DoorDash, Inc. (NASDAQ:DASH)

Gross Profit Margin

The gross profit margin shows a declining trend starting from 52.17% in the first quarter of 2022 to a low of 45.5% in the first quarter of 2023. Subsequent quarters demonstrate a gradual recovery, with the margin improving steadily to reach 50.04% by the first quarter of 2025. This pattern indicates a period of reduced profitability at the gross level, followed by a consistent rebound.

Operating Profit Margin

The operating profit margin exhibits a downward trajectory from -9.25% in the first quarter of 2022, worsening to -17.07% by the fourth quarter of 2022. From this point, a notable improvement occurs, with the margin reducing losses progressively and ultimately turning positive at 1.58% in the second quarter of 2025 and further growing to 4.56% by the third quarter. This signals enhanced operational efficiency and cost management over time.

Net Profit Margin

A similar pattern is observed in the net profit margin. It declines from -9.57% in the first quarter of 2022 to its lowest point at -20.74% in the fourth quarter of 2022, reflecting significant net losses. A recovery trend follows, with margins improving steadily and crossing into positive territory at 1.15% in the first quarter of 2025, and continuing upward to 6.57% by the third quarter of 2025, suggesting improved overall profitability.

Return on Equity (ROE)

The return on equity worsens from -10.03% in the first quarter of 2022 to -20.85% in the second quarter of 2023, indicating increasing shareholder value erosion during this period. Afterwards, ROE improves markedly, climbing to a positive 1.58% by the first quarter of 2025 and advancing further to 8.75% by the third quarter of 2025. This reflects a stronger capacity to generate returns for equity holders.

Return on Assets (ROA)

Return on assets follows a comparable trajectory, declining from -6.87% at the start of 2022 to -14.09% in the second quarter of 2023, signifying inefficient asset utilization during this phase. A recovery ensues, with ROA improving gradually and crossing into positive territory at 0.96% in the first quarter of 2025, ultimately reaching 4.61% by the third quarter of 2025, demonstrating better profitability relative to total assets.

The financial data reveals several notable trends over the observed periods.

Revenue

Revenue has demonstrated a consistent upward trajectory from March 2021 through June 2025. Starting at approximately $1,077 million in March 2021, it has increased steadily each quarter, reaching about $3,284 million by June 2025. This growth indicates a robust expansion in business operations and market demand.

Gross Profit

Gross profit mirrors the upward trend of revenue, rising from $514 million in March 2021 to around $1,668 million by June 2025. The increase in gross profit aligns with revenue growth, reflecting sustained profitability at the gross level. The data suggests an improvement in absolute profit generation capacity over time.

Gross Profit Margin

The gross profit margin percentage exhibits a dynamic pattern. In early 2021, data for margins is not available; however, from March 2022 onwards, the margin starts at approximately 52.17% before experiencing a decline through the remainder of 2022, dropping to about 45.5%. Following this period, the margin stabilizes and embarks on a gradual upward trend from early 2023, improving each quarter to reach slightly over 50% by June 2025. This suggests enhanced efficiency or pricing power recuperation after a dip, contributing positively to profitability despite fluctuations.

The analysis of the quarterly financial data reveals several significant trends in both revenue and operating performance over the evaluated periods.

Revenue Growth

Revenue demonstrates a consistent upward trend throughout the entire period, increasing steadily from approximately $1,077 million in March 2021 to an estimated $3,284 million by June 2025. This growth indicates expanding business scale and market penetration over time, with no periods showing declines or stagnation.

Income (Loss) from Operations

The operating income began with significant losses of around $99 million in early 2021, worsening over 2022 to reach a low of approximately $-370 million by December 2022. However, starting in early 2023, the company shows a clear improvement, with losses decreasing markedly and turning into profits by late 2024. By mid-2025, operating income is projected to be positive at approximately $163 million, reflecting improved cost management or operational efficiency.

Operating Profit Margin

Operating profit margin data is incomplete in the early periods but becomes available from late 2021. The margin worsened from about -9.25% in September 2021 to a trough of roughly -17.07% by September 2022, indicating increasing operating losses relative to revenue. From the end of 2022, the margin shows a steady recovery, improving to near breakeven around late 2024 and turning positive in 2025, reaching approximately 4.56% by June 2025. This progression points to a significant enhancement in profitability and operational leverage over the time frame.

The financial data indicates several notable trends over the reported quarters. Revenue has shown a consistent and steady increase from $1,077 million in the first quarter of 2021 to $3,284 million in the first quarter of 2025. This pattern reflects continuous growth in the company's top-line performance over the period analyzed.

Net income attributable to common stockholders exhibits a different trajectory. Initially, the company experienced consistent net losses, deepening from -$110 million to a peak loss of -$640 million in the fourth quarter of 2022. Following this peak loss quarter, the net income figures demonstrate gradual improvement, with losses diminishing significantly and eventually turning positive. Starting in the third quarter of 2024, the company reports net profits, reaching $285 million by the first quarter of 2025. This shift marks a significant turnaround in profitability after a prolonged period of losses.

The net profit margin, representing net income as a percentage of revenue, reinforces this analysis. Throughout 2021 and into 2023, margins remain negative and generally deteriorate, reaching a low of approximately -20.74% in the fourth quarter of 2022. After this trough, margins begin to improve steadily. By the end of 2024, margins approach zero and turn positive in early 2025, reaching 6.57% in the first quarter of 2025. This improvement indicates enhanced operational efficiency or other profitability drivers becoming effective during the latter part of the period.

Revenue Trend

A steady upward trajectory indicating continuous business expansion and increasing market demand.

Net Income Trend

Initial increasing losses peaking in late 2022, followed by a gradual improvement and eventual return to profitability in late 2024 to early 2025.

Net Profit Margin Trend

Consistently negative margins worsening through 2022, then improving throughout 2023 and turning positive by early 2025, reflecting improved profitability and operational leverage.

Overall, the company demonstrates strong revenue growth coupled with a turnaround in profitability, suggesting successful strategic or operational adjustments have been implemented post-2022. The progression from substantial losses to profitability within this timeframe highlights a meaningful positive shift in financial health.

Net Income (Loss) Attributable to Common Stockholders

The net income figures reveal a predominantly negative trend from March 2021 through December 2022, with losses becoming increasingly pronounced, particularly in the fourth quarter of 2022 where the loss peaked at -$640 million. Starting in the first quarter of 2023, the company’s net losses begin to moderate, transitioning to smaller deficits and eventually turning positive in the third quarter of 2024. From this point onwards, the net income shows consistent improvement, culminating in a significant positive result of $285 million in the first quarter of 2025. This shift indicates a notable recovery and a return to profitability after an extended period of financial challenges.

Stockholders’ Equity

Stockholders’ equity remained relatively stable in early 2021, fluctuating slightly around the $4.5 billion mark until the first quarter of 2022. A significant increase occurred in the second quarter of 2022, rising sharply to $7.41 billion, before experiencing some decline and stabilization through the end of 2023. From early 2024 onwards, equity demonstrates a strong upward trajectory, progressively increasing each quarter to reach nearly $8.9 billion by mid-2025. This trend suggests the company has enhanced its financial base and shareholder value over the analyzed period.

Return on Equity (ROE)

ROE data, available from the fourth quarter of 2021, consistently shows negative returns initially, reflecting the company's net losses and indicating inefficiency in generating profits from shareholders’ equity during this time. The lowest point is observed around late 2022 with ROE nearing -20%. Subsequently, a gradual improvement is evident from early 2023, with ROE approaching less negative values each quarter. By the third quarter of 2024, ROE turns positive and continues to increase, reaching 8.75% by the first quarter of 2025. This positive shift in ROE corroborates the turnaround in net income, highlighting improved profitability and management effectiveness in leveraging equity for earnings.

Overall Trends and Insights

The data illustrates a clear pattern of initial financial distress, with substantial losses and negative returns for shareholders extending through late 2022. Following this difficult period, the company shows signs of stabilization and recovery beginning in early 2023. The recovery gains momentum in 2024, as evidenced by rising net income, increasing stockholders’ equity, and a marked improvement in ROE turning positive. This financial progression implies successful operational adjustments or strategic initiatives that have enhanced cost management, revenue generation, or capital efficiency, ultimately restoring profitability and strengthening the financial position.

The analysis of the quarterly financial data reveals several noteworthy trends in the company's profitability, asset base, and return on assets (ROA) over the observed periods.

Net Income (Loss)

The net income attributable to common stockholders exhibited a predominantly negative trend during the initial quarters, with losses ranging from -110 million US dollars in March 2021 to a peak loss of -640 million US dollars in December 2022. This indicates a period of substantial financial challenge. However, starting from September 2024, the company experienced a significant turnaround with positive net income figures emerging—162 million US dollars—continuing to rise steadily through March 2025, reaching 285 million US dollars. This shift from recurring losses to sustained profitability signals an improvement in operational performance or cost management.

Total Assets

Total assets show a general upward trend throughout the timeframe, increasing from 5,902 million US dollars at the beginning of 2021 to 16,950 million US dollars by June 2025. Despite some fluctuations, there is no indication of asset depletion, reflecting ongoing investments or acquisitions expanding the company's asset base. Notably, there was an acceleration in asset growth from mid-2024 onwards, coinciding with the period of improved profitability.

Return on Assets (ROA)

The ROA metric, unavailable for the earliest periods but reported starting late 2021, reveals negative values initially, consistent with net losses and indicating inefficient asset utilization. The lowest ROA was observed around December 2022 at approximately -14%. Thereafter, a marked improvement is noticeable, with ROA moving closer to breakeven and transitioning into positive territory from late 2024 onward, reaching 4.61% by March 2025. This trend aligns with the emergence of positive net income and suggests a restoration of effective asset employment generating returns.

Overall Insights

The data collectively imply that the company underwent a phase of financial distress lasting through 2022, characterized by increasing losses and negative returns despite growing asset holdings. Beginning in late 2024, a recovery phase is evidenced by improving profitability, enhanced returns, and continued asset growth. This may reflect successful strategic initiatives, cost controls, or market conditions improving the company's financial health. The positive trajectory in net income and ROA suggests restored operational efficiency and potentially sustainable earnings moving forward.