DoorDash (NASDAQ:DASH) Posts Better-Than-Expected Sales In Q2, Increases Its Orders

On-demand food delivery service DoorDash (NYSE:DASH) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 24.9% year on year to $3.28 billion. Its GAAP profit of $0.65 per share was 49.5% above analysts’ consensus estimates.

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• Revenue: $3.28 billion vs analyst estimates of $3.16 billion (24.9% year-on-year growth, 3.8% beat)

• EPS (GAAP): $0.65 vs analyst estimates of $0.43 (49.5% beat)

• Adjusted EBITDA: $655 million vs analyst estimates of $639.8 million (19.9% margin, 2.4% beat)

• EBITDA guidance for Q3 CY2025 is $730 million at the midpoint, above analyst estimates of $716.1 million

• Operating Margin: 5%, up from -7.6% in the same quarter last year

• Free Cash Flow Margin: 52.2%, up from 16.3% in the previous quarter

• Orders: 761 million, up 126 million year on year

• Market Capitalization: $108.2 billion

Founded by Stanford students with the intent to build “the local, on-demand FedEx”, DoorDash (NYSE:DASH) operates an on-demand food delivery platform.

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, DoorDash’s 28.2% annualized revenue growth over the last three years was exceptional. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, DoorDash reported robust year-on-year revenue growth of 24.9%, and its $3.28 billion of revenue topped Wall Street estimates by 3.8%.

Looking ahead, sell-side analysts expect revenue to grow 18.9% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and indicates the market is forecasting success for its products and services.

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As a gig economy marketplace, DoorDash generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.