Maplebear Inc. (Instacart) 10-Q Summary: Q3 2025
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended September 30, 2025. 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 a leadership transition in August 2025, with Chris Rogers appointed as Chief Executive Officer following the resignation of Fidji Simo.
Key Financial Metrics
| Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 |
|---|---|---|---|---|
| Revenue | $939 million | $852 million | $2,750 million | $2,495 million |
| Net Income | $144 million | $118 million | $366 million | $309 million |
| Diluted EPS | $0.51 | $0.42 | $1.30 | $1.06 |
| Gross Profit | $692 million | $641 million | $2,041 million | $1,878 million |
| Gross Margin | 74% | 75% | 74% | 75% |
| Operating Income | $166 million | $138 million | $401 million | $334 million |
| Operating Cash Flow (9M) | $788 million | $534 million | N/A | N/A |
| Cash & Equivalents | $1.69 billion | $1.28 billion | N/A | N/A |
| Adjusted EBITDA (Q3) | $278 million | $227 million | N/A | N/A |
Note: All figures in millions unless otherwise noted. No long-term debt is reported on the balance sheet; the company holds significant cash and marketable securities.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 10% year-over-year (YoY) in Q3 2025, driven by a 10% increase in Gross Transaction Value (GTV) to $9.17 billion and a 14% increase in orders to 83.4 million.
- Profitability: Net income rose 22% YoY to $144 million. Operating income increased 20% to $166 million.
- Cost Structure: Cost of revenue increased 17% YoY, outpacing revenue growth and causing a slight compression in gross margin (75% to 74%). This was primarily due to higher payments to publishers, credit card processing fees, and depreciation/amortization.
- Acquisition: In April 2025, the company acquired Marlin9 Holdings, Inc. (Wynshop) for $106 million in cash, adding $74 million to goodwill and $40 million to intangible assets.
- Share Repurchases: The company repurchased 1.58 million shares in Q3 2025 for $67 million. As of September 30, 2025, $290 million remained available under the repurchase program (subsequently increased to $2.5 billion total authorization in November 2025).
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted strong GTV growth and operating leverage. The company continues to invest in affordability initiatives and fulfillment efficiencies. Adjusted EBITDA margin improved to 30% in Q3 2025.
- Legal & Regulatory Risks:
- Shopper Classification: Ongoing litigation and audits regarding independent contractor status in multiple jurisdictions (e.g., California Proposition 22, New York City legislation). The company maintains a legal reserve of $97 million as of September 30, 2025.
- FTC Investigation: In July 2025, the FTC initiated consent negotiations regarding marketing and Instacart+ membership practices. No resolution has been reached, and the company is unable to estimate potential losses.
- Macroeconomic Factors: The company notes risks related to inflation, interest rates, and consumer discretionary income, which may impact order frequency and average order value.
- Tax Changes: The "One Big Beautiful Bill Act" (OBBBA) enacted in July 2025 introduced changes to U.S. tax law, including immediate expensing of R&D expenditures, impacting deferred tax assets.
Investor Verification Checklist
- Shopper Classification Exposure: Verify the status of ongoing litigation and the adequacy of the $97 million legal reserve against potential reclassification costs in key markets like California and New York.
- FTC Negotiation Outcome: Monitor the resolution of the FTC investigation regarding marketing practices, as remedies could impact the Instacart+ membership model and advertising revenue.
- Margin Sustainability: Assess whether the 1% gross margin compression is a temporary anomaly or a structural shift due to rising fulfillment and payment processing costs.
- Acquisition Integration: Review the integration progress and revenue contribution of the Wynshop acquisition to ensure anticipated synergies are realized.
- Capital Allocation: Confirm the execution of the expanded $2.5 billion share repurchase program and its impact on future liquidity and cash flow.