DASH

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gig economy industry, including DoorDash (NASDAQ:DASH) and its peers. The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech-enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away. The 6 gig economy stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 11.2% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results. Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform. DoorDash reported revenues of $4.45 billion, up 35.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and impressive growth in its requests. DoorDash pulled off the biggest analyst estimate beat and fastest revenue growth in the group. The company reported 970 million service requests, up 27.5% year on year. Unsurprisingly, the stock is up 7.9% since reporting and currently trades at $223.60. Read why we think that DoorDash is one of the best gig economy stocks, our full report is free. Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada. Lyft reported revenues of $1.84 billion, up 16.1% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and strong growth in its users. The market seems content with the results as the stock is up 3.4% since reporting. It currently trades at $16.86. Is now the time to buy Lyft? Access our full analysis of the earnings results here, it’s free. Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services. Fiverr reported revenues of $97.78 million, down 10% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a decline in its buyers. Fiverr delivered the weakest guidance update and weakest full-year guidance update among its peers. The company reported 2.7 million active buyers, down 20.6% year on year. As expected, the stock is down 18.5% since the results and currently trades at $9.45. Read our full analysis of Fiverr’s results here. Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done. Upwork reported revenues of $191.7 million, down 1.7% year on year. This number beat analysts’ expectations by 0.9%. Taking a step back, it was a softer quarter as it recorded full-year EBITDA guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly. Upwork achieved the highest guidance raise and highest full-year guidance raise of the whole group. The stock is down 7% since reporting and currently trades at $9.14. Read our full, actionable report on Upwork here, it’s free. Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US. Angi reported revenues of $248 million, down 10.9% year on year. This print came in 2.8% below analysts’ expectations. Overall, it was a mixed quarter for the company. Angi had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 24.9% since reporting and currently trades at $4.67. Read our full, actionable report on Angi here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Kohl's (KSS) heads into its second quarter earnings report today with attention on recent partnerships and merchandising moves, including Martha Stewart kitchen electrics and expanded on demand delivery through DoorDash. Despite new partnerships and merchandising efforts, Kohl's share price has been under pressure in the short term, with a 1-day share price return of a 3.39% decline and a 7-day share price return of a 5.45% decline. At the same time, the 90-day share price return of a 36.74% gain alongside a 1-year total shareholder return of 39.80% suggests momentum built earlier in the year that is now being tested as investors weigh the incoming earnings report, the Martha Stewart rollout, the DoorDash tie up, dividend continuity and the recent Chief Customer Officer appointment. Compare Kohl's earnings setup and recent partnerships with other retailers by scanning a curated group of 49 high quality undervalued stocks showing similar momentum and quality signals. Bulls see Kohl's recent Martha Stewart and DoorDash moves as fresh fuel for a potential turnaround. Bears point to mixed recent returns and past revenue pressure. Which case lines up better with where the stock is currently priced? Kohl's last closed at $17.68, a touch above the most followed fair value estimate of $17.46 that is built using a 12.33% discount rate. Read the complete narrative. Read the complete narrative. Want to know why this fair value barely edges above today’s Kohl's share price? The narrative leans on subdued revenue, thinner margins, and a higher future earnings multiple. Curious which specific earnings path and valuation assumptions hold that all together? Result: Fair Value of $17.46 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still a chance that Kohl's proprietary brands and the Sephora rollout will draw in higher-spending customers, which could challenge this cautious fair value view. Find out about the key risks to this Kohl's narrative. The analyst narrative pegs Kohl's at about 1% overvalued against a $17.46 fair value, yet other models tell a different story. On earnings, the stock trades on a P/E of 7.3x compared with a Multiline Retail industry average of 19.9x and a peer average of 26.2x. The fair ratio is 11.8x, which is closer to where the P/E could move over time. That gap suggests meaningful valuation risk if earnings underwhelm, but also scope for rerating if results hold up. Which side of that trade feels more realistic to you? For a closer look at how this earnings based view stacks up against peers and the fair ratio, See what the numbers say about this price — find out in our valuation breakdown. This mix of caution and optimism around Kohl's can feel finely balanced, so it helps to see the full picture and move quickly to form your own stance. To weigh both sides of the story in one place, start with the 3 key rewards and 2 important warning signs If Kohl's has you thinking more broadly about your portfolio, now is a good moment to widen the lens using a few focused stock idea lists. Target consistent income potential by reviewing 12 dividend fortresses that could help anchor your returns when markets feel choppy. Strengthen your downside protection by scanning the 74 resilient stocks with low risk scores that aim to keep risk scores in check. Get ahead of the crowd by assessing the 18 high quality undiscovered gems before they land on everyone else's radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KSS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Serve Robotics (NASDAQ: SERV) believes robots and drones are ideal for delivering food, retail products, and other small commercial loads because they are more efficient and far less expensive than existing human-driven solutions. Serve has already deployed over 2,000 of its latest Gen 3 robots across America, where they are making deliveries through platforms like DoorDash and Uber Eats. The company's revenue soared by 400% year over year in the second quarter of 2026 (ended June 30), suggesting business is booming. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » However, management just significantly lowered its 2026 revenue forecast, sending Serve stock tumbling by around 15%. The stock is now down almost 80% from its 2024 peak. Here's why more downside might be ahead for shareholders. Serve says the median distance traveled for a food delivery order in the U.S. is about 2.5 miles, and it currently costs between $8 and $10 to deliver by car with a human driver. The company believes it can reduce that cost to just $1 per order by using its Gen 3 robots, because they can eliminate driver wages and operate for 14 hours straight on a single charge. The Gen 3 robots are powered by Nvidia's Jeston Orin platform, which provides all of the hardware and software necessary to achieve Level 4 autonomy. That means Serve's robots can safely drive on sidewalks within designated areas without any human assistance, and they are now successfully doing so in at least eight major U.S. cities, including Los Angeles, Miami, and Chicago, where they boast an impressive 99.8% order completion rate. Serve plans to grow its domestic and international presence to capture what it believes will be a $450 billion market for robotic and drone delivery. The company will have to expand beyond just food and retail delivery to build a formidable market share, which is why it acquired another robotics enterprise, Diligent, in January. Diligent developed its own Nvidia-powered robot for the healthcare sector called Moxi. It operates within hospitals, transporting medication, lab samples, and equipment across departments so nurses and doctors can spend less time running around and more time with their patients. So far, the move into healthcare has broadened Serve's footprint to 44 U.S. cities across 14 states. Serve generated $3.2 million in revenue during the second quarter of 2026, which was a 404% increase from the year-ago period. The company benefited from the inclusion of Diligent's revenue, which was absent in the same quarter last year because it pre-dated the acquisition. Serve came into 2026 expecting to generate $26 million in total revenue for the year, but management drastically reduced that forecast to $9 million to $10 million after the second quarter due to concerns about lower Uber Eats delivery volume than initially anticipated. Given that the company generated $6.2 million in revenue during the first half of 2026, that means it could bring in as little as $2.8 million in the second half -- a dramatic decline. That also has implications for Serve's bottom line. The company already lost over $113 million on a generally accepted accounting principles (GAAP) basis during the first half of this year, so unless management significantly cuts costs to offset its lower revenue forecast, there could be an even steeper loss in the second half. Serve only had $240 million in cash, cash equivalents, and marketable securities on hand as of June 30, so it simply can't afford to continue losing money at the current pace for much longer. If its bottom line doesn't improve soon, it might have to take on debt or raise money from investors, which would dilute every existing shareholder. Despite already plunging by 80% from its 2024 record high, Serve stock is still very expensive. It's trading at a price-to-sales (P/S) ratio of 46, a whopping seven times higher than the P/S ratio of the Nasdaq-100 index, which is 6.3. In other words, it looks heavily overvalued compared to a basket of America's best technology stocks. To make matters worse, investors who were willing to pay a premium for Serve stock because of its growth prospects just had their thesis shattered by management's reduced revenue forecast. If we assume Serve does bring in $10 million during 2026, its forward P/S ratio remains at a sky-high level of 42. Simply put, it might be a good idea to avoid Serve stock for the foreseeable future because its rich valuation opens the door to even more downside. Before you buy stock in Serve Robotics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Serve Robotics wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, Nvidia, and Serve Robotics. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy. Serve Robotics Grew Its Second-Quarter Revenue by 400%, but This Shocking News Sent Its Stock Plunging was originally published by The Motley Fool

DoorDash’s second quarter showed notable gains across its core delivery and newer business lines, with management crediting expanded adoption of DashPass subscriptions, strong growth in its grocery and international segments, and improving unit economics across categories. CEO Tony Xu highlighted that “there are many levers in which we can control the kind of financial profile in order to make great investments,” referencing progress in restaurant, grocery, and international operations. Management also pointed to accelerating contributions from advertising and subscription services as important factors supporting results this quarter. Is now the time to buy DASH? Find out in our full research report (it’s free). Revenue: $4.45 billion vs analyst estimates of $4.35 billion (35.6% year-on-year growth, 2.5% beat) Adjusted EPS: $1.47 vs analyst estimates of $1.23 (19.5% beat) Adjusted EBITDA: $914 million vs analyst estimates of $842.3 million (20.5% margin, 8.5% beat) EBITDA guidance for Q3 CY2026 is $1.03 billion at the midpoint, above analyst estimates of $978 million Operating Margin: 3.5%, down from 5% in the same quarter last year Orders: 970 million, up 209 million year on year Market Capitalization: $91.86 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Morton (MoffettNathanson) asked about the opportunity to reprice grocery partnerships and shift affordability burdens. CEO Tony Xu responded that DoorDash’s role as a primary growth driver for grocers provides leverage for improved economics, but emphasized healthy partner relationships and ongoing unit economic improvements across the business. Nikhil Devnani (Bernstein) inquired about the structural quality of international growth, particularly in markets where DoorDash is not the clear leader. Xu explained that DoorDash’s international business focuses on minimum viable scale and that the company is gaining share in its top markets, with ongoing improvements in order frequency and unit economics. Deepak Mathivanan (Cantor Fitzgerald) asked about translating AI investments into measurable business outcomes. Xu highlighted products like DoorDash Ask and merchant onboarding automation as examples, stating that AI initiatives are rooted in delivering tangible customer experience improvements and operational efficiencies. Ross Sandler (Barclays) questioned the scalability of autonomous delivery and subscription penetration in international markets. Xu noted that scaling autonomous delivery depends on mastering both technology and operations, while Inukonda pointed to strong DashPass and Wolt+ growth and share gains in key geographies. Brian Nowak (Morgan Stanley) sought details on benefits from unifying the global tech stack. Xu described early wins in conversion, automation, and product rollout velocity, with the full return expected as best-in-breed features are implemented across all markets. In the quarters ahead, the StockStory team will monitor (1) the pace of adoption and operational rollout for DoorDash’s autonomous delivery and DashMart Fulfillment Services, (2) sustained growth and retention in DashPass and international subscription programs, and (3) continued progress on global tech stack integration. Execution in these areas, along with improvements in unit economics and AI-driven enhancements, will be key markers for DoorDash’s ability to maintain its growth trajectory and profitability. DoorDash currently trades at $211.75, up from $207.27 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. DoorDash stock has delivered a strong 168.9% gain over the past three years, yet the broader valuation checks currently lean toward the shares looking expensive rather than like a clear bargain. DoorDash has returned 168.9% over three years, which sets a high bar for any further upside from today’s valuation. Growth expectations around delivery, grocery and retail expansion can support richer pricing. However, execution risks in areas like drone delivery and AI integration may weigh on how much investors are willing to pay. The company scores 2 out of 6 on Simply Wall St’s valuation checks, which suggests DoorDash does not screen as cheap on the wider set of metrics here. The issue now is whether DoorDash’s current share price already reflects that growth story or still leaves room for an attractive entry point. Find out why DoorDash's -19.8% return over the last year is lagging behind its peers. The P/E ratio is a useful way to see how much investors are paying for each dollar of DoorDash earnings today. For DoorDash stock, the current P/E sits at about 109.2x, which is more than three times the Hospitality sector average of 22.1x and well above the peer group average of 32.4x. That indicates investors are already attaching a rich price tag to the company’s current earnings base. The fair P/E ratio implied by the broader model sits at 56.7x, so DoorDash is trading at roughly double that level. Despite recent revenue headlines, including Q2 2026 sales of US$4.5b and raised guidance, the earnings-based multiple indicates the stock already carries a premium that goes beyond what this framework suggests for its risk and growth profile. On the P/E multiple, DoorDash stock screens as clearly overvalued relative to both sector norms and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for DoorDash pick up where the valuation puzzle leaves off. They spell out which assumptions about DoorDash's future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price on the Community page. Each one treats fair value as a thesis about how the business might develop over time, so you can see how that view holds up as new information arrives. Community views on DoorDash are pulled in opposite directions, with one side focused on expansion upside and the other on margin pressure risks. Bull case: 34% undervalued Read the full Bull Case to see why DoorDash could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why DoorDash could be overvalued Do you think there's more to the story for DoorDash? Head over to our Community to see what others are saying! DoorDash now trades on a P/E multiple that already prices in a strong outcome, which keeps the valuation skewed toward overvalued on current checks. In the absence of an intrinsic value cross-check, the market multiple view does most of the heavy lifting and it suggests limited room for error at today’s levels. The key factor from here is whether DoorDash can deliver the margin and earnings progress that supporters expect while managing regulatory and execution risks. The way that trade-off evolves will determine whether today’s rich multiple holds or investors later reassess what they are willing to pay. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DASH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In the second quarter of 2026, DoorDash reported sales of US$4,454 million and net income of US$200 million, while also completing a US$1,049.03 million share repurchase program representing 1.55% of its shares. DoorDash also launched its in-house drone delivery program, DoorDash Air, after securing FAA Part 135 air carrier certification, adding a new technology-driven fulfillment option to support local businesses. Now, we'll examine how DoorDash Air's FAA-certified drone operations could reshape the company's investment narrative and long-term growth drivers. Explore 25 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own DoorDash, you need to believe its logistics platform can keep expanding across food, retail, and grocery while managing rising costs and regulatory uncertainty. The latest results show higher sales but lower net income, and the launch of DoorDash Air adds another layer of complexity rather than changing the key near term catalyst, which remains the company’s ability to grow orders profitably without eroding margins. DoorDash Air is the clearest tie to today’s story, because FAA certification gives DoorDash a new, technology driven fulfillment option that could matter for future cost per order and delivery speed. That said, the more immediate investor focus is likely still on how higher operating investments, including drones, interact with share repurchases like the recent US$1,049.03 million buyback, given earnings pressure in the first half of 2026. Yet while DoorDash Air sounds exciting, investors should be aware that regulatory and gig labor risks could still... Read the full narrative on DoorDash (it's free!) DoorDash's narrative projects $26.2 billion revenue and $3.3 billion earnings by 2029. This requires 21.2% yearly revenue growth and about a $2.4 billion earnings increase from $926.0 million today. Uncover how DoorDash's forecasts yield a $245.99 fair value, a 16% upside to its current price. Some of the most optimistic analysts were already assuming revenue near US$30 billion and earnings around US$4.6 billion by 2029, so this drone milestone and higher investment needs might either reinforce their automation thesis or force a rethink of how easily DoorDash can improve margins in practice. Explore 10 other fair value estimates on DoorDash - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your DoorDash research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free DoorDash research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DoorDash's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Capitalize on the AI infrastructure supercycle with our selection of the 57 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The future of work is here. Discover the 39 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DASH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Co-Founder, Chair and Chief Executive Officer - Tony Xu Chief Financial Officer - Ravi Inukonda Operator: Hello, everyone. Thank you for joining us, and welcome to the DoorDash Q2 2026 Earnings Call. [Operator Instructions] I will now hand the call over to Weston Twigg. Please go ahead. Weston Twigg: Thanks, Connor. Good afternoon, everyone, and thanks for joining us for our Q2 2026 Earnings Call. I'm pleased to be joined today by Co-Founder, Chair and CEO Tony Xu; and CFO, Ravi Inukonda. We'll be making forward-looking statements during today's call, including without limitation, our expectations for our business, financial position, operating performance, profitability, our guidance, strategies, capital allocation approach, and broader economic environment. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Many of these uncertainties are described in our SEC filings, including our most recent Form 10-K and 10-Q. You should not rely on forward-looking statements as predictions of future events or performance. We disclaim any obligation to update any forward-looking statements except as required by law. During this call, we will discuss certain non-GAAP financial measures. Information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures may be found in our earnings release, which is available on our Investor Relations website at ir.doordash.com. These non-GAAP measures should be considered in addition to our GAAP results and are not intended to be a substitute for our GAAP results. Finally, this call is being audio webcasted on our Investor Relations website. An audio replay of the call will be available on our website shortly after the call ends. Operator, I'll pass it back to you, and we can take our first question. Operator: [Operator Instructions] The first question comes from Michael Morton of MoffettNathanson. Michael Morton: I wanted to ask about the grocery business as you've talked about improving the unit economics. From our understanding, there are some grocers on the platforms who are -- your platform specifically, who are paying effectively zero or very low take rates, they came on, looking to see as you could drive demand and how well they could work with DoorDash. I was wondering if that's the case and then what the opportunity is to reprice these relationships going forward, maybe pushing some of the affordability burden that's lending on DoorDash right now back to the grocers. Tony Xu: Yes. Michael, it's Tony. I can start and feel free to chime in, Ravi. What I would say is like we see extremely strong performance in our grocery business. It's the fast-growing part of our marketplace business and we have very healthy relationships with all of the partners on the platform. I mean in terms of the economic relationships, I'm not going to really comment about anyone in particular. I mean what I will say is that when you are the fastest grower in the market for them, and you are their source of growth. Put a different way, we might be 100% of the growth that they see in terms of their actual business. You certainly have opportunities to grow your business with them as well as improve your relationships with them. I mean I think if you look at our business as a whole, I think one of the things you see from this quarter, and frankly, I think many of the time periods leading up to now, is that there are many sources of improving economics. We've improving unit economics across all of our categories. We have improving unit economics in our restaurant business, too. We have improving unit economics in our different geographies in which we operate. We have increasing adoption of our DashPass program as well as accelerating growth in our ads business. And I think when you add all of that in, we have a business in which there are many levers in which we can control the kind of financial profile in order to make great investments. Ultimately, we're here always seeking the next best investment. It doesn't mean that we always make those investments. But when we see the opportunity, we're always leaning in, that includes all of the work that we're doing in grocery, which we think there's a long runway as well as all the other opportunities in front of us. Ravi Inukonda: And Mike, just to add, right? like look, I mean, if you take a step back and think about our overall grocery business as well as new verticals, we talked about the fact that we became order volume share leaders in Q4. We've continued to extend that lead. Two, when you look at the underlying growth in MAUs, which is the number of users that use categories outside of restaurants, that number is growing or the frequency is growing. We talked about the fact in the letter that basket sizes are growing. If you look at our historic cohorts, consumers are using us for more use cases, which is driving overall basket sizes higher. Last call, I think I mentioned the fact that we expect our overall new vertical business to be gross profit positive. We're on track for that in the second half of the year. Look, I mean if we think about the business as a whole, we think about retention, order frequency as well as underlying improvement in unit economics and they're all headed in the right direction for us. Operator: The next question is from Mark Mahaney from Evercore ISI. Mark Stephen Mahaney: I'll ask a question about Deliveroo. You've had now 3 quarters in a row of kind of accelerating growth, I think, in orders, yes, and in GOV and then I think in revenue. So just peel that back a little bit there -- how many different opportunities you've had, what you've been able to pull, what you've been able to change in order to deliver that better performance? And it's a little hard to tell, but is it also showing up on the bottom line? Are you able to -- have you been finding ways to improve the profitability of Deliveroo as well. Tony Xu: Hey, It's Tony. I can start. What I would say on Deliveroo it really is a story that probably started way back in 2021, when we first made -- our first large acquisition overseas, which was Wolt -- and we've learned a ton, obviously about building our own U.S. business, and we've learned a lot in terms of how Wolt has operated in different geographies across Europe as well as how to integrate the lessons that we've learned as well as the lessons that maybe don't apply into each one of these local geographies. So what you're seeing in Deliveroo -- I agree with you, Mark, is just accelerating performance, frankly, across the board. And that's super exciting, because I think, a, it's a validation that our integration work is really working and that the lessons that we've learned in building these marketplace businesses around the world do translate into some of these very meaningful geographies and foundational places where we're just seeing, growth in all of our big international markets. And this doesn't even include the majority of benefits that we expect to see once we actually finish all of our work on building a single tech stack. So as that work kind of comes more fully online, towards the beginning of next year, we expect to see even more benefits as time goes on. Ravi Inukonda: And Mark, just to put a final point right? Like when you look at the actual performance of Deliveroo itself, to your point, volume growth or MAU growth or subscription growth, actually, when you look at it on a year-over-year basis, it's been the highest that we've seen in the last couple of years. At the same point, to your second part of your question, we've increased the unit economics as well. But the way in which we're operating the business is very similar, right? We're finding great opportunities to drive investment back in selection. Quality subscription is a big area of focus for us. So we're going to continue to invest back in the business. And my expectation is we'll continue to drive higher top line as well as meet the profitability targets that we set out in the last letter. Operator: The next question is from Nikhil Devnani of Bernstein. Nikhil Devnani: I'll stick with the theme of international. And I guess broadly, there's, I guess, a common perception that international might be lower quality growth, because maybe you're not #1 everywhere or maybe the competitive set now is better funded and more consolidated today, I would love your perspective on that overall sentiment and really how you structurally see the longer-term earnings power or quality of growth out of these international markets relative to the domestic business. And how important is it to have a pure market share number versus more minimum viable scale in these jurisdictions that allow you to then operate well? Tony Xu: Yes. Nikhil, it's Tony. I can start. I think there are a couple of different questions that you're asking. The first is really what do we see happening internationally. Our aspiration is to be the global leader in local commerce. And we think we are best positioned to do that given that we bring the deepest and the broadest portfolio of products in order to serve those audiences. So like you said, it's a game that is played locally. There are no global network effects in these kinds of businesses. And one of the points you raised is the right one where sometimes there isn't an obvious tie between the market position and kind of your economic profile. And that's because it is a minimum viable scale business. That said, though, when I actually look at our current execution, the vast majority of our international business is concentrated in our top 10 markets outside of the U.S. And in those markets, we are the leader or we are a very strong #2 and we're gaining share in all of the markets. Some of these markets include places like the U.K., Italy, Germany, the Nordics, Israel, Canada, I mean, I can keep going, but we like kind of what we see. And it kind of really is a follow-on to the previous question, where Ravi was talking about how we're making improvements fundamentally to the actual core propositions to all the audiences. We're making -- we're offering wider selection, better prices, better quality of delivery in terms of reliability, accuracy and speed, and we're improving our customer service. And so whenever I see that, and I also see the opportunity for the runway to bring our portfolio of B2B products, which have done really well in the U.S. but even have more opportunity outside of the U.S., just given the more nascent development of digital technologies in the restaurant and retail categories overseas, I mean, I just think the potential is very, very big. Ravi Inukonda: And Nikhil, I mean, the results are pretty clear, right? We've talked about the fact that on Deliveroo side, I mean, the growth is accelerating. In fact, when you look at the underlying cohorts, the growth is some of the highest that we've seen over the last couple of years. Even outside of that, when I look at the portfolio, excluding ROO, we are growing, MAUs are growing, the order frequency is growing. Wolt+ in fact, our subscription program in Wolt had one of the best quarters, which is a record quarter in terms of overall paid subscriber growth. At the same point, it's not just purely about growth for us, right? Like we are improving the unit economics, not just across ROO, but across Wolt as well. When you look at whether it's gross profit or contribution, both of them have continued to improve on a year-over-year basis. Operator: The next question is from Deepak Mathivanan from Cantor Fitzgerald. Deepak Mathivanan: Great. Tony, last month, Andy Fang talked with Boris at Claude about how Dash is aiming to translate AI spend into outcomes somewhat closer to the business metrics now, while also letting employees to experiment aggressively with AI tools. Can you talk about where you're seeing this attribution clearly now? And how we should broadly think about AI spend at Dash over the next 12 to 18 months? And then maybe, one for you, Ravi. U.S. restaurant GOV acceleration. Can you expand on the drivers of the growth? I know weather was disruptive last quarter, but you also had factors like World Cup. Curious if you can talk a little bit more about the factors of acceleration in Q2. Tony Xu: Yes, sure. On the AI question, Deepak, I would say a couple of things. The first thing is we want to make sure that our -- any technology that we meet, whether it's AI or frankly, anything else, that it's actually rooted in delivering a better customer experience. Because if it's not, I'm not exactly sure what problem we're actually trying to solve. And I don't think it makes sense to just play with the technology for the technology's sake. And so when you look at some of the things that we've seen success, for example, one of the more recent products we launched was called DoorDash Ask, which is an ordering agent that helps customers discover restaurants that are similar to ones that they've ordered in the past, but that are new to them, that helps them build a grocery cart in under 2 minutes. So really solving actual pain points that we see in using an increasingly larger and more diversified marketplace. That's one example. On the merchant side, we've seen automation in building catalogs for retailers or menus for restaurants, which includes all of the photos, the metadata around all of the different SKUs and items so that we can actually onboard a merchant faster in order to get same-store sales growth. For Dashers, we're seeing improvements in routing as well as how we can help Dashers find the best areas to Dash. Those are some examples of how we actually have applied AI in a way that is actually meaningful in terms of driving customer outcomes, which ultimately deliver business results. The other thing that we've done is kind of with all things at DoorDash, we care as much about how we do it in order to be efficient as we do about allowing some degree of inefficiency towards invention. And we built a lot of tools, the tools like DashBench and other systems internally that allow us to model the appropriate tools and give those tools to be used for the right level of token spend or intelligence required. And so I think those are some of the things in which we found ourselves -- that's kind of our approach in terms of how we've applied it towards AI or frankly, any technology. It's why we're excited to keep going and lean in, in a way that I think is disciplined on the one hand, but on the other hand, allows us to bring real customer benefits. Ravi Inukonda: Deepak, on your second question around restaurant growth, I mean, restaurant growth was quite strong in the quarter, if you look at it. In fact, growth accelerated from Q1 to Q2. A lot of the growth is coming from just increase in DashPass subscribers. A couple of points, right? We wrote in the letter as well. We added more number of DashPass subscribers in the last year compared to the 2 prior years. Number two, when I look at the paid subscriber growth in DashPass, it was one of the highest that we've seen in the last couple of years. A lot of that is the underlying product continuing to get better. A lot of that is the increased investment that we made in selection as well as quality. In fact, if you look at mature cohorts, they're continuing to engage higher than what we've seen before. New consumers continue to be quite strong as well. Ultimately, all of this is driving the growth that you're seeing in restaurants. And what I will also say is if you think about Q2 of last year, it was unusually strong for us. So comping against what was a strong Q2 of last year and still putting up the strong numbers in Q2, that's a true testament to, a, the demand that we're seeing in the business as well as the underlying improvements in product. Operator: The next question is from Dominic Ball of Rothschild & Co Redburn. Dominic Ball: Interesting commentary about kind of investing more in merchant services and software. I think it's somewhat well known that DoorDash has been testing its POS product in a few markets in the U.S., with both SMBs and enterprise restaurants. So would just love to know about how these test trials are going, what products and features are kind of resonating? What is kind of driving some restaurants maybe choosing to use DoorDash here? And then how do we think about a potential more broader commercial launch going forward? Tony Xu: Our vision is to be the best partner to every local business. That probably is pretty clear from the mission since day 1. And the way we do this is that we want to give every business the same tools that we built for ourselves so that they can grow their digital business. So if you think about what that looks like, I mean, we kind of play in this ecosystem where we have at least three offerings today, right? We have our marketplace. We have tools to help build the digital businesses of restaurants and retailers. In fact, that business serves over 150,000 businesses and has grown 40% year-over-year in the quarter. And then more recently, we've introduced products that actually drive customers inside the store. Some of these products include going out as well as reservations. And then on the business side, it includes SevenRooms, which is a company that we acquired about a year ago. And when I think about what this ecosystem allows us to do, I mean, it allows us to help customers build their relationships with the local businesses and ideally forge regulars for each one of these local businesses. And the reason why we can do this is because we have the biggest scale as well as the deepest customer datasets to allow us to actually drive this engagement. For example, a customer may start by ordering delivery from the DoorDash app and then perhaps, they sign up for a loyalty program on a merchant's first-party channel, something that we've built for them. And when it makes sense, both DoorDash and the merchant can incentivize the customer to go inside the store or go inside the restaurant and actually have a meal. And so when you think about the interaction effects here, what we really are able to do is be the best growth partner for all these businesses, and for consumers, give them the most choice in terms of how they actually want to interact with all these businesses. I think the proof points we kind of highlighted in our quarterly update are really, really strong, and we think that this ecosystem is one that has a very long runway. Operator: The next question is from Jason Helfstein of Oppenheimer. Jason Helfstein: So just two questions. One, can you -- you talked a little bit about Dot deliveries in the release. I guess anything you want to share on how you're thinking about unit economics kind of like today versus where we think it goes long term and how you think that impacts demand around elasticity? And then is it possible to share the AOV for the most recent period in the chart on Page 3, where you're comparing the restaurant versus the grocery and retail? Tony Xu: Sure. Maybe I can start with the question on Dot and then Ravi, feel free to chime in on the second question. I would say a few things about DoorDash Dot. The overall vision for autonomous delivery, at least at DoorDash, is that we want to offer AVs throughout the network so that we can deliver the best service to customers. The best service could be the fastest delivery, the most affordable delivery, delivery from the widest selection, including from very faraway places. And I would say that the real secret sauce or the magic that we've learned in building DoorDash Dot is that it's really the complexity of marrying the operations with the technology that actually allows you to even have a chance at delivering scaled autonomous delivery. To put in a different way, DoorDash Dot, or any AV, for that matter alone will not make autonomous deliveries actually scale, certainly not at any level of meaningful penetration for customers. I mean, at the end of the day, you have to solve very challenging operational problems in the physical world. You have to solve the loading problem at the merchant, you have to estimate merchant prep times in the case of restaurants or inventory levels in the case of retailers and grocery stores. You got to solve for difficult drop-off issues like perhaps a doorman inside of a high-rise building or a complicated gate entry in an apartment unit. These are all of the issues that we've encountered and are candidly, like maybe 1/1,000 of the issues that we've encountered in building DoorDash Dot in our test markets. And so I think to get to the milestone that we have today with Dot where we have meaningful scale in our test market has been a huge accomplishment by the team. And it gives us confidence that you can actually truly scale autonomous delivery if you both can master the operations and the technology. And that's why I think we're in the best position to do it because we run the network. And we're also building the technology ourselves, which gives us the lowest level of detailed understanding of how to actually make this happen. And it doesn't mean that we have to build everything. I mean we actually -- whether it's by land or by air, we have a variety of partners that we interact with. And for everyone, we kind of solve all of the challenging operational problems for them, and we do that through our autonomous delivery platform. So for a merchant, you can take your existing DoorDash integration and you get access to any and all AVs. And for customers, you're going to, actually, one day, get the benefit of these technologies. And with respect to the cost profile, we're very excited by what we see. I mean it's exponential progress. But I think that the first milestone for us has really been, can you actually commercialize this in a way that you've seen certain robotaxi providers like Waymo actually do it with rideshare, we've been able to now do it with delivery. Ravi Inukonda: Jason, it's Ravi. On the second point, right, let me start with what we're seeing in the business. Look, as we continue to operate and expand our new verticals in grocery business, what you're seeing is as the product is getting better, the basket sizes are increasing. This was what we had originally expected, which is as we add more selection, as the quality of the product continues to get better, you would have customers use us for more use cases, which will ultimately drive the basket sizes to be higher. We're seeing that in older cohorts. We're seeing that in newer cohorts, which is visible overall in the business as well. But let me actually take a step back and walk you through what our thesis was and why we put the second chart in the letter. Look, our core thesis was twofold. One is we knew that as customers and consumers habituate on the platform, they will spend more with us. They'll spend more with us on the restaurants business. They'll adopt newer categories. They'll spend more with us on the new verticals business. The example that we took in that chart was one of our older cohorts, which is largely representative actually of the other cohorts that we see in the business, where consumer spend on restaurants is increasing, consumer spend on new verticals is increasing. And at the same time, DashPass penetration is increasing. And if you think about it, right, this is almost like a self-reinforcing loop where the product gets better, consumers adopt and habituate to DashPass. As they adopt DashPass, they continue to use the product more, which ultimately leads to more growth as well as more profit dollars in the system. This has largely been the focus for us, and that's largely what you're seeing in the underlying cohort. And we're very pleased with the performance of that in the underlying business. Operator: The next question is from Shweta Khajuria of Wolfe Research. Shweta Khajuria: Let me try two, please. First is on the DashMart Fulfillment Services since your launch and since working with a handful of partners, I understand, what have you learned so far that you could potentially quantify or some sort of tangible learnings that you could share, whether it is on the magnitude of customer experience improvement or something else? And then what metrics do you look at to be able to make that decision to scale DashMart Fulfillment Services? And then the second question is just overall EBITDA growth, where now we are in the back half of this year and in the light of investments this year, but more importantly, as we think about balancing growth and top line growth and EBITDA growth, Ravi, how are you thinking about that as we think about the demand trends that you see right now and balancing growth with profitability? Tony Xu: I can start by answering about DashMart Fulfillment Services. To state the obvious, we want every local business to be successful in their local communities. And that's true in every category from restaurants to grocery to retail. And one of the things that we learned 5 years ago when we launched our grocery business, even though it's going so well, and we're helping lots of grocers compete, is that there's this structural challenge with grocery delivery where grocers don't know their inventory. In some ways, it's almost impossible for a whole host of reasons, one of which is because consumers come in and they move things around. And so it's a very difficult proposition then to offer customers a use case where you're asking them to pay a premium for delivery, but they don't get exactly what they ordered. So our solution to this is DashMart Fulfillment Services, where we are managing warehouses where we control the inventory and sell exactly what's in stock so that we can actually offer near perfect accuracy and give customers the selection that they want from any place inside the city and also very, very quickly. And so in terms of what we've seen so far since our announcement last fall and the launch that we've had with several partners, is we're seeing lots of incremental demand because these warehouses are running near 24/7. If you compare that to traditional store operating hours, that's a dramatic increase in TAM as well as really just solving the needs of customers because customers sometimes don't get freed up until maybe after store closing hours before they can think about the next day or planning their groceries or their shopping needs. So we're seeing lots of incremental demand. And we're also seeing 10x better error rates because we're running the inventory. And as a result, we're selling customers exactly -- the customers are getting exactly what they ordered, and we're selling them exactly what's actually in stock. And so all the signs right now are really positive for us to scale DashMart Fulfillment Services. But look, this is complicated. I mean this is building physical infrastructure. You're obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. But you can imagine a world in which these warehouses can power all of the needs inside of the city. And you can -- what you can really do when you do something like that is you can really unlock the amount of selection available to customers because today, I would say DoorDash is delivering probably 1/10 in most cities, the available selection in terms of retail and grocery and the like. And so we can actually build this capability and do it in concert with all of the great retail and grocery selection inside of the city, I think customers get the best product. They get all the selection that they want at perfect quality very quickly. Ravi Inukonda: And so, to your second question around -- look, I mean, trying to balance both growth as well as profitability, right? You asked about the demand trends. Look, when I look at the underlying business, the demand trends continue to be quite strong. I mean, as you know, we focus and spend a lot of our time on cohorts. MAUs, when I look across the board, they have hit all-time highs. Subscription, I talked about the fact that both domestically and internationally, those are one of our best quarters in the sense that subscription continues to be at record highs. Restaurant growth accelerated. [ Deliveroo ] continues to do quite well. Overall, when I look at the underlying improvements in the product, that's driving the improvements that you're seeing both from retention as well as order frequency. At the same point, I mean, look, I mean, the quarter was very strong from an underlying profitability perspective as well. A lot of that is because the underlying unit economics continue to improve. For us, the philosophy has always been the same, right? We're consistently trying to improve efficiency. There's many sources across the board, whether it's sales and marketing, fixed costs up and down the P&L. And our goal is to consistently reinvest back in the business. Look, we talked about the fact that we're investing back into the business and building product, some of which we've talked about earlier on the call, whether it's autonomy, unification of the global tech stack or investing back in merchant services, all of those are going well. They're all going on budget and on plan according to what I had estimated a couple of quarters ago. These will increase the surface area. Ultimately, the goal for us is to continue to drive both growth as well as profit dollars. As long as we make the product better, what we're seeing in the business is we're able to do both, right? This is how we think about balancing both growth as well as profit dollar production in our business. Operator: The next question is from Josh Beck of Raymond James. Josh Beck: I had maybe a product-oriented question. So on Dot getting to high single digit within a market by the end of the year, could you give us maybe like some characteristics? Is this because it's maybe more of a longer route suburb type of market? And if you were to maybe add in all of the different modalities between maybe sidewalk, pathway, drones, autonomous vehicles, is there some type of ceiling that you have in your mind in terms of maybe the percentage of orders that could be filled through autonomous? And then just secondarily on the AI assistant, obviously, lots of attractive characteristics, discovery, basket, et cetera. Curious if there's been other observations with respect to better frequency of these customers? I'm curious on maybe what you have to say about ad monetization. It seems like maybe time spent could be less, but conversion could be better. So just curious on those two topics. Tony Xu: All right. I think you had like maybe seven or eight questions in there, Josh, but I'll do my best. Look, on DoorDash Dot, it is a representative DoorDash market. We're testing in Phoenix. And so -- and we're testing it with real scale now, which is -- like it's a real accomplishment when you think about -- these are not demos, these are not prototypes. There are no fixed routes. This is real life, and this is real life for tens of thousands of customers that are receiving real deliveries. And so that's very exciting. It's also very challenging. I mentioned maybe five or six issues that might be literally 1/1000 the number of issues that you have to solve to actually have a chance of making autonomous deliveries actually happen. And that's true whether you're doing it by land, and it's also true whether you're doing it by air. I mean we've seen this with DoorDash Air as well in addition to all the partners that we test with and bring our scale to. And so what I would say is the -- what's going to determine the ceiling or the penetration of autonomous delivery is whether or not you can master both the operations and the technology. And I believe we're best positioned to do that because we're actually doing both in-house. And so we are getting to the lowest level of detail, chopping down the very heavy wood of every issue that exists in the real world, that exists in every single restaurant, retailer on the road. I mean, Dot travels road, sidewalk and bike lane. It's the only vehicle in the world to do that autonomously. And there's a lot of challenges when you actually try to take on that multimodality. And one of the interesting things, perhaps the most interesting thing of what we're building with autonomy is this autonomous delivery platform. You can think of this as the brains that actually makes it all happen, that deciphers which vehicles go to which orders, that decides whether you have a mixed route, where you have human dashers as part of the legs of the journey and autonomous vehicles on other parts of the journey, that looks into the configuration of the package size and the package design and the package weight. And there's a lot of complexity. But all of that gets reduced and kind of goes and disappears because we kind of handle it through our autonomous delivery platform so that merchants get the same integration that they have with DoorDash today. They don't have to change a single thing about their workflow, and customers just get access to the benefits of autonomous delivery, which will be, in the future, speed, cost, and more selection. And so I think that's going to be really, really, really exciting. And again, like, it's really going to be the execution that determines the ceiling. I think we're best suited for that execution. I think your second question is on the AI assistant. I mean the short answer is, of course, if you're -- whenever you're making -- whenever you're reducing friction in a product, you get more usage. So if we're making it easier to build a grocery cart, you get more grocery carts, and you get bigger grocery carts. And it doesn't change at all the ads profile or anything else. If anything, you actually get just more incremental orders and more incremental opportunities because people order more often. The same thing is true about ordering restaurants. If you now discover that there's something slightly healthier or faster or cheaper or just better or different from what you typically order, then you tend to order more often and possibly for more use cases. We eat 20 to 25 times a week. And DoorDash only touches a fraction of that. And that is really the runway we have. When I think about the number of meal occasions and shopping needs on top of that, it's north of 100 per month. And so we have a lot of shots on goal that we can go capture. And if we just reduce the friction of actually ordering and then master and continue to master the operations of fulfillment, all of the metrics will go in the right direction. Operator: The next question is from Youssef Squali of Truist Securities. Youssef Squali: So guys, I just want to double-click on the margin question again. Can you -- Ravi, can you maybe just talk about the drivers for the material beat in adjusted EBITDA in Q2? It came quite a bit outside of the guidance range. More recently, you guys have been guiding to, at some point, hit somewhere in the midpoint. This one is dramatically higher. Were there any investments that got pushed back into Q3 and then Q4? And then are we still tracking to show higher year-on-year adjusted EBITDA margin for 2026 ex Deliveroo? Ravi Inukonda: Youssef, let me take that, right? Like look, at the highest level, what I would say is the core restaurant business continues to perform on all cylinders. Growth, like I said on Deepak's question, right, like growth accelerated, unit economics continue to improve. New verticals growing much faster than our restaurants business as well as it's on track to being gross profit positive by the end of the year. International continues to do well. We've talked about some of the strength that you're seeing in Deliveroo as well as the beat on unit economics there. More specifically, what we saw in the quarter was the unit economic improvement came in ahead of our expectations, specifically in a couple of areas. Ads was one of them, subtotal was the other one. But in the second half of the quarter, those unit economics came in slightly ahead of what we had expected. In addition, ROO beat our own internal volume expectations, ROO's contribution profit positive. That led to some of the upside that you're seeing in the business. But look, I mean, more broadly, what I would say is our philosophy in how we operate the business, that is not changing. Look, it's a very tightly managed business. There's a lot of levers that we control up and down the P&L. What we're consistently trying to do is try to find sources of efficiency. Like I said earlier, there's many sources of efficiency that we work on and take those and reinvest that back in the business. We're not trying to optimize the last dollar from one quarter to the next. Look, our focus has always been on how do you build a large, durable business over time while continuing to increase the overall profit dollar production. To your second point, look, I mean, our focus has always been on landing inside the range. And if you're thinking about the second half from a margin perspective, I would expect us to land inside the range of the guidance that we've given in Q3. There are going to be times like in Q2, where the EBITDA beat comes in later in the quarter. In those times, we just don't have enough time to reinvest back in the business, especially at the levels of efficiency that we desire. Q2 was one of those quarters where we're happy to drop it to the bottom line. Operator: The next question is from Ross Sandler of Barclays. Ross Sandler: Just a quick follow-up on the AV and then I had a question about the charts in the letter. So Tony, I think you have a few hundred robots in Phoenix. How quickly is the plan to kind of bring this to other cities? That's the first question. And then on those charts, we love the DoorDash charts. But I'm guessing if Uber were to put together their sub penetration relative to gross profit, it would probably look kind of the same for their leading markets. So are there examples of like cities or countries that you are kind of demonstrating the same trend as the U.S., but you've either come from behind or you've kind of come like head-to-head and overtaken one of your competitors on DashPass or Wolt penetration for subscribers? Tony Xu: Sure. I can start on the AV question. Yes, I mean, we're very excited about what's happening in Phoenix. But like as I mentioned, I mean, there's a lot we got to go figure out. And I'm a big believer that you really have to nail something before you scale it, especially in the area of autonomy where you're really solving like the problems of like six separate individual companies, almost, and you kind of have to be great at all of them. And it's this tightly orchestration, again, between the operations and the technology. I can't stress that enough because that is the name of the game. I think just doing one or the other is not going to get it done. And so there's a lot of work to be done. We are in parallel, of course, securing permits because we work with cities to actually unlock a lot of this. And we do have plans to expand. We'll share certainly more as time comes, but we thought that would be helpful to offer just one milestone that we've accomplished and are excited about. But look, the road ahead for AV is very exciting, but it's going to take time. And mostly, it's going to take great execution between the operations and the technology, and that's what we're most excited about. Ravi Inukonda: Ross, on your second point, right, let me take a step back and talk about subscription more broadly. I mean if you think about subscription, it's been a key area of focus for us for the past couple of years. Subscription continues to do well. Whether it's subscribers in the U.S. or international, the growth rate are some of the highest that we've seen in the last couple of years. And the whole thesis for us was as DashPass penetration continues to increase, overall gross profit per MAU continues to increase. And I look at the penetration levels, we're still very, very early. We're seeing similar behavior in the international markets compared to what we see in the U.S., albeit some of the international countries are slightly behind because we launched subscriptions slightly later than what we did in the U.S. And for specific examples, right, I'm going to talk about some of the examples on Deliveroo. Look, if you're thinking about the U.K. market, we are gaining share. We're one of the fastest growing in that market. We're accelerating growth. We're accelerating paid subscriber growth, volume growth compared to what we've seen in the last couple of years. Even outside of Deliveroo, when you look at some of the countries that we operate in Wolt, in majority of the countries that we operate, we're continuing to gain share. And the key thing for us is we're not just looking at share gains. We're looking at what the order rate improvements are. We look at either the 3 months or the 6 months, we have continued to improve order rates. At the same point, across both Deliveroo as well as Wolt, it's been a way for us to drive efficient growth, where when you look at the unit economics either on a year-over-year basis or over the last couple of years, we've done a pretty good job of improving that. Net-net, I mean, look, we've talked about some of the countries before, right, whether it's U.K., Israel or some of the other markets, we're continuing to do really well in terms of overall share gain as well as the underlying improvements in core metrics. Operator: The next question is from the line of Brian Nowak with Morgan Stanley. Brian Nowak: I want to ask more about the global tech stack and sort of the unification of the global tech stack. So now that you've got the tech stack sort of built as of the spring, I know you've been testing a lot of modules and new capabilities. Can you give us some examples where you're seeing early signal with actual quantifiable benefits of the new modules that give you confidence you're going to get real return and ROIC on these investments as we go into 2027? Tony Xu: Sure. Brian, I mean, I would say we're still building the way you build these single tech stacks, it's not like -- I mean, the better analogy is it's not like a LEGO project where there's like a finishing step in the instruction manual. It's more like you're constantly -- well, first, you have to like replace an engine while you're flying a plane that's growing in speed and climbing in an altitude and then you're constantly making tweaks. That's probably the more appropriate analogy. But we're doing it. And where are we seeing benefits? I mean, a lot of places already. I mean you're seeing conversion wins from improvements in search. You're seeing wins in automation in terms of our customer support flows and by bringing things from one place that was more automated to another place that was less automated. The theme really is what we're trying to do and why there's a thesis for a return here is because you're taking the best-of-breed feature and literally offering it to all of our 41 markets. And so this is not like taking one stack and then just like copy and pasting everything into all of the brands. It's actually literally taking the best of each and then putting it into a completely new engine, and then running -- and it's like building a new company. And so -- and that's why it's really hard. And candidly, it's not something that you would do if you do not believe more in the future than you did in the past. And that doesn't even take into account the velocity benefits after you complete the project where if you were to ship once from an infrastructure perspective, that it actually gets shipped everywhere. Operator: The next question comes from the line of Ronald Josey of Citigroup. Ronald Josey: I wanted to go back to the gross profit and DashPass chart that we have in the letter here. And so some of the lines more recently are steepening for both, which is tracking all the trends that we saw. So I'd love to hear more maybe, Tony, on just the plans or strategies to continue adding value to the program and the push and pull what that value does to overall gross profit. And then more recently, I think the company launched newer or greater fees for larger delivery radiuses. Just talk to us about the reasoning for those fees and the benefits? Ravi Inukonda: Ron, let me take a stab at both of those, right? Like look, subscription continues to do well. Our thesis has always been as consumers habituate and we graduate them to DashPass, their overall value proposition from not just a gross profit, but order frequency as well as retention goes up. And the example that we put in the chart was largely a Jan 2021 cohort, and we wanted to use that because it was sufficiently old enough where you could actually see the trends. Also, it's largely representative of what we see in the other cohorts in the rest of the portfolio as well. Where what we see is as consumers order more with us, as they retain more, they graduate to DashPass. And as they graduate to DashPass, they continue to spend more with us. And we're seeing that not just in the older cohorts, but in some of the newer cohorts as well, which is ultimately leading to some of the growth that you're seeing in DashPass, right? I talked about the fact that in U.S. in DashPass Q2, the growth rate in terms of paid subscribers was one of the highest that we've seen probably in the last 2 years. We added more number of paid subscribers in the last year compared to the 2 prior years. A lot of that is because the underlying product continues to get better, right? Now if you're on DashPass, you get to access retail, grocery, other categories, which ultimately drives more value to DashPass subscribers. The way we increase the value proposition of DashPass, to your question, is making the underlying product better, right? It's more selection, making the quality of the product better, continue to drive affordability. And when we do that, we see clear improvements in both adoption of DashPass as well as the engagement from a DashPass perspective. And your second point, look, I mean, if you think about the new fee service that we talked about last couple of weeks ago, look, it's largely a realignment of consumers, what they pay, compared to the time and effort that Dashers have put in a delivery. If you're thinking about it from like an impact to the P&L perspective, I wouldn't think of it that way. Based on what we've seen in the market so far, the fee is largely similar or slightly less actually for the vast majority of the orders. I wouldn't expect it to be a massive impact, especially in the market that we've launched it so far. Operator: The next question is from the line of Justin Post of Bank of America. Justin Post: Just wondering if you can give us any agentic traffic update, if you're seeing any traffic from there. And then given your huge merchant scale, are there ways where you could really capitalize on that traffic as they roll out booking capabilities and maybe even lower your marketing costs? Tony Xu: Justin, I'll take that one and feel free to add, Ravi. I mean what I'd say, in short, is no, the volume is quite low, I think, from some of the agentic partners that we've been testing with. But it also isn't that surprising, I think, for a couple of reasons. I think, first, I think especially for some of the larger platforms out there, their core focus has been on the enterprise and much less, especially in coding agents and probably less on the agentic side. But the second thing is just structurally speaking, if you look at it from a consumer's perspective, consumers don't really care what you call this thing, whether you call it agentic flows and pre-agentic flows, post-agentic flows. They honestly just care about getting their burrito or their pair of Nike or their stock of weekly groceries. That's what they care about. And at the end of the day, what that means is they care about the end-to-end experience, right? And so if you think about it, we're effectively the only place that can offer that, whether that starts by knowing where all the inventory sits, what's in stock, what's not in stock, obviously, managing the logistics at both the merchant as well as a drop-off and then, of course, solving exception handling when things were to go awry if there's the wrong item or the wrong promotion applied to an item. I think these are all the details you kind of have to get right if you want to do agentic commerce for our category. And that's just not something that I think a lot of people are doing. But we're kind of filling the void, right? It's why DoorDash launched DoorDash Ask, where we effectively are solving that. But we're still very open, very excited to test all sources of incremental traffic, which is what we believe can happen. It's something I said probably 5 years ago, is that in the business world, this is 2021, I was forecasting that there would be two big wars that would occur. One is kind of the battle for attention, and you see that playing out with chat assistants and other types of more powerful assistants now. And then the other is kind of the battle for atoms. And I do think that the two services will come and partner with one another. And our focus is squarely on making sure that we master the physical world so we can be the most useful to all these digital assistants when they kind of come around to focus on agentic commerce that will be willing partners and grow together. Operator: The next question is from the line of Doug Anmuth of JPMorgan. Douglas Anmuth: I know you don't manage for take rate, but I just wanted to get a little bit more color just on net revenue margin and the pickup that you saw kind of in 2Q. Just trying to understand some of the drivers there in terms of how much might have been Deliveroo contribution versus advertising and fee changes and how you think about that going forward? Ravi Inukonda: Doug, let me take that one. Look, I mean, you're right. I mean we're not operating the business towards a take rate or net revenue margin percentage. Our goal has been always to optimize for overall profit dollars. And as you can see, a pretty strong quarter from that perspective as well as the Q3 guide. Look, lots of moving parts within the take rate. The Q-on-Q increase, which is what I think you're referring to, is largely from Dasher. Look, Dasher costs are seasonal for us. When you go from Q1 to Q2, Dasher costs are lower in Q2. That's what gave rise to sort of the tick up in take rate that you saw from Q1 to Q2. And if you're thinking about from a modeling perspective, what I would expect for the rest of the year, I'd expect take rate to slightly be in the similar range in Q3, so flattish from Q2 to Q3, and lower in Q4. Again, as a reminder, I mentioned this before, Q4 Dasher costs are higher for us. That will impact take rates. So you should expect Q4 take rate to be slightly lower than where Q3 is. But net-net, look, I mean, the goal for us is not to manage to a specific line in the P&L, especially the take rate percentage. Our goal is to invest flexibly up and down the P&L. Operator: The next question is from the line of Tom Champion of Piper Sandler. Thomas Champion: Ravi, I'd just be curious about your big picture view on AI spending and the ROI that you're seeing. And I'm curious if it's impacted your future hiring plans at all. Ravi Inukonda: Sure. I mean I think -- let me start with -- I mean, it's not just purely about driving cost efficiency for us, right? Like we said earlier on the call, look, we are encouraging our teams to use AI across the board. For us, ultimately, the goal is how do you build better products for customers, which will ultimately drive both growth as well as overall profit dollars. Ask was one of the examples in which we're driving benefit to customers. We've done similar things on both merchant side where we're helping merchants onboard faster. On the Dasher side, we build conversational bots where Dashers, if they're stuck, they can actually chat with the agent to help themselves get unstuck. At the same point, look, we're seeing productivity gains across the board. Internally, we're using it in sales, accounting, marketing, finance as well. The goal for us has always been it's not just purely about encouraging the usage, how do you actually drive efficiency as well. We've taken a number of steps. We've built models where internally, the tasks are routed to the right model, depending on what the actual cost, quality and efficiency is. We've put caps in place. We've also incorporated some of the AI budgets into teams' existing budgets. Look, we are seeing gains from the usage of AI. The sharper question for us is how do you take the efficiency gains and reinvest that back in the business. Look, we are investing in building some large areas, right? We've talked about autonomy. We've talked about AI. We've talked about the unification of the tech stack. These are all areas where we think it's going to be strong long-term ROI for us. The goal for us is how do you take the efficiency gains, whether it's AI or any other part of the P&L. But the philosophy is the same, right? How do you reinvest that back in the business ultimately to build scale and durability over a longer period of time, which leads to higher overall free cash flow production. That's largely how we're thinking about the efficiency gains, but we are happy with what we're seeing in the business today. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in DoorDash, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DoorDash wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends DoorDash. The Motley Fool has a disclosure policy. DoorDash (DASH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Natural Grocers by Vitamin Cottage, Inc.? Here are five stocks we like better. Sales improved but profitability weakened: Third-quarter net sales rose 1.8% to $334.7 million, with comparable-store sales growth accelerating to 1.2%. Net income fell to $11.1 million from $11.6 million, while adjusted EBITDA declined 7.6% amid lower product margins, higher shrink and freight costs. Expansion and digital initiatives continued: Natural Grocers opened three stores during the quarter, including its first Wisconsin location, and remains focused on 4%–5% annual unit growth. It also launched DoorDash delivery, plans to add loyalty integration and is phasing in curbside pickup. Fiscal 2026 guidance was narrowed: The company now expects six to seven new stores, 1.5%–2% comparable-store sales growth and diluted EPS of $2.07–$2.11. Capital expenditure guidance remained unchanged at $45 million–$50 million. Analysts' Top 3 Retail Picks Gearing Up for a Strong 2025 Natural Grocers by Vitamin Cottage (NYSE:NGVC) reported a 1.8% increase in third-quarter fiscal 2026 net sales to $334.7 million, as comparable-store sales growth accelerated sequentially despite what management described as a challenging consumer environment. Daily average comparable-store sales rose 1.2% in the quarter, improving from 0.5% growth in the second quarter. The gain reflected a 3.1% increase in basket size, partly offset by a 1.8% decline in transaction count. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chairman and Co-President Kemper Isely said the company continued to see consumer focus on value amid economic uncertainty. He also pointed to continued membership growth in its {N}power Rewards loyalty program. Sales penetration from members increased two percentage points from a year earlier to 84% of sales, while member engagement produced growth in sales, traffic and basket size, according to the company. “As the value leader in natural and organic grocery retail, we continue to emphasize our always affordable pricing,” Isely said, citing the company’s Even More Affordable campaign for rotating everyday staples and Natural Grocers Brand products. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Third-quarter net income was $11.1 million, or $0.48 per diluted share, compared with $11.6 million, or $0.50 per diluted share, in the prior-year quarter. Adjusted EBITDA declined 7.6% to $22.5 million. Gross margin decreased 60 basis points from the prior year to 29.3%. Chief Financial Officer Richard Hallé attributed the decline primarily to lower product margin from an unfavorable sales mix, along with higher inventory shrink and freight expenses. → No Hangover: Revisiting Microsoft One Week After Earnings Hallé said year-over-year comparisons were affected by a cybersecurity incident involving the company’s primary distributor in the third quarter of fiscal 2025. He also said elevated shrink partly reflected temporary operational effects from an enterprise resource planning system upgrade completed during the previous quarter. Administrative expenses fell to $9.5 million from $10.9 million a year earlier. The current-quarter result included a $2 million business-interruption insurance recovery related to the distributor cybersecurity incident in June and July 2025. Pre-opening expenses increased $1.3 million year over year as the company accelerated store openings. Management said those costs reduced diluted earnings per share by about $0.04 during the quarter and are expected to represent $0.08 of full-year earnings per share. Natural Grocers ended the quarter with $17.5 million in cash and cash equivalents, no outstanding borrowings under its credit facility, and $67.3 million available under its revolving credit facility. For the first nine months of fiscal 2026, cash from operations totaled $55.1 million, while net capital expenditures were $40.3 million, resulting in free cash flow of $14.8 million. The company opened three stores during the third quarter, including its first location in Wisconsin, and relocated one store. It has opened six stores so far in fiscal 2026, including two openings in July, and expects to open one additional store in the fourth quarter. Isely said all six fiscal-year-to-date openings, along with the two stores opened last year, ranked among the company’s strongest opening-day sales performances. In response to an analyst question, he said the Wisconsin store initially set a company record for opening-day sales before a subsequent opening in Rapid City, South Dakota, surpassed it. Management continues to target annual unit growth of 4% to 5% for the foreseeable future. The company also launched a DoorDash partnership in mid-July, providing delivery access across its store base with in-store pricing on DoorDash orders. Later in August, Natural Grocers expects to integrate {N}power Rewards into DoorDash and enhance online shopping through its website. The company plans to phase in curbside pickup across all stores in coming months. It also continues to work with Instacart for delivery and pickup at select locations. Natural Grocers refined several components of its fiscal 2026 guidance while maintaining its capital expenditure outlook. The company now expects: Six to seven new store openings, compared with its prior forecast for six to eight openings. Two store relocations or remodels, compared with a previous expectation of two to three. Daily average comparable-store sales growth of 1.5% to 2%, narrowing the prior 1.5% to 2.5% range. Diluted earnings per share of $2.07 to $2.11, compared with prior guidance of $2.07 to $2.15. Capital expenditures of $45 million to $50 million, unchanged from previous guidance. Hallé said the company will close stores on Labor Day, resulting in one fewer selling day in the fourth quarter than in the prior year. Management expects most sales that would have occurred on the holiday to shift to adjacent days. During the question-and-answer session, Isely said the company had not seen significant customer trading down to lower-quality products, arguing that its assortment already emphasizes high-quality products at affordable prices. He said management views the gross-margin pressure as isolated to the third quarter because of unusual comparison factors. Isely also said the company’s most loyal customers have remained loyal, while some more marginal customers may have pulled back because of household expenses such as gasoline, heating and air conditioning. He said the company believes growing consumer interest in health and wellness could support longer-term demand. Natural Grocers by Vitamin Cottage, Inc operates a chain of specialty grocery stores focused on natural and organic products. Founded in 1955 by Margaret and Philip Isely in Lakewood, Colorado, the company has built a reputation on strict product standards, including certified organic produce, non-GMO groceries and dietary supplements. Natural Grocers emphasizes whole, unprocessed foods and carries a broad assortment of private-label and national brands that meet its quality guidelines. The company's core offerings include fresh fruits and vegetables, bulk foods, vitamins, minerals and nutritional supplements, as well as natural body care and household items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Natural Grocers by Vitamin Cottage Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is materially reducing full-year revenue guidance following a reversal in Uber delivery volume growth, attributed to misaligned views on fleet coordination and merchant integration models. The company intends to let the Uber agreement expire in early 2027 unless the operating model improves, choosing to reallocate resources toward partnerships with higher utilization potential and better unit economics. Operational performance remains strong in other channels, evidenced by a 50% sequential growth in DoorDash deliveries and the continued expansion of the hospital robotics business. Management attributes the Q2 revenue miss to the removal of a substantial expected future ramp with Uber rather than the loss of a large existing revenue stream, as Uber represented a limited share of current revenue. Strategic focus is shifting toward 'Beacon,' a new standalone countertop device designed to bypass complex back-of-house point-of-sale integrations that currently block two-thirds of addressable restaurant volume. The company is evolving from a single-use delivery fleet into a broader last-mile infrastructure platform, exploring non-food use cases like laundry and logistics to increase robot productivity. Full-year 2026 revenue guidance is lowered to $9 million to $10 million, reflecting the complete removal of assumed second-half growth from the Uber partnership. Management is implementing aggressive cost discipline, reducing planned capital expenditures to $15 million to $17 million and lowering non-GAAP operating expense outlook by approximately $20 million. Future growth is predicated on a 'summer announcement' involving a new delivery marketplace partner, two new market launches, and advancements in end-to-end AI autonomy models. The company expects to maintain a strong liquidity position with over $240 million in cash to fund the transition toward direct merchant relationships and higher-margin recurring software revenue. Guidance assumes a softer advertising market in the second half due to geopolitical and macro pressures, despite advertising currently accounting for nearly half of robotic food delivery revenues. The potential non-renewal of the Uber contract in 2027 represents a significant shift away from a primary anchor partner that helped bootstrap the platform. Integration of Diligent Robotics is ongoing, with management seeking to consolidate overlapping G&A and shared services to improve the combined company's operating leverage. A $3.6 million tariff refund in Q2 partially offset capital expenditures, providing a one-time boost to the cash position. Management flagged that back-of-house integration friction remains a primary barrier, with 66% of delivery orders in operating areas currently inaccessible to robots without new hardware solutions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Ali Kashani explained that utilization issues stemmed from friction in how autonomous and human fleets are co-managed and how orders are allocated within the Uber platform. Management noted a lack of alignment on decision-making authority regarding fleet organization, which led to the decision to be transparent about the likely end of the partnership. Serve aims to 'control its own destiny' by reducing reliance on large partners' 'wake turbulence' through direct-to-merchant tools like the Beacon device. While marketplace growth remains strong (50% growth with DoorDash between June and July), the company is prioritizing channels that allow for direct customer interaction and new use cases. Brian Read indicated that software revenue may face headwinds in the second half of the year compared to the $1 million generated in Q2. The Diligent Robotics business is currently in a 'cost-down' and hardware reliability phase, similar to Serve's earlier development, to prepare for rapid scaling in future years. Advertising currently accounts for approximately 50% of sidewalk delivery revenue, utilizing both local and national wrap-based campaigns. Management is seeing increased inbound interest for 'experiential' robotics advertising, which carries attractive margins and helps diversify the revenue base away from pure delivery fees.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved an all-time high of over 30 million active riders, driven by the 'UP' strategy focusing on premium modes and specialized services like TBR Chauffeuring. Attributed record performance to 'customer obsession' and operational excellence, specifically citing improved pickup times that match or exceed competitors 75% of the time despite a smaller market share. Reached a milestone where approximately 30% of North American rides are linked to strategic partners like DoorDash and United Airlines, which typically attract higher-value riders. Reported significant growth in low-scale markets and Canada, where ride volume has nearly doubled year-over-year. Maintained strong driver supply and sentiment, citing a 30-point preference gap over competitors and record driver earnings up approximately 8% per ride year-on-year. Successfully transitioned autonomous vehicle fleet operations in Nashville from Waymo staff to Lyft staff, meeting all service level agreements during the handover. Expects to exceed 1 billion total rides in 2026, supported by accelerating ride growth across North America, Europe, and the bikes business in the second half of the year. Anticipates the launch of 'supply sharing' with Waymo in Nashville before the end of 2026, allowing riders to be matched with autonomous vehicles directly via the Lyft app. Projecting full global app integration by 2027, enabling users to book rides natively across international markets through a single unified Lyft interface. Q3 guidance assumes continued margin expansion driven by cost discipline and a favorable mix of higher-value modes, despite seasonal shifts in the bikes and European businesses. Strategic focus remains on deepening existing partnerships rather than aggressive new acquisitions, citing significant 'white space' for growth within current collaborations like DoorDash and Chase. The Freenow acquisition is currently undergoing a rebranding phase to 'Freenow by Lyft' in major European cities like Barcelona, Athens, and Dublin. The Nashville autonomous vehicle depot, an 80,000 square foot facility, is scheduled for a formal opening in October 2026 to support hundreds of vehicles. Management noted that while autonomous vehicle testing is expanding to London with Baidu, the near-term P&L impact remains de minimis due to the small scale of the current fleet. Seasonal dynamics in Q3 include a higher mix of bike rides, which carry lower average gross bookings per ride but offer strong unit economics. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is foundational across geographies, including large markets like New York and emerging markets like Canada. Product innovations such as Lyft Teens and Lyft Silver, combined with improved marketplace health (faster ETAs), are primary structural drivers. Management acknowledged external factors like the World Cup and seasonality provided a boost but emphasized that core operational improvements were the main catalysts. Management believes AVs expand the Total Addressable Market (TAM) rather than cannibalizing existing rides. In San Francisco, Lyft observed 20% rides growth in areas where AVs operate, suggesting a hybrid ecosystem where users may enter via AV and return via driver-led rides. The 11% gap is influenced by seasonal factors; Q3 is the peak for the bikes business, which has lower gross bookings per ride. The lapping of the Freenow acquisition and its specific European holiday patterns also impact the mix between bookings value and ride counts. Lyft will be evaluated on fleet management (maximizing vehicle availability) and 'supply sharing' (dynamic dispatching across a shared network). Success depends on four pillars: marketplace health, local policy navigation, real estate/depot operations, and AV technical integration.