DASH · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

DoorDash, Inc. · 2026-10-30 · Importance 23 · Surprise 24

DoorDash maintains a valuation allowance against its U.S. federal and state net deferred tax assets. Based on U.S. profitability through the first nine months of 2026 and anticipated future earnings, management sees a reasonable possibility that sufficient positive evidence may become available in a future period to support releasing the allowance. A release would recognize U.S. federal and state deferred tax assets and reduce income tax expense; its timing and amount depend on sustained U.S. profitability, tax-deductible stock-based compensation, the publicly traded share price, and macroeconomic conditions.

Key facts

• DoorDash stated that U.S. profitability, including income in prior years and through the first nine months of 2026, and anticipated future earnings create a reasonable possibility that sufficient positive evidence may become available in a future period to conclude the U.S. valuation allowance is no longer needed. source
• If DoorDash releases its U.S. valuation allowance, it would recognize U.S. federal and state deferred tax assets and decrease income tax expense in the period of release. source
• The income tax benefit for the first nine months of 2025 was primarily attributable to a one-time benefit from releasing part of the U.S. valuation allowance in connection with acquisitions during the year, offset by state and foreign income tax expenses. source
• The timing and amount of any potential valuation allowance release depend on sustained U.S. profitability and tax-deductible stock-based compensation, which depends on DoorDash's publicly traded share price and macroeconomic conditions, among other factors. source
• DoorDash has valuation allowances for net deferred tax assets in the U.S., the U.K., and Finland and expects to maintain them until realization through expected future taxable income becomes more likely than not. source
• The third-quarter 2026 and third-quarter 2025 income tax provisions were primarily attributable to pre-tax book income resulting in state and foreign income taxes. source
• The income tax provision for the first nine months of 2026 was primarily attributable to pre-tax book income resulting in state and foreign income taxes. source
• DoorDash maintains a valuation allowance against its U.S. federal and state net deferred tax assets. source