Maplebear 2025 Q1 Earnings Misses Targets with Net Income Down 18.5%

Maplebear (CART) reported its fiscal 2025 Q1 earnings on May 01st, 2025. Maplebear's financial results for Q1 2025 fell short of expectations, with a noticeable decline in net income. The company reported a reduced EPS and provided guidance for Q2, indicating anticipated growth in Gross Transaction Value (GTV) and adjusted EBITDA. Despite these challenges, Maplebear's stock exhibited resilience, supported by its strategic initiatives and growth prospects outlined by the leadership team.

Revenue
The total revenue of Maplebear increased by 9.4% to $897 million in 2025 Q1, up from $820 million in 2024 Q1.

Earnings/Net Income
Maplebear's EPS declined 14.9% to $0.40 in 2025 Q1 from $0.47 in 2024 Q1. Meanwhile, the company's net income declined to $106 million in 2025 Q1, down 18.5% from $130 million reported in 2024 Q1. The company has sustained profitability for three years over the corresponding fiscal quarter, reflecting stable business performance. The decline in EPS indicates a challenging quarter for Maplebear.

Price Action
The stock price of Maplebear has edged up 1.61% during the latest trading day, has dropped 4.46% during the most recent full trading week, and has edged down 0.23% month-to-date.

Post-Earnings Price Action Review
The impact of Maplebear’s earnings report on its stock price highlights the stock’s tendency to see short-term gains following earnings announcements. Revenue reports show a 60% win rate over three days, a 65% win rate over ten days, and a 50% win rate over thirty days, indicating that short-term gains are more likely after earnings releases, with the most significant returns typically seen within three days. Net income results demonstrate a similar pattern with a 55% win rate over three days, 60% over ten days, and 45% over thirty days. While EPS reports have a relatively lower probability of short-term positive returns with win rates of 50% over three days, 55% over ten days, and 40% over thirty days, the overall trend suggests earnings reports are generally favorable for Maplebear’s stock price in the immediate aftermath, offering potential opportunities for investors.

CEO Commentary
Fidji Simo, Chief Executive Officer, highlighted that Maplebear had a strong start to 2025, driven by user growth and increased order frequency across a resilient customer base. She emphasized the company's focus on convenience, affordability, and a wide selection of retailers, which positions them as a category leader. Simo noted that despite macroeconomic uncertainties, customer engagement remained consistent, with deep retailer partnerships enhancing their platform's value. She expressed confidence in leveraging AI to drive efficiencies and innovation, stating, "By continuing to lean into what makes us successful...I’m confident in our ability to not only extend our lead, but help accelerate the future of grocery shopping."

Guidance
For Q2 2025, Maplebear expects Gross Transaction Value (GTV) between $8.85 billion and $9 billion, reflecting a year-over-year growth of 8% to 10%. The company anticipates adjusted EBITDA of $240 million to $250 million. Leadership indicates that advertising and other revenue growth will modestly outpace GTV growth, and they remain focused on maintaining profitability amid macroeconomic uncertainty.

Additional News
In recent weeks, Maplebear has been active in enhancing its technological capabilities through acquisitions and partnerships. The company acquired Wynshop, a provider of eCommerce solutions for grocers, to strengthen its enterprise solutions and expand its retailer partnerships. This move aims to bolster Instacart's enterprise offerings and provide comprehensive solutions to its partners. Additionally, Maplebear has expanded its in-store advertising capabilities by launching AI-powered universal campaigns that allow brands of all sizes to create effective ad campaigns across the Instacart Ads Ecosystem. Furthermore, the company partnered with Balance to introduce embedded invoicing as a payment method within Instacart Business, streamlining financial operations for its business customers.