DoorDash, Inc. (DASH) Cash Flow Statement

The gap between net income and operating cash flow is substantial, driven by non-cash charges like SBC and D&A. In 2026Q2, OCF of $944M versus net income of $200M suggests that reported earnings understate the company's cash-generating ability. This pattern persists across quarters, with OCF/NI ranging from 1.77x to 4.72x, indicating that accruals are not inflating earnings. Investors should note that SBC, a non-cash expense, is a major contributor to this divergence, but the cash flow strength appears genuine.

The FCF trajectory is positive, with margins expanding from mid-teens to over 20% in recent quarters. This improvement is driven by revenue growth outpacing capex and working capital needs. The 2026Q2 FCF of $1.0B is a record high, and the 22.5% margin is well above the peer average, suggesting DoorDash is converting revenue into cash more efficiently. However, the volatility in FCF margins (ranging from 6.4% to 22.5%) warrants monitoring, as it may reflect timing of working capital changes.

DoorDash's capex intensity is remarkably low, with CapEx/Rev never exceeding 4.3% in the reported quarters. This suggests that the company's growth does not require heavy investment in physical assets, consistent with its asset-light logistics model. The negative capex figures in some quarters (e.g., -$174M in 2026Q1) may indicate proceeds from asset sales or timing differences, but the overall trend is clear: capital expenditures are not a drag on cash flow. This low capital intensity is a key driver of the company's ability to generate substantial FCF relative to net income.

The working capital line is highly volatile, with both positive and negative contributions across quarters. This is typical for a platform business where collections from consumers and payments to merchants and dashers create timing mismatches. The negative working capital in 2025Q4 and 2026Q1 suggests that cash outflows for payables exceeded inflows from receivables, possibly due to seasonal order patterns. Conversely, positive changes in other quarters indicate efficient collection. Investors should view these fluctuations as normal for the business model, but they can cause quarterly FCF to be lumpy.

The company has been active in share repurchases, with notable buybacks in 2026Q2 ($887M) and 2024Q3 ($217M). Given the high SBC expense (averaging ~$270M per quarter), these buybacks appear designed to neutralize dilution rather than return excess capital. No dividends have been paid, suggesting management prefers to reinvest cash or use buybacks flexibly. The $3B acquisition in 2025Q4 (likely Wolt) shows a willingness to deploy capital for growth, but the overall capital allocation strategy appears balanced between offsetting dilution and funding expansion.

The cumulative OCF of $6.1B is more than four times cumulative net income of $1.4B, indicating that earnings are heavily influenced by non-cash charges. This divergence is primarily due to SBC and D&A, which are non-cash but real economic costs. The strong cash generation suggests that DoorDash's underlying business is more profitable than GAAP net income implies, but investors should be cautious: SBC represents real dilution to shareholders. The gap also reflects the company's ability to manage working capital effectively, though the volatility in WC changes adds uncertainty to future cash flows.