Instacart (CART) - Q3 2025 Earnings Call
Concise AI-driven summaries of earnings and conference calls, highlighting the numbers, context, and signals that matter most.
Call Details
Call Title: Instacart Q3 2025 Earnings Call
Date held: November 10, 2025
Management team members present:
Chris (Chief Executive Officer)
Emily (Chief Financial Officer)
Call Summary
Financial Performance
In Q3 2025, Instacart reported a revenue of $187 million, which marked a $102 million year-over-year increase primarily attributed to robust operational performance.
The company executed $67 million in share repurchases during the quarter, thereby enhancing shareholder value.
Cash and cash equivalents stood at approximately $1.9 billion, providing a robust financial cushion for future operations.
Notably, stock-based compensation for Q3 was $82 million, a decrease of $24 million compared to the previous quarter owing to anticipated reversals from executive departures.
For Q4 2025, Instacart anticipates Gross Transaction Value (GTV) of $9.45 to $9.6 billion, representing year-over-year growth between 9% to 11%.
The firm expects advertising revenues and other associated revenues to grow by 6% to 9% year over year, influenced by variations in spending from large partners amidst macroeconomic uncertainties.
Q4 adjusted EBITDA is expected to range between $285 million to $295 million, affirming a commitment to profitability and disciplined operations.
“In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong,” emphasized CEO Chris.
Guidance
Instacart’s guidance for Q4 includes an anticipated GTV of $9.45 to $9.6 billion, showcasing a positive outlook for continued growth, driven by strong customer demand.
The management expects that advertising revenue will recover despite current macros affecting spending from larger partners, maintaining confidence in a return to double-digit growth in advertising for 2026.
Analysts were also provided detail on the minimal impact of EBT SNAP funding uncertainty noted in their operational models, reinforcing robust business fundamentals.
“Ultimately, we believe that we can achieve our guidance in any of those scenarios,” stated CFO Emily regarding EBT’s minimal role in overall performance.
Capital Allocation
Instacart has authorized an increase of $1.5 billion to its existing share repurchase program, indicating strong confidence in the company’s long-term value creation potential.
The planned $250 million accelerated share repurchase program signifies an aggressive approach to capital allocation for enhancing shareholder returns.
Continued repurchase of shares aligns with the company’s commitment to delivering value to its investors amidst strong operational results.
Macro & Demand Trends
The company noted that macro uncertainties have influenced spending patterns among some large partners, particularly those more affected by economic conditions.
Despite this, CFO Emily described October’s performance as strong, reflecting a healthy demand environment as the holiday season approaches.
CEO Chris noted that affordability is crucial, as it remains a primary factor influencing customer engagement with the platform. Instacart is working on partnership strategies with retailers for better pricing.
The robust performance and revenue growth trends indicate strong underlying demand, despite external economic pressures affecting parts of the advertising ecosystem.
AI Trends
The CEO discussed the promising potential of AI initiatives within the platform as a driver for enhancing user experience and operational efficiencies.
Plans were outlined to deploy AI capabilities not only for better operational data analytics but also focus on customer interactions, including personalized shopping experiences.
Chris highlighted the strategic importance of AI by stating, “We do believe that this is going to be something we can monetize over time.”
Instacart’s efforts in AI aim to connect shopping journeys from product discovery online to in-store stocking, thereby revolutionizing merchandising strategies.
NOTABLE QUOTES:
“In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong.” - Chris
“Affordability is the number one reason why people turn off of the platform.” - Chris
“The fundamentals of our ads ecosystem remain stronger than ever.” - Emily
“We see potential in so many of our partnerships across the broader business.” - Chris
“Ultimately, we believe that we can achieve our guidance in any of those scenarios.” - Emily
“We’ve been driving consistent growth, seven quarters of double-digit growth with consistent EBITDA expansion.” - Chris
“Price parity retailers are growing 10 percentage points faster versus marked-up retailers.” - Chris
“For us, New York represents a pretty small percentage of overall GTV.” - Emily
“Instacart Plus continues to be a really critical part of our overall strategy.” - Emily
“We’re an investment in one. If we make an investment on Marketplace, it helps us with our investment in enterprise.” - Chris
Q&A SUMMARY:
Q: Eric Sheridan (Goldman Sachs), [What are the key strategic investments Instacart is looking to make?]
A: Chris noted the business is performing well and outlined three key focus areas: affordability, enterprise expansion, and ads/data. He emphasized improving pricing strategies with retailers and the potential for significant growth in the enterprise platform and advertising innovation.
Q: Colin Sebastian (Bayer), [What is the monetization model for AI and its impact on competition?]
A: Chris explained that the AI solutions will power the retailers’ operations and enhance customer shopping experiences. Early engagement suggests strong interest from retailers allows Instacart to monetize these investments while improving efficiency across the business.
Q: Shweta Kajaria (Wolfe Research), [What is the expected impact of new partnerships on revenue versus the international expansion plans?]
A: Chris highlighted that partnerships are crucial, detailing the success of recent collaborations, along with interest in international expansion. He stressed a disciplined approach toward profitability while leveraging existing products in new markets.
Q: Nicole Devnani (Bernstein), [How is Instacart approaching the challenge of affordability in its pricing model?]
A: Chris acknowledged the importance of affordability, stating there are ongoing discussions with many retailers, including testing price parity strategies to remain competitive and attractive to consumers.
Q: Ron Josie (Citi), [What are the growth dynamics of enterprise partners in a competitive landscape?]
A: Emily addressed that even with the loss of exclusivity in some relationships, Instacart maintained strong growth among enterprise partners. Overall strategies remain focused on leveraging these relationships to drive growth, supported by seasonality and retailer engagements.
Q: Justin Post (Bank of America), [What are the dynamics of basket sizes in shopper behavior amidst competition?]
A: Chris noted that while Instacart remains strong in large baskets, small baskets are also growing. He emphasized the importance of meeting diverse customer needs, without significant shifts in overall shopping behavior.
Q: Deepak Mathibana (Cantor Fitzgerald), [How does Instacart plan to leverage AI tools for consumer experiences?]
A: Chris shared that AI tools are being employed to enhance personalization, recommendations, and overall shopping experiences, aiming to enrich the consumer journey through innovations and tailored experiences.
Q: Ken Goroski (Wells Fargo), [What shifts in shopper behavior has Instacart observed amid broad trends?]
A: Emily clarified that large basket growth continues to dominate the market, and while small baskets create opportunities for engagement, they do not represent a fundamental shift in customer behavior for Instacart’s model.
Q: Andrew Boone (Citizens), [What is the trajectory of advertising revenue growth to reach targets?]
A: Chris detailed a multipronged approach involving innovation on the platform and expanding partnerships to enhance revenue, while Emily clarified the ongoing importance of Instacart Plus to solidify customer loyalty.
Q: Jason Hellstein (Oppenheimer), [What’s the potential greenfield growth for Instacart Plus?]
A: Emily confirmed there is still growth potential for Instacart Plus membership, as it continues to provide significant value through various partnerships and services, enhancing customer retention and engagement.Call Details
Call Title: Instacart Q3 2025 Earnings Call
Date held: November 10, 2025
Management team members present:
Chris (Chief Executive Officer)
Emily (Chief Financial Officer)
Call Summary
Financial Performance
In Q3 2025, Instacart reported a revenue of $187 million, which marked a $102 million year-over-year increase primarily attributed to robust operational performance.
The company executed $67 million in share repurchases during the quarter, thereby enhancing shareholder value.
Cash and cash equivalents stood at approximately $1.9 billion, providing a robust financial cushion for future operations.
Notably, stock-based compensation for Q3 was $82 million, a decrease of $24 million compared to the previous quarter owing to anticipated reversals from executive departures.
For Q4 2025, Instacart anticipates Gross Transaction Value (GTV) of $9.45 to $9.6 billion, representing year-over-year growth between 9% to 11%.
The firm expects advertising revenues and other associated revenues to grow by 6% to 9% year over year, influenced by variations in spending from large partners amidst macroeconomic uncertainties.
Q4 adjusted EBITDA is expected to range between $285 million to $295 million, affirming a commitment to profitability and disciplined operations.
“In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong,” emphasized CEO Chris.
Guidance
Instacart’s guidance for Q4 includes an anticipated GTV of $9.45 to $9.6 billion, showcasing a positive outlook for continued growth, driven by strong customer demand.
The management expects that advertising revenue will recover despite current macros affecting spending from larger partners, maintaining confidence in a return to double-digit growth in advertising for 2026.
Analysts were also provided detail on the minimal impact of EBT SNAP funding uncertainty noted in their operational models, reinforcing robust business fundamentals.
“Ultimately, we believe that we can achieve our guidance in any of those scenarios,” stated CFO Emily regarding EBT’s minimal role in overall performance.
Capital Allocation
Instacart has authorized an increase of $1.5 billion to its existing share repurchase program, indicating strong confidence in the company’s long-term value creation potential.
The planned $250 million accelerated share repurchase program signifies an aggressive approach to capital allocation for enhancing shareholder returns.
Continued repurchase of shares aligns with the company’s commitment to delivering value to its investors amidst strong operational results.
Macro & Demand Trends
The company noted that macro uncertainties have influenced spending patterns among some large partners, particularly those more affected by economic conditions.
Despite this, CFO Emily described October’s performance as strong, reflecting a healthy demand environment as the holiday season approaches.
CEO Chris noted that affordability is crucial, as it remains a primary factor influencing customer engagement with the platform. Instacart is working on partnership strategies with retailers for better pricing.
The robust performance and revenue growth trends indicate strong underlying demand, despite external economic pressures affecting parts of the advertising ecosystem.
AI Trends
The CEO discussed the promising potential of AI initiatives within the platform as a driver for enhancing user experience and operational efficiencies.
Plans were outlined to deploy AI capabilities not only for better operational data analytics but also focus on customer interactions, including personalized shopping experiences.
Chris highlighted the strategic importance of AI by stating, “We do believe that this is going to be something we can monetize over time.”
Instacart’s efforts in AI aim to connect shopping journeys from product discovery online to in-store stocking, thereby revolutionizing merchandising strategies.
NOTABLE QUOTES:
“In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong.” - Chris
“Affordability is the number one reason why people turn off of the platform.” - Chris
“The fundamentals of our ads ecosystem remain stronger than ever.” - Emily
“We see potential in so many of our partnerships across the broader business.” - Chris
“Ultimately, we believe that we can achieve our guidance in any of those scenarios.” - Emily
“We’ve been driving consistent growth, seven quarters of double-digit growth with consistent EBITDA expansion.” - Chris
“Price parity retailers are growing 10 percentage points faster versus marked-up retailers.” - Chris
“For us, New York represents a pretty small percentage of overall GTV.” - Emily
“Instacart Plus continues to be a really critical part of our overall strategy.” - Emily
“We’re an investment in one. If we make an investment on Marketplace, it helps us with our investment in enterprise.” - Chris
Q&A SUMMARY:
Q: Eric Sheridan (Goldman Sachs), [What are the key strategic investments Instacart is looking to make?]
A: Chris noted the business is performing well and outlined three key focus areas: affordability, enterprise expansion, and ads/data. He emphasized improving pricing strategies with retailers and the potential for significant growth in the enterprise platform and advertising innovation.
Q: Colin Sebastian (Bayer), [What is the monetization model for AI and its impact on competition?]
A: Chris explained that the AI solutions will power the retailers’ operations and enhance customer shopping experiences. Early engagement suggests strong interest from retailers allows Instacart to monetize these investments while improving efficiency across the business.
Q: Shweta Kajaria (Wolfe Research), [What is the expected impact of new partnerships on revenue versus the international expansion plans?]
A: Chris highlighted that partnerships are crucial, detailing the success of recent collaborations, along with interest in international expansion. He stressed a disciplined approach toward profitability while leveraging existing products in new markets.
Q: Nicole Devnani (Bernstein), [How is Instacart approaching the challenge of affordability in its pricing model?]
A: Chris acknowledged the importance of affordability, stating there are ongoing discussions with many retailers, including testing price parity strategies to remain competitive and attractive to consumers.
Q: Ron Josie (Citi), [What are the growth dynamics of enterprise partners in a competitive landscape?]
A: Emily addressed that even with the loss of exclusivity in some relationships, Instacart maintained strong growth among enterprise partners. Overall strategies remain focused on leveraging these relationships to drive growth, supported by seasonality and retailer engagements.
Q: Justin Post (Bank of America), [What are the dynamics of basket sizes in shopper behavior amidst competition?]
A: Chris noted that while Instacart remains strong in large baskets, small baskets are also growing. He emphasized the importance of meeting diverse customer needs, without significant shifts in overall shopping behavior.
Q: Deepak Mathibana (Cantor Fitzgerald), [How does Instacart plan to leverage AI tools for consumer experiences?]
A: Chris shared that AI tools are being employed to enhance personalization, recommendations, and overall shopping experiences, aiming to enrich the consumer journey through innovations and tailored experiences.
Q: Ken Goroski (Wells Fargo), [What shifts in shopper behavior has Instacart observed amid broad trends?]
A: Emily clarified that large basket growth continues to dominate the market, and while small baskets create opportunities for engagement, they do not represent a fundamental shift in customer behavior for Instacart’s model.
Q: Andrew Boone (Citizens), [What is the trajectory of advertising revenue growth to reach targets?]
A: Chris detailed a multipronged approach involving innovation on the platform and expanding partnerships to enhance revenue, while Emily clarified the ongoing importance of Instacart Plus to solidify customer loyalty.
Q: Jason Hellstein (Oppenheimer), [What’s the potential greenfield growth for Instacart Plus?]
A: Emily confirmed there is still growth potential for Instacart Plus membership, as it continues to provide significant value through various partnerships and services, enhancing customer retention and engagement.
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