On-demand food delivery service DoorDash (NYSE:DASH) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 24.9% year on year to $3.28 billion. Its GAAP profit of $0.65 per share was 49.5% above analysts’ consensus estimates.
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DoorDash (DASH) Q2 CY2025 Highlights:
- Revenue: $3.28 billion vs analyst estimates of $3.16 billion (24.9% year-on-year growth, 3.8% beat)
- EPS (GAAP): $0.65 vs analyst estimates of $0.43 (49.5% beat)
- Adjusted EBITDA: $655 million vs analyst estimates of $639.8 million (19.9% margin, 2.4% beat)
- EBITDA guidance for Q3 CY2025 is $730 million at the midpoint, above analyst estimates of $716.1 million
- Operating Margin: 5%, up from -7.6% in the same quarter last year
- Free Cash Flow Margin: 52.2%, up from 16.3% in the previous quarter
- Orders: 761 million, up 126 million year on year
- Market Capitalization: $108.2 billion
Company Overview
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, DoorDash’s 28.2% annualized revenue growth over the last three years was exceptional. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, DoorDash reported robust year-on-year revenue growth of 24.9%, and its $3.28 billion of revenue topped Wall Street estimates by 3.8%.
Looking ahead, sell-side analysts expect revenue to grow 18.9% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and indicates the market is forecasting success for its products and services.
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Orders
Request Growth
As a gig economy marketplace, DoorDash generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Over the last two years, DoorDash’s orders, a key performance metric for the company, increased by 20.3% annually to 761 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
In Q2, DoorDash added 126 million orders, leading to 19.8% year-on-year growth. The quarterly print isn’t too different from its two-year result, suggesting its new initiatives aren’t accelerating request growth just yet.
Revenue Per Request
Average revenue per request (ARPR) is a critical metric to track because it measures how much the company earns in transaction fees from each request. This number also informs us about DoorDash’s take rate, which represents its pricing leverage over the ecosystem, or "cut" from each transaction.
DoorDash’s ARPR growth has been mediocre over the last two years, averaging 3.5%. This isn’t great, but the increase in orders is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if DoorDash tries boosting ARPR by taking a more aggressive approach to monetization, it’s unclear whether requests can continue growing at the current pace. 
This quarter, DoorDash’s ARPR clocked in at $4.32. It grew by 4.2% year on year, slower than its request growth.
Key Takeaways from DoorDash’s Q2 Results
It was great to see DoorDash increase its number of requests this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 4.8% to $270.50 immediately following the results.
DoorDash had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.