Doordash 2025 Q2 Earnings Profitable Turnaround as Net Income Surges 279.7%

Doordash (DASH) reported a strong Q2 2025 earnings result, delivering a profitable outcome that far exceeded expectations. The company posted a net income of $284 million, or $0.67 per share, compared to a net loss of $158 million, or $0.38 per share, in the same period last year. The results marked a significant improvement and came in well above the consensus EPS estimate of $0.44. While the company did not provide explicit forward guidance, it indicated higher take rates in H2 2025 and a strategic focus on profitability and long-term growth.

Revenue
Doordash’s total revenue for Q2 2025 reached $3.28 billion, representing a 24.9% year-over-year increase from $2.63 billion in Q2 2024. The growth was driven by broader platform engagement and continued expansion in core delivery and advertising segments, as well as contributions from recent strategic acquisitions.

Earnings/Net Income
Doordash returned to profitability with a net income of $284 million in Q2 2025, up from a net loss of $158 million in the prior-year period. Earnings per share soared to $0.67, compared to a loss of $0.38 per share, reflecting a 276.3% improvement. The company set a record high for Q2 net income, the highest in six years, indicating a strong operational turnaround and disciplined cost management.

Price Action
On the stock market, DASH edged up 0.33% during the latest trading day, gained 4.06% over the past full trading week, and rose 4.53% month-to-date. Investors have shown growing confidence in the company’s business model and long-term potential.

Post-Earnings Price Action Review
A buy-and-hold strategy of purchasing DASH shares following the Q2 earnings report has historically delivered strong returns. Over the past three years, this approach generated a 195.10% return, significantly outperforming the benchmark’s 44.11%. The strategy’s excess return of 150.99% and a compound annual growth rate of 84.82% highlight its strong performance and suggest that the market has historically rewarded DoorDash’s earnings surprises and business momentum.

CEO Commentary
CEO Tony Xu attributed the company’s strong performance to years of investment in platform improvements, including personalization, delivery speed, and customer service. He emphasized the robust growth of the advertising business, now at an annualized revenue run rate of over $1 billion. Xu also highlighted the transformative potential of AI in enhancing product design and operational efficiency. Additionally, he reiterated the company’s focus on disciplined expansion, including new verticals and international markets.

Guidance
While no formal EPS or revenue guidance was provided, CFO Ravi Inukonda indicated that take rates are expected to rise in the second half of 2025. He also noted higher seasonal Dasher costs in Q4 and reaffirmed the company’s emphasis on profit dollars rather than specific take-rate targets. The company expects to finalize the acquisition of Deliveroo in Q4 2025, pending regulatory approvals, and plans to integrate it under its existing margin-focused strategy.

Additional News
DoorDash’s recent quarter saw a robust performance driven by strong user engagement, particularly from DashPass subscribers, whose orders hit a record 761 million during the quarter. The company also exceeded expectations with a market gross order value (GOV) of $24.24 billion, up 23% year-over-year. Looking ahead, DoorDash raised its Q3 GOV outlook, forecasting a range of $24.2–$24.7 billion, well above the $23.8 billion average analyst expectation. The company has also made several strategic acquisitions, including SevenRooms and Symbiosys, to enhance its restaurant services and advertising capabilities. Additionally, the pending acquisition of Deliveroo remains expected to close in Q4 2025. The company’s shares rose 7.83% in after-hours trading to $278.30, reflecting market optimism about its growth trajectory and expanding market share.