Maplebear Inc. (Instacart) 2026 Q2 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Maplebear Inc., doing business as Instacart, operates a technology platform connecting retailers, end users, advertisers, and shoppers primarily in the United States and Canada. The company reported as a large accelerated filer with 231.5 million shares of common stock outstanding as of July 31, 2026.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | 6 Months 2026 | 6 Months 2025 |
|---|---|---|---|---|
| Revenue | $1,043 million | $914 million | $2,062 million | $1,811 million |
| Gross Profit | $751 million | $678 million | $1,489 million | $1,350 million |
| Gross Margin | 72% | 74% | 72% | 75% |
| Net Income | $111 million | $116 million | $256 million | $222 million |
| Diluted EPS | $0.45 | $0.41 | $1.02 | $0.79 |
| Operating Cash Flow (6mo) | $762 million | $501 million | N/A | N/A |
| Free Cash Flow (6mo) | $733 million | $467 million | N/A | N/A |
| Cash & Equivalents | $757 million | $637 million | N/A | N/A |
| Debt | $0 outstanding | $0 outstanding | N/A | N/A |
Note: Debt refers to the $500 million revolving credit facility entered into on May 1, 2026, which had no borrowings outstanding as of June 30, 2026.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 14% year-over-year (YoY) in Q2 2026, driven by a 14% increase in Gross Transaction Value (GTV) to $10.35 billion and a 9% increase in orders to 90.3 million.
- Profitability: While Net Income decreased slightly to $111 million in Q2 2026 from $116 million in Q2 2025, Adjusted EBITDA increased 19% to $313 million. Gross margin contracted by 200 basis points to 72% due to cost of revenue growing faster than revenue.
- Cost Structure: Cost of revenue rose 24% YoY, primarily due to higher credit card processing fees, increased depreciation/amortization of internal-use software, and higher payments to publishers. General and Administrative (G&A) expenses decreased 7% YoY due to lower legal accruals.
- Cash Flow: Operating cash flow surged 52% YoY for the six-month period to $762 million, largely driven by the collection of large accounts receivable balances.
- Capital Allocation: The company repurchased $728 million of common stock in the first six months of 2026, including the completion of a $250 million Accelerated Share Repurchase (ASR) agreement.
Guidance, Outlook, and Risks
- Outlook: Management expects continued fluctuations in GTV growth due to macroeconomic conditions, including inflation, interest rates, and trade policies. The company is investing in AI solutions and expanding its Instacart Ads offerings.
- Legal & Regulatory: Significant risks remain regarding the classification of shoppers as independent contractors. The company is subject to ongoing audits and litigation in various jurisdictions. A $60 million settlement with the FTC regarding marketing practices was paid in January 2026.
- Macroeconomic Risks: The filing highlights risks related to tariffs, supply chain challenges, and potential recession impacts on consumer spending and advertising budgets.
- Unusual Items: The company recognized a net reserve release of $14 million related to legal claims in Q2 2026. Stock-based compensation expense increased significantly in R&D due to a shift in vesting schedules.
Investor Verification Checklist
- Margin Compression: Verify the sustainability of the 2% gross margin decline and the drivers behind the 24% increase in cost of revenue.
- Legal Reserves: Review the adequacy of reserves for shopper classification litigation and potential regulatory fines given the ongoing legal environment.
- Share Repurchases: Assess the impact of the $728 million in share buybacks on future liquidity and the remaining $998 million authorization.
- Working Capital: Confirm the timing of the large accounts receivable collections that boosted operating cash flow, as this may not be a recurring quarterly trend.
- Advertising Growth: Monitor the growth rate of "Advertising and other" revenue ($297 million in Q2) relative to GTV to gauge the success of the Instacart Ads strategy.