DoorDash (DASH) Down 9.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for DoorDash, Inc. (DASH). Shares have lost about 9.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is DoorDash due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for DoorDash, Inc. before we dive into how investors and analysts have reacted as of late.

DoorDash Q4 Earnings Miss Estimate, Revenues Increase Y/Y

DoorDash reported fourth-quarter 2025 earnings of 48 cents per share compared with the year-ago quarter’s earnings of 33 cents. The figure missed the Zacks Consensus Estimate by 17.24%.

Revenues increased 38% year over year to $3.96 billion, missing the consensus mark by 0.37%. The net revenue margin dropped to 13.3% from 13.5% in the fourth quarter of 2025.

DASH’s Q4 Details

In the fourth quarter of 2025, total orders increased 32% year over year to 903 million. The figure beat the Zacks Consensus Estimate by 1.69%. Total orders were driven by growth in consumers, average consumer engagement and the acquisition of Deliveroo.

Marketplace GOV increased 39% year over year to $29.7 billion. The figure beat the consensus mark by 1.64%.

The adjusted gross profit was $2.08 billion, up 41.4% year over year. The adjusted gross margin expanded 140 bps on a year-over-year basis to 52.6%.

The contribution margin was 35.5% compared with 33.7% reported in the year-ago quarter.

Adjusted sales & marketing expenses rose 34.1% year over year to $676 million. Adjusted research & development expenses increased 65.1% year over year to $274 million. Adjusted general & administrative expenses surged 48.7% year over year to $351 million.

Adjusted EBITDA was $780 million, up 38% year over year. Adjusted EBITDA margin was flat at 19.7%.

DASH’s Balance Sheet and Cash Flow

As of Dec. 31, 2025, DoorDash had $5.78 billion in cash, cash equivalents and short-term marketable securities compared with $8.32 billion as of Sept. 30, 2025.

The cash flow from operations was $421 million in the fourth quarter compared with $871 million in the prior quarter. Free cash flow was $254 million compared with the previous quarter’s figure of $723 million.

DASH Initiates 1Q26 & FY26 Guidance

For the first quarter of 2026, DoorDash anticipates Marketplace GOV to be in the range of $31.0-$31.8 billion.

Adjusted EBITDA is expected to be in the range of $675-$775 million.

For 2026, DoorDash expects stock-based compensation expense between $1.3 billion and $1.4 billion. Depreciation and amortization expense is anticipated to be in the range of $1.1 billion to $1.2 billion.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -34.45% due to these changes.

VGM Scores

Currently, DoorDash has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DoorDash has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

DoorDash belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Alphabet reported revenues of $97.23 billion in the last reported quarter, representing a year-over-year change of +19.1%. EPS of $2.82 for the same period compares with $2.15 a year ago.

For the current quarter, Alphabet is expected to post earnings of $2.76 per share, indicating a change of -1.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet. Also, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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