Why Is DoorDash (DASH) Up 12.6% Since Last Earnings Report?

It has been about a month since the last earnings report for DoorDash, Inc. (DASH). Shares have added about 12.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is DoorDash due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.DASH Q3 Earnings Miss Estimates, Revenues Increase Y/YDoorDash 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.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.Marketplace 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.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -19.89% due to these changes.VGM ScoresAt this time, DoorDash has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, DoorDash has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerDoorDash is part of the Zacks Internet - Services industry. Over the past month, Zillow (Z), a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended September 2025 more than a month ago.Zillow reported revenues of $676 million in the last reported quarter, representing a year-over-year change of +16.4%. EPS of $0.44 for the same period compares with $0.35 a year ago.Zillow is expected to post earnings of $0.42 per share for the current quarter, representing a year-over-year change of +55.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.Zillow has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want 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 DoorDash, Inc. (DASH): Free Stock Analysis Report Zillow Group, Inc. (Z): 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