DoorDash, Inc.

DoorDash operates in the intensely competitive on-demand local commerce industry, which is characterized by shifting user preferences, fragmentation, and frequent introductions of new services and offerings. The largest category of the business today is local food delivery logistics, which is fragmented and intensely competitive. The company's Marketplaces operate in over 40 countries, including the United States, and account for the vast majority of revenue. The on-demand local commerce category has grown rapidly since the platform launched in 2013, but it is uncertain to what extent the market for local commerce platforms will continue to grow, and the markets for certain services such as convenience, grocery, advertising, and other categories are in earlier stages of development than the restaurant category.

DoorDash faces intense competition from other local on-demand delivery companies globally, including Amazon, Uber Eats, Prosus, Delivery Hero, and other local incumbents. The company also competes with merchants that have their own online ordering platforms, merchants that own and operate their own delivery fleets, grocers and grocery delivery services, convenience stores and convenience store delivery services, and companies that provide merchant delivery services. Additionally, DoorDash competes with traditional offline ordering channels such as in-store dining, take-out offerings, telephone, and paper menus. As the company expands into additional verticals, it may compete with additional businesses with substantial resources, users, and brand power, including large e-commerce companies, large retailers, large grocery store chains, and other large delivery service providers.

DoorDash generates a substantial majority of its revenue from orders completed through its Marketplaces and the related commissions charged to partner merchants and fees charged to consumers. Revenue reflects commissions charged to partner merchants and fees charged to consumers less Dasher payout and refunds, credits, and promotions. The company also generates revenue from membership fees paid by consumers for DashPass, Wolt+, and Deliveroo Plus, and from advertising products. Additionally, revenue is generated from the Commerce Platform, including white-label delivery fulfillment services (Drive) which collects per-order fees from merchants. The company's Marketplaces serve three primary constituents: merchants, consumers, and Dashers, and the company believes it is most successful when it provides attractive services for each of these key constituents.

DoorDash's primary offerings include the DoorDash Marketplace, the Wolt Marketplace, and the Deliveroo Marketplace (the Marketplaces), and its Commerce Platform. The Marketplaces provide an integrated suite of services that help merchants establish an online presence, connect with consumers, and solve challenges such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. The company typically earns a fee from merchants based on the size of each transaction and charges consumers fees for each transaction, inclusive of a fixed delivery fee and a service fee that varies based on the size of the transaction. The Marketplaces also offer consumer membership programs—DashPass, Wolt+, and Deliveroo Plus—which aim to lower transactional friction by reducing delivery and service fees while providing additional membership benefits. In December 2025, the Marketplaces served over 56 million monthly active users and, as of December 31, 2025, had over 35 million DashPass, Wolt+, and Deliveroo Plus members.

The Commerce Platform is a suite of services that help empower merchants to build, operate, and grow their businesses on their own channels. Within the Commerce Platform, DoorDash offers white-label delivery fulfillment services (Drive) as well as services that help merchants establish online ordering, build branded mobile apps, manage reservations and in-store dining, manage consumer relationships, enable tableside order and pay, and improve customer support. Drive generates the majority of revenue within the Commerce Platform. The company also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement and drive incremental revenue.

During the fiscal year, DoorDash completed several significant acquisitions. On October 2, 2025, the company completed the acquisition of substantially all of the outstanding equity interests of Deliveroo plc for a total purchase consideration of $3,724 million ¹. On June 13, 2025, the company completed the acquisition of 100 percent of the outstanding equity interests of SevenRooms Inc. for a total consideration of $1,152 million ². On May 28, 2025, the company acquired Symbiosys Corp. for a total consideration of $121 million ³. In February 2025, the board of directors authorized the repurchase of up to $5.0 billion ⁴ of Class A common stock. In May 2025, the company issued $2.75 billion ⁵ aggregate principal amount of 0% Convertible Senior Notes due 2030. The company also announced a multi-year initiative to develop a new global technology platform for product development and operations.

Total revenue for the fiscal year ended December 31, 2025 was $13,717 million ⁶, a 28% ⁷ increase compared to $10,722 million ⁸ in the prior year. Marketplace GOV grew to $102,018 million ⁹ in 2025, a 27% ¹⁰ increase compared to 2024. Net income attributable to DoorDash, Inc. common stockholders was $935 million ¹¹ in 2025, compared to $123 million ¹² in 2024. GAAP gross profit was $6,686 million ¹³ in 2025, compared to $4,979 million ¹⁴ in 2024. Adjusted EBITDA increased to $2,779 million ¹⁵ in 2025 from $1,900 million ¹⁶ in 2024. Net cash provided by operating activities was $2,431 million ¹⁷ in 2025, compared to $2,132 million ¹⁸ in 2024.

DoorDash's primary growth vector is the continued expansion of its platform offerings and geographic footprint. The company's Marketplaces operate in over 40 countries, and the company expects to continue to make significant investments in non-U.S. countries as part of its growth strategy. The company is expanding into additional verticals beyond restaurants, including convenience, grocery, advertising, and other categories, which are in earlier stages of development. The company also announced a multi-year initiative to develop a new global technology platform for product development and operations, which is expected to increase the pace of global product development, enhance developer productivity through AI-native tooling, and improve operational consistency globally. The acquisition of Deliveroo is expected to strengthen the company's position as a leading global platform in local commerce by enhancing its capabilities to better serve consumers, merchants, and Dashers. The acquisition of SevenRooms is expected to enhance the platform by equipping merchants with tools to manage reservations and tables, better connect with consumers through customer relationship management, and improve their marketing. The acquisition of Symbiosys is intended to expand offsite advertising capabilities.

The company's growth is also driven by its consumer membership programs—DashPass, Wolt+, and Deliveroo Plus—which aim to lower transactional friction and provide additional membership benefits. As of December 31, 2025, the company had over 35 million ¹⁹ DashPass, Wolt+, and Deliveroo Plus members. The company also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement and drive incremental revenue. The Commerce Platform, including Drive and services for online ordering, branded mobile apps, reservations, and customer relationship management, represents another growth vector as it helps merchants build and grow their omnichannel businesses.

The filing discusses margin trajectory primarily through non-GAAP metrics. Contribution Profit increased to $4,840 million ²⁰ in 2025 from $3,474 million ²¹ in 2024, and Contribution Margin improved to 35.3% ²² of revenue in 2025 from 32.4% ²³ in 2024. Adjusted Gross Margin improved to 52.3% ²⁴ in 2025 from 50.1% ²⁵ in 2024. GAAP gross margin improved to 48.7% ²⁶ in 2025 from 46.4% ²⁷ in 2024. Cost of revenue, exclusive of depreciation and amortization, as a percentage of revenue decreased to 49% ²⁸ in 2025 from 52% ²⁹ in 2024. The company expects costs to increase over time and expects to invest significant additional funds to grow the business, including expanding platform offerings, developing or acquiring new features and services, and expanding into new markets and categories.

The company is in the process of developing a new global technology platform for product development and operations, which will require both direct and opportunity costs. The company primarily hosts its platform and supports its operations on data centers provided by AWS, a third-party provider of cloud infrastructure services, in a limited number of locations. As of December 31, 2025, the company had over 31,400 ³⁰ employees worldwide. The company expects to continue to make substantial investments in technology, customer service, and sales and marketing infrastructure. The company also engages contractors and consultants.

Research and development expenses were $1,431 million ³¹ in 2025, compared to $1,168 million ³² in 2024. Capitalized software and website development costs were $348 million ³³ in 2025, compared to $226 million ³⁴ in 2024. Purchases of property and equipment were $257 million ³⁵ in 2025, compared to $104 million ³⁶ in 2024. In February 2025, the board of directors authorized the repurchase of up to $5.0 billion ³⁷ of Class A common stock. As of December 31, 2025, $5.0 billion ³⁸ remained available under the repurchase authorization. The company has never declared or paid cash dividends on its capital stock and does not anticipate declaring or paying any cash dividends in the foreseeable future.

The company faces several structural headwinds and execution risks. The on-demand local commerce industry is intensely competitive, and the company may be forced to reduce prices, increase incentives, or increase marketing expenses to remain competitive. The classification of Dashers as independent contractors is subject to ongoing legal and regulatory challenges; a reclassification as employees could have an adverse effect that is material to the business. The company is subject to a variety of laws and regulations globally, many of which are unsettled and still developing, including those related to worker classification, minimum earnings standards, merchant pricing and commissions, consumer fees, and privacy and data protection. The company's international operations expose it to additional costs and risks, including difficulties in recruiting and retaining talent, competition from local incumbents, and compliance with varying laws and regulations.

Adverse economic conditions, including unemployment, inflation, consumer debt, and changes in interest rates, could impact consumer spending and merchant operations, which could adversely affect the business. The company also faces risks related to fluctuations in foreign currency exchange rates, with primary exposure including the Euro, the Canadian dollar, the Israeli shekel, and the Australian dollar. The company's growth rate may decline as the size of the business grows and as it achieves greater market adoption, and the company has a history of net losses and anticipates increasing expenses in the future.

The most material and specific risk to DoorDash's business is the potential reclassification of Dashers as employees under U.S. federal or state law or the laws of other jurisdictions, which could have an adverse effect that is material to the business, including monetary exposure for unpaid wages, expense reimbursement, penalties, and claims for employee benefits. The company is subject to intense competition from well-capitalized competitors including Amazon, Uber Eats, Prosus, and Delivery Hero, which may force the company to reduce commission rates and fees or increase incentives, negatively affecting financial performance. The company faces significant legal and regulatory exposure from various claims, lawsuits, and investigations, including a February 2025 lawsuit filed by Uber alleging anticompetitive business practices, and a negative assessment from the California Employment Development Department for payroll tax liabilities for which an accrual has been recorded. The company's insurance reserves for auto liability and other claims were $1.1 billion ³⁹ as of December 31, 2025, and actual losses may exceed these reserves. The company's substantial indebtedness, including $2.75 billion ⁴⁰ aggregate principal amount of 0% Convertible Senior Notes due 2030, could limit cash flow available for operations and increase vulnerability to adverse economic conditions.

Management's message emphasizes the company's mission to grow and empower local economies by providing services that reduce friction in local commerce and help merchants better connect with consumers in their communities. The key strategic priorities emphasized for the period ahead include expanding the platform and enhancing the consumer experience through steady and significant investments, which management believes will ultimately drive long-term shareholder value. Management highlighted the multi-year initiative to develop a new global technology platform for product development and operations, which has and will continue to entail both direct and opportunity costs in the near term but is expected to increase the pace of global product development, enhance developer productivity through AI-native tooling, and improve operational consistency across all geographies. Management also emphasized the company's commitment to making dashing an earnings opportunity that is accessible, flexible, and supportive of social progress, noting that in 2025, over 9 million people dashed, earning a total of over $20 billion ⁴¹.