# DoorDash (DASH) Financial Model Free Excel 3-statement financial model and company analysis for DoorDash. - Canonical: https://finamodel.com/companies/doordash - Industry: Marketplaces - Downloadable model: Yes - Excel download: https://finamodel.com/company-models/DASH.xlsx ## Model Purpose This model projects DoorDash's future cash flows and profitability to determine its equity valuation, helping an equity research analyst decide whether the stock is a buy, hold, or sell given its recent shift to GAAP profitability and the integration of the Deliveroo acquisition. ## Company Overview DoorDash operates a local commerce platform that connects consumers with merchants and independent contractors (Dashers). The company provides a three-sided marketplace facilitating the delivery of food, groceries, retail items, and convenience goods. DoorDash operates as a single reportable segment but tracks performance across its Core U.S. Restaurant business, New Verticals (grocery and retail), and International markets. The business model is an asset-light, transaction-based platform that generates revenue primarily through merchant commissions and consumer fees. DoorDash holds a dominant market share in U.S. food delivery and competes globally with players like Uber Eats, Instacart, and Delivery Hero. Recent major events include the transformational acquisition of Wolt in 2022 and the acquisition of Deliveroo in 2025, which significantly expanded its international footprint and contributed to a surge in Marketplace Gross Order Value (GOV). ## Revenue Deep Dive DoorDash reports consolidated revenue but drives this through specific marketplace metrics. * **Segment name:** Consolidated Revenue (driven by Marketplace GOV). * **Revenue driver formula:** Total Orders x Average Order Value = Marketplace GOV. Marketplace GOV x Net Revenue Margin = Revenue. * **Historical growth rate:** Revenue grew from $10.7 billion in FY2024 to $13.7 billion in FY2025, representing an approximate 28% year-over-year growth rate. * **Key growth levers and headwinds:** Growth is driven by DashPass subscriber additions, expansion into non-restaurant verticals (grocery and retail), and international scaling via Deliveroo. Headwinds include regulatory pressures on Dasher classification, minimum wage mandates, and consumer spending fatigue. * **Pricing dynamics:** Revenue consists of merchant commissions (a percentage of the order value) and consumer fees (delivery and service fees). DashPass shifts consumer pricing from per-order fees to a recurring subscription model. * **Revenue recognition notes:** Revenue is recognised over time as delivery services are completed. DashPass subscription revenue is deferred and recognised straight-line over the subscription period. * **Seasonality:** The fourth and first quarters are typically the strongest due to colder weather in the Northern Hemisphere and holiday demand, driving higher order frequency. ## Cost Structure ### Variable Costs / COGS * **Line-by-line breakdown:** "Cost of Revenue, exclusive of depreciation and amortisation" includes order management costs, credit card processing fees, Dasher background checks, and insurance costs. * **Gross margin range:** Adjusted gross margin has steadily expanded, reaching 52.6% in Q4 2025. * **Key input costs:** Payment processing fees and insurance premiums are the primary variable inputs. Dasher pay is not an operating expense; it is deducted from GOV before revenue is recognised. * **Scaling dynamics:** COGS scales linearly with Total Orders, though the company has achieved slight operating leverage by reducing insurance costs per order. ### Operating Expenses * **R&D:** Typically runs at 1.4% of Marketplace GOV. It covers engineering headcount for platform optimisation, algorithmic dispatch improvements, and app development. * **SG&A:** Split into Sales & Marketing (S&M) and General & Administrative (G&A). S&M includes consumer promotions, advertising, and Dasher acquisition costs. G&A runs at approximately 1.6% of GOV and covers corporate headcount, legal, and transaction-related costs. * **Depreciation & Amortisation:** Relatively low as a percentage of revenue, primarily related to capitalised software and amortisation of acquired intangible assets from Wolt and Deliveroo. * **Stock-Based Compensation:** Historically high but normalising. It remains a material non-cash expense used to attract engineering and corporate talent. * **Restructuring / one-time charges:** Occasional transaction and integration costs related to major M&A (Wolt, Deliveroo). ### Margin Profile * **Margins:** Net revenue margin sits between 13.1% and 13.5%. Adjusted EBITDA margin as a percentage of Marketplace GOV was 2.6% in Q4 2025. * **Margin trend:** Expanding. The company achieved its first full year of GAAP profitability in 2024 and expanded GAAP net income to $935 million in FY2025, driven by operating leverage and advertising revenue growth. ## Balance Sheet Structure * **Total assets:** Highly liquid and intangible-heavy, scaling upwards of $15 billion following recent acquisitions. * **Key asset categories:** Cash and short-term investments ($5.78 billion as of Q4 2025), Goodwill, and Intangible Assets. * **Goodwill & intangibles:** Represent a massive portion of total assets due to the premium paid for Wolt and Deliveroo. * **Working capital profile:** * **DSO:** Very low (1 to 3 days) because consumer payments are captured immediately via credit card. * **DIO:** Negligible, as the company does not hold inventory for its core restaurant business (only minor inventory for DashMart). * **DPO:** Higher than DSO (typically 7 to 14 days) because merchants and Dashers are paid in arrears. * **Net working capital:** Structurally negative. DoorDash collects cash from consumers before remitting it to merchants and Dashers, providing a float that funds operations. * **PP&E:** Minimal. Consists mostly of leasehold improvements for corporate offices and equipment for DashMart locations. * **Right-of-use assets:** Material due to corporate office leases and DashMart warehouse spaces. ## Capital Expenditure & Investment * **Capex as % of revenue:** Very light, typically running between 1.5% and 2.5% of revenue. * **Maintenance vs. growth split:** Almost entirely growth capex, focused on capitalised software development and building out new DashMart micro-fulfilment centres. * **M&A pattern:** Transformational acquirer. The company uses its highly valued equity and cash reserves to buy international market share (Wolt in 2022, Deliveroo in 2025). ## Debt & Capital Structure * **Total debt:** Primarily consists of convertible senior notes. * **Debt/EBITDA ratio:** Very low. The company operates with a net cash position. * **Key debt instruments:** Revolving credit facility (largely undrawn) and convertible notes. * **Interest rate profile:** Fixed low-interest rates on the convertible notes. * **Share repurchase programme:** Highly active. The company uses its strong free cash flow to offset dilution from stock-based compensation. * **Dividend policy:** No dividend policy. All capital is returned via buybacks or reinvested into the business. ## Cash Flow Characteristics * **Operating cash flow conversion:** Exceptionally strong. The company generated $2.4 billion in OCF in FY2025 against $935 million in GAAP net income. * **Free cash flow margin:** FCF was $1.8 billion in FY2025, representing a roughly 13% FCF margin on revenue. * **Major non-cash items:** Stock-based compensation and depreciation/amortisation bridge the gap between net income and OCF. * **Working capital cash flow impact:** Growth in Total Orders serves as a source of cash due to the negative working capital dynamic. * **Capex intensity:** Low, allowing the vast majority of operating cash flow to convert directly into free cash flow. ## Sheet Structure 1. **Assumptions:** Hardcoded inputs for order growth, AOV, take rates, margin profiles, and macroeconomic drivers. 2. **Operating Model:** Calculates Total Orders, Average Order Value, Marketplace GOV, and applies the Net Revenue Margin to forecast consolidated Revenue. 3. **Income Statement:** Projects Cost of Revenue, S&M, R&D, and G&A to arrive at Adjusted EBITDA, EBIT, and GAAP Net Income. 4. **Balance Sheet:** Tracks Cash, Goodwill, Intangibles, Deferred Revenue, and Accrued Merchant Payable balances. 5. **Cash Flow Statement:** Reconciles Net Income to OCF, CFI, and CFF, capturing the working capital float benefit and share repurchases. 6. **Working Capital Schedule:** Models the timing mismatch between consumer receipts (Accounts Receivable) and merchant/Dasher payouts (Accounts Payable). 7. **Intangibles & SBC Schedule:** Forecasts the amortisation of Wolt and Deliveroo intangibles and projects stock-based compensation as a percentage of revenue. 8. **Debt Schedule:** Tracks the convertible notes balance and calculates interest expense. 9. **DCF Valuation:** Calculates Unlevered Free Cash Flow, applies the WACC, and determines the implied share price. ## Key Financial Relationships 1. Total Orders = Prior Period Total Orders x (1 + Total Orders Growth Rate) 2. Marketplace GOV = Total Orders x Average Order Value 3. Revenue = Marketplace GOV x Net Revenue Margin 4. Cost of Revenue = Marketplace GOV x Cost of Revenue Margin (historically 6.5% to 6.8%) 5. Gross Profit = Revenue - Cost of Revenue 6. Sales & Marketing Expense = Marketplace GOV x S&M Margin 7. Research & Development Expense = Marketplace GOV x R&D Margin (historically ~1.4%) 8. General & Administrative Expense = Marketplace GOV x G&A Margin (historically ~1.6%) 9. Adjusted EBITDA = Revenue - Cost of Revenue - S&M - R&D - G&A (excluding SBC and D&A) 10. Deferred Revenue = DashPass Subscribers x Average Subscription Price x Deferral Timing Factor 11. Operating Cash Flow = Net Income + D&A + SBC + Change in Net Working Capital ## Cross-Sheet Dependencies The **Assumptions** sheet dictates the growth in Total Orders and GOV on the **Operating Model**. The **Operating Model** feeds Revenue and GOV into the **Income Statement** to calculate operating expenses based on GOV-margin relationships. The **Income Statement** generates Net Income, which flows to the top of the **Cash Flow Statement**. The **Working Capital Schedule** calculates the change in working capital, which feeds the **Cash Flow Statement**. The ending cash balance from the **Cash Flow Statement** links to the **Balance Sheet**. A circularity exists between the **Debt Schedule** (interest income on cash balances) and the **Income Statement**, requiring an iterative calculation or a circuit breaker toggle. ## Sign Convention * Revenue, GOV, and Total Orders are entered and displayed as positive numbers. * All expenses (Cost of Revenue, S&M, R&D, G&A) are entered as positive numbers and subtracted in formulas (e.g., Gross Profit = Revenue - Cost of Revenue). * On the Cash Flow Statement, cash inflows are positive and cash outflows (capex, share repurchases) are negative. ## Things Most Likely to Go Wrong * Modelling revenue directly instead of calculating it as a function of Marketplace GOV and Net Revenue Margin will break the unit economic logic. * Failing to model the negative working capital dynamic will severely understate operating cash flow during high-growth periods. * Ignoring the Deliveroo acquisition stub period in Q4 2025 will cause year-over-year growth rates to look artificially inflated for FY2026. * Treating Dasher pay as an operating expense rather than a deduction from GOV before revenue recognition will result in incorrect gross margin calculations. * Excluding stock-based compensation from operating expenses when calculating GAAP EBIT will artificially inflate profitability. * Assuming flat Average Order Value ignores the impact of inflation and the mix-shift towards higher-ticket grocery orders. * Failing to account for the amortisation of acquired intangibles from Wolt and Deliveroo will overstate GAAP net income. * Projecting interest income incorrectly. The company holds nearly $6 billion in cash, meaning interest income is a material contributor to the bottom line. ## Validation Checks * Net Revenue Margin must remain between 13.0% and 13.5%. Flag if the model projects a margin outside this band. * Adjusted EBITDA as a percentage of Marketplace GOV should be in the 2.5% to 3.0% range based on recent guidance. * Operating Cash Flow must exceed GAAP Net Income due to the heavy SBC add-back and negative working capital float. * Total Assets must exactly equal Total Liabilities plus Equity in every projected period. * Cost of Revenue as a percentage of GOV should not exceed 7.0%, reflecting the company's scale and insurance cost efficiencies. * Cash balance should not drop below $2.0 billion, ensuring the company maintains its required liquidity buffer. ## Key Assumptions (Default Values) | Assumption | Default Value | Unit | Rationale | |---|---|---|---| | Total Orders Growth Rate | 20.0 | % | Reflects Q1 2026 guidance and normalisation post-Deliveroo acquisition | | Average Order Value (AOV) | 32.89 | $ | Calculated from Q4 2025 actuals ($29.7B GOV / 903M Orders) | | Net Revenue Margin | 13.3 | % | Based on Q4 2025 actual reported margin | | Cost of Revenue (% of GOV) | 6.5 | % | Based on Q4 2025 actuals | | R&D Expense (% of GOV) | 1.4 | % | Based on Q4 2025 actuals | | G&A Expense (% of GOV) | 1.6 | % | Based on Q4 2025 actuals | | S&M Expense (% of GOV) | 2.3 | % | Estimated to bridge to the 2.6% Adjusted EBITDA margin | | Effective Tax Rate | 21.0 | % | Standard US corporate rate, adjusted for international mix | | Capex (% of Revenue) | 2.0 | % | Historical average for asset-light platform maintenance | | Discount Rate (WACC) | 10.5 | % | Reflects current interest rate environment and platform risk profile | | Terminal Growth Rate | 3.0 | % | Long-term inflation and GDP growth proxy | ## Data Sources & Benchmarks * **Filings:** SEC EDGAR (DoorDash 10-K, 10-Q, and 8-K earnings releases). * **Investor Relations:** http://ir.doordash.com for shareholder letters and supplemental data. * **Key Peers:** Uber Technologies (UBER), Instacart (CART), Delivery Hero (DHER.DE), Just Eat Takeaway (JET.L). * **Industry Data:** Credit card panel data (e.g., YipitData, Bloomberg Second Measure) for real-time U.S. food delivery market share and order frequency trends. ## Sources * DoorDash Q4 2025 Earnings Release and Shareholder Letter (February 18, 2026). * DoorDash FY2024 Annual Report on Form 10-K. * Nasdaq and TradingView earnings summaries for DASH Q4 2025. --- ## Frequently asked questions ### What is DoorDash's core business model? DoorDash operates a local commerce platform that connects consumers with merchants and independent contractors (Dashers). Its asset-light, transaction-based model generates revenue primarily through merchant commissions and consumer fees for the delivery of various goods. ### How does DoorDash generate its revenue? DoorDash's consolidated revenue is driven by Marketplace Gross Order Value (GOV), which is calculated from total orders and average order value. Revenue is then derived by applying a net revenue margin to the Marketplace GOV, consisting of merchant commissions and consumer fees. ### What is DoorDash's capital expenditure strategy? DoorDash maintains a very light capital expenditure profile, with Capex_Pct_Revenue assumed at 0.03844713545270722 in the financial model. This capex is almost entirely growth-oriented, focusing on capitalized software development and building out new DashMart micro-fulfillment centers. ### What are the key assumptions in DoorDash's financial forecast? Key assumptions in DoorDash's financial model include a Revenue_Growth of 0.2 (20%) and COGS_Pct_Revenue at approximately 52.4%. The model also assumes RD_Pct_Revenue at 11.24% and SGA_Pct_Revenue at 19%, which are critical for projecting future profitability. ### Why is DoorDash's net working capital structurally negative? DoorDash's net working capital is structurally negative because it collects cash from consumers immediately via credit card payments. This cash is held for a period before being remitted to merchants and Dashers, providing a float that effectively funds operations. ### Can I download an Excel financial model for DoorDash? Yes, a downloadable Excel financial model is available for DoorDash, projecting future cash flows and profitability through FY2030. This model helps equity research analysts assess the company's valuation and determine investment recommendations. [Interactive forecast calculator](https://finamodel.com/companies/doordash/forecast)