DoorDash, Inc. (NASDAQ: DASH) is under pressure today after the delivery platform beat Q3 revenue and order-growth expectations but told investors it will spend “several hundred million dollars more” in 2026 to accelerate a new global tech platform and other initiatives. Shares fell sharply in after‑hours trading last night and were down again in early trading today as Wall Street digested the outlook. 1
By the numbers (Q3 2025, quarter ended Sept. 30)
- Revenue: $3.45B, +27% Y/Y.
- Total Orders:776M, +21% Y/Y.
- Marketplace GOV:$25.0B, +25% Y/Y.
- GAAP net income:$244M, +51% Y/Y.
- Adjusted EBITDA:$754M, +41% Y/Y.
- Q4 2025 outlook: GOV $28.9B–$29.5B; Adjusted EBITDA $710M–$810M.
(All figures from DoorDash’s earnings release.) 2
Earnings vs. expectations: DoorDash reported $0.55 EPS, missing Street estimates (variously reported around $0.67–$0.69). Total costs and expenses rose ~23% to $3.19B, pressuring margins. 3
Why the stock is falling
- Bigger 2026 spend: Management said it plans to invest “several hundred million dollars more in 2026 than in 2025” to speed work on a unified global technology platform and new products (e.g., mapping, SmartScale, an Autonomous Delivery Platform, and “Dot,” its custom sidewalk robot). That message overshadowed strong Q3 growth. 2
- Knee‑jerk reaction: Reports overnight and this morning cited a double‑digit drop after hours that eased to roughly a ~9% premarket decline as investors weighed the near‑term margin hit against longer‑term gains. 1
- Street color: J.P. Morgan flagged near‑term margin pressure; Morgan Stanley called the stepped‑up investments consistent with DoorDash’s reinvestment playbook. 4
Strategy & context
- Global scale after Deliveroo: DoorDash closed its £2.8B (~$3.9B) acquisition of Deliveroo on Oct. 2, saying it now serves 50M+ MAUs, 30M+ members, and operates in 40+ countries across DoorDash, Wolt, and Deliveroo. Management expects Deliveroo to contribute ~$45M to Q4 Adjusted EBITDA and ~$200M in 2026 (before accounting-method adjustments). 2
- Partnerships & logistics: The company highlighted partnerships spanning Domino’s, Kroger, and Serve Robotics, part of a push to broaden last‑mile offerings. 4
- Capital returns: DoorDash’s $5B buyback authorization (Feb. 2025) remains unused as of Nov. 4. 2
What’s next
- Q4 watch‑items: Ability to hit the GOV/EBITDA outlook, trajectory of U.S. DashPass and MAU growth, and early returns from Deliveroo integration. 2
- 2026 investment ramp: Management says 2026 will mark an acceleration of the global tech platform—intended to speed product rollouts, boost developer productivity with AI‑native tooling, and improve operational consistency across markets. Expect debate to center on payback periods and unit economics as these dollars go to work. 2
Analyst reaction (early)
Price‑target trims began to hit this morning: BofA (Buy) to $305 (from $325), Stifel (Hold) to $253, Wedbush (Neutral) to $260, following the EPS miss despite top‑line strength. 5
Quick take
DoorDash’s report underscores a familiar trade‑off: faster innovation and category expansion now vs. margins now. Revenue, orders, and GOV are accelerating, and guidance implies continued momentum. But the 2026 capex/opex step‑up is the headline for markets today. If management executes on platform unification and logistics automation, the company’s scale (now including Deliveroo) could widen the moat—but investors will want clearer payback timelines as the spending ramp begins. 2
Full DoorDash Q3 2025 snapshot (select metrics)
- Revenue: $3.446B
- Marketplace GOV: $25.015B
- Total Orders: 776M
- Net revenue margin: 13.8%
- GAAP gross profit: $1.689B
- Operating cash flow: $871M; Free cash flow: $723M
- Q4 GOV outlook: $28.9B–$29.5B; Q4 Adjusted EBITDA: $710M–$810M 2
Disclosure: This article is for information only and is not investment advice.
