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DoorDash transforms how millions access food and essentials, reshaping daily convenience with unmatched speed and reach. As a dominant player in the Internet Content & Information sector, it commands leadership with its flagship DoorDash and Wolt marketplaces. Renowned for innovation, the company continually expands services like DoorDash Drive and Storefront, enhancing merchant and consumer connectivity. I now examine whether DoorDash’s robust platform and growth trajectory justify its current market valuation and future potential.
Table of contents
Business Model & Company Overview
DoorDash, Inc., founded in 2013 and headquartered in San Francisco, commands a dominant position in the Internet Content & Information sector. Its logistics platform seamlessly connects merchants, consumers, and dashers across the US and internationally. The company’s ecosystem integrates marketplaces like DoorDash and Wolt, alongside membership and white-label delivery services, all designed to solve merchants’ critical challenges in customer acquisition, delivery, and payments.
DoorDash generates revenue through a balanced mix of marketplace transactions, subscription products like DashPass and Wolt+, and delivery fulfillment services including DoorDash Drive. It strategically serves key regions—Americas, Europe, and Asia—leveraging digital ordering and payment solutions to expand merchant reach. This comprehensive value proposition establishes a formidable economic moat, positioning DoorDash as a pivotal force shaping the future of delivery logistics.
Financial Performance & Fundamental Metrics
I analyze DoorDash, Inc.’s income statement, key financial ratios, and dividend payout policy to assess its profitability, efficiency, and shareholder returns.
Income Statement
The table below summarizes DoorDash, Inc.’s key income statement figures for fiscal years 2021 through 2025, reflecting revenue growth and profit trends.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 4.89B | 6.58B | 8.64B | 10.72B | 13.72B |
| Cost of Revenue | 2.34B | 3.59B | 4.59B | 5.54B | 6.74B |
| Operating Expenses | 3.00B | 4.12B | 4.63B | 5.22B | 6.26B |
| Gross Profit | 2.55B | 3.00B | 4.05B | 5.18B | 6.98B |
| EBITDA | -296M | -663M | -68M | 523M | 1.69B |
| EBIT | -452M | -1.03B | -577M | -38M | 0 |
| Interest Expense | 14M | 2M | 0 | 0 | 0 |
| Net Income | -468M | -1.37B | -558M | 123M | 935M |
| EPS | -1.39 | -3.68 | -1.42 | 0.30 | 2.19 |
| Filing Date | 2022-03-01 | 2023-02-27 | 2024-02-20 | 2025-02-14 | 2026-02-18 |
Income Statement Evolution
DoorDash’s revenue surged from 4.9B in 2021 to 13.7B in 2025, a 181% growth. Net income swung from a 468M loss in 2021 to a 935M profit in 2025. Gross margin steadily improved, reaching 50.9% in 2025, while net margin expanded significantly to 6.8%, reflecting stronger profitability and operational scale.
Is the Income Statement Favorable?
In 2025, DoorDash reported 13.7B revenue and 935M net income, with a favorable 50.9% gross margin. Operating income was positive at 723M despite a flat EBIT margin at 0%. Favorable revenue and profit growth, combined with zero interest expense, underpin a fundamentally strong income statement. However, the EBIT margin’s neutral status signals room for operational efficiency improvement.
Financial Ratios
The following table summarizes DoorDash, Inc.’s key financial ratios from 2021 to 2025, reflecting its profitability, efficiency, liquidity, leverage, and shareholder returns:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -9.6% | -20.7% | -6.5% | 1.1% | 6.8% |
| ROE | -10.0% | -20.2% | -8.2% | 1.6% | 9.3% |
| ROIC | -8.9% | -15.1% | -7.7% | -0.3% | 5.3% |
| P/E | -107.2 | -13.3 | -69.6 | 561.3 | 103.4 |
| P/B | 10.7 | 2.7 | 5.7 | 8.8 | 9.6 |
| Current Ratio | 2.59 | 1.86 | 1.64 | 1.66 | 1.41 |
| Quick Ratio | 2.59 | 1.86 | 1.64 | 1.66 | 1.41 |
| D/E | 0.09 | 0.08 | 0.08 | 0.07 | 0.33 |
| Debt-to-Assets | 5.9% | 5.2% | 4.8% | 4.2% | 16.7% |
| Interest Coverage | -32.3 | -562 | 0 | 0 | 0 |
| Asset Turnover | 0.72 | 0.67 | 0.80 | 0.83 | 0.70 |
| Fixed Asset Turnover | 6.6 | 6.1 | 7.5 | 9.2 | 9.1 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Evolution of Financial Ratios
From 2021 to 2025, DoorDash’s Return on Equity (ROE) improved from negative territory to 9.32%, though it remains below its cost of capital. The Current Ratio declined steadily from 2.59 to 1.41, indicating reduced liquidity but still above 1. The Debt-to-Equity Ratio increased moderately to 0.33, reflecting cautious leverage growth alongside improving profitability.
Are the Financial Ratios Favorable?
In 2025, profitability shows a neutral net margin at 6.82%, but ROE and WACC levels are unfavorable, suggesting returns do not cover capital costs. Liquidity is mixed; the quick ratio is favorable at 1.41, but the current ratio is neutral. Leverage metrics, including debt-to-equity at 0.33 and debt-to-assets at 16.74%, are favorable. Asset turnover is neutral, while valuation multiples like P/E and P/B are unfavorable, indicating market skepticism despite operational improvements.
Shareholder Return Policy
DoorDash, Inc. does not pay dividends, reflecting its growth and reinvestment focus. The company maintains positive net income since 2024, yet prioritizes capital for expansion rather than shareholder payouts. DoorDash engages in share buybacks, supporting shareholder value through capital returns without dividends.
This approach aligns with a long-term value creation strategy, typical for high-growth tech firms. Absence of dividends reduces immediate income but preserves funds for innovation and market share gains. Share repurchases offer a flexible way to reward shareholders while managing cash prudently.
Score analysis
Here is a radar chart illustrating DoorDash, Inc.’s various financial scores for a comprehensive snapshot:
DoorDash shows moderate scores in discounted cash flow, return on equity, and debt to equity, with a favorable return on assets score. However, valuation metrics like price to earnings and price to book are very unfavorable, indicating valuation concerns.
Analysis of the company’s bankruptcy risk
DoorDash’s Altman Z-Score places it firmly in the safe zone, signaling a low risk of bankruptcy:
Is the company in good financial health?
This Piotroski diagram reflects DoorDash’s average financial health score:
With a Piotroski Score of 5, DoorDash exhibits moderate financial strength but lacks the robust indicators of a very strong financial position.
Competitive Landscape & Sector Positioning
This sector analysis examines DoorDash, Inc.’s strategic positioning, revenue segments, key products, competitors, and competitive advantages. I will assess whether DoorDash holds a durable competitive advantage over its main rivals.
Strategic Positioning
DoorDash concentrates its revenue mainly in the U.S., growing non-U.S. sales to $2.26B in 2025. It operates a diversified platform offering marketplaces, delivery, and e-commerce services, expanding from $2.9B in 2020 to $13.7B in 2025, showing broadening service scope within a focused geographic footprint.
Revenue by Segment
This pie chart illustrates DoorDash, Inc.’s reported revenue by segment over the fiscal year 2025, highlighting the distribution of its business income sources.
DoorDash’s total reported segment revenue reached $13.7B in 2025, up from $10.7B in 2024, signaling strong growth momentum. Historically, the “Marketplaces and Platform Services” segment drove the business, rising from $2.9B in 2020 to $8.6B in 2023. The data shows DoorDash consolidating its core revenue streams, with accelerating revenue concentration in its main segment, indicating intensifying focus but potential concentration risk.
Key Products & Brands
DoorDash’s portfolio includes marketplaces, membership products, delivery services, and ordering technology solutions:
| Product | Description |
|---|---|
| DoorDash Marketplace | Connects merchants, consumers, and dashers, enabling on-demand food delivery and logistics services. |
| Wolt Marketplace | International counterpart to DoorDash Marketplace, offering similar services in select markets. |
| DashPass & Wolt+ | Subscription memberships providing customers with benefits like reduced delivery fees and perks. |
| DoorDash Drive & Wolt Drive | White-label delivery fulfillment services tailored for merchant brands needing delivery logistics. |
| DoorDash Storefront | Platform enabling merchants to offer e-commerce access directly to consumers for on-demand orders. |
| Bbot | Digital ordering and payment solutions for merchants’ in-store and online channels. |
DoorDash operates a diverse logistics and technology ecosystem, blending marketplaces with memberships and delivery fulfillment. This multi-faceted approach supports steady revenue growth and merchant engagement.
Main Competitors
There are 6 main competitors in the sector, with the table listing the top 6 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| Alphabet Inc. | 3.8T |
| Meta Platforms, Inc. | 1.6T |
| DoorDash, Inc. | 95B |
| Baidu, Inc. | 44B |
| Twilio Inc. | 22B |
| Snap Inc. | 14B |
DoorDash ranks 3rd among its competitors, with a market cap just 2% of Alphabet’s massive 3.8T valuation. It sits below the average top-10 market cap of 936B yet remains above the sector median of 70B. The company enjoys a significant 2094% gap above its next closest rival, Baidu, highlighting its distinct scale within the mid-tier group.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does DoorDash have a competitive advantage?
DoorDash currently lacks a strong competitive advantage as its ROIC falls below WACC, indicating value destruction despite improving profitability. This suggests challenges in capital efficiency relative to its cost of capital.
Looking ahead, DoorDash’s expanding international revenue and diversified services like DoorDash Drive, Storefront, and membership products offer growth opportunities in new markets and customer segments. These initiatives could potentially strengthen its competitive positioning over time.
SWOT Analysis
This analysis highlights DoorDash’s core competitive position and strategic challenges.
Strengths
- Strong market leadership in US delivery
- Rapid revenue growth of 27.9% in 2025
- Expanding international footprint with rising Non-US revenue
Weaknesses
- ROIC below WACC indicates value destruction
- High valuation multiples (PE 103.44, PB 9.64)
- Low return on equity at 9.3%
Opportunities
- Growth potential in international markets
- Expansion of merchant services and e-commerce solutions
- Increasing adoption of subscription products like DashPass
Threats
- Intense competition from peers and new entrants
- Regulatory and labor challenges for gig economy
- Economic downturns affecting consumer spending
DoorDash’s strengths in growth and market share support aggressive expansion. However, its high valuation and value destruction caution investors to monitor profitability improvement closely. Strategic focus should balance growth with margin enhancement and risk management.
Stock Price Action Analysis
The weekly stock chart below illustrates DoorDash, Inc.’s price movements over the last 100 weeks, highlighting key highs and lows:
Trend Analysis
Over the past 100 weeks, DoorDash’s stock price rose 25.89%, indicating a bullish trend with decelerating momentum. The price ranged between 104.74 and a high of 271.22. Recent weeks show a negative 22.94% change, signaling a short-term bearish slope of -6.05 with reduced volatility.
Volume Analysis
Over the last three months, trading volume trends down slightly with seller volume surpassing buyers at 53.38%. This slight seller dominance suggests cautious investor sentiment and a reduction in bullish market participation despite prior overall volume growth.
Target Prices
Analysts present a moderately bullish consensus on DoorDash, Inc. for 2026.
| Target Low | Target High | Consensus |
|---|---|---|
| 224 | 350 | 280.39 |
The target range reflects confidence in DoorDash’s growth potential, with expectations centered near 280. This suggests analysts foresee solid upside from current levels.
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Analyst & Consumer Opinions
This section reviews analyst ratings and consumer feedback to present a balanced view of DoorDash, Inc.’s market perception.
Stock Grades
Below are the latest verified stock grades for DoorDash, Inc. from recognized financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | Maintain | Buy | 2026-01-29 |
| Stifel | Maintain | Hold | 2026-01-27 |
| Keybanc | Maintain | Overweight | 2026-01-20 |
| Cantor Fitzgerald | Maintain | Overweight | 2026-01-08 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-08 |
| Wedbush | Maintain | Outperform | 2025-12-19 |
| Argus Research | Maintain | Buy | 2025-12-12 |
| Jefferies | Maintain | Buy | 2025-12-11 |
| Guggenheim | Maintain | Buy | 2025-11-19 |
| Jefferies | Upgrade | Buy | 2025-11-19 |
The consensus reflects a positive bias with a majority maintaining Buy or Overweight ratings. Notably, Jefferies upgraded from Hold to Buy in late 2025, signaling growing confidence.
Consumer Opinions
DoorDash continues to shape how consumers perceive convenience and delivery speed in 2026.
| Positive Reviews | Negative Reviews |
|---|---|
| “Fast delivery and intuitive app interface.” | “Customer service response times need improvement.” |
| “Wide restaurant selection and frequent discounts.” | “Occasional order inaccuracies frustrate me.” |
| “Reliable tracking and timely updates.” | “Delivery fees can be high during peak hours.” |
Overall, consumers praise DoorDash for its speed and user-friendly platform. However, recurring complaints about customer service and delivery fees highlight areas that require strategic attention.
Risk Analysis
Below is a summary of key risks DoorDash faces, highlighting their likelihood and potential impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | High beta (1.8) exposes DoorDash to sharp stock price swings. | High | Medium |
| Valuation Risk | Extremely high P/E (103x) and P/B (9.6x) suggest overvaluation. | Medium | High |
| Profitability | ROE (9.3%) below WACC (11.8%) signals value destruction. | Medium | High |
| Leverage & Liquidity | Moderate debt (D/E 0.33) but zero interest coverage is a red flag. | Medium | Medium |
| Competitive Pressure | Intense competition in food delivery compresses margins (6.8%). | High | Medium |
DoorDash’s valuation remains the biggest risk. Its P/E far exceeds the S&P 500 average (~18x), implying expectations may be unrealistic. The company’s inability to cover interest expenses signals financial strain despite manageable debt. Market volatility could amplify stock swings due to its high beta. Investors must weigh these risks carefully against growth prospects.
Should You Buy DoorDash, Inc.?
DoorDash, Inc. appears to be improving profitability with growing ROIC, yet still sheds value relative to WACC, suggesting a slightly unfavorable moat. Supported by a manageable leverage profile and a B- rating, it shows moderate financial stability within a safe Altman Z-score zone.
Strength & Efficiency Pillars
DoorDash, Inc. shows operational resilience with a solid gross margin of 50.88% and a net margin of 6.82%. While its return on equity (9.32%) and return on invested capital (5.27%) are moderate, they fall short of the weighted average cost of capital at 11.77%, indicating the company is currently shedding value. However, I note a positive trend in ROIC growth, suggesting improving profitability over time. The Altman Z-Score of 5.34 places DoorDash firmly in the safe zone, supporting its financial stability.
Weaknesses and Drawbacks
Despite stable operational metrics, DoorDash faces significant valuation risks. Its elevated P/E ratio of 103.44 and P/B ratio of 9.64 highlight a richly priced stock that may deter value-oriented investors. The company’s interest coverage ratio is zero, signaling potential challenges in covering debt costs if interest expenses rise. The current ratio of 1.41 is neutral but warrants monitoring for liquidity under stress. Recent market sentiment shifted slightly seller dominant, with buyers at 46.62%, which may pressure short-term price performance.
Our Final Verdict about DoorDash, Inc.
DoorDash presents a fundamentally sound profile with improving profitability and a strong solvency position. However, the premium valuation and recent seller dominance suggest caution. Despite its long-term growth potential and operational progress, the stock might appear better suited for investors willing to tolerate short-term volatility and to seek a more favorable entry point amid market fluctuations.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- DoorDash stock dropping after delivery app misses Q4 estimates – Yahoo Finance (Feb 18, 2026)
- DoorDash sees double-digit growth in orders, GOV; sets upbeat Q1 guidance (DASH:NASDAQ) – Seeking Alpha (Feb 18, 2026)
- Why Are DoorDash Shares Surging Wednesday? – Benzinga (Feb 18, 2026)
- DoorDash Reports Strong Q4 2025 Growth and Profitability – TipRanks (Feb 18, 2026)
- DoorDash to Report Q4 Earnings: What’s in Store for the Stock? – Yahoo Finance (Feb 16, 2026)
For more information about DoorDash, Inc., please visit the official website: doordash.com
