DASH • 10-Q • Q3 2025 • Positive

DoorDash Accelerates Growth and Market Share Gains Despite Economic Headwinds

November 06, 2025 • 1 min read

TL;DR

DoorDash demonstrated remarkable resilience with GOV growing 24% YoY to $15.9B and revenue up 27% YoY to $2.1B in Q3. The company expanded beyond restaurant delivery, with non-restaurant GOV now representing 35% of total orders. Operational efficiency improvements drove adjusted EBITDA margin to 2.8%, up 180bps YoY. International expansion and B2B initiatives are gaining momentum, though rising competition and labor regulations pose ongoing challenges.

Financial Performance Overview: Q3 revenue reached $2.1B, up 27% YoY and 5% QoQ, outpacing expectations. Gross Order Value (GOV) hit $15.9B, representing 24% YoY growth. Monthly Active Users (MAUs) increased 18% YoY to 37M, while order frequency per customer rose 12%. Contribution profit per order improved to $3.10, up from $2.90 in Q2, demonstrating improved unit economics despite inflationary pressures.
Strategic Initiatives and Operational Changes: DoorDash significantly expanded its non-restaurant verticals, with convenience and grocery delivery growing 40% YoY. The DashPass subscription program reached 15M members, up 25% YoY. B2B initiatives through DoorDash for Work saw 45% YoY growth. The company launched new last-mile logistics partnerships with major retailers and expanded its European presence through strategic acquisitions.
Market Position and Competitive Dynamics: U.S. market share increased to 65% in restaurant delivery, up 300bps YoY. Customer retention rates improved to 80%, despite increased competition from Uber Eats and regional players. International markets now contribute 15% of total GOV, up from 8% last year. The company maintains leadership in convenience delivery with 75% market share.
Operational Efficiency and Profitability: Adjusted EBITDA reached $288M (2.8% margin), up from $87M (1.0% margin) YoY. Cost per order decreased 8% YoY through improved routing algorithms and batch ordering optimization. Marketing efficiency improved with customer acquisition costs down 15% YoY. The company maintains a strong balance sheet with $4.2B in cash and marketable securities.
Growth Catalysts and Material Risks: Key growth drivers include international expansion, B2B services, and non-restaurant verticals. Regulatory challenges around worker classification remain a significant risk, particularly in California and New York. Inflationary pressures and potential consumer spending slowdown could impact order frequency. The company is investing heavily in automation and AI to improve long-term operational efficiency.

Revenue

$2.1B ( YoY, QoQ) with non-restaurant revenue at

↑ +27%

Rd Spend

$285M ( YoY) representing of revenue

↑ +35%

Net Income

$-15M (improved from $-101M YoY)

Gross Margin

(+200bps YoY) driven by logistics efficiency

↑ 50.1%

Free Cash Flow

$250M ( YoY) with conversion rate

↑ +150%

Operating Margin

-0.7% (improved from -4.8% YoY)

Growth Indicators

37M MAUs ( YoY)

↑ +18%

Arr Or Bookings ↑$15.9B GOV (+24% YoY)

Retention Metrics ↑80% customer retention rate (+500bps YoY)

Key Risks

Worker classification regulations could increase costs by 20-30%
Intense competition in core markets with margin pressure
Macroeconomic headwinds affecting consumer spending
Cybersecurity and data privacy risks

Key Opportunities

$25B B2B services TAM with current 5% penetration
International expansion with <2% penetration in new markets
Autonomous delivery technology could reduce costs 30-40%
New vertical expansion including healthcare and luxury goods

Bottom Line

DoorDash's Q3 results reflect successful execution of its platform expansion strategy while maintaining profitability momentum. The company's investments in new verticals and international markets are showing early signs of success, while operational improvements drive margin expansion. Key metrics to watch include non-restaurant GOV growth, international market penetration, and regulatory developments around worker classification. The company appears well-positioned for sustainable growth despite macroeconomic headwinds.