DoorDash Reports Fourth Quarter Earnings: Key Takeaways

DoorDash (DASH) has unveiled its fourth quarter results, presenting a mixed bag for stakeholders as the company slightly fell short of Wall Street expectations on both earnings and revenue. However, a significant rise in total orders indicates a positive trend in customer engagement.

Financial Performance Overview

For the fourth quarter, DoorDash recorded earnings per share of $0.48, which is lower than the anticipated $0.55 from analysts. Despite this, the adjusted EBITDA for the quarter reached an impressive $780 million, reflecting a robust 38% year-over-year growth, and surpassing expectations by nearly $5 million.

Revenue Growth and Order Volume

The revenue generated by DoorDash rose by 28% year-over-year, amounting to $3.96 billion. This figure fell short of the near $4 billion that Wall Street had predicted. However, total orders surged by 32%, hitting 903 million for the quarter, significantly exceeding the analysts’ forecast of 888 million orders.

Stock Market Reaction

Following the earnings announcement, DoorDash’s stock climbed as much as 13% during premarket trading on Thursday. This positive stock performance may suggest investor optimism about the company’s growth despite the earnings miss.

Marketplace Gross Order Value (GOV)

DoorDash reported a Marketplace Gross Order Value (GOV) of $29.7 billion, surpassing expectations of $29.1 billion. This increase was fueled by new customer acquisitions and heightened order rates among existing customers within the US restaurant sector.

Outlook for First Quarter of 2026

Looking ahead, DoorDash anticipates its Marketplace GOV to fall between $31.0 billion and $31.8 billion for the first quarter of 2026, which is above the analyst forecast of $30.75 billion. This outlook signifies a continued upward trajectory in transaction volumes as the company focuses on expanding its customer base and enhancing service offerings.

Adjusted EBITDA Projections

In contrast to the optimistic GOV forecast, DoorDash expects its adjusted EBITDA for the upcoming quarter to range from $675 million to $775 million, which is below the market expectation of $800 million. This discrepancy may prompt discussions among investors regarding the company’s operational efficiencies and cost management strategies moving forward.

Conclusion

In summary, while DoorDash’s fourth quarter results presented a slight miss on earnings and revenue, the impressive growth in orders and positive outlook for the upcoming quarter reflects strong underlying momentum. As DoorDash continues to navigate the competitive food delivery landscape, its focus on customer acquisition and service innovation will be crucial for sustaining growth.