Instacart Q3 revenue up 10%, beats estimates
- ByStartupStory | November 11, 2025
Instacart delivered a strong performance in the third quarter of 2025, reporting a 10.2% year-over-year increase in revenue to $939 million, surpassing analyst expectations of $933 million. This growth was driven by a 14% increase in total orders, which reached 83.4 million, although the average order value dropped by 4%. The dip in order value is attributed to a rise in restaurant orders and the reduction of basket minimums for Instacart+ members to $10 to qualify for free delivery.
Transaction revenue grew in line with overall revenue, climbing 10% to $670 million, while advertising and other revenues also rose 10% to $269 million. Gross transaction value, representing the total sales on the platform, rose to $9.17 billion, a 10% increase from the previous year.
Instacart’s profitability showed healthy momentum, with a 22% increase in net income to $144 million and GAAP earnings per share of $0.51, slightly above analyst estimates. The company’s adjusted EBITDA rose 22% to $278 million, underscoring ongoing operational efficiency.
Chris Rogers, who took over as CEO in August, highlighted that the company’s strategy to accelerate online grocery adoption and expand its technology partnerships is driving growth. He emphasized the expanding advertising ecosystem, innovative AI-powered tools, and maintaining affordable service amid fierce competition from Amazon, DoorDash, and Uber as key factors supporting Instacart’s growth.
Despite the strong earnings, the company issued cautious guidance for the fourth quarter, anticipating adjusted EBITDA between $285 million and $295 million and projecting gross transaction value growth of 9% to 11%. This outlook takes into account potential impacts from the suspension of federal food assistance benefits (SNAP) due to the ongoing government shutdown.
Competition in the grocery delivery market is intensifying, with Amazon expanding same-day fresh food delivery to numerous new markets and DoorDash enhancing its partnership with major retailers like Kroger. Nevertheless, Instacart reassured investors of its strong retailer relationships, citing Kroger’s recent extension of its partnership as a vote of confidence.
Instacart’s focus on leveraging AI to enhance its platform features, shopping assistance, and advertising capabilities positions it well to navigate market challenges. The company supports nearly 600,000 shoppers working flexibly and partners with over 1,800 retail banners across North America, covering almost 100,000 stores.
In summary, Instacart’s Q3 2025 results illustrate solid growth in revenue, orders, and profitability, fueled by strategic innovation and competitive positioning, even as it braces for cautious near-term headwinds from regulatory and competitive pressures. The report underscores Instacart’s evolving role as a leading grocery technology platform aiming to transform how consumers shop while supporting sustainable growth for retail partners.
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