GTV and Revenue Milestones
GTV reached $10.29 billion, up 13% year-over-year, surpassing $10 billion for the first time; total revenue exceeded $1.02 billion, up 14% year-over-year.
Maplebear
· CART
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +16.04%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call emphasized strong top-line growth, milestone scale (GTV > $10B), robust advertising momentum (+16% YoY), improved profitability (net income +36%, adjusted EBITDA +23%), and strategic investments in enterprise, international expansion and AI. Management also announced sizable buybacks and maintained a constructive Q2 guide. Headwinds include modest gross margin pressure from increased publisher payments, a 10% YoY decline in free cash flow due to timing and settlements, and guidance that margin expansion will moderate in 2026. Overall, positive operational momentum and strategic positioning outweigh short-term margin and cashflow variability.
Company Guidance
Management guided Q2 GTV of $10.1–$10.25 billion (up 11%–13% YoY, with GTV expected to outpace orders), advertising & other revenue growth of 11%–14% YoY, and Q2 adjusted EBITDA of $290–$300 million (up ~11%–15% YoY). For the full year they expect adjusted EBITDA to grow faster than GTV while moderating the rate of expansion, to generate meaningful cash flow in 2026, and to return the majority of free cash flow via buybacks — having repurchased $349 million in Q1, adding $1 billion to the buyback authorization (≈$323 million remaining capacity), closing Q1 with about $880 million in cash, and establishing a $500 million unsecured revolver; management also reiterated long‑term ads targets of ~4%–5% of GTV and noted transaction revenue mix and payments to publishers may fluctuate or moderate in 2026.
Order and AOV Growth
Orders were 91.2 million, up 10% year-over-year; average order value (AOV) rose to $113, up 3% year-over-year, reflecting deeper customer engagement and strong performance from club retailers.
Advertising Momentum
Advertising and other revenue grew 16% year-over-year to $286 million — the fastest ads growth since Q3 2023; advertising and other investment rate rose to 2.8% (from 2.7%); ecosystem expanded to over 310 Carrot Ads partners and more than 9,000 brands advertising.
Profitability and Cash Returns
GAAP net income was $144 million, up 36% year-over-year; adjusted EBITDA was $300 million, up 23% year-over-year; repurchased $349 million of shares in Q1 and announced a $1 billion increase to buyback authorization.
Operating Leverage and Expense Efficiency
GAAP total operating expenses improved to $556 million (5.4% of GTV) from 6.1% of GTV in Q1 2025; adjusted total operating expenses were $463 million (4.5% of GTV) versus 4.9% in Q1 2025, driven by increased operating leverage.
Enterprise and International Traction
Storefront technology now powers over 380 grocery e-commerce sites; Storefront Pro adoption cited to drive >10 percentage point lift in online sales for upgraded grocers; Storefront Pro launched with Costco in Spain and France and the Instaleap acquisition announced to accelerate international enterprise expansion.
AI and Product Innovation
AI-driven product rollouts progressing: Cart Assistant testing with ~25% of U.S. customers (early positive feedback); search and generative recommendation systems deployed to improve personalization and ad relevance; Caper smart cart now live in more than 100 cities.
Liquidity and Balance Sheet Actions
Ended quarter with approximately $880 million in cash and similar assets; established a $500 million unsecured revolving credit facility; $323 million remaining buyback capacity after Q1 repurchases.
Q2 and Full-Year Outlook
Q2 guidance: GTV $10.1B–$10.25B (11%–13% YoY growth); advertising and other revenue guided to grow 11%–14% YoY; Q2 adjusted EBITDA $290M–$300M (11%–15% YoY growth); full-year adjusted EBITDA expected to grow faster than GTV while moderating rate of expansion.
Operator
Good day, and thank you for standing by. Welcome to the Instacart First Quarter 2026 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rebecca Yoshiyama, Vice President, Head of Investor Relations. Please go ahead.
Rebecca Yoshiyama
Thank you, operator, and welcome, everyone, to Instacart's First Quarter 2026 Earnings Call. On the call with me today are Chris Rogers, our Chief Executive Officer; and Emily Reuter, our Chief Financial Officer. During today's call, we will make forward-looking statements related to our business plans and strategy, developments in the grocery industry and our future performance and prospects, including our expectations regarding our financial results and share repurchases. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. You can find more information about these risks and uncertainties in our SEC filings, including our last Form 10-K. We assume no obligation to update these statements after today's call, except as required by law. In addition, we will also discuss certain non-GAAP financial measures, which have limitations and should not be considered in isolation from or as a substitute for our GAAP results. A reconciliation between these GAAP and non-GAAP financial measures is included in our press release, which can be found on our Investor Relations website.
Now I'll turn the call over to Chris for his opening remark...
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