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Mar 31, 2025
Instacart Q1 2025 Earnings Report
Instacart reported solid Q1 2025 results with strong order growth and improved operational performance.
Key Takeaways
Instacart delivered a robust first quarter with 14% growth in orders and improved adjusted EBITDA, driven by increased ad revenue, AI-led personalization, and enterprise expansion.
Orders grew 14% YoY to 83,200,000, the fastest pace in 10 quarters.
Gross transaction value (GTV) rose to 9,122,000,000, up 10% YoY.
Net income was 106,000,000, and adjusted EBITDA rose 23% YoY to 244,000,000.
AI innovations like Smart Shop and Store View enhanced customer experience and efficiency.
Revenue by Segment
Forward Guidance
Instacart expects Q2 2025 GTV between 8,850,000,000 and 9,000,000,000 with adjusted EBITDA between 240,000,000 and 250,000,000, maintaining momentum on growth and profitability.
Positive Outlook
- Order growth expected to outpace GTV growth.
- Adjusted EBITDA expansion expected both in absolute terms and as a percentage of GTV.
- Strong performance in advertising with Universal Campaigns and new brand partners.
- Ongoing benefits from AI enhancements like Smart Shop and Store View.
- Enterprise expansion supported by Wynshop acquisition and new B2B offerings.
Challenges Ahead
- AOV declining due to inclusion of restaurant orders and lower basket minimums.
- Higher GAAP operating expenses from stock-based compensation and legal matters.
- Ongoing regulatory risks and uncertainties in legal environment.
- Macroeconomic pressures may impact consumer behavior and costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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