Instacart (CART) delivered a robust second-quarter performance that sent its stock up as much as 9% in after-hours trading on Thursday.
With revenue and earnings surpassing Wall Street estimates and forward guidance outpacing expectations, the grocery-tech company reinforced its position as a key player in the digitized grocery economy—even as a leadership transition looms.
Revenue, Earnings Top Expectations as Order Volume Surges
Instacart reported revenue of $914 million in Q2, growing 11% from a year ago and beating analyst forecasts. Earnings also surprised to the upside: net income soared 92% to $116 million, or 41 cents per share, compared to the expected 38 cents. The company attributed the gains to operational efficiencies, strong order growth, and expanding monetization channels.
Gross transaction value (GTV)—a measure of total customer spending on the platform—rose to $9.08 billion, up from $8.19 billion in the same quarter last year. Meanwhile, the company processed 82.7 million orders, a 17% increase year-over-year. These results helped offset a 5% drop in average order size, driven by lower delivery thresholds and a growing mix of smaller restaurant orders.
Adjusted EBITDA, a key profitability metric, rose 26% to $262 million. Executives emphasized that dense delivery networks and better order batching have protected unit economics, with gross profit per order reportedly remaining above $8.
Instacart reported revenue of $914 million in Q2, growing 11% from a year ago and beating analyst forecasts. Earnings also surprised to the upside: net income soared 92% to $116 million, or 41 cents per share, compared to the expected 38 cents. The company attributed the gains to operational efficiencies, strong order growth, and expanding monetization channels.
Gross transaction value (GTV)—a measure of total customer spending on the platform—rose to $9.08 billion, up from $8.19 billion in the same quarter last year. Meanwhile, the company processed 82.7 million orders, a 17% increase year-over-year. These results helped offset a 5% drop in average order size, driven by lower delivery thresholds and a growing mix of smaller restaurant orders.
Adjusted EBITDA, a key profitability metric, rose 26% to $262 million. Executives emphasized that dense delivery networks and better order batching have protected unit economics, with gross profit per order reportedly remaining above $8.
Ad Growth, Retail Expansion, and AI Tools Bolster Long-Term Strategy
Instacart’s advertising business continues to be a core growth engine. Ad and other revenue reached $255 million in the quarter, a 12% increase from the prior year. More than 7,500 brands now advertise on the platform, leveraging data and AI tools to reach consumers at the point of purchase.
The company’s retail partnerships also deepened, with more than 40 new retailers added in the first half of 2025—surpassing the total for all of 2024. Notable expansions include collaborations with Costco Business Centres, Pattison Food Group, and Publix. Instacart’s Storefront and Storefront Pro products are enabling grocers to digitize their own ecommerce operations while maintaining control over branding and pricing.
Technology remains central to Instacart’s competitive edge. AI-powered features like Smart Shop, virtual aisles, and personalized campaign tools are enhancing consumer experience and brand engagement. Fulfillment speed has also improved: nearly a quarter of all priority delivery orders are now completed in under 30 minutes.
Even amid a broader pullback in consumer-packaged goods (CPG) ad spending, Instacart maintained ad revenue growth, with management highlighting increasing traction among emerging brands and continued diversification of ad clients.
Leadership Change and Shareholder Initiatives Signal Confidence
The quarter marked a significant leadership shift. CEO Fidji Simo, who led the company through its 2023 IPO and pandemic-era expansion, will step down later this month to join OpenAI. Business chief Chris Rogers, who joined Instacart in 2019, will take over the CEO role. Simo will remain chair of the board.
Despite the transition, the company is sending strong signals of stability and shareholder confidence. Instacart repurchased $111 million worth of shares during the quarter and authorized an additional $250 million in buybacks, bringing remaining capacity to $357 million. It currently holds approximately $1.7 billion in cash and equivalents.
Guidance for the third quarter projects GTV between $9.0 billion and $9.15 billion, representing 8% to 10% growth over last year. Adjusted EBITDA is expected to land between $260 million and $270 million. Management noted that while order volume growth is likely to moderate slightly, overall engagement remains strong, and strategic initiatives are improving the platform’s economics.
Conclusion
Instacart’s Q2 results underscore its resilience and adaptability in a changing retail and economic landscape. With a solid financial foundation, growing advertiser demand, and a deepening network of retail partners, the company appears well-positioned to continue scaling its digital grocery ecosystem. The leadership handoff comes at a pivotal moment—but with strong momentum and clear strategic direction, investor optimism remains intact.
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