Maplebear Inc. (Instacart) 2025 Annual Report Summary
Business Context and Reporting Period
This summary covers the Form 10-K for Maplebear Inc. (d/b/a Instacart) for the fiscal year ended December 31, 2025. Instacart operates as a technology and enablement partner for the grocery industry, connecting retailers, customers, brands, and shoppers. The company reported a leadership transition in August 2025, with Chris Rogers succeeding Fidji Simo as Chief Executive Officer and Chair of the Board. As of December 31, 2025, the platform enabled over 2,200 retail banners, served over 98% of North American households, and supported approximately 600,000 shoppers.
Key Financial Metrics
| Metric (in millions) | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | $3,742 | $3,378 | +11% |
| Gross Profit | $2,758 | $2,542 | +8% |
| Gross Margin | 74% | 75% | -1% |
| Net Income | $447 | $457 | -2% |
| Adjusted EBITDA | $1,087 | $885 | +23% |
| Operating Cash Flow | $971 | $687 | +41% |
| Cash & Equivalents | $637 | $1,278 | -50% |
Key Operational Metrics:
- Orders: 338.8 million (+15% YoY)
- Gross Transaction Value (GTV): $37.2 billion (+11% YoY)
- Stock-Based Compensation: $352 million (included in operating expenses)
Material Changes vs. Prior Period
- Revenue Growth: Total revenue grew 11% to $3.74 billion, driven by an 11% increase in transaction revenue and an 11% increase in advertising and other revenue. Transaction revenue growth was supported by GTV expansion and fulfillment efficiencies, partially offset by affordability initiatives.
- Profitability: Net income decreased slightly by 2% to $447 million, primarily due to a $119 million increase in General and Administrative (G&A) expenses. This increase was driven by $131 million in accruals for legal matters (including a $60 million FTC settlement) and $12 million in fixed asset impairments.
- Cost of Revenue: Increased 18% to $984 million, outpacing revenue growth and compressing gross margin by 1%. Drivers included higher credit card processing fees ($51M), payments to publishers ($51M), and depreciation/amortization ($33M).
- Cash Position: Cash and cash equivalents declined significantly from $1.28 billion to $637 million, largely due to $1.39 billion in financing activities, primarily share repurchases.
Guidance, Outlook, and Risks
Management Commentary & Outlook: Management highlighted strong GTV growth and operating leverage driving Adjusted EBITDA growth of 23%. The company continues to invest in AI solutions, international expansion, and new use cases (e.g., restaurants, health). No specific forward-looking financial guidance was provided in the text, though management noted that historical trends may not be indicative of future performance due to macroeconomic volatility.
Material Risks & Contingencies:
- Regulatory & Legal: The company settled an FTC investigation regarding marketing and Instacart+ practices for $60 million (paid in January 2026). Ongoing risks include shopper classification challenges (e.g., Proposition 22 in California) and potential changes in labor laws that could increase costs.
- Competition: The market is highly competitive with well-capitalized rivals (Amazon, Walmart, DoorDash) and potential retailer consolidation.
- Macroeconomic Factors: Inflation, interest rates, and trade policies impact consumer spending and advertising budgets. The company noted that higher retailer prices and reduced consumer spending could negatively impact order frequency and average order value.
- Cybersecurity: The company faces evolving threats including ransomware and data breaches, which could disrupt operations and harm reputation.
Investor Verification Checklist
- FTC Settlement Impact: Verify the long-term operational changes required by the $60 million FTC consent order and any potential future penalties.
- Shopper Classification Costs: Monitor the financial impact of Proposition 22 and similar legislation in other states on cost of revenue and operating margins.
- Share Repurchase Program: Confirm the remaining authorization ($671 million as of Dec 31, 2025) and the completion status of the $250 million Accelerated Share Repurchase (ASR) agreement finalized in January 2026.
- Advertising Revenue Mix: Assess the sustainability of advertising revenue growth given macroeconomic pressures on brand marketing budgets.
- Customer Concentration: Review the dependency on top retailers, which accounted for approximately 43% of GTV in 2025.