What They Do
DoorDash operates the leading on-demand logistics platform in the United States, connecting consumers with local restaurants, grocery stores, and retailers through its delivery marketplace. The company makes money by taking a commission from merchants, charging delivery fees to consumers, and generating advertising revenue from brands wanting visibility on its platform. Beyond restaurants, DoorDash is expanding into grocery/retail delivery and building what it calls an "operating system for local commerce."
Investment Thesis
**Market leadership with accelerating growth** — U.S. restaurant business posted two of its fastest-growing quarters in 4 years during 2025, while international markets are growing even faster than the U.S.**Multiple expansion vectors driving scale** — New verticals (grocery/retail) now reach 30% of U.S. monthly active users and are expected to achieve unit economics positivity in H2 2026, while the Deliveroo acquisition is performing ahead of expectations with $200M annual EBITDA target**Clear path to margin expansion** — Strong gross margins at 50.9% with EBITDA margins expected to improve in 2026, driven by operating leverage in Dasher costs and maturing international/new vertical businessesKey Risks
**Technology replatforming execution risk** — Major 2026 investment to consolidate three separate tech stacks into one global platform could disrupt operations or delay other initiatives**Competitive pressure on take rates** — Intense competition in delivery markets could pressure the commission rates and fees that drive profitabilityGrowth Story
DoorDash is experiencing broad-based acceleration with the U.S. restaurant business growing faster in 2025 than 2024 despite operating at larger scale. The company projects 30.2% revenue growth in 2026, driven by expanding beyond restaurants into grocery/retail (fastest-growing third-party platform in this category), international expansion, and a rapidly growing advertising business that tripled advertiser spend following the Symbiosis acquisition.
Profitability Profile
The company has achieved strong gross margins of 50.9% and is demonstrating clear operating leverage, with Dasher costs declining as a percentage of gross order value. New verticals and international businesses (excluding Deliveroo) are both expected to reach contribution profit positive in the second half of 2026, while the core U.S. restaurant business continues to expand margins year-over-year.
Competitive Position
DoorDash maintains the #1 position in the U.S. food delivery market with significant scale advantages in logistics and merchant relationships. The company is building a deeper moat through its comprehensive local commerce platform that includes software, warehousing, delivery infrastructure, and an emerging autonomous delivery platform with DoorDash Dot robots across multiple markets.
Recent Momentum
Q4 2025 results showed strong execution across all business segments, with the U.S. restaurant business posting accelerating growth and record monthly active users. However, the most recent earnings showed a slight revenue miss (-1.0%) and EPS miss, though this followed three consecutive quarters of revenue beats, suggesting some near-term volatility in an otherwise strong growth trajectory.
What Wall Street Thinks
Analysts are projecting continued strong growth with 2027 revenue estimates of $21.4B and significant EPS expansion from $2.65 in 2026 to $4.54 in 2027. The Street appears optimistic about the company's multiple growth vectors and path to margin expansion, though there's likely debate around the technology replatforming investment and international scaling timeline.
The Bottom Line
DoorDash is successfully expanding beyond its restaurant delivery core into a comprehensive local commerce platform, with multiple high-growth verticals approaching profitability while maintaining accelerating growth in its dominant U.S. restaurant business.
