DoorDash (DASH) - Q3 2025 Earnings Call
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Call Details
Call Title: DoorDash Q3 2025 Earnings Call
Date held: November 5, 2025
Management team members present:
Tony Xu - Co-founder, Chair, and CEO
Ravi Anaconda - Chief Financial Officer
Weston Twigg - Head of Investor Relations
Call Summary
Financial Performance
DoorDash reported an acceleration in growth for the fourth consecutive quarter, with overall unit economics improving across the business. As CEO Tony Xu stated, “Overall unit economics are improving across the business as well as the profit dollars continue to increase.”
The guidance for 2026 indicates that EBITDA margins for the existing business are expected to be slightly higher compared to 2025, according to CFO Ravi Anaconda, who emphasized the importance of reinvesting profits back into the business.
The company continues to grow in the existing U.S. restaurant market, achieving higher order volumes and frequency while maintaining a disciplined focus on operational efficiency.
The new verticals segment showed robust growth, with significant advancements in user adoption, indicating increasing consumer interest in new offerings beyond restaurant delivery.
A notable highlight was the successful integration of the recent acquisition of Deliveroo, contributing positively to the overall EBITDA and allowing for synergies in operational practices and market expansion plans.
Guidance
For 2026, DoorDash has outlined plans for investments exceeding “several hundred millions” aimed primarily at technological advancements and new product initiatives. “Our philosophy has always been to reinvest back in the business,” stated Anaconda.
There will be investments allocated toward enhancing global tech platforms, which are essential for integrating AI as part of broader operational strategies aimed at reducing costs and improving service delivery.
Expectations for capital expenditures include a continued focus on improving product experience, and Xu indicated that the investment strategy emphasizes achieving long-term growth and shareholder value.
Capital Allocation
According to Xu, DoorDash will focus on three major areas for expenditure: developing a new global tech platform, launching innovative products, and enhancing existing product offerings. He acknowledged that “the core business is continuing to do really well” and will necessitate reallocation of resources to maintain this momentum.
Deliveroo’s acquisition is providing not only increased reach in Europe but also operational learning that can be shared across the platforms to optimize efficiency and profitability. Ravi mentioned, “The focus for us is what we’re learning... there’s an opportunity for us to continue to improve product.”
The company’s consistent reinvestment strategy is manifested through disciplined capital allocation aimed at strengthening core operations while also pursuing new vertical growth, with a significant focus on the retail sector.
Macro & Demand Trends
DoorDash’s business strategy is increasingly predicated on macro trends that favor local commerce. Xu remarked on the robust growth opportunities despite competitive pressures, stating, “Market is still very not penetrated.”
Additionally, unit economics across new verticals are gradually improving, forecasted to enhance with more focused integration strategies as demand rises for grocery, convenience, and broader retail offerings.
The expectation is that rising consumer demand for convenience and delivery services will spur continued growth across multiple sectors, not just restaurants.
Automation & Technology Updates
The company is actively investing in autonomous delivery technologies as part of a broader move toward a multimodal delivery approach, encompassing traditional delivery drivers, autonomous vehicles, and partnerships with robotics firms.
Xu noted that “we’re excited about the potential” of the autonomous delivery platform, demonstrating a commitment to innovative solutions that scale efficiently with customer needs.
Future investments will focus on integrating AI capabilities into the tech stack to expedite product development cycles and enhance delivery accuracy.
Competition
Although the competitive landscape remains challenging, DoorDash’s recent acquisitions and partnerships are poised to fortify its market share. Xu emphasized confidence in expanding operational methodologies across both U.S. and European markets.
The company maintains a strategic emphasis on improving customer experience against growing competition. “There’s no one thing… a collection of things that add up in terms of how we deliver on,” Xu explained regarding DoorDash’s customer retention strategies.
Product Updates
DoorDash is launching several new products, including in-store reservation capabilities and advanced restaurant analytics. These are necessary to create value not just for end consumers but also for partner businesses.
The emphasis on “best in class” experiences through innovative product launches indicates a strategic pivot towards enhancing the overall customer journey through technology and improved service delivery channels.
NOTABLE QUOTES:
“Our core business is continuing to do really well.” - Tony Xu
“The focus for us is what we’re learning... there’s an opportunity for us to continue to improve product.” - Ravi Anaconda
“Overall unit economics are improving across the business.” - Tony Xu
“Market is still very not penetrated.” - Tony Xu
“We’re excited about the potential” of the autonomous delivery platform. - Tony Xu
“Our philosophy has always been to reinvest back in the business.” - Ravi Anaconda
“There’s no one thing… thousands of small things that add up.” - Tony Xu
“Deliveroo is going to be no different for us.” - Ravi Anaconda
“We have the largest audience with the most number of frequency.” - Tony Xu
“We are committed to building the best possible experience.” - Tony Xu
Q&A SUMMARY:
Q: Deepak Mathivanan (Cantor Fitzgerald), [How much of 2026 investments is for tech vs. direct product and expansion efforts?]
A: Tony Xu stated that the investments will be primarily focused on building a new global tech platform, which is essential for making DoorDash more efficient. He emphasized that these investments will free up engineering capacity to handle more work, allowing for faster and better product solutions.
Q: Shweta Kajuria (Wolfe Research), [Can you discuss delivery investments and automation plans?]
A: Xu highlighted that they are focusing on improving product experiences as much as possible while expanding automation in a pragmatic manner, anticipating commercialization in 2026. The emphasis is on different fulfillment methods to serve various consumer needs.
Q: Ross Sandler (Barclays), [How do you view the overall landscape in Europe post-acquisition of Deliveroo?]
A: Xu expressed confidence in leveraging the operational synergies learned from Volt and applying them to Deliveroo, facilitating growth and a competitive edge in Europe.
Q: Josh Beck (Raymond James), [What drives the timing for tech investments?]
A: Xu explained that the costs will be higher as they are preparing to deploy a unified tech stack, thus incurring upfront investments that yield benefits over time.
Q: Jason Hellstein (Alpenheimer), [How do you view advertising’s impact on your business?]
A: Xu mentioned that the ads business is fundamental and must balance maximizing advertiser ROI without degrading user experience, which has historically improved bottom-line margins.
Q: Andrew Boone (Citizens), [What’s the path to break even for new verticals?]
A: Anaconda highlighted that unit economics are progressively improving and will reach breakeven with scale, emphasizing ongoing investments in product quality.
Q: Justin Post (Bank of America), [Can you clarify synergies with Deliveroo on topline growth?]
A: Ravi Anaconda outlined that synergies stem from improved product quality and operational efficiency which translate into higher gross profit and overall growth potential.
Q: Michael Morton (MoffettNathanson), [Can you provide details on Dashmark Fulfillment Services?]
A: Xu clarified that Dashmark aims to consolidate retail fulfillment capabilities to enhance delivery accuracy and service speed, ultimately positioning physical retailers as omnichannel providers.
Q: Yusef Squally (Truist Securities), [What are your thoughts on competition from Amazon in perishables?]
A: Xu reiterated that while competition is fierce, market penetration in grocery is still low, presenting opportunities for growth while ensuring a diverse offering to consumers.
Q: Ron Josie (Citi), [Insights on improvements and unit economics from Deliveroo integration?]
A: Xu indicated that leveraging over a decade’s worth of operational experiments will help enhance product offerings and customer experience at Deliveroo, facilitating strong growth.
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