DASH · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
DoorDash, Inc. · 2026-08-05 · Importance 69 · Surprise 64 · No source text
Second-quarter 2026 sales and marketing expense increased 35% to $1.193 billion, including $133 million of additional advertising expense and $71 million of additional personnel-related compensation. Research and development expense increased 52% to $537 million, driven by $187 million of higher personnel-related compensation and $70 million of higher third-party software expense, partly offset by $78 million of additional capitalized software and website-development costs. General and administrative expense increased 39% to $535 million, primarily due to $108 million of higher legal, tax, and regulatory expense and $49 million of higher personnel-related compensation. Depreciation and amortization increased 86% to $294 million, including $82 million of higher amortization for acquired intangible assets and $37 million of higher amortization of capitalized software and website-development costs.
Key facts
- The $491 million increase in cost of revenue for Q2 2026 was primarily attributable to an increase of $302 million in order management costs and an increase of $120 million in platform costs. source
- Cost of revenue, exclusive of depreciation and amortization, for the three months ended June 30, 2026: $2,107 million, an increase of $491 million, or 30%, compared to Q2 2025. source
- Sales and marketing expense for the three months ended June 30, 2026: $1,193 million; sales and marketing increased by $214 million, or 35%, for Q2 2026 compared to Q2 2025. source
- The $214 million increase in sales and marketing for Q2 2026 was primarily driven by an increase of $133 million in advertising expenses and an increase of $71 million in personnel-related compensation expenses. source
- GAAP gross profit for the three months ended June 30, 2026: $2,223 million. source
- GAAP gross profit as a percentage of Marketplace GOV in Q2 2026: 6.7%. source
- Contribution Profit in the second quarter of 2026: $1,641 million. source
- Contribution Profit as a percentage of Marketplace GOV in Q2 2026: 5.0%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -11.0% | The $491 million increase in cost of revenue for Q2 2026 was primarily attributable to an increase of $302 million in order management… |
| operating_income | negative | realized | -4.8% | Sales and marketing expense for the three months ended June 30, 2026: $1,193 million; sales and marketing increased by $214 million, or… |