The Balance Sheet This Site Has Called Debt-Free in Every Prior Post Just Changed
DoorDash's Q1 2025 10-Q showed a third straight profitable quarter and a newly authorized $5.0 billion buyback that had spent nothing. This Form 10-Q, covering the quarter ended June 30, 2025 and filed with the SEC in August 2025, marks the most consequential quarter of corporate activity this site has tracked for DoorDash since the 2022 Wolt acquisition. In May 2025, DoorDash issued $2.75 billion aggregate principal amount of 0% Convertible Senior Notes due 2030, generating net proceeds of approximately $2.72 billion - the company's first funded debt as a public company, ending a run of "no funded debt" language this site has repeated in every DASH post since Q1 2021. The proceeds are earmarked substantially for a proposed cash acquisition: on May 6, 2025, DoorDash announced a recommended final cash offer for Deliveroo plc at 180 pence per share, valuing Deliveroo's equity at approximately £2.8 billion; Deliveroo shareholders approved the deal on June 16, 2025, with closing expected in the fourth quarter of 2025 subject to regulatory approvals.
Separately, and already completed, DoorDash closed its acquisition of SevenRooms - a hospitality reservations and CRM platform - on June 13, 2025, for total consideration of $1,152 million. Between the SevenRooms close, the convertible notes issuance, and $2.5 billion of cash held in escrow to help fund the Deliveroo transaction, total assets jumped to $16,950 million from $12,845 million just six months earlier, and total liabilities grew to $8,022 million from $5,035 million.
Underlying operating results continued the profitable run: net income attributable to DoorDash, Inc. common stockholders was $285 million, up from a $157 million loss in Q2 2024, and income from operations was $163 million, up from a $201 million loss. Adjusted EBITDA» grew 52% to $655 million from $430 million. Revenue grew 25% to $3,284 million from $2,630 million.
The Prescription
DoorDash should now update the standard capital-structure disclosure this site has read as identical boilerplate across roughly a dozen filings - "no funded debt," "fully undrawn revolving credit facility" - since that framing is no longer accurate. The company has $2.72 billion of net proceeds from convertible notes on the balance sheet and a real debt-service profile going forward, even at a 0% coupon; investors who have relied on the debt-free narrative deserve explicit, prominent acknowledgment that this changed, not just a new line item buried in the notes.
What it should stop doing: treating this quarter's Free Cash Flow decline as a routine footnote. Free Cash Flow fell 21% year-over-year, to $355 million from $451 million, even as Adjusted EBITDA grew 52% - a real divergence, not the modest one seen last quarter. The filing attributes this to "timing of working capital" and says it expects the effect to reverse and benefit the second half of 2025, but offers no further detail on what specifically drove the swing. Given the scale of new capital commitments this quarter (a $2.8 billion pending acquisition, a completed $1.15 billion acquisition, and new debt), a clearer explanation of near-term cash generation matters more than usual.
Key Financial Metrics
Q2 2025 vs. Q2 2024 - consolidated, reported in USD (DoorDash reports natively in USD, no FX conversion needed)
| Metric | Q2 2025 | Q2 2024 | YoY |
|---|---|---|---|
| Revenue | $3,284M | $2,630M | ✅ +25% |
| Adjusted EBITDA» | $655M | $430M | ✅ +52% |
| Income (Loss) from Operations | $163M | $(201)M | ✅ turned positive |
| Net Income (Loss) attributable to common stockholders | $285M | $(157)M | ✅ turned positive |
| Free Cash Flow» | $355M | $451M | ⚠️ -21% |
Balance sheet: DoorDash's 10-Q compares quarter-end to the prior fiscal year-end, not the year-ago quarter, so the columns below are Jun 2025 vs. Dec 2024
| Balance sheet metric | Jun 2025 | Dec 2024 | Change |
|---|---|---|---|
| Total Assets | $16,950M | $12,845M | ✅ +32% |
| Total Liabilities | $8,022M | $5,035M | ⚠️ +59% |
| Total Stockholders' Equity | $8,923M | $7,803M | ✅ +14% |
Free Cash Flow fell 21% to $355 million from $451 million a year earlier, even as net cash provided by operating activities fell a smaller 5% ($504 million versus $530 million) - the company attributes the gap to working-capital timing it expects to reverse in the second half of 2025. Total cash and marketable securities (cash and cash equivalents of $3,911 million plus short-term marketable securities of $1,088 million and long-term marketable securities of $725 million, excluding $322 million of funds held at payment processors and $2,789 million of restricted cash) stood at $5,724 million as of June 30, 2025. Separately, $2,750 million of that restricted cash is held in escrow specifically to help fund the pending Deliveroo acquisition and is not available for general corporate purposes.
DoorDash issued $2.75 billion of convertible notes - its first-ever funded debt - to help finance a proposed £2.8 billion cash acquisition of Deliveroo plc, while separately closing a $1.15 billion acquisition of SevenRooms in June 2025. Net income attributable to common stockholders grew to $285 million from a $157 million loss a year earlier, even as free cash flow fell 21% on working-capital timing the company expects to reverse in the second half of the year.
Key Operational Metrics
Q2 2025 vs. Q2 2024
| Metric | Q2 2025 | Q2 2024 | YoY |
|---|---|---|---|
| Total Orders | 761M | 635M | ✅ +20% |
| Marketplace GOV» | $24,244M | $19,711M | ✅ +23% |
| Contribution Profit» | $1,147M | $825M | ✅ +39% |
| Contribution Profit as a % of Marketplace GOV | 4.7% | 4.2% | ✅ +0.5pp |
| Net Revenue Margin (Revenue ÷ Marketplace GOV) | 13.5% | 13.3% | ✅ +0.2pp |
| GAAP Gross Profit | $1,608M | $1,195M | ✅ +35% |
Contribution Profit grew 39% year-over-year, again well ahead of revenue's 25% growth, extending the margin-expansion trend this site has tracked in every quarter since Q1 2022. Contribution Margin (Contribution Profit as a percentage of revenue) reached roughly 35%, a new high. Net Revenue Margin resumed its expansion (13.5% from 13.3%) after holding flat last quarter. Total Orders growth accelerated to 20% from 18% last quarter, and Marketplace GOV growth accelerated to 23% from 20% - both reversing the deceleration pattern seen in parts of 2024. DoorDash still does not disclose exact merchant, consumer, or Dasher headcounts, or an absolute DashPass subscriber count.
Beyond the Usual
DoorDash's First-Ever Debt: $2.75 Billion of Convertible Notes to Fund the Deliveroo Bid
In May 2025, DoorDash issued $2.75 billion aggregate principal amount of 0% Convertible Senior Notes due 2030, with net proceeds of approximately $2.72 billion. The notes carry no regular cash interest and mature May 15, 2030. This is the first time DoorDash has carried funded debt as a public company - every prior filing this site has read described the company as carrying "no funded debt," with only an undrawn revolving credit facility as available leverage. The proceeds, along with $2.75 billion held in escrow (recorded as restricted cash on the balance sheet), are earmarked to help fund the proposed acquisition of Deliveroo plc.
A Proposed £2.8 Billion Acquisition of Deliveroo, and a Completed $1.15 Billion Acquisition of SevenRooms
On May 6, 2025, DoorDash announced a recommended final cash offer for Deliveroo plc at 180 pence per share, valuing Deliveroo's equity at approximately £2.8 billion. Deliveroo operates a local commerce platform primarily across Europe and the Middle East, geographies complementary to DoorDash's existing footprint (including Wolt). Deliveroo shareholders approved the transaction on June 16, 2025, and the deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Separately, DoorDash completed its acquisition of SevenRooms - a reservations, table management, and CRM platform for restaurants and hospitality merchants - on June 13, 2025, for total consideration of $1,152 million, with $13 million of acquisition-related costs expensed this quarter. Goodwill on the balance sheet grew to $3,529 million from $2,315 million, driven substantially by the SevenRooms acquisition.
DoorDash's insurance collateral requirement held steady at $692 million outstanding, unchanged from the prior two quarters. Letters of credit outstanding for real estate leases and insurance policies fell to $78 million from $141 million at year-end 2024. The $800 million revolving credit facility remained fully undrawn. The $5.0 billion share repurchase authorization from February 2025 continued to see zero spending - six consecutive months, and five of the last six quarters, with no buyback activity.
Stock Price Since Last Quarter
DoorDash's stock rose sharply in the second quarter of 2025, from a March 31, 2025 close of $182.77 to a June 30, 2025 close of $246.51 - a 35% gain, the largest single-quarter gain this site has recorded for DoorDash since at least Q4 2023 (DoorDash has not split its stock since its IPO, so these remain actual nominal prices). This is a fourth consecutive quarterly gain, and for the first time since this site began tracking the gap, the stock closed the quarter above its September 2021 IPO-era peak of $205.98 - up roughly 20% above that prior high.
Target Valuation Range
~8.6x TTM EV/Revenue, up sharply from ~6.3x three months earlier. Verdict: too-early-to-call on a numeric fair-value range — the peer-multiple read below is the honest substitute (see the DCF-timing note further down). Bottom line: enterprise value rose sharply this quarter, driven overwhelmingly by the stock's 35% surge rather than the new convertible-note debt, which roughly offsets the cash raised alongside it in the EV calculation - this is DoorDash's richest valuation on a revenue basis since this site began tracking it.
With 402.36 million Class A and roughly 24.83 million Class B shares outstanding (427.19 million total, per the cover page as of July 31, 2025):
| Market cap → enterprise value | Q2 2025 (period-end) |
|---|---|
| Share price (period-end, June 30, 2025 close) | $246.51 |
| Shares outstanding (Class A + B) | 427.19 million |
| Market capitalization | ~$105.3 billion |
| Less: cash and marketable securities | $5.72 billion |
| Plus: convertible notes, net | $2.72 billion |
| Enterprise value | ~$102.3 billion |
| Peer-multiple sanity check (TTM basis) | Q1 2025 (TTM) | Q2 2025 (TTM) | Change |
|---|---|---|---|
| TTM Revenue | $11,241M | $11,895M | ✅ up |
| TTM Adjusted EBITDA | $2,119M | $2,344M | ✅ up |
| Enterprise value | ~$70.8 billion | ~$102.3 billion | ✅ up |
| EV/Revenue» | ~6.3x | ~8.6x | ✅ up |
| EV/Adjusted EBITDA» | ~33x | ~44x | ✅ up |
TTM Revenue is computed as Q1 2025's TTM minus Q2 2024 plus Q2 2025 ($11,241M − $2,630M + $3,284M = $11,895M); TTM Adjusted EBITDA the same way ($2,119M − $430M + $655M = $2,344M). Enterprise value rose 44% while TTM revenue grew only 6% and TTM Adjusted EBITDA grew 11% - this quarter's 35% stock-price surge drove the overwhelming majority of the multiple expansion, pushing both EV/Revenue and EV/Adjusted EBITDA to their richest levels this site has recorded for DoorDash, well beyond the incremental expansion of prior quarters. Note this is now the first quarter this valuation calculation includes funded debt in the enterprise-value bridge, a methodology change forced by the convertible notes issuance rather than by any change in approach.
A full DCF still isn't attempted here: this quarter introduces more open capital-structure and integration questions than any prior DASH quarter this site has covered - a pending £2.8 billion acquisition still awaiting regulatory approval, a freshly closed $1.15 billion acquisition not yet reflected in a full quarter of consolidated results, new convertible debt whose dilutive conversion terms matter for share count, and a Free Cash Flow decline the company says is temporary but hasn't fully explained. The peer-multiple read remains the more honest tool, and it now shows DoorDash trading at by far its richest valuation on both revenue and EBITDA multiples since this site started tracking it, driven primarily by a stock price that has finally surpassed its 2021 all-time high.
DoorDash, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC in August 2025.