DASH — DoorDash, Inc.

Food Delivery / Commerce Platform / Logistics · NASDAQ · San Francisco, CA

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Our View: We Like It

DoorDash commands two-thirds of U.S. food delivery. 35 million people pay for its subscription. Revenue grew 28%. The company just posted its second consecutive profitable year. And the stock is 45% below its October high because it missed one quarter of earnings estimates while investing in long-term growth. The dominant platform in local commerce is on sale.

01

The Story

Balanced Grower Strong growth + profitability, but expect some volatility

DoorDash started as a food delivery app. It's becoming something much bigger: the logistics layer for local commerce. Food, groceries, alcohol, prescriptions, pet supplies, retail — if it can be delivered within an hour, DoorDash wants to be the one delivering it.

The market dominance is hard to argue with. DoorDash commands over 66% of U.S. food delivery — more than Uber Eats and Grubhub combined. But the real story is how the company is expanding beyond restaurant delivery. Nearly 30% of monthly active users now order groceries or retail items through the platform. The Wolt acquisition gave them a strong presence across Europe and Asia. And they just closed the $3.9 billion Deliveroo acquisition, adding the UK and several other international markets.

The subscription business is the moat. Over 35 million people pay for DashPass, Wolt+, or Deliveroo Plus. These members order more frequently, spend more per order, and are far less likely to switch to a competitor. It's the same playbook Amazon used with Prime — lock in the customer with value, then expand what you sell them.

Revenue grew 28% to around $10.7 billion. Gross Order Value topped $102 billion. The company posted its second consecutive profitable year with $935 million in net income and $1.8 billion in free cash flow. The stock dropped 45% because Q4 earnings missed Wall Street estimates and management signaled they'd spend "several hundred million dollars more" in 2026 on Deliveroo integration, autonomous delivery, and platform rebuilds. That investment pressure spooked the market.

We see it differently. A dominant platform investing in the next phase of growth — at the expense of one quarter's earnings beat — is exactly what long-term shareholders should want.

02	The Numbers

Here's the data for those who want to dig in.

Stock Price

$156.26

Market Cap

~$68B

U.S. Market Share

66%+

Subscribers

35M+

What the numbers tell us:

Revenue growth is strong and diversifying. 28% growth to ~$10.7 billion. Gross Order Value above $102 billion. Grocery and retail categories are growing faster than restaurant delivery, which reduces reliance on any single vertical.

Profitability is real and improving. $935 million in net income. $1.8 billion in free cash flow. Two consecutive profitable years. The business model works — the question is how much near-term margin investors are willing to trade for long-term growth investments.

Investment spending will pressure margins short-term. Management has flagged several hundred million dollars of incremental spending in 2026. That's the right long-term move — but expect margin volatility. The forward P/E of ~34x is reasonable if margins recover; less so if they stall.

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DASH — DoorDash, Inc.

The Story

The Numbers

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Deep Dive: Two-thirds of U.S. delivery but it's 45% off

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