Executive Summary

Q1 2025 beat internal targets and delivered solid top-line and profitability: Orders grew 14% YoY to 83.2M, GTV rose 10% YoY to $9.12B, revenue increased 9% YoY to $897M, and Adjusted EBITDA rose 23% YoY to $244M, with margins expanding to 27% of revenue .
Revenue slightly topped S&P Global consensus ($897.0M vs $896.9M*) and S&P “Primary EPS” beat ($0.50 vs $0.39*), while GAAP diluted EPS was $0.37 (down YoY on higher SBC and legal/regulatory items) . Values retrieved from S&P Global*.
Mix and strategic investments drove dynamics: Average order value declined 4% YoY to $110 on Restaurants mix and the $10 Instacart+ basket threshold, but higher order frequency and users powered orders growth; Ads & Other outpaced GTV (+14% YoY) and remained resilient .
Q2 2025 outlook: GTV $8.85–$9.00B (8–10% YoY) and Adjusted EBITDA $240–$250M; management reiterated annual Adjusted EBITDA expansion in 2025, while flagging pockets of advertiser caution tied to tariffs/regulatory uncertainty .

What Went Well and What Went Wrong

What Went Well

Strong demand and operating leverage: Fastest orders growth in 10 quarters (+14% YoY), robust GTV (+10% YoY), Ads & Other +14% YoY, and Adjusted EBITDA +23% YoY to $244M (27% margin) .
Product/AI execution: Management highlighted AI-driven Smart Shop, AI pairings on ~75% of marketplace orders driving higher retention among new users, and inventory intelligence (Store View) improving order quality and found/fill rates .
Enterprise and ads flywheel: Carrot Ads scale (220+ retail sites) and performance continue to attract partners (including Uber’s U.S. grocery/retail marketplace); Universal Campaigns simplifies budgets and optimizes formats with AI .

What Went Wrong

GAAP earnings declined: Net income fell YoY to $106M (from $130M) as GAAP OpEx rose on SBC normalization (lap of prior-year reversals), legal/regulatory costs, and higher paid marketing; diluted EPS was $0.37 vs $0.43 in Q1’24 .
AOV pressure: AOV fell 4% YoY to $110 on Restaurants mix and lower Instacart+ basket threshold; transaction revenue %GTV dipped to 7.1% (from 7.2% in Q1’24) as affordability investments were partially offset by shopper efficiency gains .
Advertiser macro watch-outs: Management cited advertiser caution tied to tariffs and regulatory uncertainty (e.g., SNAP eligibility, ingredients rules) even as performance positioning helps offset risk .

Financial Results

Headline P&L and KPIs

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($MM)	$820	$883	$897
GAAP Net Income ($MM)	$130	$148	$106
Diluted EPS ($)	$0.43	$0.53	$0.37
Gross Profit ($MM)	$614	$664	$671
Gross Margin (%)	75% (flat YoY)	75%	75%
Adjusted EBITDA ($MM)	$198	$252	$244
Adjusted EBITDA Margin (%)	24%	29%	27%
GTV ($MM)	$8,319	$8,645	$9,122
Orders (MM)	72.8	77.5	83.2

Notes: GAAP diluted EPS declined YoY primarily due to higher GAAP OpEx including SBC normalization, legal/regulatory spend, and higher paid marketing .

Results vs S&P Global Consensus (Q1 2025)

Metric	Consensus*	Actual	Beat/Miss
Revenue ($MM)	$896.9*	$897.0	Beat
Primary EPS ($)	$0.39*	$0.50*	Beat

Values retrieved from S&P Global*. Note: S&P “Primary EPS” may differ from GAAP diluted EPS reported by the company (GAAP diluted EPS was $0.37) .

Segment and Mix

Revenue Component	Q4 2024	Q1 2025
Transaction Revenue ($MM)	$616	$650
Transaction Rev as % GTV	7.1%	7.1% (vs 7.2% in Q1’24)
Advertising & Other Revenue ($MM)	$267	$247
Ads & Other as % GTV	3.1%	2.7% (+10 bps YoY)

Additional KPIs and Cash Flow

KPI	Q1 2024	Q4 2024	Q1 2025
Average Order Value ($)	—	$112	$110
Operating Cash Flow ($MM)	$105	$153	$298
Share Repurchases ($MM)	—	$5	$94; $218 remaining capacity at 3/31

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GTV ($B)	Q2 2025	—	$8.85 – $9.00	New
Adjusted EBITDA ($MM)	Q2 2025	—	$240 – $250	New
2025 Adjusted EBITDA (abs. and % of GTV)	Full-year 2025	Expansion reiterated in prior comms	Reiterated expansion YoY	Maintained

Context: Management expects orders growth to outpace GTV in Q2, Ads & Other to “modestly outpace” GTV, and continues to plan for annual Adjusted EBITDA expansion in 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
AI & Personalization	Emphasis on AI, inventory accuracy, new formats; Caper pilots; CTO hire; strong ad measurement and formats	Smart Shop, AI pairings on ~75% of orders, Store View shelf videos; 87% of code built with AI assistance; continued AI ad optimization (Universal Campaigns)	Improving
Affordability & Price Parity	Expanded savings (loyalty, flyers, Super Saver); retailers moving to parity; +$5.35 savings/order in Q3	AOV -4% YoY on Restaurants/$10 baskets; continued push on parity; varied retailer strategies (parity on key items/loyalty/flyers)	Mixed (investing, but dilutes AOV)
Ads & Carrot Ads	Diversifying base; 7,000+ brands; expanding supply beyond marketplace; target 4–5% of GTV longer-term	Ads & Other +14% YoY; Universal Campaigns; Caper in-store ads; Carrot Ads with Uber Eats U.S.; brands cautious in pockets on tariffs/regulatory outlook	Improving but macro watch-outs
Restaurants (Uber partnership)	Early momentum; larger baskets than peers; flywheel to grocery	Reinforces grocery frequency/LTV; still early; contribution moderates later in year as comps lap launch	Positive, moderating comps
Enterprise/Omnichannel	Storefront Pro upgrades drove double-digit growth; 600 banners; Caper momentum	Acquired Wynshop to deepen enterprise reach; more Caper deployments; in-store ad pilots and omnichannel funnel	Strengthening
Shopper Efficiency/Quality	Tenured shoppers, batching, high found/fill rates	“Perfect order fill rate” +15 pts vs 3 yrs ago; more batching; second store check pilot	Improving
Macro/Regulatory	General caution in CPG spend and mix; ad growth at or near GTV	Advertiser caution pockets (tariffs, SNAP, ingredients rules); resilience given performance ad model	Watchful

Management Commentary

“In Q1, we grew orders by 14% year-over-year to 83.2 million and drove GTV up 10% year-over-year to $9,122 million… we also delivered net income of $106 million and Adjusted EBITDA of $244 million” .
“Today, we offer pairings on over 75% of marketplace orders, and they drive higher retention among new users” .
“As of Q1, our ‘perfect order fill rate’… increased by 15 percentage points compared to three years ago” .
“We recently acquired Wynshop… With Wynshop, we’ll be able to further enhance these retailer relationships and accelerate their growth over time” ; see also dedicated release .
CFO: “Adjusted EBITDA of $244 million exceeded the high end of our guidance range… We expect Q2 GTV to be between $8.85B and $9.0B… and Q2 adjusted EBITDA of $240 million to $250 million” .

Q&A Highlights

Small baskets economics: Order density and batching enable $10 Instacart+ baskets at attractive unit economics; these orders skew to snacks/beverages (ad-friendly) and improve retention/frequency .
Ads momentum and formats: Strong performance across large and emerging brands; Universal Campaigns dynamically allocates budgets; early Caper ad engagement akin to online but small near-term revenue impact .
Restaurants synergy: Reinforces grocery frequency and value, notably among less frequent/lapsed users; management does not break out Restaurants as it’s run as an integrated flywheel with grocery .
Price parity: Retailers on parity grow faster; strategies are nuanced (parity on key value items, flyers, loyalty); Instacart tools (e.g., Eversight) help quantify ROI and guide pricing moves .
Enterprise strategy: Wynshop expands storefront footprint and upsell paths (Storefront Pro, Carrot Ads, fulfillment, in-store tech); Carrot Ads wins supported by superior ad tech and 7,000+ brand demand .

Estimates Context

Q1 2025: Revenue slightly topped S&P Global consensus ($897.0M vs $896.9M*); S&P “Primary EPS” beat ($0.50 vs $0.39*). GAAP diluted EPS was $0.37 (definitions differ) . Values retrieved from S&P Global*.
Q2 2025: Management guided to GTV $8.85–$9.00B and Adjusted EBITDA $240–$250M; Street revenue/EPS estimates exist but company did not guide revenue/EPS. Advertiser caution pockets and affordability initiatives suggest Street may need to modestly rebalance mix assumptions (orders > GTV, Ads & Other modestly outpacing GTV) .

Key Takeaways for Investors

Mix shift is intentional: AOV pressure from Restaurants/$10 baskets is offset by higher order frequency and user growth; strategy aimed at enlarging TAM and reinforcing Instacart+ retention .
Ads engine resilient with upside: Performance-led ad stack, growing Carrot Ads supply, and AI optimization underpin double-digit Ads & Other growth despite macro pockets; watch for continued partner additions and Universal Campaigns adoption .
Enterprise moat growing: Wynshop acquisition and Storefront Pro upgrades deepen retailer integrations, expanding Instacart’s role as an omnichannel technology ally and enhancing cross-sell (Carrot Ads, in-store tech) .
Quality and efficiency as durable edges: Found/fill improvements, batching, and shopper tenure support both customer satisfaction and margin leverage .
Guidance signals steady execution: Q2 outlook implies continued orders-led growth vs GTV and ongoing EBITDA discipline; annual EBITDA expansion reiterated .
Watch macro/regulatory headlines: CPG ad budgets sensitive to tariff/regulatory developments; Instacart’s performance positioning should mitigate relative risk .
Near-term catalysts: Continued Carrot Ads wins/scale, Caper rollouts and in-store ad monetization, Restaurants penetration into Instacart+ base, and progress on price parity with major retailers .

Appendix: Additional Context on Prior Quarters

Q4 2024: GTV $8.65B (+10% YoY), orders 77.5M (+11% YoY), revenue $883M (+10% YoY), Ads & Other $267M (+10% YoY), Adjusted EBITDA $252M (+27% YoY, 29% margin). AOV was $112 (–1% YoY). Q1’25 guidance (from Q4 letter) was GTV $9.00–$9.15B and Adjusted EBITDA $220–$230M; actual Q1 exceeded the EBITDA guide .
Q3 2024: Management emphasized affordability (savings up ~18% YoY to $5.35/order), enterprise upgrades (Storefront Pro), and early Caper and Restaurants momentum; ad diversification across emerging brands and supply via Carrot Ads .

Sources:

Q1 2025 8‑K and Shareholder Letter (Item 2.02):
Q1 2025 earnings call transcript:
Q4 2024 8‑K and Shareholder Letter:
Q3 2024 earnings call transcript:
Wynshop acquisition press release:

S&P Global estimates disclaimer: Values retrieved from S&P Global*.

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