Instacart Revenue Jumps 17% to $1.095 Billion as Adjusted Profit Reaches $342 Million
Key Facts
Instacart reported on October 29 results for the third quarter ended September 30, 2026, with revenue of $1.095 billion, up 17% year over year from $939 million a year earlier. Adjusted EBITDA was $342 million, up 23% from the year-earlier period. Chief Executive Chris Rogers said the quarter was "our best quarter since becoming a public company." Rogers linked the performance to consumer demand, deeper customer engagement and expanding profitability. The results put revenue and profit growth at the forefront of the company's performance ahead of its announced acquisition deal with DoorDash.
Gross transaction value was $10.528 billion, up 15% year over year, while orders rose 10% to 91.4 million. Transaction revenue was $764 million, up 14%, while advertising and other revenue totaled $331 million, up 23%. The figures show revenue growth across transaction activity and advertising and other sources, alongside increases in the value of activity conducted on the platform and in orders. Advertising and other revenue grew faster than transaction revenue during the quarter. The operating indicators reflect an expansion in business volume alongside improved adjusted profitability.
Adjusted EBITDA margin was 31% of revenue, compared with 30% in the third quarter of 2025, and the figure represented 3.2% of gross transaction value. Net income under accounting standards was $147 million, up just 2% from $144 million a year earlier, indicating slower growth in net income than in adjusted profit. Cash flow from operations was $324 million, while free cash flow was $307 million; both rose 13% year over year. The company repurchased $230 million of shares during the quarter. It ended September with $1 billion in cash reserves and similar assets.
The results coincided with DoorDash's agreement to acquire Instacart, a deal the two companies announced on October 29. Under the consideration terms, Instacart shareholders can choose cash, DoorDash shares or a mix of the two. But the DoorDash shares issued for the deal are capped at 25% of total consideration, with mechanisms to allocate consideration proportionally if requests for stock exceed that limit. DoorDash said shareholders holding about 19% of Instacart's outstanding shares had agreed to vote in favor of the deal. Shareholder and regulatory approval, along with other customary approvals, remain conditions to its completion.
DoorDash outlined a multiyear path to at least $500 million in potential annual savings, net of investments. The company expects to invest more than the total savings in the first year after the deal closes, then generate positive net savings starting in the second year and beyond. That means the targeted net savings, under the announced plan, would not appear in the first year after closing. In trading, DoorDash shares rose 5% and Instacart shares fell 1.6% in Thursday afternoon trading on October 29, according to the Associated Press. The two stocks moved on the day Instacart announced its results and the acquisition agreement.
Instacart said it canceled its results call, which had been scheduled for November 5, 2026. It also suspended its financial guidance and withdrew previously issued long-term guidance while awaiting completion of the deal. DoorDash expects the acquisition to close at the end of 2027 or during the first half of 2028. That timeline remains subject to shareholder and regulatory approvals and other customary approvals. The next step is therefore the approval and deal-completion process, while Instacart has suspended financial guidance during this period.