CART — Maplebear Inc.

Summary of Instacart Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Gross Transaction Value (GTV): $9.85 billion, up 14% year-over-year, marking the strongest growth in three years.
• Orders: 89.5 million, a 16% increase year-over-year.
• Average Order Value: Decreased by 1% year-over-year.
• Transaction Revenue: Grew 13% year-over-year, representing 7.1% of GTV, flat year-over-year.
• Advertising and Other Revenue: Increased by 10% year-over-year.
• GAAP Net Income: $81 million, down 46% year-over-year due to nonrecurring legal expenses, including a $60 million FTC settlement.
• Adjusted EBITDA: Grew 20% year-over-year to $303 million.
• Operating Cash Flow: $184 million, up 20% year-over-year.
• Share Repurchases: $1.4 billion in 2025, including $1.1 billion in Q4.

2. Strategic Updates and Business Highlights:

• Instacart plans to shift from quarterly to annual shareholder letters to focus on long-term strategy.
• The company emphasizes its commitment to grocery technology, operational complexity, and deep retailer integrations.
• Key growth engines include Marketplace and Enterprise, with over 2,200 retail banners and 380 grocery e-commerce sites powered.
• The advertising ecosystem is expanding, with over 9,000 brands advertising on Instacart, up from 7,000 the previous year.
• Generative AI is being leveraged to enhance operational efficiency and consumer engagement.

3. Forward Guidance and Outlook:

• Q1 2026 GTV is expected to be between $10.25 billion and $10.275 billion, representing year-over-year growth of 11% to 13%.
• Advertising and other revenue is anticipated to grow by 11% to 14% year-over-year.
• Adjusted EBITDA for Q1 is projected at $280 million to $290 million, a year-over-year increase of 15% to 19%.
• The company aims for steady annual adjusted EBITDA growth that outpaces GTV growth in fiscal 2026.

4. Bad News, Challenges, or Points of Concern:

• GAAP net income declined significantly due to legal expenses, raising concerns about cost management.
• Competitive pressures from major players like Amazon and DoorDash are intensifying, although Instacart maintains confidence in its market position.
• The advertising revenue growth may face headwinds due to macroeconomic uncertainties affecting large brand partners.
• Payments to publishers are expected to moderate in growth, which could impact overall margins.

5. Notable Q&A Insights:

• Instacart's CEO, Chris Rogers, emphasized the importance of the Enterprise segment as a strategic advantage and a growth driver.
• The company is seeing strong user engagement and retention rates, with record customer metrics in December 2025.
• There is optimism regarding international expansion, leveraging existing technology rather than creating new solutions.
• The integration of AI tools, such as Cart Assistant, is expected to enhance customer shopping experiences, although consumer behavior changes are still in early stages.
• Instacart is focused on maintaining price parity with retailers to enhance competitiveness and customer retention.

Overall, Instacart demonstrated strong financial performance in Q4 2025, with significant growth in GTV and advertising revenue, while also navigating challenges related to competition and legal expenses. The company remains optimistic about its strategic direction and growth potential in 2026.