Maplebear Q1 Earnings Call Highlights

Key Points

• Strong Q1 financials: GTV rose 13% to $10.29 billion and total revenue grew 14% to $1.02 billion, with GAAP net income of $144 million and adjusted EBITDA of $300 million, and the company repurchased $349 million of shares.
• Product, AI and advertising momentum: Instacart is testing an AI "Cart Assistant" and integrating with ChatGPT and Claude while advertising revenue climbed 16% to $286 million, its Carrot Ads network now exceeds 310 partners, and Storefront Pro is driving enterprise expansion with partners like ALDI and Costco.
• Capital return and outlook: Maplebear increased its buyback authorization by $1 billion, finished Q1 with about $880 million in cash and $323 million remaining buyback capacity, and guided Q2 GTV of $10.1–$10.25 billion with adjusted EBITDA of $290–$300 million.

Maplebear NASDAQ: CART, which operates the Instacart grocery technology platform, reported first-quarter 2026 results that management said marked a “strong start to the year,” with growth across marketplace, enterprise, and advertising initiatives alongside continued share repurchases.

Quarterly results: GTV tops $10 billion and revenue exceeds $1 billion

Chief Executive Officer Chris Rogers said Instacart grew gross transaction value (GTV) 13% year over year and total revenue 14%, “surpassing $10 billion in GTV and over $1 billion in total revenue for the first time.” Rogers added that the company “expanded profitability and repurchased $349 million in shares,” which he said reflected “continued confidence in the business.”

Chief Financial Officer Emily Reuter reported GTV of $10.29 billion, up 13% year over year, driven primarily by 91.2 million orders, up 10%. Average order value was $113, up 3% year over year, which Reuter attributed to “the ongoing deepening of customer engagement” and “strong performance from club retailers,” which tend to have larger baskets.

Transaction revenue was $733 million, up 13% year over year, representing 7.1% of GTV. Reuter said transaction revenue as a percentage of GTV was flat year over year due to “increased fulfillment efficiencies, largely offset by lower payment revenue,” and noted the metric may fluctuate quarter to quarter.

Advertising and other revenue rose 16% to $286 million. Reuter said it was the fastest advertising growth rate since Q3 2023 and that performance was “driven by broad-based strength,” with large brands performing well and “mid-market and emerging brands” leaning in strongly early in the year.

Total revenue was $1.02 billion, up 14% year over year. GAAP net income was $144 million, up 36%, while adjusted EBITDA was $300 million, up 23%.

Margins, expenses, and cash flow

Reuter said GAAP gross profit was $738 million, up 10% year over year, representing 7.2% of GTV compared with 7.4% a year ago. The decline in gross profit as a percentage of GTV was “primarily driven by an increase in cost of revenue as payments to publishers scale with the expansion of Carrot Ads and off-platform partnerships.” She added the company expects year-over-year growth in payments to publishers to moderate in 2026 compared to 2025.

GAAP operating expenses were $556 million, or 5.4% of GTV, down from 6.1% of GTV in Q1 2025. Adjusted operating expenses were $463 million, or 4.5% of GTV, down from 4.9% of GTV. Reuter attributed the year-over-year improvement to “increased operating leverage across all line items.” She also said G&A benefited from the repeal of Canada’s Digital Services Tax late in the quarter, “which is not a benefit we expect moving forward now that this matter is resolved.”

Operating cash flow was $268 million and free cash flow was $253 million, both down 10% year over year. Reuter said the decline was primarily due to the prior-year collection of a “large accounts receivable balance from a retailer” that benefited Q1 2025 cash flow, as well as the payment of $60 million in regulatory settlements in Q1 2026.

Product, AI, and affordability initiatives

Rogers said the company is “increasingly using AI to make our experience more personalized and intuitive,” pointing to upgrades in search, savings discovery, and an AI-powered replacement flow designed to better reflect consumer preferences in real time.

Among new AI initiatives, Rogers said Instacart began testing “Cart Assistant,” an AI-powered conversational shopping experience available to about 25% of U.S. customers. He said early feedback has been encouraging, with customers using it to “discover recipes, build meal plans, quickly assemble baskets, and research products.” In the Q&A, Rogers said usage has centered on time-saving and discovery, adding the company is still studying engagement data and exploring where Cart Assistant can appear throughout the customer journey.

Rogers also said Instacart has integrated with AI platforms including ChatGPT and, more recently, Claude. Addressing questions about potential disintermediation, Rogers said the strategy is to “be wherever customers are” while “maintaining control of the experience and maintaining control of our data,” framing the integrations as an incremental demand channel.

On affordability, Rogers highlighted retailer tools and initiatives tied to loyalty and promotions, including work with Sprouts to launch Sprouts Rewards across its online properties. He also emphasized “price parity” progress, noting that retailers offering no item-price markup “continue to grow faster on our platform.” During the Q&A, Rogers said price parity retailers “grow 10 percentage points faster” and “retain customers better,” while noting that item pricing decisions ultimately rest with retailers.

Enterprise platform, ads momentum, and international expansion

Rogers said Instacart’s enterprise platform spans e-commerce, retail media, in-store, and AI solutions, with Storefront technology powering “over 380 grocery e-com sites.” He said the company’s Storefront Pro product supports partners including Costco, Publix, and Sprouts, and that grocers upgrading to Storefront Pro see “an over 10 percentage point lift in online sales” and “a more than 5 percentage point lift in 90-day new user retention,” on average.

Rogers pointed to ALDI’s Q1 nationwide launch of a redesigned U.S. website and mobile app powered by Storefront Pro, and said ALDI’s decision to also launch Carrot Ads illustrated the company’s enterprise strategy. He also said Instacart is extending marketplace AI capabilities to retailers through “AI Solutions,” citing work with partners including Kroger and Sprouts and newly signed partners such as Food Bazaar, Heritage Grocers, Restaurant Depot, Save Mart, and Woodman’s.

On advertising, Rogers said the company grew advertising and other revenue 16% year over year, driven by expansion across supply and demand. He said the company’s Carrot Ads network has “over 310 Carrot Ad partners,” with new partners including ALDI, Dierbergs, Fairway, and Jerry’s Foods, while demand has broadened across “over 9,000 brands” advertising on the platform. He also discussed off-platform data partnerships with Meta, The Trade Desk, TikTok, and others, and said the Consumer Insights Portal continues to attract subscribers, citing Kraft Heinz as a new customer.

Internationally, Rogers said the company launched Storefront Pro with Costco in Spain and France in Q1 and that early demand was “tracking ahead of our initial expectations.” He also discussed the acquisition of Instaleap, calling it “an extremely strategic acquisition” and highlighting the company’s fulfillment platform and retailer relationships, particularly in Europe and Latin America. Reuter said the company’s international focus is primarily on the “technology layer,” adding that logistics can be pursued internationally but “wouldn’t say it’s our priority” and would be considered case by case.

Capital return, liquidity, and Q2 outlook

Reuter said Instacart repurchased $349 million of shares in Q1 and ended the quarter with $323 million of remaining buyback capacity. She said the company closed the quarter with about $880 million in cash and similar assets and established a $500 million unsecured revolving credit facility “to provide additional operating liquidity.”

The company also announced a $1 billion increase to its buyback authorization. Reuter said Instacart is “well on track to return the majority of free cash flow via repurchases this year,” and that the authorization increase would allow the company to “remain opportunistic” in 2026 and beyond.

For Q2, Reuter guided to GTV of $10.1 billion to $10.25 billion, representing 11% to 13% year-over-year growth. Advertising and other revenue is expected to grow 11% to 14% year over year. Adjusted EBITDA is expected to be $290 million to $300 million, or 11% to 15% growth year over year. Reuter reiterated that for the full year, the company expects adjusted EBITDA to grow faster than GTV while the rate of expansion moderates as Instacart reinvests in growth and laps operating expense efficiencies from 2024 and 2025.

About Maplebear NASDAQ: CART

Maplebear, Inc, doing business as Instacart, operates a leading online grocery and essentials marketplace that connects consumers, retail partners and personal shoppers through its digital platform. The company enables customers to order groceries, household items and specialty products for same-day or scheduled delivery, as well as in-store pickup. By integrating its technology with retailers' existing inventory and point-of-sale systems, Maplebear streamlines the shopping experience and provides real-time availability and pricing.

Founded in 2012 and headquartered in San Francisco, Maplebear has grown from a regional startup to a publicly traded company listed on NASDAQ under the ticker CART.

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