DoorDash Q1 Results Mixed: Earnings Beat, Revenue Miss, Adds $50M Driver Relief Cost

What happened

DoorDash reported Q1 results that beat on earnings but missed revenue estimates, and announced a $50 million driver relief program to offset high gas prices. The revenue shortfall and new cost pressure could push Q1 EBITDA toward the lower end of the guided $675M-$775M range, but the company still expects a significant margin step-up in the second half of 2026. This mixed outcome does not derail the multi-year thesis, which hinges on platform unification and grocery/retail economics improving on management's timeline. However, it reinforces our 'WAIT' stance as near-term investment drag and cost headwinds remain. The stock's elevated valuation (41x EV/EBITDA) leaves no room for execution missteps; evidence of 2H margin expansion is required for upside.

Implication

While Q1 results were mixed, they do not alter the fundamental thesis that DoorDash must deliver 'significantly higher' Adj. EBITDA % of GOV in 2H 2026 vs 1H 2026. The revenue miss and $50M driver relief cost are manageable but add to near-term pressure, potentially pushing Q1 EBITDA to the low end of guidance. This strengthens our view to remain on the sidelines until we see tangible proof of platform leverage and grocery/retail unit economics turning positive in 2H. The current price of $161 offers no margin of safety; attractive entry remains below $145. Re-assessment window of 6-12 months continues.

Thesis delta

The Q1 revenue miss and $50M driver relief program add incremental near-term cost pressure but do not change the multi-year margin inflection thesis. The key checkpoint remains 2H'26 Adj. EBITDA % of GOV performance. We see no reason to adjust our WAIT rating or entry/exit levels based on this mixed print.