Dateline: November 5, 2025 — DoorDash (NASDAQ: DASH) fell in late trading after its third‑quarter report delivered a classic “beat and miss”: revenue topped expectations while earnings per share came in below consensus. Management also telegraphed “several hundred million” dollars of extra investment for 2026, a message that overshadowed otherwise strong growth metrics and an upbeat holiday‑quarter outlook.
Key takeaways
- Revenue beat, EPS miss: Q3 revenue reached $3.45 billion vs. ~$3.36 billion expected, but EPS of $0.55 trailed ~$0.68–0.69 consensus. 1
- Growth stayed hot: Q3 GOV/GMV hit $25.0 billion (+25% YoY) and Total Orders rose 21% YoY; net revenue margin improved to 13.8%. 1
- Holiday guidance raised:Q4 2025 GOV guidance: $28.9–$29.5B; Adjusted EBITDA: $710–$810M. 2
- Shares sink after hours: Stock dropped by the low‑ to mid‑teens percentage in extended trading as investors weighed the EPS shortfall and heavier 2026 spend (shares had been up ~42% YTD). 3
- Cash engine humming: Q3 generated $871M in operating cash flow and $723M in free cash flow. 2
- Deliveroo now consolidated: The Deliveroo acquisition closed Oct. 2; DoorDash expects about $45M of Q4 Adjusted EBITDA and ~$200M in 2026 from Deliveroo, with a $32–$40M reduction to 2026 contribution due to accounting alignment. 4
Market reaction: why DASH fell despite strong top‑line
In after‑hours trade, DoorDash shares fell double‑digits as traders focused on the earnings miss and management’s plan to step up 2026 investment in new initiatives and platform technology (including AI tooling). Bloomberg reported shares down roughly 16% at one point; MarketWatch/Dow Jones flagged a ~12–13% decline and noted the higher 2026 spend and slightly lower Deliveroo contribution under DoorDash’s accounting. 3
Bottom line: The Street rewarded DoorDash’s accelerating demand through 2025 but balked at the near‑term hit from heavier reinvestment in 2026—even as management reiterated confidence in long‑run free‑cash‑flow growth. 2
By the numbers (Q3 2025)
- Revenue:$3.45B (+27% YoY) vs. ~$3.36B est. 1
- EPS (diluted):$0.55 vs. ~$0.68–$0.69 est. 1
- Marketplace GOV (GMV):$25.0B (+25% YoY). 1
- Total Orders:776M (+21% YoY). 2
- Net revenue margin:13.8% (vs. 13.5% a year ago). 1
- Adjusted EBITDA:$754M (+41% YoY). 2
- Operating cash flow / FCF:$871M / $723M. 2
Guidance snapshot
- Q4 2025 GOV:$28.9–$29.5B
- Q4 2025 Adjusted EBITDA:$710–$810M
- Deliveroo contribution: ~$45M to Q4 Adjusted EBITDA; ~$200M in 2026.
- Accounting alignment effect: reduces Deliveroo’s reported 2026 Adjusted EBITDA contribution by $32–$40M vs. Deliveroo’s standalone methodology. 2
“We wish there was a way to grow a baby into an adult without investment,” DoorDash wrote while explaining its 2026 spending plans. 2
Strategic context: Deliveroo deal closes, scale broadens
DoorDash completed its acquisition of Deliveroo on Oct. 2 after regulatory approvals, expanding its international footprint to 40+ countries and bringing the combined MAU base above 50 million, according to the company. The integration comes with reporting changes that affect how Deliveroo’s contribution appears in DoorDash’s consolidated results. 4
Recent reporting also highlighted new and expanded partnerships (e.g., Serve Robotics, Domino’s, Kroger) as DoorDash builds out last‑mile services beyond restaurants. 1
What to watch next
- Earnings call:5:00 p.m. ET today — management will dig into Q4 drivers, Deliveroo integration and 2026 investment cadence. 5
- Holiday demand and ad monetization: Q4 GOV guidance is well above consensus; listen for commentary on order frequency, membership growth and ad revenue. 1
- Capital allocation: DoorDash has a $5B buyback authorization (Feb. 2025) but had not repurchased shares as of Nov. 4, per today’s release. 2
Notable filings and insider activity (filed today)
A Form 4 filed Nov. 5 shows co‑founder/director Andy Fang converted 30,000 Class B shares and sold 30,000 Class A shares on Nov. 3 under a Rule 10b5‑1 plan, with sales executed across the $241–$256 range. 6
Quick FAQ
Why did DASH fall after hours if revenue beat?
Because investors prioritized the EPS miss and the outlook for heavier 2026 investment, which can dampen near‑term profitability even when top‑line growth is strong. 3
Is demand weakening?
No—Q3 GOV and orders accelerated, and Q4 GOV guidance is well above Street estimates, pointing to resilient demand into the holidays. 1
How big is Deliveroo to the 2026 story?
DoorDash currently expects ~$200M in 2026 Adjusted EBITDA from Deliveroo, but accounting alignment trims that reported number by $32–$40M vs. Deliveroo’s previous definitions. 2
Sources (Nov. 5, 2025)
- Reuters: Q3 results, Q4 GOV guide above Street, EPS miss. 1
- Bloomberg: After‑hours stock reaction; 2026 investment framing. 3
- Business Wire (DoorDash press release): Full Q3 metrics, cash flow, guidance, and 2026 investment commentary. 2
- MarketScreener/MT Newswires: Headline check on EPS/revenue vs. FactSet and after‑hours move. 7
- DoorDash IR: Deliveroo deal closing confirmation. 4
- Nasdaq/RTTNews: Earnings call time. 5
- SEC Form 4: Andy Fang insider transaction filed today. 6
Disclosure: This article is for informational purposes only and does not constitute investment advice. Always do your own research.
