin expanded 220 bps to 21.9%.DASH’s Balance Sheet and Cash FlowAs of Sept. 30, 2025, DoorDash had $8.32 billion in cash and cash equivalents and short-term marketable securities compared with $7.74 billion as of June 30, 2025.Cash flow from operations was $871 million in the third quarter compared with the previous quarter’s $504 million. Free cash flow was $723 million compared with the previous quarter’s figure of $355 million.DASH’s Q4 GuidanceFor the fourth quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $28.9-$29.5 billion. Adjusted EBITDA is expected to be in the range of $710-$810 million. For 2025, DoorDash expects stock-based compensation expense to be approximately $1.1 billion. Depreciation and amortization expense is expected to be roughly $700 million.Zacks Rank & Other Stocks to ConsiderDoorDash currently has a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Constellation Software CNSWF and Ceragon Networks CRNT, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Shares of Analog Devices have gained 11.1% year to date. Analog Devices is set to report fourth-quarter fiscal 2025 results on Nov. 25.Shares of Constellation Software have lost 18.3% year to date. Constellation Software is slated to report third-quarter 2025 results on Nov. 11.Shares of Ceragon Networks have lost 46.9% year to date. Ceragon Networks is set to report third-quarter 2025 results on Nov. 11. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis Report Ceragon Networks Ltd. (CRNT): Free Stock Analysis Report Constellation Software Inc. (CNSWF): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks