Business Context and Reporting Period
Company: DoorDash, Inc.
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: March 31, 2026
Business Overview: DoorDash operates a local commerce platform connecting consumers with merchants through its Marketplaces (DoorDash, Wolt, Deliveroo) and Commerce Platform. The company operates in over 40 countries, offering delivery, advertising, and white-label fulfillment services.
Key Financial Metrics
| Metric (in millions, except per share) | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $4,036 | $3,032 |
| Net Income (Attributable to DoorDash) | $184 | $193 |
| Income from Operations | $151 | $155 |
| Adjusted EBITDA | $754 | $590 |
| Free Cash Flow | $420 | $494 |
| Cash, Cash Equivalents, and Investments | $6,432 | $6,432 (Dec 31, 2025) |
| Convertible Notes (2030) | $2,725 (Carrying Value) | N/A |
| Diluted EPS | $0.42 | $0.44 |
Note: Cash, cash equivalents, and investments as of March 31, 2026, totaled $6.432 billion ($4.575B cash + $300M restricted cash + $958M short-term investments + $849M long-term investments + $605M funds at payment processors).
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 33% year-over-year to $4.036 billion, driven by a 37% increase in Marketplace Gross Order Value (GOV) to $31.6 billion. This growth was primarily fueled by the acquisition of Deliveroo and increased order volume.
- Profitability: While GAAP Net Income decreased slightly to $184 million (from $193 million), Adjusted EBITDA grew 28% to $754 million. Operating income remained relatively flat at $151 million.
- Expenses:
- Cost of Revenue: Increased 33% to $1.992 billion, driven by higher order management and platform costs.
- Sales & Marketing: Increased 27% to $746 million due to higher advertising and personnel costs.
- Depreciation & Amortization: Surged 77% to $269 million, largely due to amortization of intangible assets from recent acquisitions (Deliveroo, SevenRooms).
- Restructuring Charges: Increased significantly to $48 million (from $1 million) due to the exit of operations in certain countries.
- Cash Flow: Free Cash Flow decreased to $420 million from $494 million, impacted by working capital timing and increased capital expenditures for software development.
Guidance, Outlook, and Risks
- Acquisitions & Integration: The company is actively integrating Deliveroo (acquired Oct 2025) and SevenRooms (acquired June 2025). These acquisitions have increased intangible asset amortization and contributed to revenue growth.
- Restructuring: The company initiated restructuring activities in Q1 2026 to exit operations in specific countries to focus on high-potential geographies. Most cash payments related to these activities are expected to be completed by the end of 2026.
- Capital Allocation:
- Share Repurchases: Under a $5.0 billion authorization, the company repurchased 1.1 million shares for $162 million in Q1 2026. Approximately $4.8 billion remains available.
- Debt: The company has $2.75 billion in 0% Convertible Senior Notes due 2030. No revolving loans were outstanding under the $800 million credit facility.
- Risks & Contingencies:
- Regulatory/Legal: Ongoing investigations regarding Dasher classification (e.g., California EDD audit) and potential reclassification risks in various jurisdictions. The company maintains accruals for these matters.
- Cybersecurity: A social engineering incident in October 2025 resulted in limited data exposure; the company continues to face risks from state-sponsored actors and third-party vendor vulnerabilities.
- Competition: Intense competition in local delivery and grocery sectors, with risks of price wars and margin compression.
Investor Verification Checklist
- Acquisition Synergies: Verify the integration progress of Deliveroo and SevenRooms and whether the projected revenue synergies are materializing against the increased amortization costs.
- Restructuring Impact: Monitor the completion of the exit from specific countries and the associated one-time costs versus long-term efficiency gains.
- Regulatory Exposure: Track the status of the California EDD audit and other worker classification challenges, as a reclassification of Dashers could materially impact the cost structure.
- Capital Efficiency: Assess the return on investment for the increased Sales & Marketing spend and the $117 million in capitalized software costs.
- Debt Conversion Risk: Review the terms of the 2030 Convertible Notes, specifically the conversion price ($291.97) relative to the current stock price, to evaluate potential future dilution or cash settlement obligations.