Q4 2025 Maplebear Inc Earnings Call

February 12, 2026

Operator: Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, the Vice President of Investor Relations, Rebecca Yoshiyama. Please go ahead.

Call at this time. All participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone, you will then hear a message. Advising your hand is raised to withdraw your question. Please press star 1 1 again, please be advised. That today's conference is being recorded, I would now like to hand the conference over to your speaker today, the vice president of investor relations Rebecca yoshiyama, please, go ahead.

Thank you Carmen and welcome everyone to instacart's, fourth quarter and full year 2025 earnings call on the call with me today. Are Chris Rogers, our chief executive officer and Emily, reuter our Chief Financial Officer

Before we dive in, I want to provide an update on our approach to earnings Communications.

Rebecca Yoshiyama: Thank you, Carmen, and welcome everyone to Instacart's fourth quarter and full year 2025 earnings call. On the call with me today are Chris Rogers, our Chief Executive Officer, and Emily Reuter, our Chief Financial Officer. Before we dive in, I want to provide an update on our approach to earnings communication. Beginning with Q1 2026, we will not publish a quarterly shareholder letter, and instead, we will move to an annual shareholder letter. We believe this approach allows us to better reflect the long-term nature of our strategy, step back to assess our progress more holistically, and focus on the sustained value we're building. We plan to continue to provide regular updates through our quarterly earnings call, a detailed earnings press release, and supplemental materials. Now on to today's call.

Beginning, uh, with q1 2026. We will not publish a quarterly shareholder letter and instead we will move to an annual shareholder letter. We will leave this. Approach allows us to better reflect the long-term nature of our strategies, step back to assess our progress, more holistically and focus on the sustained value. We're building, we plan to continue to provide regular updates through our quarterly earnings call, a detailed earnings, press release and supplemental materials.

Now, on to today's call, we'll 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.

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 forum 10q.

We assume no obligation to update these statements after today's call except as required by law.

Rebecca Yoshiyama: We'll 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. 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-Q. We assume no obligation to update these statements after today's call, except as required by law. In addition, we'll 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 shareholder letter, which can be found on our investor relations website. Now, I'll turn the call over to Chris for his opening remarks.

In addition, we'll also discuss certain non-gaap Financial measures which have limitations and should not be considered in isolation from or as a substitute for our Gap results.

A Reconciliation between these gaap and non-gaap financial measures is included in our shareholder letter, which can be found on our investor relations website.

Now, I'll turn the call over to Chris for his opening remarks.

Rebecca Yoshiyama: We assume no obligation to update these statements after today's call, except as required by law. In addition, we'll 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 shareholder letter, which can be found on our investor relations website. Now, I'll turn the call over to Chris for his opening remarks.

Thanks Rebecca. Hello everyone. I hope you've all had a chance to read my annual shareholder letter. I am incredibly proud of what we delivered in Q4. We closed out the year with our strongest GTV growth in 3 years ads and other Revenue. Grew 10% year-over-year and based on our strong conviction and how the business is performing. We repurchase 1.1 billion dollars worth of shares in Q4 alone.

Chris Rogers: Thanks, Rebecca. Hello, everyone. I hope you've all had a chance to read my annual shareholder letter. I am incredibly proud of what we delivered in Q4. We closed out the year with our strongest GTV growth in three years. Ads and other revenue grew 10% year-over-year, and based on our strong conviction in how the business is performing, we repurchased $1.1 billion worth of shares in Q4 alone. Looking ahead in Q1, we're guiding to the strongest year-over-year GTV growth we've ever provided as a public company, and we're doing it while continuing to expand profitability. The performance gives us confidence not just in the quarter ahead, but in our ability to drive durable, profitable growth over the long term. It's clear that we have real momentum, and today I want to focus on what's driving it.

Looking ahead in q1. We're guiding to the strongest year-over-year GTV growth. We've ever provided as a public company and we're doing it while continuing to expand profitability. The performance gives us confidence, not just in the quarter ahead, but in our ability to drive durable profitable growth over the long term.

It's clear that we have real momentum. And today, I want to focus on what's driving in.

It starts with the category that we operate in grocery is massive still early in its online Journey. Highly fragmented in 1 of the most operational complex categories in all of retail, those Dynamics have historically flowed online adoption but they're also exactly why our differentiation matters and why we're continuing to extend our lead.

Chris Rogers: It starts with the category that we operate in. Grocery is massive, still early in its online journey, highly fragmented, and one of the most operationally complex categories in all of retail. Those dynamics have historically slowed online adoption, but they're also exactly why our differentiation matters and why we're continuing to extend our lead. Because we've stayed relentlessly focused on grocery, we have purpose-built technology, deep retailer integrations, and ongoing systems designed specifically to handle that complexity at scale. Just as important, these systems work together, so our advantages compound with every order we fulfill, which is now up to more than 1.6 billion lifetime orders. That's why, as I said in the letter, we're now in a position to press our advantage.

Because we stayed relentlessly focused on grocery, we have purpose-built technology, deep retailer Integrations and ongoing systems designed specifically to handle that complexity at scale. Just as important these systems work together so our advantage is compound with every order we fulfill which is now up to more than 1.6 billion lifetime orders.

Better. We're now in a position to press our advantage. Our strategy is clear. Be the platform consumers, trust for all of their grocery needs provide. The technology groceries rely on to power. Their Omni Channel business and be the advertising. Ecosystem Brands, prefer on instacart and across many other surfaces.

And with generative AI accelerating execution across our platform. We are increasing our velocity compounding, our advantages and driving greater efficiency all while strengthening. The value of our first party data,

Chris Rogers: Our strategy is clear: be the platform consumers trust for all of their grocery needs, provide the technology grocers rely on to power their omnichannel business, and be the advertising ecosystem brands prefer on Instacart and across many other surfaces. And with generative AI accelerating execution across our platform, we are increasing our velocity, compounding our advantages, and driving greater efficiency, all while strengthening the value of our first-party data. Our momentum is showing up across multiple engines for growth, starting with Marketplace. Today, more than 2,200 retail banners spanning nearly 100,000 locations are accessible on the Instacart app or instacart.com. As we've expanded selection, we continue to raise the bar on convenience, quality, and affordability. And because our marketplace fundamentals are strong, we're able to reinvest in marketing and incentives efficiently, driving even more growth and operating leverage. Enterprise is our next growth engine.

our momentum is showing up across multiple engines for growth, starting with Marketplace today, more than 2,200 retail, banners spanning nearly 100,000 locations are accessible on the instacart app or instacart.com as we've expanded selection. We continue to raise the bar on convenience quality, and affordability, and because our Marketplace fundamentals are strong. We're able to reinvest in marketing and incentives. Efficiently driving even more growth in operating Leverage.

Chris Rogers: Today, more than 2,200 retail banners spanning nearly 100,000 locations are accessible on the Instacart app or instacart.com. As we've expanded selection, we continue to raise the bar on convenience, quality, and affordability. And because our marketplace fundamentals are strong, we're able to reinvest in marketing and incentives efficiently, driving even more growth and operating leverage. Enterprise is our next growth engine.

180 grosser, e-commerce sites, and we see a lot of Runway ahead well to launch with new partners and to expand with existing Partners as they adopt, more of our Solutions.

Chris Rogers: Enterprise is not just another channel for us; it's how we build deeper, more durable partnerships with retailers. This includes custom integrations, shared planning and roadmaps, and joint OKRs, so that we're aligned on what success looks like with real mutual upside. And today, we now power more than 380 grocery e-commerce sites, and we see a lot of runway ahead, both to launch with new partners and to expand with existing partners as they adopt more of our solutions. Costco is a great example of how this progression works. We started with our marketplace and storefront experience, building trust and driving growth, and from there, we upgraded Costco to Storefront Pro to Costco business centers and launched additional fulfillment options like priority delivery.

Fidji Simo: Retail banners spanning nearly 100,000 locations are accessible on the Instacart app or instacart.com. As we've expanded selection, we continue to raise the bar on convenience, quality, and affordability, and because our marketplace fundamentals are strong, we're able to reinvest in marketing and incentives efficiently, driving even more growth and operating leverage. Enterprise is our next growth engine. Enterprise is not just another channel for us; it's how we build deeper, more durable partnerships with retailers. This includes custom integrations, shared planning and roadmaps, joint OKRs, so that we're aligned on what success looks like with real mutual upside. And today, we now power more than 380 grocery e-commerce sites, and we see a lot of runway ahead, both to launch with new partners and to expand with existing partners as they adopt more of our solutions.

Fidji Simo: `Retail banners spanning nearly 100,000 locations are accessible on the Instacart app or instacart.com. As we've expanded selection, we continue to raise the bar on convenience, quality, and affordability, and because our marketplace fundamentals are strong, we're able to reinvest in marketing and incentives efficiently, driving even more growth and operating leverage. Enterprise is our next growth engine. Enterprise is not just another channel for us; it's how we build deeper, more durable partnerships with retailers. This includes custom integrations, shared planning and roadmaps, joint OKRs, so that we're aligned on what success looks like with real mutual upside. And today, we now power more than 380 grocery e-commerce sites, and we see a lot of runway ahead, both to launch with new partners and to expand with existing partners as they adopt more of our solutions.

Speaker #1: Until banners spanning nearly 100,000 locations are accessible on the Instacart app or instacart.com. As we've expanded selection, we continue to raise the bar on convenience, quality, and affordability, and because our marketplace fundamentals are strong, we're able to reinvest in marketing and incentives efficiently driving even more growth in operating leverage.

Let's go is a great example of how this progression works. We started with our Marketplace and storefront experience building trust and driving growth. And from there we upgraded Costco to storefront Pro. It's to Costco business centers and launched additional fulfillment options. Like priority. Delivery more recently, we worked together to launch a benefit for Costco executive members who are their most valuable customer segments. And we expanded internationally with the launch of Costco's first, ever, same day site in France and Spain.

Speaker #1: Enterprise is our next growth engine. Enterprise is not just another channel for us; it's how we build deeper, more durable partnerships with retailers. This includes custom integrations, shared planning and roadmaps, joint OKRs, so that we're aligned on what success looks like with real mutual upside.

Spreads is another strong example, we began by launching e-commerce on our Marketplace, and by building a storefront on sprouts.com from there, we expanded. Fulfillment, with curbside pickup, where we put our picking technology directly in the hands of our of spreads Associates.

Chris Rogers: More recently, we worked together to launch a benefit for Costco executive members, who are their most valuable customer segment, and we expanded internationally with the launch of Costco's first-ever same-day site in France and Spain. Sprouts is another strong example. We began by launching e-commerce on our marketplace and by building a storefront on sprouts.com. From there, we expanded fulfillment with curbside pickup, where we put our picking technology directly in the hands of our Sprouts associates. As the partnership deepened, Sprouts upgraded to Storefront Pro with Carrot Ads, unlocking new incremental revenue streams. Today, we're leaning in even further together with in-store experiences like Caper Cart and FoodStorm, and we're now getting ready to launch AI solutions, starting with Cart Assistant.... And these examples are not isolated cases. We see this again and again.

That's a partnership. Deep in Sprouts upgrades, the storefront Pro with care ads, unlocking, new incremental, revenue streams.

Speaker #1: And today, we now power more than 380 grocery e-commerce sites, and we see a lot of runway ahead, both to launch with new partners and to expand with existing partners as they adopt more of our solutions.

Today, we're leaning in even further together with in-store experiences like, Caper cart and food storm, and we're now getting ready to launch AI Solutions. Starting with cart assistance,

Speaker #1: Costco is a great example of how this progression works. We started with our marketplace and storefront experience, building trust and driving growth, and from there we upgraded Costco to storefront pro, expanded to Costco Business Centers, and launched additional fulfillment options like priority delivery.

Fidji Simo: Costco is a great example of how this progression works. We started with our marketplace and storefront experience, building trust and driving growth, and from there, we upgraded Costco to Storefront Pro to Costco business centers and launched additional fulfillment options like priority delivery. More recently, we worked together to launch a benefit for Costco executive members, who are their most valuable customer segment, and we expanded internationally with the launch of Costco's first-ever same-day site in France and Spain. Sprouts is another strong example. We began by launching e-commerce on our marketplace and by building a storefront on Sprouts.com. From there, we expanded fulfillment with curbside pickup, where we put our picking technology directly in the hands of our Sprouts associates. As the partnership deepens, Sprouts upgraded to Storefront Pro with Carrot Ads, unlocking new incremental revenue streams.

Chris Rogers: As the partnership deepened, Sprouts upgraded to Storefront Pro with Carrot Ads, unlocking new incremental revenue streams. Today, we're leaning in even further together with in-store experiences like Caper Cart and FoodStorm, and we're now getting ready to launch AI solutions, starting with Cart Assistant.... And these examples are not isolated cases. We see this again and again.

And these examples are not isolated cases. We see this again, and, again, Partnerships start with e-commerce capabilities, they expand through fulfillment and ads monetization, and they deepen, with in-store and AI capabilities over time. Each step helps retailers accelerate growth and allows us to participate in that growth as well.

Speaker #1: More recently, we worked together to launch a benefit for Costco executive members, who are their most valuable customer segment, and we expanded internationally with the launch of Costco's first-ever same-day site in France and Spain.

Chris Rogers: Partnerships start with e-commerce capabilities. They expand through fulfillment and ads monetization, and they deepen with in-store and AI capabilities over time. Each step helps retailers accelerate growth and allows us to participate in that growth as well. In addition, enterprise unlocks system-wide value for us. In the same way that marketplace learning drives enterprise innovation, enterprise also makes our entire platform better. We can start with whatever a retailer needs, and we can build from there, and as our partnership deepens, consumers get a better experience. They engage more, they place more orders, and that scale lowers our cost to serve and improves efficiency across marketplace and enterprise, allowing us to invest even more in the shared technology that powers the entire platform. This is why our enterprise platform is a growth engine, and why I'm so confident that we have multiple years of profitable growth ahead of us.

Speaker #1: Spreads is another strong example. We began by launching e-commerce on our marketplace and by building a storefront on spreads.com. From there, we expanded fulfillment with curbside pickup, where we put our picking technology directly in the hands of our spreads associates.

In addition, Enterprise unlocks systemwide value for us in the same way that Marketplace learning drives Enterprise Innovation and Enterprise also makes our entire platform better. We can start with whatever our retailer needs and we can build from there and as our partnership deepens consumers, get a better experience. They engage more, they Place more orders. And that's scale lowers, our cost to serve and improves efficiency across Marketplace and Enterprise, allowing us to invest even more in the shared technology that powers the entire platform.

Speaker #1: As the partnership deepens, spreads upgraded to storefront pro with carrot ads, unlocking new incremental revenue streams. Today we're leaning in even further together with in-store experiences like CaperCart and Foodstorm, and we're now getting ready to launch AI solutions starting with Cart Assistant.

This is why our Enterprise platform is a growth engine and why I'm so confident that we have multiple years of profitable. Growth ahead of us

our growth and

Fidji Simo: Today, we're leaning in even further together with in-store experiences like Caper Cart and FoodStorm, and we're now getting ready to launch AI solutions, starting with Cart Assistant. These examples are not isolated cases. We see this again and again. Partnerships start with e-commerce capabilities. They expand through fulfillment and ads monetization, and they deepen with in-store and AI capabilities over time. Each step helps retailers accelerate growth and allows us to participate in that growth as well. In addition, enterprise unlocks system-wide value for us. In the same way that marketplace learning drives enterprise innovation, enterprise also makes our entire platform better. We can start with whatever a retailer needs, and we can build from there, and as our partnership deepens, consumers get a better experience.

Enterprise also.

Speaker #1: And these examples are not isolated cases. We see this again and again. Partnerships start with e-commerce capabilities, they expand through fulfillment and ads monetization, and they deepen with in-store and AI capabilities over time.

Speaker #1: Each step helps retailers accelerate growth and allows us to participate in that growth as well. In addition, enterprise unlocks system-wide value for us in the same way that marketplace learning drives enterprise innovation; enterprise also makes our entire platform better.

Strengthens another part of our business, our ads ecosystem and our Data Solutions Brands and agencies, want strong performance and they want measurements that they can trust at scale. And that's exactly what we deliver. In addition to ads on Marketplace, we've expanding our expanded, our advertising technology and demand to more than 310 retailer owned. Sites through cared adds up from 220 a year ago.

Chris Rogers: Our growth and momentum across Marketplace and enterprise also strengthens another part of our business, our Ads ecosystem and our data solutions. Brands and agencies want strong performance, and they want measurements that they can trust at scale, and that's exactly what we deliver. In addition to Ads on Marketplace, we've expanded our advertising technology and demand to more than 310 retailer-owned sites through Carrot Ads, up from 220 a year ago. As our reach has grown, we've pulled in more demand. In Q4, more than 9,000 brands advertised on Instacart, up from 7,000 last year, and this diversification makes our Ads ecosystem stronger and more resilient. We're also starting to unlock advertising inside physical stores through shoppable display ads on Caper Carts. Early engagement has been encouraging.

As our reach has grown, we've pulled in more demand and Q4 more than 9,000 Brands advertised on instacart up from 7,000 last year. And this diversification makes our ads, ecosystem stronger, and more resilient

Speaker #1: We can start with whatever our retailer needs, and we can build from there. As our partnership deepens, consumers get a better experience. They engage more, they place more orders, and that scale lowers our cost to serve and improves efficiency across marketplace and enterprise.

We're also starting to unlock advertising, inside physical stores through shoppable display ads on Caper cards.

Fidji Simo: They engage more, they place more orders, and that scale lowers our cost to serve and improves efficiency across marketplace and enterprise, allowing us to invest even more in the shared technology that powers the entire platform. This is why our enterprise platform is a growth engine, and why I'm so confident that we have multiple years of profitable growth ahead of us. Our growth and momentum across marketplace and enterprise also strengthens another part of our business, our ads ecosystem and our data solutions. Brands and agencies want strong performance, and they want measurement that they can trust at scale, and that's exactly what we deliver. In addition to ads on marketplace, we've expanded our advertising technology and demand to more than 310 retailer-owned sites through Carrot Ads, up from 220 a year ago.

Speaker #1: Allowing us to invest even more in the shared technology that powers the entire platform. This is why our enterprise platform is a growth engine and why I'm so confident that we have multiple years of profitable growth ahead of us.

Early engagement has been encouraging. For example, a simple. Got everything you need prompt is driving a nearly 1 percentage Point lift in basket size on average and this is just 1 data point. That reinforces our belief that Caper will be 1 of the most powerful in-store advertising platforms over time.

Speaker #1: Our growth and momentum across marketplace and enterprise also strengthens another part of our business, our ads ecosystem, and our data solutions. Brands and agencies want strong performance, and they want measurement that they can trust at scale.

Chris Rogers: For example, a simple, "Got everything you need?" prompt is driving a nearly 1 percentage point lift in basket size on average. And this is just one data point that reinforces our belief that Caper will be one of the most powerful in-store advertising platforms over time. We're also investing in incremental advertising and other revenue opportunities built on our first-party data. For example, with our off-platform partnerships, where we can help brands reach consumers beyond Instacart, whether that's through search, social, recipe, or video, and in many cases, connect that activity back to real purchases on our platform. We're also creating additional ways to monetize our data, including with the Consumer Insights Portal, which now has a dozen paid subscribers in just a few months.

Speaker #1: And that's exactly what we deliver. In addition to ads on marketplace, we've expanded our advertising technology and demand to more than 310 retailer-owned sites through carrot ads, up from 220 a year ago.

We're also investing in incremental advertising and other Revenue opportunities built on our first party data. For example, with our off platform Partnerships, where we can help Brands reach, consumers Beyond instacart, whether that's through search social recipe or video. And in many cases, connect that activity back to real purchases on our platform.

We're also creating additional ways to monetize our data including with the consumer insights portal. Which now has a dozen, paid subscribers and subscribers in just a few months.

finally, I want to spend

Speaker #1: As our reach has grown, we've pulled in more demand, and Q4 more than 9,000 brands advertised on Instacart, up from 7,000 last year. And this diversification makes our ads ecosystem stronger and more resilient.

Fidji Simo: As our reach has grown, we've pulled in more demand. In Q4, more than 9,000 brands advertised on Instacart, up from 7,000 last year, and this diversification makes our ads ecosystem stronger and more resilient. We're also starting to unlock advertising inside physical stores through shoppable display ads on Caper Carts. Early engagement has been encouraging. For example, a simple, "Got everything you need?" prompt is driving a nearly 1 percentage point lift in basket size on average. And this is just one data point that reinforces our belief that Caper will be one of the most powerful in-store advertising platforms over time. We're also investing in incremental advertising and other revenue opportunities built on our first-party data.

Speaker #1: We're also starting to unlock advertising inside physical stores through shoppable display ads on CaperCarts. Early engagement has been encouraging. For example, a simple "got everything you need" prompt is driving a nearly 1 percentage point lift in basket size on average, and this is just one data point that reinforces our belief that Caper will be one of the most powerful in-store advertising platforms over time.

faster or more productive we're seeing fundamental shifts in how work gets done and how platforms created Advantage. Now, ai shifts May pose a risk to certain businesses, but we believe these shifts favor platforms like instacart that combine

Technology with real world operations and unique data at scale. This is where we win and why we think we will AC Excel and be a net gainer in an AI driven world.

Chris Rogers: Finally, I want to spend a few minutes on AI, because it's no longer about just about making teams faster or more productive. We're seeing fundamental shifts in how work gets done and how platforms create advantage. AI shifts may pose a risk to certain businesses, but we believe these shifts favor platforms like Instacart that combine technology with real-world operations and unique data at scale. This is where we win and why we think we will excel and be a net gainer in an AI-driven world. Grocery isn't a digital-only problem. It's physical, it's operational, it's relationship-driven, and we operate at that intersection with deep retailer integrations, an experienced shopper network, and a constant presence inside stores. That operating model gives us one of the richest grocery data sets in the world. For example, our orders, on average, include at least one replacement.

Speaker #1: We're also investing in incremental advertising and other revenue opportunities built on our first-party data. For example, with our off-platform partnerships, where we can help brands reach consumers beyond Instacart, whether that's through search, social, recipe, or video, and in many cases connect that activity back to real purchases on our platform.

Fidji Simo: For example, with our off-platform partnerships, where we can help brands reach consumers beyond Instacart, whether that's through search, social, recipe or video, and in many cases, connect that activity back to real purchases on our platform. We're also creating additional ways to monetize our data, including with the Consumer Insights Portal, which now has a dozen paid subscribers in just a few months. Finally, I want to spend a few minutes on AI, because it, it's no longer about just about making teams faster or more productive. We're seeing fundamental shifts in how work gets done and how platforms create advantage. AI shifts may pose a risk to certain businesses, but we believe these shifts favor platforms like Instacart that combine technology with real-world operations and unique data at scale.

Speaker #1: We're also creating additional ways to monetize our data, including with the consumer insights portal, which now has a dozen paid subscriber in just a few months.

Speaker #1: Finally, I want to spend a few minutes on AI because it's no longer about just about making teams faster or more productive. We're seeing fundamental shifts in how work gets done and how platforms create advantage.

Speaker #1: AI shifts may pose a risk to certain businesses, but we believe these shifts favor platforms like Instacart that combine technology with real-world operations and unique data at scale.

Stores, solving, real world inventory, problems at scale, put simply our physical operations, make our data better. And that data makes our technology smarter more unique and more effective. Exactly what's required to succeed in a category as complex as Grocery. And it underscores why we win as the leading grocery technology partner for the industry?

Internally. We're also

Chris Rogers: That means we don't just understand what people buy, we know what they intended to buy and what's acceptable when that item isn't available. And those insights can only be earned by having a network of shoppers inside stores, solving real-world inventory problems at scale. Put simply, our physical operations make our data better, and that data makes our technology smarter, more unique, and more effective, exactly what's required to succeed in a category as complex as grocery. And it underscores why we win as the leading grocery technology partner for the industry. Internally, we're also leveraging AI to accelerate our execution. Over the last year, we invested heavily in connecting our tools, data, and infrastructure, so AI can operate across our systems, not in silos.

Speaker #1: This is where we win and why we think we will excel and be a net gainer in an AI-driven world. Grocery isn't a digital-only problem.

Fidji Simo: This is where we win and why we think we will excel, excel and be a net gainer in an AI-driven world. Grocery isn't a digital-only problem. It's physical, it's operational, it's relationship driven, and we operate at that intersection with deep retailer integrations, an experienced shopper network, and a constant presence inside stores. That operating model gives us one of the richest grocery datasets in the world. For example, our orders, on average, include at least one replacement. That means we don't just understand what people buy, we know what they intended to buy and what's acceptable when that item isn't available. Those insights can only be earned by having a network of shoppers inside stores, solving real-world inventory problems at scale.

Speaker #1: It's physical, it's operational, it's relationship-driven, and we operate at that intersection with deep retailer integrations and experienced shopper networks, and a constant presence inside stores.

Try to accelerate our execution. Over the last year, we invested heavily in connecting our tools data and infrastructure so AI can operate a cross, our systems, not in silos, as a result. Our teams are using AI, not just to move faster on a single workflow but to solve broader problems and execute across multiple initiatives in parallel.

Speaker #1: That operating model gives us one of the richest grocery data sets in the world. For example, our orders on average include at least one replacement.

Speaker #1: That means we don't just understand what people buy; we know what they intended to buy and what's acceptable when that item isn't available. And those insights can only be earned by having a network of shoppers inside stores solving real-world inventory problems at scale.

Chris Rogers: As a result, our teams are using AI not just to move faster on a single workflow, but to solve broader problems and execute across multiple initiatives in parallel. You can see the impact in how we're executing. Over the past year, average output per engineer is up nearly 40%, which includes 10% of our team increasing output by 80%. This momentum is already accelerating into 2026, and for new projects, we believe AI is now enabling us to build production-grade software more than 4 times faster than before. And we're doing all of this while improving quality. System reliability is up, even as engineering throughput has increased significantly. That's not incremental improvement, it's a fundamentally different pace of execution, and it's fueling momentum across our business.

You can see the impact in how we're executing over the past year, average output per engineer is up nearly 40%, which includes 10% of our team. Increasing output by 80%, this momentum is already accelerating into 2026 and for new projects, We Believe. AI is now enabling us to build production, grade software, more than 4 times faster, than before. And we're doing all of this while improving quality system. Reliability is up even as engineering throughput has increased significantly.

Speaker #1: Put simply, our physical operations make our data better, and that data makes our technology smarter, more unique, and more effective, exactly what's required to succeed in a category as complex as grocery.

Fidji Simo: Put simply, our physical operations make our data better, and that data makes our technology smarter, more unique, and more effective, exactly what's required to succeed in a category as complex as grocery, and it underscores why we win as the leading grocery technology partner for the industry. Internally, we're also leveraging AI to accelerate our execution. Over the last year, we invested heavily in connecting our tools, data, and infrastructure, so AI can operate across our systems, not in silos.... As a result, our teams are using AI not just to move faster on a single workflow, but to solve broader problems and execute across multiple initiatives in parallel. You can see the impact in how we're executing. Over the past year, average output per engineer is up nearly 40%, which includes 10% of our team increasing output by 80%.

Speaker #1: And it underscores why we win as the leading grocery technology partner for the industry. Internally, we're also leveraging AI to accelerate our execution. Over the last year, we invested heavily in connecting our tools, data, and infrastructure so AI can operate across our systems, not in silos.

That's not incremental Improvement. It's a fundamentally different pace of execution and it's fueling momentum across our business. For example, on our Enterprise platform we're on boarding more retailers faster, while delivering more customized White Glove Solutions at scale, which was not possible before.

Speaker #1: As a result, our teams are using AI not just to move faster, on a single workflow, but to solve broader problems and execute across multiple initiatives in parallel.

Speaker #1: You can see the impact in how we're executing. Over the past year, average output per engineer is up nearly 40%, which includes 10% of our team increasing output by 80%.

Chris Rogers: For example, on our enterprise platform, we're onboarding more retailers faster while delivering more customized white-glove solutions at scale, which was not possible before. You can also see it in the breadth of what we're delivering, from improvements in quality and fulfillment efficiency to new customer experiences like our Smart Shop technology, to our white label AI assistant, known as Cart Assistant, to building physical AI capabilities in store with Caper Cart and Store View, and to expanding retailers' e-commerce capabilities internationally. And then on ads, AI is powering more relevant consumer interactions and simpler, more efficient tools for advertisers. It's fair to say that we are using AI across the board to accelerate and improve all aspects of our business. Overall, 2025 was a defining year for Instacart.

You can also see it in the breadth of what we're delivering from improvements in quality and fulfillment efficiency to new customer experiences like our Smart Shop. Technology to our white label AI assistant known as card assistant to building physical AI capabilities in store with Caper cart in store View and to expanding retailers. E-commerce, capabilities internationally, and then on ads, AI is powering more relevant. Consumer interactions and simpler more efficient tools for advertisers

It's fair to say that we are using AI across the board to accelerate and improve all aspects of our business.

Speaker #1: This momentum is already accelerating into 2026, and for new projects, we believe AI is now enabling us to build production-grade software more than four times faster than before.

Fidji Simo: This momentum is already accelerating into 2026, and for new projects, we believe AI is now enabling us to build production-grade software more than four times faster than before. We're doing all of this while improving quality. System reliability is up, even as engineering throughput has increased significantly. That's not incremental improvement; it's a fundamentally different pace of execution, and it's fueling momentum across our business. For example, on our enterprise platform, we're onboarding more retailers faster while delivering more customized white glove solutions at scale, which was not possible before.

Speaker #1: And we're doing all of this while improving qualities, system reliability is up, even as engineering throughput has increased significantly. That's not incremental improvement; it's a fundamentally different pace of execution, and it's fueling momentum across our business.

Overall 2025 was a defining year for instacart more than 26 million customers trusted instacart and and and engagement engagement continues to deepen with approximately 10 million customers placing at least 1 order in, December alone, a new high for the company.

Speaker #1: For example, on our enterprise platform, we're onboarding more retailers faster while delivering more customized white glove solutions at scale, which was not possible before.

Speaker #1: You can also see it in the breadth of what we're delivering, from improvements in quality and fulfillment efficiency to new customer experiences like our Smart Shop technology to our white label AI assistant known as Cart Assistant.

Fidji Simo: You can also see it in the breadth of what we're delivering, from improvements in quality and fulfillment efficiency, to new customer experiences like our Smart Shop technology, to our white label AI assistant, known as Cart Assistant, to building physical AI capabilities in store with Caper Cart and Store View, and to expanding retailers' e-commerce capabilities internationally. Then on ads, AI is powering more relevant consumer interactions and simpler, more efficient tools for advertisers. It's fair to say that we are using AI across the board to accelerate and improve all aspects of our business. Overall, 2025 was a defining year for Instacart. More than 26 million customers trusted Instacart, and engagement continued to deepen, with approximately 10 million customers placing at least one order in December alone, a new high for the company.

Chris Rogers: More than 26 million customers trusted Instacart, and engagement continued to deepen, with approximately 10 million customers placing at least 1 order in December alone, a new high for the company. That's a clear signal that our strategy is working, our operating fundamentals are strong, our teams are executing at a high level across our growth engines, and we're well positioned to be the clear winner with AI. As we look ahead to 2026, my mindset is clear: this is the moment for us to accelerate. It's time to press our advantage, extend our lead, further scale our platform, and unlock new opportunities to drive long-term profitable growth. We're still early in the omnichannel transformation of grocery. Instacart's earned the right to lead it, and I am determined to make that happen. With that, I'll turn it over to Emily to walk through the financials.

That's a clear signal that our strategy is working. Our operating fundamentals are strong. Our teams are executing at a high level across our growth engines and we're, well, positioned to be the clear winner with AI. And as we look ahead to 2026, my mindset is clear. This is the moment for us to accelerate, it's time to press our advantage. Extend our lead further scale, our platform and unlock new opportunities to drive

Long-term profitable growth.

Speaker #1: To building physical AI capabilities in-store with CaperCart and StoreView, and to expanding retailers' e-commerce capabilities internationally. And then on ads, AI is powering more relevant consumer interactions and simpler, more efficient tools for advertisers.

We're still early in the Omni Channel transformation of grocery instacart's earn the right to lead it. And I am determined to make that happen.

With that, I'll turn it over to Emily to walk through the financials.

Thank you, Chris. And hello, everyone.

Chris Rogers: As we look ahead to 2026, my mindset is clear: this is the moment for us to accelerate. It's time to press our advantage, extend our lead, further scale our platform, and unlock new opportunities to drive long-term profitable growth. We're still early in the omnichannel transformation of grocery. Instacart's earned the right to lead it, and I am determined to make that happen. With that, I'll turn it over to Emily to walk through the financials.

Speaker #1: It's fair to say that we are using AI across the board to accelerate and improve all aspects of our business. Overall, 2025 was a defining year for Instacart.

Speaker #1: More than 26 million customers trusted Instacart, and engagement continued to deepen, with approximately 10 million customers placing at least one order in December alone—a new high for the company.

Our business is operating with tremendous momentum across multiple growth engines, powered by a strong, operating foundation and instacart's, distinct advantages, that foundation. And the large underpenetrated Market ahead of us is exactly what we're continuing to invest across the balanced portfolio of short medium and long-term growth initiatives to extend our category leadership. We're doing this with discipline Guided by clear guard rails, return, expectations and deliberate trade-offs across Investments.

Speaker #1: That's a clear signal that our strategy is working, our operating fundamentals are strong, our teams are executing at a high level across our growth engines, and we're well positioned to be the clear winner with AI.

Fidji Simo: That's a clear signal that our strategy is working, our operating fundamentals are strong, our teams are executing at a high level across our growth engines, and we're well positioned to be the clear winner with AI. And as we look ahead to 2026, my mindset is clear: This is the moment for us to accelerate. It's time to press our advantage, extend our lead, further scale our platform, and unlock new opportunities to drive long-term profitable growth. We're still early in the omni-channel transformation of grocery. Instacart's earned the right to lead it, and I am determined to make that happen. With that, I'll turn it over to Emily to walk through the financials.

Emily Reuter: Thank you, Chris, and hello, everyone. Our business is operating with tremendous momentum across multiple growth engines, powered by a strong operating foundation and Instacart's distinct advantages. That foundation, and the large under-penetrated market ahead of us, is exactly why we're continuing to invest across a balanced portfolio of short, medium, and long-term growth initiatives to extend our category leadership. We're doing this with discipline, guided by clear guardrails, return expectations, and deliberate trade-offs across investments. And we continue to drive efficiency and leverage across the P&L. We've been consistent with this approach, and it's working. Over the past few years, we've accelerated GTV growth while expanding Adjusted EBITDA. That track record gives us confidence in our strategy and our ability to deliver even more profitable growth over the long term. Now let's dive into our Q4 results. We ended the year with momentum.

And we continue to drive efficiency and leverage across the pnl.

We've been consistent with this approach, and it's working over the past few years, we've accelerated GTV growth while expanding adjusted ibida.

Speaker #1: And as we look ahead to 2026, my mindset is clear. This is the moment for us to accelerate, it's time to press our advantage, extend our lead, further scale our platform, and unlock new opportunities to drive long-term profitable growth.

That track record gives us confidence in our strategy, and our ability to deliver even more profitable growth over the long term. Now, let's dive into our Q4 results.

Speaker #1: We're still early in the omnichannel transformation of grocery, Instacart's earned the right to lead it, and I am determined to make that happen. With that, I'll turn it over to Emily to walk through the financials.

We ended the year with momentum GTV was 9.85 billion up 14% year-over-year marking our strongest growth in 3 years.

Emily Reuter: And we continue to drive efficiency and leverage across the P&L. We've been consistent with this approach, and it's working. Over the past few years, we've accelerated GTV growth while expanding Adjusted EBITDA. That track record gives us confidence in our strategy and our ability to deliver even more profitable growth over the long term. Now let's dive into our Q4 results. We ended the year with momentum.

Speaker #2: Thank you, Chris, and hello everyone. Our business is operating with tremendous momentum across multiple growth engines, powered by a strong operating foundation and Instacart's distinct advantages.

Emily Reuter: Thank you, Chris, and hello, everyone. Our business is operating with tremendous momentum across multiple growth engines, powered by a strong operating foundation and Instacart's distinct advantages. That foundation, and the large underpenetrated market ahead of us, is exactly why we're continuing to invest across a balanced portfolio of short, medium, and long-term growth initiatives to extend our category leadership. We're doing this with discipline, guided by clear guardrails, return expectations, and deliberate trade-offs across investments. We continue to drive efficiency and leverage across the P&L. We've been consistent with this approach, and it's working. Over the past few years, we've accelerated GTV growth while expanding Adjusted EBITDA. That track record gives us confidence in our strategy and our ability to deliver even more profitable growth over the long term. Now, let's dive into our Q4 results. We ended the year with momentum.

This performance was driven by orders reaching 89.5 million up 16% year-over-year and as we expected average order value, decreasing by 1% year-over-year reflecting growth in restaurant orders.

Speaker #2: That foundation and the large under-penetrated market ahead of us is exactly what we're continuing to invest across a balanced portfolio of short, medium, and long-term growth initiatives to extend our category leadership.

Transaction Revenue, grew 13% year-over-year and represented 7.1% of GTV, which was flat year-over-year.

Emily Reuter: GTV was $9.85 billion, up 14% year-over-year, marking our strongest growth in 3 years. This performance was driven by orders reaching 89.5 million, up 16% year-over-year, and, as we expected, average order value decreasing by 1% year-over-year, reflecting growth in restaurant orders. Transaction revenue grew 13% year-over-year and represented 7.1% of GTV, which was flat year-over-year. This was driven by investments into affordability to drive customer engagement, largely offset by increased fulfillment efficiencies. As a reminder, we manage multiple levers across our P&L, so transaction revenue may fluctuate quarter to quarter as we intentionally reinvest in growth.

To drive customer engagement. Largely offset by increased fulfillment. Efficiencies

Speaker #2: We're doing this with discipline, guided by clear guardrails, return expectations, and deliberate trade-offs across investments. And we continue to drive efficiency and leverage across the P&L.

As a reminder, we manage multiple levers across our pnl. So transaction Revenue May fluctuate quarter to quarter as we intentionally reinvest in growth.

Speaker #2: We've been consistent with this approach, and it's working. Over the past few years, we've accelerated GTV growth while expanding a just EBITDA. That track record gives us confidence in our strategy and our ability to deliver even more profitable growth over the long term.

Advertising and other Revenue grew 10% year-over-year reflecting our strong DTV performance. Our onboarding of more current ads Partners throughout the year.

Diversification across more than 9,000, active brand partners, and the extension of our data advantage through off-platform Partnerships and new Data Solutions.

Speaker #2: Now let's dive into our Q4 results. We ended the year with momentum. GTV was 9.85 billion dollars, up 14% year over year, marking our strongest growth in three years.

Emily Reuter: GTV was $9.85 billion, up 14% year-over-year, marking our strongest growth in three years. This performance was driven by orders reaching 89.5 million, up 16% year-over-year, and as we expected, average order value decreasing by 1% year-over-year, reflecting growth in restaurant orders. Transaction revenue grew 13% year-over-year and represented 7.1% of GTV, which was flat year-over-year. This was driven by investments into affordability to drive customer engagement, largely offset by increased fulfillment efficiencies. As a reminder, we manage multiple levers across our P&L, so transaction revenue may fluctuate quarter to quarter as we intentionally reinvest in growth.

Momentum helped Q4 advertising and other Revenue outperform, our expectations even as certain large brand Partners continued to navigate macro uncertainty in their businesses.

Speaker #2: This performance was driven by orders reaching 89.5 million, up 16% year over year, and as we expected, average order value decreasing by 1% year over year, reflecting growth in restaurant orders.

Emily Reuter: Advertising and other revenue grew 10% year over year, reflecting our strong GTV performance, our onboarding of more Carrot Ads partners throughout the year, diversification across more than 9,000 active brand partners, and the extension of our data advantage through off-platform partnerships and new data solutions. This momentum helped Q4 advertising and other revenue outperform our expectations, even as certain large brand partners continued to navigate macro uncertainty in their businesses. Some of our advertising and other revenue growth is also driving higher payments to publishers, which includes what we pay certain Carrot Ads partners for the benefit of advertising on their sites, and incremental ads budgets that we optimize and deploy on behalf of brands on certain off-platform partnerships. While this shows up as higher cost of revenue, it's intentional and incremental growth by design.

Speaker #2: Transaction revenue grew 13% year over year and represented 7.1% of GTV, which was flat year over year. This was driven by investments into affordability to drive customer engagement, largely offset by increased fulfillment efficiencies.

Some of our advertising and other Revenue growth is also drawing driving higher payments to Publishers which includes what we pay certain carrot ads, partners for the benefit of advertising on their sites and incremental ads budgets that we optimize and Deploy on behalf of brands. On certain off platform Partnerships.

While this shows up as higher cost of Revenue, it's intentional and incremental growth by Design.

Speaker #2: As a reminder, we've managed multiple levers across our P&L, so transaction revenue may fluctuate quarter to quarter as we intentionally reinvest in growth. Advertising and other revenue grew 10% year over year, reflecting our strong GTV performance, our onboarding of more Carrot Ads partners throughout the year, diversification across more than 9,000 active brand partners, and the extension of our data advantage through off-platform partnerships and new data solutions.

That's because these initiatives, deepen, our relationships with Brands unlock additional ads budgets and strengthen the broader platform by delivering value to retailers and consumers.

While payments to Publishers scaled throughout 2025, we expect a year-over-year growth to moderate in 2026.

In Q4, we also continue to demonstrate Financial discipline and operating leverage gaap. Net income was 81 million down 46% year-over-year.

Emily Reuter: That's because these initiatives deepen our relationships with brands, unlock additional ads budgets, and strengthen the broader platform by delivering value to retailers and consumers. While payments to publishers scale throughout 2025, we expect its year-over-year growth to moderate in 2026. In Q4, we also continued to demonstrate financial discipline and operating leverage. GAAP net income was $81 million, down 46% year-over-year. This decline was primarily due to higher G&A expenses related to non-recurring legal and regulatory matters, including a $60 million settlement with the FTC. Absent these non-recurring expenses, Q4 GAAP net income would have increased year-over-year. Adjusted EBITDA grew 20% year-over-year to $303 million. We also generated operating cash flow of $184 million, up 20% year-over-year.

Speaker #2: This momentum helped Q4 advertising and other revenue outperform our expectations. Even as certain large brand partners continued to navigate macro uncertainty in their businesses.

decline was primarily due to higher GNA expenses, related to non-recurring legal and Regulatory matters, including a 60 million dollar settlement with the FTC

absent, these non-recurring expenses Q4 gaap net income would have increased year-over-year

Speaker #2: Some of our advertising and other revenue growth is also driving higher payments to publishers, which includes what we pay certain carrot ads partners for the benefit of advertising on their sites and incremental ads budgets that we optimize and deploy on behalf of brands on certain off-platform partnerships.

Percent year-over-year to 303 million.

We also generated operating cash flow of 184 million up, 20% year-over-year.

Speaker #2: While this shows up as higher cost of revenue, it's intentional and incremental growth by design. That's because these initiatives deepen our relationships with brands, unlock additional ad budgets, and strengthen the broader platform by delivering value to retailers and consumers.

Because of our confidence in the strength of our business today. And in our ability to keep investing scaling and pressing our advantage, we opportunistically repurchased 1.4 billion dollars of shares in 2025

Emily Reuter: That's because these initiatives deepen our relationships with brands, unlock additional ads budgets, and strengthen the broader platform by delivering value to retailers and consumers. While payments to publishers scaled throughout 2025, we expect its year-over-year growth to moderate in 2026. In Q4, we also continued to demonstrate financial discipline and operating leverage. GAAP net income was $81 million, down 46% year over year. This decline was primarily due to higher G&A expenses related to non-recurring legal and regulatory matters, including a $60 million settlement with the FTC. Absent these non-recurring expenses, Q4 GAAP net income would have increased year over year. Adjusted EBITDA grew 20% year over year to $303 million. We also generated operating cash flow of $184 million, up 20% year over year.

This included 1.1 billion, dollars of repurchases in Q4 alone which included our 250 million. Accelerated share repurchase program.

Speaker #2: While payments to publishers scaled throughout 2025, we expect it's year-over-year growth to moderate in 2026. In Q4, we also continue to demonstrate financial discipline and operating leverage.

We ended 2025 with approximately 1 billion dollars in cash and similar assets and 600 and 771 million of remaining buyback capacity.

Now, on to our q1 Outlook,

Emily Reuter: Because of our confidence in the strength of our business today, and in our ability to keep investing, scaling, and pressing our advantage, we opportunistically repurchased $1.4 billion of shares in 2025. This included $1.1 billion of repurchases in Q4 alone, which included our $250 million accelerated share repurchase program. We ended 2025 with approximately $1 billion in cash and similar assets, and $671 million of remaining buyback capacity. Now on to our Q1 outlook. We're encouraged by the momentum we're seeing across the business and are starting the year from a position of strength. We anticipate GTV to range between $10.125 billion and $10.275 billion.

Speaker #2: GAAP net income was 81 million dollars, down 46% year over year. This decline was primarily due to higher G&A expenses related to non-recurring legal and regulatory matters, including a $60 million settlement with the FTC.

We're encouraged by the momentum, we're seeing across the business and are starting the year from a position of strength.

Speaker #2: Absent these non-recurring expenses, Q4 GAAP net income would have increased year over year. Adjusted EBITDA grew 20% year over year to $303 million. We also generated operating cash flow of $184 million, up 20% year over year.

We anticipate GTV to range between 10.125 billion dollars to 10.275 billion. This represents the year-over-year growth between 11 to 13% with GTV growth expected to outpace orders growth. As we lack the full launch of our ten dollar minimum basket feature for instacart Plus members in the prior year quarter,

Speaker #2: Because of our confidence in the strength of our business today, and in our ability to keep investing, scaling, and pressing our advantage, we opportunistically repurchased $1.4 billion of shares in 2025.

We expect advertising and other Revenue to grow 11 to 14% year-over-year reflecting the ongoing benefits of a diversification across supply and demand across our platform in addition to a positive start to the year across large mid-market and emerging brands.

Emily Reuter: This represents year-over-year growth between 11 to 13%, with GTV growth expected to outpace orders growth as we lap the full launch of our $10 minimum basket feature for Instacart Plus members in the prior year quarter. We expect advertising and other revenue to grow 11 to 14% year-over-year, reflecting the ongoing benefits of diversification across supply and demand across our platform, in addition to a positive start to the year across large, mid-market, and emerging brands. We are also guiding to Q1 Adjusted EBITDA of $280 to 290 million, up year-over-year by 15 to 19%, and down quarter-over-quarter, primarily due to advertising seasonality. As we look ahead to fiscal 2026, we remain committed to steady annual Adjusted EBITDA year-over-year growth at a rate that outpaces GTV growth.

Speaker #2: This included $1.1 billion of repurchases in Q4 alone, which included our $250 million accelerated share repurchase program. We ended 2025 with approximately $1 billion in cash and similar assets, and $600 million and $71 million of remaining buyback capacity.

Fidji Simo: ... This included $1.1 billion of repurchases in Q4 alone, which included our $250 million accelerated share repurchase program. We ended 2025 with approximately $1 billion in cash and similar assets and $671 million of remaining buyback capacity. Now on to our Q1 outlook. We're encouraged by the momentum we're seeing across the business and are starting the year from a position of strength. We anticipate GTV to range between $10.125 billion to $10.275 billion. This represents year-over-year growth between 11 to 13%, with GTV growth expected to outpace orders growth as we lap the full launch of our $10 minimum basket feature for Instacart Plus members in the prior year quarter.

Emily Reuter: This included $1.1 billion of repurchases in Q4 alone, which included our $250 million accelerated share repurchase program. We ended 2025 with approximately $1 billion in cash and similar assets and $671 million of remaining buyback capacity. Now on to our Q1 outlook. We're encouraged by the momentum we're seeing across the business and are starting the year from a position of strength. We anticipate GTV to range between $10.125 billion to $10.275 billion. This represents year-over-year growth between 11 to 13%, with GTV growth expected to outpace orders growth as we lap the full launch of our $10 minimum basket feature for Instacart Plus members in the prior year quarter.

We are also guiding to q1 adjusted ibida of 280 to 290 million up year-over-year by 15 to 19% and down quarter of a quarter. Primarily due to advertising seasonality,

As we look ahead to fiscal 2026, we remain committed to steady annual adjusted evida year-over-year. Growth at a rate that outpaces GTV growth.

Speaker #2: Now on to our Q1 outlook. We're encouraged by the momentum we're seeing across the business and are starting the year from a position of strength.

Speaker #2: We anticipate GTV to range between $10.125 billion and $10.275 billion. This represents year-over-year growth between 11% and 13%, with GTV growth expected to outpace orders growth as we lap the full launch of our $10 minimum basket feature for Instacart Plus members in the prior year quarter.

Similar to Prior years. We expect this rate of expansion to moderate year-over-year, as we reinvest to accelerate across our multiple growth engines and lap. Some of the more significant significant operating expense efficiencies realized in 2024, and 2025

Speaker #2: We expect advertising and other revenue to grow 11 to 14 percent year over year, reflecting the ongoing benefits of a diversification across supply and demand across our platform.

Fidji Simo: We expect advertising and other revenue to grow 11% to 14% year-over-year, reflecting the ongoing benefits of a diversification across supply and demand across our platform, in addition to a positive start to the year across large, mid-market, and emerging brands. We are also guiding to Q1 adjusted EBITDA of $280 to $290 million, up year-over-year by 15% to 19% and down quarter-over-quarter, primarily due to advertising seasonality. As we look ahead to fiscal 2026, we remain committed to steady annual adjusted EBITDA year-over-year growth at a rate that outpaces GTV growth. Similar to prior years, we expect this rate of expansion to moderate year-over-year as we reinvest to accelerate across our multiple growth engines and lap some of the more significant operating expense efficiencies realized in 2024 and 2025.

Emily Reuter: We expect advertising and other revenue to grow 11% to 14% year-over-year, reflecting the ongoing benefits of a diversification across supply and demand across our platform, in addition to a positive start to the year across large, mid-market, and emerging brands. We are also guiding to Q1 adjusted EBITDA of $280 to $290 million, up year-over-year by 15% to 19% and down quarter-over-quarter, primarily due to advertising seasonality. As we look ahead to fiscal 2026, we remain committed to steady annual adjusted EBITDA year-over-year growth at a rate that outpaces GTV growth. Similar to prior years, we expect this rate of expansion to moderate year-over-year as we reinvest to accelerate across our multiple growth engines and lap some of the more significant operating expense efficiencies realized in 2024 and 2025.

Overall, we finished 2025 strong and are off to a great start in 2026. Our momentum is building and we have multiple engines for growth and lovers in our p&l to drive durable, long-term profitable growth and accelerate Omni Channel grocery adoption for the industry.

Emily Reuter: Similar to prior years, we expect this rate of expansion to moderate year over year as we reinvest to accelerate across our multiple growth engines and lap some of the more significant operating expense efficiencies realized in 2024 and 2025. Overall, we finished 2025 strong and are off to a great start in 2026.

With that, you'll open up the call for live questions, operator. You may begin.

Speaker #2: In addition to a positive start to the year, across large, mid-market, and emerging brands. We are also guiding to Q1 adjusted EBITDA of $280 to $290 million.

Speaker #2: Up year over year by 15 to 19 percent, and down quarter over quarter, primarily due to advertising seasonality. As we look ahead to fiscal 2026, we remain committed to steady annual adjusted EBITDA year over year growth at a rate that outpaces GTV growth.

Chris Rogers: ... Our momentum is building, and we have multiple engines for growth and levers in our P&L to drive durable, long-term, profitable growth and accelerate omnichannel grocery adoption for the industry. With that, we'll open up the call for live questions. Operator, you may begin.

Emily Reuter: ... Our momentum is building, and we have multiple engines for growth and levers in our P&L to drive durable, long-term, profitable growth and accelerate omnichannel grocery adoption for the industry. With that, we'll open up the call for live questions. Operator, you may begin.

Thank you so much. And as a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star 1 1 again and we asked that you please keep your questions to 1 please stand by while we compile the Q&A roster,

All right, our first question comes from dog. And with JP Morgan please proceed.

Operator: Thank you so much. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again, and we ask that you please keep your questions to one. Please stand by while we compile the Q&A roster. All right, our first question comes from Doug, and with J.P. Morgan. Please proceed.

Speaker #2: Similar to prior years, we expect this rate of expansion to moderate year over year, as we reinvest to accelerate across our multiple growth engines, and lap some of the more significant operating expense efficiencies realized in 2024 and 2025.

Speaker #2: Overall, we finished 2025 strong and are off to a great start in 2026. Our momentum is building, and we have multiple engines for growth and levers in our P&L to drive durable, long-term profitable growth and accelerate omni-channel grocery adoption for the industry.

Fidji Simo: Overall, we finished 2025 strong and are off to a great start in 2026. Our momentum is building, and we have multiple engines for growth and levers in our P&L to drive durable, long-term, profitable growth and accelerate omnichannel grocery adoption for the industry. With that, we'll open up the call for live questions. Operator, you may begin.

Emily Reuter: Overall, we finished 2025 strong and are off to a great start in 2026. Our momentum is building, and we have multiple engines for growth and levers in our P&L to drive durable, long-term, profitable growth and accelerate omnichannel grocery adoption for the industry. With that, we'll open up the call for live questions. Operator, you may begin.

Thanks so much for taking the question. Um, you discussed in the letter of groceries, come to you for technology and not just as a demand channel. Um, how should we think about the scope of the opportunity here in terms of both Marketplace, as well as Enterprise adoption? And and how do you think about, uh, kind of the addition of new retailers versus deeper penetration with existing? Thank you.

Doug Anmuth: Thanks so much for taking the question. You discussed in the letter how grocers come to you for technology and not just as a demand channel. How should we think about the scope of the opportunity here in terms of both marketplace as well as enterprise adoption? And how do you think about, kind of the addition of new retailers versus deeper penetration with existing? Thank you.

Speaker #2: With that, we'll open up the call for live questions. Operator, you may begin.

Speaker #3: Thank you so much. And as a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced.

Operator: Thank you so much, and as a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again, and we ask that you please keep your questions to one. Please stand by while we compile the Q&A roster. All right, our first question comes from Doug Anmuth with JP Morgan. Please proceed.

Speaker #3: To withdraw your question, please press star 11 again. And we ask that you please keep your questions to one. Please stand by while we compile the Q&A roster.

Chris Rogers: Yeah, that's a great question. Thank you, Doug. I'll explain how we think about the marketplace and enterprise size of our business. And I'll start by saying both of those have been growing and both are healthy. We do see enterprise as a real strategic advantage and also, in my view, a very underappreciated side of our business. And I know I made many of these points up front, but I want to reiterate why enterprise is such an important part of our growth story here. It's first and foremost, enterprise enables much deeper strategic conversations and much deeper technical integrations with retailers. It's ultimately what's getting us on the same side of the table, and it's becoming the foundation for the relationships that we've built with retailers. So we're truly innovating there.

Speaker #3: All right. Our first question comes from Doug and with JP Morgan. Please proceed.

Speaker #4: Thanks so much for taking the question. You discussed in the letter how grocers come to you for technology and not just as a demand channel.

Doug Anmuth: Thanks so much for taking the question. You discussed in the letter how grocers come to you for technology and not just as a demand channel. How should we think about the scope of the opportunity here in terms of both marketplace as well as enterprise adoption? And how do you think about kind of the addition of new retailers versus deeper penetration with existing? Thank you.

Speaker #4: How should we think about the scope of the opportunity here in terms of both marketplace as well as enterprise adoption, and how do you think about the addition of new retailers versus deeper penetration with existing?

Appreciated side of our business. And I know I made many of these points up front, but I want to reiterate, why enter Enterprises such an important part of our growth story here. It's first and foremost, Enterprise enables much deeper, strategic conversations, and much deeper, technical Integrations with retailers it. It's ultimately, what's getting us on the same side of the table and it's becoming the foundation for the relationship that we've built with retailers. So we're truly innovating their, we plan together based on everything that a retailer is trying to achieve. So it helps us drive growth through their own and operated but also helps with the overall relationship back on our Marketplace. So that the, the Enterprise relationship that we have leads to improvements in the consumer experience that are felt on both sides. Um,

Speaker #4: Thank you.

Speaker #5: Yeah, that's a great question. Thank you, Doug. I'll explain how we think about the marketplace and enterprise sides of our business. And I'll start by saying both of those have been growing and both are healthy.

Fidji Simo: Yeah, that's a great question. Thank you, Doug. I'll explain how we think about the marketplace and enterprise size of our business. And I'll start by saying both of those have been growing and both are healthy. We do see enterprise as a real strategic advantage and also, in my view, a very underappreciated side of our business. And I know I made many of these points up front, but I want to reiterate why enterprise is such an important part of our growth story here. It's first and foremost, enterprise enables much deeper strategic conversations and much deeper technical integrations with retailers. It's ultimately what's getting us on the same side of the table, and it's becoming the foundation for the relationships that we've built with retailers. So we're truly innovating there.

Chris Rogers: We plan together based on everything that a retailer is trying to achieve. So it helps us drive growth through their owned and operated, but also helps with the overall relationship back on our marketplace. So that the enterprise relationship that we have leads to improvements in the consumer experience that are felt on both sides. And I would say the other benefit of enterprise, which I want to call out, is that it's driving overall efficiency for us. It's increasing our order volume and density. It's lowering the cost to serve through shared infrastructure. It's allowing us to reinvest even more in shared technology and capabilities that benefit everyone. And as far as future opportunity goes, I believe that there are significant future opportunity on the enterprise side in two ways.

Speaker #5: We do see enterprises a real strategic advantage and also in my view, a very underappreciated side of our business. And I know I made many of these points up front, but I want to reiterate why enterprise is such an important part of our growth story here.

Speaker #5: First and foremost, enterprise enables much deeper strategic conversations and much deeper technical integrations with retailers. It's ultimately what's getting us on the same side of the table, and it's becoming the foundation for the relationship that we've built with retailers.

And I would say the other benefit of Enterprise, which I want to call out is that is driving overall efficiency for us it's increasing our order volume and density. It's lowering the cost of serve through shared infrastructure, it's allowing us to reinvest even more in shared technology and capabilities that benefit everyone. And uh as far as future opportunity goes, I I believe that there are significant future opportunity on the Enterprise side in 2 ways even though we've launched so many new new partners on storefront Pro in 2025, we launched 70 versus just 30, the previous previous year, we're at 380. I do believe that there's quite a bit of room, uh, Headway here. Including internationally, we just launched our first Partners internationally in with Costco, and Spain and France. Um,

Speaker #5: So we're truly innovating there. We plan together, based on everything that a retailer is trying to achieve. So it helps us drive growth through their owned and operated, but also helps with the overall relationship back on our marketplace.

Fidji Simo: We plan together based on everything that a retailer is trying to achieve. So it helps us drive growth through their owned and operated, but also helps with the overall relationship back on our marketplace. So that the enterprise relationship that we have leads to improvements in the consumer experience that are felt on both sides. And I would say the other benefit of enterprise, which I want to call out, is that it's driving overall efficiency for us. It's increasing our order volume and density. It's lowering the cost to serve through shared infrastructure. It's allowing us to reinvest even more in shared technology and capabilities that benefit everyone. And as far as future opportunity goes, I believe that there are significant future opportunity on the enterprise side in two ways.

Chris Rogers: Even though we've launched so many new partners on Storefront Pro in 2025, we launched 70 versus just 30 the previous year, right, 380. I do believe that there's quite a bit of room, headway here, including internationally. We just launched our first partners internationally in with Costco and Spain and France. So there's expansion opportunities with new retailers signing and launching them, but also by expanding with more products and services with existing retailers. That's the Costco example that I provided and the Sprouts example, where we call it land and expand internally, where we have the opportunity to continue to serve solutions to retailers to drive growth for both of us over a longer time period. So our focus is really to grow both marketplace and enterprise, and we believe that there's substantial runway ahead.

Speaker #5: So the enterprise relationship that we have leads to improvements in the consumer experience that are felt on both sides. And I would say the other benefit of enterprise, which I want to call out, is that it's driving overall efficiency for us.

So there's there's expansion opportunities with, with new retailers, signing and launching them but also by expanding with more products and services with existing retailers. That's the Costco example that I provided. In the Sprouts example, where we call it land and expand internally where we the opportunity to continue to serve solutions to retailers to drive growth for both of us over a longer time period. So our focus is really to grow both Marketplace and Enterprise and we believe that there's substantial Runway ahead.

Speaker #5: It's increasing our order volume and density. It's lowering the cost to serve through shared infrastructure. It's allowing us to reinvest even more in shared technology and capabilities that benefit everyone.

Thank you. 1 moment for our next question, please.

Nikiel devnani from Bernstein. Your line is open.

Speaker #5: And as far as future opportunity goes, I believe that there are significant future opportunity on the enterprise side in two ways. Even though we've launched so many new partners on storefront pro in 2025, we launched 70 versus just 30 the previous year, right?

Fidji Simo: Even though we've launched so many new partners on Storefront Pro in 2025, we launched 70 versus just 30 the previous year, right, 380. I do believe that there's quite a bit of room headway here, including internationally. We just launched our first partners internationally with Costco and Spain and France. So there's expansion opportunities with new retailers signing and launching them, but also by expanding with more products and services with existing retailers. That's the Costco example that I provided and the Sprouts example, where we call it land and expand internally, where we have the opportunity to continue to serve solutions to retailers to drive growth for both of us over a longer time period. So our focus is really to grow both marketplace and enterprise, and we believe that there's substantial runway ahead.

Speaker #5: 380. I do believe that there's quite a bit of room headway here, including internationally. We just launched our first partners internationally with Costco in Spain and France.

Operator: Thank you.

Doug Anmuth: Thank you.

Operator: One moment for our next question, please. Nikhil Devnani from Bernstein, your line is open.

Speaker #5: So there's expansion opportunities with new retailers signing and launching them but also by expanding with more products and services with existing retailers. That's the Costco example that I provided in the Sprouts example where we call it land and expand internally, where we have the opportunity to continue to serve solutions to retailers to drive growth for both of us over a longer time period.

Nikhil Devnani: Hey, thank you for taking the question. Nice to see the GTV numbers and order growth. What do you think has driven the acceleration in the business as you look across core metrics from users to frequency and retention? And then related to that, maybe if you just step back a little bit, there's obviously a lot of focus on competition right now from Amazon, DoorDash, and others, but your business is improving. So when—what are you seeing on the ground in markets where there is more competition? And, and are we just at an inflection point in grocery e-commerce adoption right now? Is that what you think is, is helping here? Thank you.

Hey, thank you for taking the question. Uh, nice to see the GTV numbers and Order growth. Uh, what do you think's driven the acceleration in the business as you look across core metrics from users to frequency and retention and then related to that? Maybe if you just step back a little bit, there's obviously a lot of focus on competition right now from Amazon door, Dash and others, uh, but your business is improving. So when what are you seeing on the ground in markets where there is more competition and, and are we just at an inflection point in grocery e-commerce adoption right now, is that what you think is is helping here? Thank you.

Speaker #5: So our focus is really to grow both marketplace and enterprise, and we believe that there's substantial runway ahead.

Speaker #3: Thank you. One moment for our next question, please. Nikhil Devnani from Bernstein, your line is open.

Operator: Thank you.

Doug Anmuth: Thank you, Christy.

Operator: One moment for our next question, please. Nikhil Devnani from Bernstein, your line is open.

Chris Rogers: Yeah, thanks for the question, Nikhil. I'll start with some of the drivers of our Q4 results, because we're certainly very proud of our results. As mentioned, GTV was up 14% year-over-year, which is the strongest we've delivered in 3 years. From a consumer perspective, we are seeing growth and demand for our service. And look, the core drivers of our Q4 results were strong user growth and strong engagement with our customers. Last year, in 2025, 26 million customers used Instacart, with approximately 10 million unique customers placing at least one order in December, which was a record. In addition, GTV from our 2025 new customer cohort was the largest that we've added since 2022, and what we're seeing is that we're retaining those customers at higher rates year-over-year.

Speaker #6: Hey, thank you for taking the question. Nice to see the GTV numbers and order growth. What do you think's driven the acceleration in the business as you look across core metrics, from users to frequency and retention?

Nikhil Devnani: Hey, thank you for taking the question. Nice to see the GTV numbers and order growth. What do you think has driven the acceleration in the business as you look across core metrics from users to frequency and retention? And then related to that, maybe if you just step back a little bit, there's obviously a lot of focus on competition right now from Amazon, DoorDash, and others, but your business is improving. So what, what are you seeing on the ground in markets where there is more competition? And, and are we just at an inflection point in grocery e-commerce adoption right now? Is that what you think is, is helping here? Thank you.

Speaker #6: And then related to that, maybe if you just step back a little bit, there's obviously a lot of focus on competition right now from Amazon, DoorDash, and others.

Speaker #6: But your business is improving. So what are you seeing on the ground in markets where there is more competition? And are we just at an inflection point in grocery e-commerce adoption right now?

Yeah, thanks for the question, nikil. Um, I'll start with some of the drivers of our, our Q4 results, because we're certainly very proud of our results as mentioned GTV was up 14% year-on-year, which is the strongest we've delivered in, in 3 years. Um, from a consumer perspective, we are seeing growth and demand for our service. Uh, and look, the core drivers of our Q4 results, were strong user growth and strong engagement with our customers. Last year, in 2025 26 million, customers use instacart with approximately 10 million unique customers placing at least 1 order in December, which was a record in addition GTV from our 2025 new customer cohort was the largest that we've added since 2022 and what we're seeing is that we're retaining those customers at higher rates year-over-year. So we saw very strong new user metrics and at the same time we deepened engagement with existing customers converting annual customers to quarterly and quarterly to monthly at faster rates year-over-year and we steadily increase spend per customer through 2025.

Speaker #6: Is that what you think is helping here? Thank you.

Speaker #5: Yeah, thanks for the question, Nikhil. I'll start with some of the drivers of our Q4 results because we're certainly very proud of our results.

Fidji Simo: Yeah, thanks for the question, Nikhil. I'll start with some of the drivers of our Q4 results, because we're certainly very proud of our results. As mentioned, GTV was up 14% year-over-year, which is the strongest we've delivered in 3 years... From a consumer perspective, we are seeing growth and demand for our service. And look, the core drivers of our Q4 results were strong user growth and strong engagement with our customers. Last year, in 2025, 26 million customers used Instacart, with approximately 10 million unique customers placing at least one order in December, which was a record. In addition, GTV from our 2025 new customer cohort was the largest that we've added since 2022, and what we're seeing is that we're retaining those customers at higher rates year-over-year.

Speaker #5: As mentioned, GTV was up 14% year on year, which is the strongest we've delivered in three years. From a consumer perspective, we are seeing growth and demand for our service.

Chris Rogers: So we saw very strong new user metrics, and at the same time, we deepened engagement with existing customers, converting annual customers to quarterly and quarterly to monthly at faster rates year-over-year, and we steadily increased spend per customer through 2025. But when I back up and look at the kind of total picture of what's driving growth, it's not just one thing. You know, the performance is reflecting multiple growth initiatives working together, including, you know, continuous enhancement across products and selection, quality, affordability, convenience. We also have real momentum with the enterprise platform, as I just stated.

Speaker #5: And look, the core drivers of our Q4 results were strong user growth and strong engagement with our customers. Last year, in 2025, 26 million customers used Instacart, with approximately 10 million unique customers placing at least one order in December, which was a record.

But when I back up and and look at the, the kind of the total picture of what's driving growth, it's not just 1 thing. You know, the performance is reflecting multiple growth initiatives working together, including you know, continuous enhancement across products and selection quality. Affordability convenience. We also have real momentum with the Enterprise platform as I just stated. Um, and we also have momentum in the club Channel, including deeper Integrations with Costco, with our executive member benefit, and with new and existing Partnerships, which drove growth for us.

Including with restaurants our restaurant integration with Uber Eats, as well as our embedded experience in GrubHub. So

it's really not 1 Thing.

Speaker #5: In addition, GTV from our 2025 new customer cohort was the largest that we've added since 2022. And what we're seeing is that we're retaining those customers at higher rates year over year.

It's driving our performance, a compounding effect of a strategy that is working across multiple vectors, and we're executing very strong against that strategy.

from a competition perspective of

Chris Rogers: We also have momentum in the club channel, including deeper integrations with Costco, with our executive member benefit, and with new and existing partnerships which drove growth for us, including with restaurants, our restaurant integration with Uber Eats, as well as our embedded experience in Grubhub. So it's really not one thing that's driving our performance, a compounding effect of a strategy that is working across multiple vectors, and we're executing very strong against that strategy. From a competition perspective, I'll, I'll start by saying, none of the competition activity that we're seeing surprises us, surprises us at all, given the size of the market opportunity ... for online grocery. Also, I have to say, I think that the sentiment around the competitive impact to Instacart is very overblown.

Speaker #5: So, we saw very strong new user metrics. And at the same time, we deepened engagement with existing customers, converting annual customers to quarterly, and quarterly to monthly, at faster rates year over year.

Fidji Simo: So we saw very strong new user metrics, and at the same time, we deepened engagement with existing customers, converting annual customers to quarterly and quarterly to monthly at faster rates year over year, and we steadily increased spend per customer through 2025. But when I back up and look at the total picture of what's driving growth, it's not just one thing. You know, the performance is reflecting multiple growth initiatives working together, including, you know, continuous enhancement across product, selection, quality, affordability, convenience. We also have real momentum with the enterprise platform, as I just stated.

Speaker #5: And we steadily increased spend per customer through 2025. But when I back up and look at kind of the total picture of what's driving growth, it's not just one thing.

Speaker #5: The performance is reflecting multiple growth initiatives working together, including continuous enhancement across products and selection, quality affordability, convenience. We also have real momentum with the enterprise platform, as I just stated.

Fidji Simo: And we also have momentum in the club channel, including deeper integrations with Costco, with our executive member benefit, and with new and existing partnerships which drove growth for us, including with restaurants, our restaurant integration with Uber Eats, as well as our embedded experience in Grubhub. So it's really not one thing that's driving our performance, a compounding effect of a strategy that is working across multiple vectors, and we're executing very strong against that strategy. From a competition perspective, I'll start by saying, none of the competition activity that we're seeing surprises us at all, given the size of the market opportunity for online grocery. And also, I have to say, I think that the sentiment around the competitive impact to Instacart is very overblown.

Speaker #5: And we also have momentum in the club channel, including deeper integrations with Costco, with our Executive Member benefit. And with new and existing partnerships, which drove growth for us, including with restaurants—our restaurant integration with Uber Eats, as well as our embedded experience in Grubhub.

Chris Rogers: Obviously, we monitor competition extremely closely, but if you take a look at the facts on the field, as you mentioned, Nikhil, our GTV growth accelerated through 2025. Q4 was our strongest quarter in three years, and we guided to 11 to 13, our strongest guide. That's despite all of the Amazon headlines and expansions, and despite restaurant delivery marketplaces expanding with grocery retailers. We continue to have the leading share among digital-first players. We are exceptionally strong in large baskets, which is 75% of the market. We lead in large basket activations. We lead at converting small baskets to large baskets. And look, we do pay attention.

Speaker #5: So it's really not one thing that's driving our performance. A compounding effect of a strategy that is working across multiple vectors and we're executing very strong against that strategy.

Speaker #5: From a competition perspective, I'll start by saying none of the competition activity that we're seeing surprises us at all, given the size of the market opportunity for online grocery.

Speaker #5: And also, I have to say, I think that the sentiment around the competitive impact to Instacart is very overblown. Obviously, we monitor competition extremely closely, but if you take a look at the facts on the field, as you mentioned, Nikhil, our GTV growth accelerated through 2025, Q4 was our strongest quarter.

Build. As you mentioned in the Keel, our GTV growth accelerated through 2025 Q4 was our strongest quarter in 3 years and we got it to 11 to 13 our strongest guide. That's despite all of the Amazon headlines and expansions, and despite restaurant delivery marketplaces expanding with grocery retailers. We continue to have the leading share among digital first players. We are exceptionally strong, and large baskets, which is 75% of the, the market we lead in large basket activations. We lead a converting small baskets to large baskets and look we we do, we do pay attention. We are watching what others are doing and others are going to have their strategy. But there is definitely a market for us here. And we feel good about our points of differentiation, including our, our leading experience across, you know, selection quality, affordability, and convenience, and with the entire Enterprise platform, which really, it's a part of the market that others just aren't participating in and is actually helped by intense competition as a retailers that we partner with.

Fidji Simo: Obviously, we monitor, monitor competition extremely closely, but if you take a look at the facts on the field, as you mentioned, Nikhil, our GTV growth accelerated through 2025. Q4 was our strongest quarter in 3 years, and we guided to 11 to 13, our strongest guide. That's despite all of the Amazon headlines and expansions and despite restaurant delivery marketplaces expanding with grocery retailers. We continue to have the leading share among digital-first players. We are exceptionally strong in large baskets, which is 75% of the, the market. We lead in large basket activations. We lead at converting small baskets to large baskets. And look, we, we do, we do pay attention.

Chris Rogers: We are watching what others are doing, and others are going to have their strategy, but there's definitely a market for us here, and we feel good about our points of differentiation, including our leading experience across selection, quality, affordability, and convenience, and with the entire enterprise platform, which really is a part of the market that others just aren't participating in, and is actually helped by intense competition as retailers that we partner with are forced to react. So overall, you know, I'm confident in the size of the market opportunity for online grocery. There's lots of room to grow. I'm confident in our ability to compete in this market in the long run.

Air Force to react. So overall, you know, I'm confident in the size of the market opportunity for online grocery. There's lots of room to grow. I'm confident in our ability to compete in this market, uh, in the long run.

Thanks Chris.

Thank you.

Speaker #5: In three years. And we guided to 11 to 13 our strongest guide. That's despite all of the Amazon headlines and expansions and despite restaurant delivery marketplaces expanding with grocery retailers.

Our next question comes from the line of Jason Health scene with oppenheim please proceed.

Speaker #5: We continue to have the leading share among digital-first players. We are exceptionally strong in large baskets. Which is 75% of the market. We lead in large basket activations.

Uh, hey thanks. This is Chad on for Jason. Um, advertising came in a little bit stronger, in the fourth quarter than maybe kind of initially feared. Um, could you maybe talk about the puts and takes of that was

Um, you know, were you able to drive better adoption or was like kind of macro impacts? You know?

Speaker #5: We lead at converting small baskets to large baskets. And look, we do pay attention. We are watching what others are doing, and others are going to have their strategy.

Better than expected. Thank you.

Eric Sheridan: Thanks, Chris.

Fidji Simo: We are watching what others are doing, and others are going to have their strategy, but there's definitely a market for us here, and we feel good about our points of differentiation, including our leading experience across selection, quality, affordability, and convenience, and with the entire enterprise platform, which really is a part of the market that others just aren't participating in, and is actually helped by intense competition as retailers that we partner with are forced to react. So overall, you know, I'm confident in the size of the market opportunity for online grocery. There's lots of room to grow. I'm confident in our ability to compete in this market in the long run.

Operator: Thank you. Our next question comes from the line of Jason Helfstein with Oppenheimer. Please proceed.

Speaker #5: But there is definitely a market for us here, and we feel good about our points of differentiation including our leading experience across selection, quality affordability, and convenience.

[Analyst] (Oppenheimer): Hey, thanks. This is Chad on for Jason. Advertising came in a little bit stronger in the fourth quarter than maybe kind of initially feared. Could you maybe talk about the puts and takes of that? Was, you know, were you able to drive better adoption or was, like, kind of macro impacts, you know, better than expected? Thank you.

Speaker #5: And with the entire enterprise platform, which really is a part of the market that others just aren't participating in and is actually helped by intense competition as retailers that we partner with are forced to react.

Sure. Uh, thank you for the question Chad. Uh, yeah. So yes we did deliver strong ads and other Revenue performance, uh, 10% in Q4. Um, I'll I'll Paul I'll pull apart the drivers here. So first of all, we are growing GTV which does help fuel investment from brands that strength was coming from all segments emerging bid market and large accounts even though we had highlighted some uncertainty around large brands on our last earnings call. Uh but overall

Speaker #5: So overall, I'm confident in the size of the market opportunity for online grocery. There's lots of room to grow. I'm confident in our ability to compete in this market in the long run.

Chris Rogers: Sure. Thank you for the question, Chad. Yes, so yes, we did deliver strong Ads another revenue performance at 10% in Q4. I'll pull apart the drivers here. So first of all, we are growing GTV, which does help fuel investment from brands. That strength was coming from all segments, so emerging, mid-market, and large accounts, even though we had highlighted some uncertainty around large brands on our last earnings call. But overall, if I take a giant step back, I think it's fair to say that our diversification strategy across supply, meaning new surfaces where we place ads and demands with more advertisers and larger budgets from existing advertisers, that is working. Carrot Ads expanded to over 310 partners, which is getting us to really significant scale.

Speaker #6: Thanks, Chris.

[Analyst] (Barclays): Thanks, Chris.

Nikhil Devnani: Thanks, Chris.

Speaker #3: Thank you. Our next question comes from the line of Jason Helsene with Oppenheimer. Please proceed.

Operator: Thank you. Our next question comes from the line of Jason Helfstein with Oppenheimer. Please proceed.

Jason Helfstein: Hey, thanks. This is Chad on for Jason. Advertising came in a little bit stronger in Q4 than maybe kind of initially feared. Could you maybe talk about the puts and takes of that? Was, you know, were you able to drive better adoption, or was, like, kind of macro impacts, you know, better than expected? Thank you.

Speaker #7: Hey, thanks. This is Chad On for Jason. Advertising came in a little bit stronger in the fourth quarter than maybe kind of initially feared.

A giant step back. I think it's fair to say that our diversification stat strategy across Supply, meaning new surfaces, where we place ads and demands with more advertisers and larger budgets from existing advertisers. That is working, carrot adds expanded to over 310 Partners, which is getting us to really significant scale. We now have over 9,000 Brands advertising on instacart, as of Q4, that's up from 7,000 a year ago. And all of that diversification makes our on platform.

Speaker #7: Could you maybe talk about the puts and takes of that? Were you able to drive better adoption, or were kind of macro impacts better than expected?

Chris Rogers: But overall, if I take a giant step back, I think it's fair to say that our diversification strategy across supply, meaning new surfaces where we place ads and demands with more advertisers and larger budgets from existing advertisers, that is working. Carrot Ads expanded to over 310 partners, which is getting us to really significant scale.

Speaker #7: Thank you.

Speaker #5: Sure. Thank you for the question, Chad. Yeah, so yes, we did deliver strong ads and other revenue performance at 10% in Q4. I'll pull apart the drivers here.

Fidji Simo: Sure. Thank you for the question, Chad. Yes, so yes, we did deliver strong ads and other revenue performance at 10% in Q4. I'll pull apart the drivers here. So first of all, we are growing GTV, which does help fuel investment from brands. That strength was coming from all segments, so emerging, mid-market, and large accounts, even though we had highlighted some uncertainty around large brands on our last earnings call. But overall, if I take a giant step back, I think it's fair to say that our diversification strategy across supply, meaning new surfaces where we place ads and demands with more advertisers and larger budgets from existing advertisers, that is working. Carrot Ads expanded to over 310 partners, which is getting us to really significant scale.

Speaker #5: So first of all, we are growing GTV, which does help fuel investment from brands. That strength was coming from all segments. So emerging mid-market and large accounts.

Chris Rogers: We now have over 9,000 brands advertising on Instacart. As of Q4, that's up from 7,000 a year ago. And all of that diversification makes our on-platform ads stronger and more resilient. And at the same time, we're continuing to scale our off-platform ads and data offerings. So we're now partnered with Meta, The Trade Desk, Google. Most recently, we partnered with Pinterest and TikTok, and we are successfully gathering incremental budgets for campaigns on these surfaces, where CPGs can use our first-party data to target our high-intent audiences, measure their performance, and drive conversion back on Instacart. So overall, I would say, you know, our stated strategy of building one of the most powerful and relevant ads ecosystem is working, and we're executing well against that strategy.

Odds stronger and and more resilient and at the same time we're continuing to scale our off platform adds and data offerings. So we're now partnered with meta. We're now we're partnered with the trade desk Google. Uh most recently we partnered with Pinterest and Tik Tok and we are successfully Gathering incremental budgets for campaigns on these surfaces where cpgs can use our first-party data to Target, our high intent audiences, measure the performance and, and, and drive conversion back on instacart. So overall,

Speaker #5: Even though we had highlighted some uncertainty around large brands on our last earnings call. But overall, if I take a giant step back, I think it's fair to say that our diversification strategy across supply meaning new services where we place ads and demands with more advertisers and larger budgets from existing advertisers, that is working.

Uh, you know, our stated strategy of building 1 of the most powerful.

Is working and we're executing well against that strategy.

Chris Rogers: Most recently, we partnered with Pinterest and TikTok, and we are successfully gathering incremental budgets for campaigns on these surfaces, where CPGs can use our first-party data to target our high-intent audiences, measure their performance, and drive conversion back on Instacart. So overall, I would say, you know, our stated strategy of building one of the most powerful and relevant ads ecosystem is working, and we're executing well against that strategy.

Thank you, 1 moment for our next question. That comes from the line of shweta. Kajura with wolf research, please proceed.

Speaker #5: Carrot ads expanded to over 310 partners, which is getting us to really significant scale we now have over 9,000 brands advertising on Instacart. As of Q4, that's up from 7,000 a year ago.

Fidji Simo: We now have over 9,000 brands advertising on Instacart. As of Q4, that's up from 7,000 a year ago. And all of that diversification makes our on-platform ads stronger and more resilient. And at the same time, we're continuing to scale our off-platform ads and data offerings. So we're now partnered with Meta, we're partnered with The Trade Desk, Google; most recently, we partnered with Pinterest and TikTok, and we are successfully gathering incremental budgets for campaigns on these surfaces, where CPGs can use our first-party data to target our high-intent audiences, measure their performance, and drive conversion back on Instacart. So overall, I would say, you know, our stated strategy of building one of the most powerful and relevant ads ecosystem is working, and we're executing well against that strategy.

Speaker #5: And all of that diversification makes our on-platform ads stronger and more resilient. And at the same time, we're continuing to scale our off-platform ads and data offerings.

Operator: Thank you. One moment for our next question, that comes from the line of Shweta Khajuria with Wolfe Research. Please proceed.

Speaker #5: So we're now partnered with Meta. We're partnered with the Trade Desk. Google most recently, we partnered with Pinterest and TikTok. And we are successfully gathering incremental budgets for campaigns on these services where CPGs can use our first-party data to target our high-intent audiences, measure their performance, and drive conversion back on Instacart.

Thanks a lot for taking my questions. Let me try to please. The first 1 is on International girls. As you think about, you know, medium to long term. How are you thinking about unlocking that opportunity and are those markets structurally different when you think about grocery delivery? That's my first and then second is on local Commerce. So is there, uh, an opportunity and an unlock in addition to smaller bar baskets where perhaps you add on local Merchants. Um in addition to grocery that could be the next leg of growth. Thank you.

Shweta Khajuria: Thanks a lot for taking my questions. Let me try two, please. The first one is on international growth. As you think about, you know, medium to long term, how are you thinking about unlocking that opportunity? And are those markets structurally different when you think about grocery delivery? That's my first, and then second is on local commerce. So is there an opportunity and an unlock in addition to smaller baskets, where perhaps you add on local merchants in addition to grocery, that could be the next leg of growth? Thank you.

Speaker #5: So overall, I would say our stated strategy of building one of the most powerful and relevant ads ecosystem is working, and we're executing well against that strategy.

Operator: Thank you. One moment for our next question, that comes from the line of Shweta Khajuria with Wolf Research. Please proceed.

Speaker #3: Thank you. One moment for our next question that comes from the line. I'll show it to Kajuria with Wolf Research. Please proceed.

Chris Rogers: Thank you for the question. I'll start with international. Yeah, what we're finding is the markets are... You know, they do operate differently, but we continue to be very excited about our plans to take our technology to new markets, and we believe that it's a promising future growth vector for us, which we've been busy validating. So the more time that we spend in new markets speaking to retailers, the more convinced we are that there's product market fit for our tech, because retailers in these markets abroad are all trying to solve the same problems as retailers in North America. Meanwhile, in many of the markets that we visited, grocery e-commerce is still quite underdeveloped.

Speaker #8: Thanks a lot for taking my questions. Let me try, too, please. The first one is on international growth. As you think about the medium to long term, how are you thinking about unlocking that opportunity?

Shweta Khajuria: Thanks a lot for taking my questions. Let me try two, please. The first one is on international growth. As you think about, you know, medium to long term, how are you thinking about unlocking that opportunity, and are those markets structurally different when you think about grocery delivery? That's my first, and then second is on local commerce. So is there an opportunity and an unlock in addition to smaller baskets, where perhaps you add on local merchants in addition to grocery, that could be the next leg of growth? Thank you.

Speaker #8: And are those markets structurally different when you think about grocery delivery? That's my first. And then second is on local commerce. So is there an opportunity and an unlock, in addition to smaller baskets, where perhaps you add on local merchants in addition to grocery that could be the next leg of growth?

Markets, we're seeing interest in our for our um in-store Solutions in markets abroad. Like Caper and food storm as retailers look to digitize their in-store experience.

Speaker #8: Thank you.

Speaker #5: Thank you for the question. I'll start with international. Yeah, what we're finding is the markets are they do operate differently, but we continue to be very excited about our plans to take our technology to new markets.

Fidji Simo: ... Thank you for the question. I'll start with international. Yeah, what we're finding is the markets are, you know, they do operate differently, but we continue to be very excited about our plans to take our technology to new markets, and we believe that it's a promising future growth vector for us, which we've been busy validating. So the more time that we spend in new markets speaking to retailers, the more convinced we are that this product market fit for our tech, because retailers in these markets abroad are all trying to solve the same problems as retailers in North America. Meanwhile, in many of the markets that we visited, grocery e-commerce is still quite underdeveloped.

Fidji Simo: Thank you for the question. I'll start with international. Yeah, what we're finding is the markets are, you know, they do operate differently, but we continue to be very excited about our plans to take our technology to new markets, and we believe that it's a promising future growth vector for us, which we've been busy validating. So the more time that we spend in new markets speaking to retailers, the more convinced we are that this product market fit for our tech, because retailers in these markets abroad are all trying to solve the same problems as retailers in North America. Meanwhile, in many of the markets that we visited, grocery e-commerce is still quite underdeveloped.

Chris Rogers: Many retailers don't have an online presence at all, or their current website isn't shoppable, and retail media is just getting started in many of these markets. We're also seeing interest in our in-store solutions in markets abroad, like Caper and FoodStorm, as retailers look to digitize their in-store experience. So as we've learned more, we're feeling really great about our stated approach. Our approach to going international as we're exploring major markets, you know, the top countries in Europe and in Australia. We're entering with our existing enterprise technology, like Storefront Pro, Caper Carts, FoodStorm. We're not building a new suite of technology for these markets. We're leveraging, you know, the best-in-class tech that we already have and localizing it in a way that we believe will be scalable.

Speaker #5: And we believe that it's a promising future growth vector for us, which we've been busy validating. So the more time that we spend in new markets, speaking to retailers, the more convinced we are that there's product market fit for our tech.

Um, so as we've learned more, we're feeling really great about our stated approach um, our our approach to going International as um, we're exploring major markets, you know, the top countries in Europe. And in Australia, we're entering with our existing Enterprise technology like storefront Pro, keeper cards, food store, we're not building a new suite of technology for these markets. We're leveraging, you know, the best-in-class tech that we already have and localizing it in a way that we believe it will be scalable our our costs go launch in Spain. And France is a great example of that approach. Spain is and France are attractive markets, its storefront Pro. It's a trusted partner with Costco. Um,

Chris Rogers: Our approach to going international as we're exploring major markets, you know, the top countries in Europe and in Australia. We're entering with our existing enterprise technology, like Storefront Pro, Caper Carts, FoodStorm. We're not building a new suite of technology for these markets. We're leveraging, you know, the best-in-class tech that we already have and localizing it in a way that we believe will be scalable.

Speaker #5: Because retailers in these markets abroad are all trying to solve the same problems as retailers in North America. Meanwhile, in many of the markets that we visited, grocery e-commerce is still quite underdeveloped.

Speaker #5: Many retailers don't have an online presence at all, or their current website isn't shoppable. And retail media is just getting started in many of these markets.

Fidji Simo: Many retailers don't have an online presence at all, or their current website isn't shoppable, and retail media is just getting started in many of these markets. We're also seeing interest in our in-store solutions in markets abroad, like Caper and FoodStorm, as retailers look to digitize their in-store experience. So as we've learned more, we're feeling really great about our stated approach. Our approach to going international, as we're exploring major markets, you know, the top countries in Europe and in Australia. We're entering with our existing enterprise technology like Storefront Pro, Caper Carts, FoodStorm. We're not building a new suite of technology for these markets. We're leveraging, you know, the best-in-class tech that we already have and localizing it in a way that we believe will be scalable.

all of that said, I, I will also say that while we have ambitious expansion plans, we're we're also extremely focused on on being disciplined on expenses, so that we expand in a way that aligns with our profitability objectives and our ability to deliver annual Eva progression.

Speaker #5: We're also seeing interest in our for our in-store solutions in markets abroad like Caper and Foodstorm as retailers look to digitize their in-store experience.

Chris Rogers: Our Costco launch in Spain and France is a great example of that approach. Spain and France are attractive markets. It's Storefront Pro. It's a trusted partner with Costco. All of that said, I will also say that while we have ambitious expansion plans, we're also extremely focused on being disciplined on expenses, so that we expand in a way that aligns with our profitability objectives and our ability to deliver annual EBITDA progression. On your second question around local commerce, you know, we as of today already serve all use cases. We excel in big baskets, but we're also quite strong in small baskets as well.

Speaker #5: So, as we've learned more, we're feeling really great about our stated approach. Our approach to going international— we're exploring major markets. The top countries in Europe and in Australia, we're entering with our existing enterprise technology like Storefront Pro, Caper Carts, FoodStorm.

On your second question, around local Commerce. Uh you know we as of today we already serve all use cases. We excel in in big baskets but we're also quite strong in small baskets as well. Uh 1 of the 1 of the things that we did a prior year, was We reduced uh the minimum basket for instacart plus users to ten dollars. Uh which is a lead on

Speaker #5: We're not building a new suite of technology for these markets. We're leveraging the best-in-class tech that we already have and localizing it in a way that we believe will be scalable.

Offering and that is to attract smaller baskets. Um in terms of merchants and the types of merchants our primary focus is grocery, it has always been grocery. We do offer other types of retailers on the, on the platform for the convenience of our of our customers but we are primarily focused on the grocery industry.

Fidji Simo: Our Costco launch in Spain and France is a great example of that approach. Spain and France are attractive markets. It's Storefront Pro. It's a trusted partner with Costco. All of that said, I will also say that while we have ambitious expansion plans, we're also extremely focused on being disciplined on expenses, so that we expand in a way that aligns with our profitability objectives and our ability to deliver annual EBITDA progression. On your second question around local commerce, you know, as of today, we already serve all use cases. We excel in big baskets, but we're also quite strong in small baskets as well.

Speaker #5: Our Costco launch in Spain and France is a great example. Of that approach, Spain and France are attractive markets. It's storefront pro. It's a trusted partner with Costco.

Chris Rogers: One of the things that we did a prior year was we reduced the minimum basket for Instacart Plus users to $10, which is a lead offering, and that is to attract smaller baskets. In terms of merchants and the types of merchants, our primary focus is grocery. It has always been grocery. We do offer other types of retailers on the platform for the convenience of our customers, but we are primarily focused on the grocery industry.

Thank you. Our next question, comes from the line of Bernie mcternan with medium and Company please proceed.

Speaker #5: All of that said, I will also say that while we have ambitious expansion plans, we're also extremely focused on being disciplined on expenses. So that we expand in a way that aligns with our profitability objectives and our ability to deliver annual EBITDA progression.

Hi. This is Stephanos Chris calling from Bernie. Uh, thanks for taking a question. Um, I just wanted to follow up on the international expansion. Um, how many of your other partners? Like Costco have international, um, business. And, you know, is that the main strategy or are you also approaching a new customers as well? Thank you.

Speaker #5: On your second question around local commerce, we as of today, we already serve all use cases. We excel in big baskets, but we're also quite strong in small baskets as well.

Operator: Thank you. Our next question comes from the line of Bernie McTernan with Needham and Company. Please proceed.

Speaker #5: One of the things that we did a prior year was we reduced the minimum basket for Instacart Plus users to $10, which is a lead offering.

Fidji Simo: One of the, one of the things that we did, a prior year was we reduced, the minimum basket for Instacart Plus users to $10, which is a lead offering, and that is to attract smaller baskets. In terms of merchants and the types of merchants, our primary focus is grocery. It has always been grocery. We do offer other types of retailers on the, on the platform for the convenience of our, of our customers, but we are primarily focused on the grocery industry.

Bernie McTernan: Hi, this is Stefanos Chris calling from Bernie. Thanks for taking our questions. I just wanted to follow up on the international expansion. How many of your other partners, like Costco, have international business? And, you know, is that the main strategy, or are you also approaching new customers as well? Thank you.

Stefanos Crist: Hi, this is Stefanos Chris calling from Bernie. Thanks for taking our questions. I just wanted to follow up on the international expansion. How many of your other partners, like Costco, have international business? And, you know, is that the main strategy, or are you also approaching new customers as well? Thank you.

Speaker #5: And that is to attract smaller baskets. In terms of merchants and the types of merchants, our primary focus is grocery. It has always been grocery.

Speaker #5: We do offer other types of retailers on the platform for the convenience of our customers, but we are primarily focused on the grocery industry.

Chris Rogers: Yeah, great question, Stefanos. So it's a mix. Many partners that exist in North America also exist in Europe. Costco is not alone in that. You know, many of our partners have a presence there and, you know, it would be easy to kind of, like, look up which ones those were. For us, we're doing both. We're talking to existing partners about expansion, like what we did with Costco, because that's, we've already got established trusting partnerships, and we think that that's, you know, strategically wise. And oftentimes, you know, North American retailers are looking for expansion plans because other markets are less developed from an e-commerce perspective. But we are also in these markets, meeting new retailers, selling to new retailers, making new relationships, in the major markets in Europe.

Speaker #3: Thank you. Our next question comes from the line of Bernie McTiernan with Needham & Company. Please proceed.

Operator: Thank you. Our next question comes from the line of Bernie McTernan with Needham and Company. Please proceed.

Yeah, great question Stephanie knows. Um, so it's a, it's a mix many partners that exist in North America also exist in Europe. Costco is not alone in that, um, you know, many of our, our partners have a presence there and and uh, you know, is it would be easy to kind of like look up which ones those were um, for us. We're doing both, we're talking to existing Partners about expansion, like what we did with Costco because that's we've already got established trusting Partnerships. And we think that that's that's uh, you know, strategically wise and often times, you know, North American retailers are looking for expansion plans because other markets are less developed from an e-commerce perspective. But we are also in these markets meeting, new retailers selling to new retailers, making new relationships.

Speaker #7: Hi. This is Stefanos Christ calling from Bernie. Thanks for taking our questions. I just wanted to follow up on the international expansion. How many of your other partners like Costco have international business?

Bernie McTernan: Hi, this is Stefanos Kris calling from Bernie. Thanks for taking our questions. I just wanted to follow up on the international expansion. How many of your other partners, like Costco, have international business? And, you know, is that the main strategy, or are you also approaching new customers as well? Thank you.

Stefanos Crist: Hi, this is Stefanos Kris calling from Bernie. Thanks for taking our questions. I just wanted to follow up on the international expansion. How many of your other partners, like Costco, have international business? And, you know, is that the main strategy, or are you also approaching new customers as well? Thank you.

Ships, um, in in the major markets in, in Europe, a great example of that was, you know, we spent time with Morrisons on in-store technology, and now we're launching Caper cart, uh, very soon in, in a Morrisons pilot market. So, um, so, yes, we are. We do have a, a sales presence in the market. We are talking to Net new retailers and it's a big part of our strategy.

Chris Rogers: And oftentimes, you know, North American retailers are looking for expansion plans because other markets are less developed from an e-commerce perspective. But we are also in these markets, meeting new retailers, selling to new retailers, making new relationships, in the major markets in Europe. A great example of that was, you know, we spent time with Morrisons on in-store technology, and now we're launching Caper Cart very soon in a Morrisons pilot market. So, yes, we do have a sales presence in the market. We are talking to net new retailers, and it's a big part of our strategy.

Speaker #7: And is that the main strategy, or are you also approaching new customers as well? Thank you.

Speaker #5: Yeah, great question, Stefanos. So it's a mix. Many partners that exist in North America also exist in Europe. Costco is not alone in that.

Fidji Simo: Yeah, great question, Stefanos. So it's a mix. Many partners that exist in North America also exist in Europe. Costco is not alone in that. You know, many of our partners have a presence there and, you know, it would be easy to kind of, like, look up which ones those were. For us, we're doing both. We're talking to existing partners about expansion, like what we did with Costco, because that's... We've already got established, trusting partnerships, and we think that that's, you know, strategically wise. And oftentimes, you know, North American retailers are looking for expansion plans because other markets are less developed from an e-commerce perspective. But we are also in these markets, meeting new retailers, selling to new retailers, making new relationships, in the major markets in Europe.

Thank you. Our next question comes from the line of Josh Beck with Raymond James. Please proceed.

Chris Rogers: A great example of that was, you know, we spent time with Morrisons on in-store technology, and now we're launching Caper Cart very soon in a Morrisons pilot market. So, yes, we do have a sales presence in the market. We are talking to net new retailers, and it's a big part of our strategy.

Speaker #5: Many of our partners have a presence there and it would be easy to kind of look up which ones those were. For us, we're doing both.

Speaker #5: We're talking to existing partners about expansion like what we did with Costco because that's we've already got established, trusting partnerships, and we think that that's strategically wise and oftentimes North American retailers are looking for expansion plans because other markets are less developed from an e-commerce perspective.

Operator: Thank you. Our next question comes from the line of Josh Beck with Raymond James. Please proceed.

Speaker #5: But we are also in these markets meeting new retailers, selling to new retailers, making new relationships in the major markets in Europe. A great example of that was we spent time with Morrisons on in-store technology, and now we're launching CaperCart very soon in a Morrisons pilot market.

Josh Beck: Thank you for taking the question. I wanted to ask a little bit about price parity initiative. Certainly, it seems like when grocers have adopted this pricing philosophy, you've seen a real nice elasticity benefit. So maybe how those discussions are progressing. And then you obviously shared a lot about Agentic, which I found very helpful. How do you think about the tailwinds to your business with respect to maybe on platform, so maybe easing the creation of large baskets? And then how do you think about perhaps the economics and opportunity off platform? I would assume there's a potentially much larger pool of customers. Just would really like to kind of hear your thoughts on those topics.

Fidji Simo: A great example of that was, you know, we spent time with Morrisons on in-store technology, and now we're launching Caper Cart very soon in a Morrisons pilot market. So, yes, we are. We do have a sales presence in the market. We are talking to net new retailers, and it's a big part of our strategy.

Thank you for uh, for taking the question. Uh, I wanted to ask a little bit about price, parity initiative. Certainly, it seems like when groceries have adopted this pricing philosophy. You've seen a real nice elasticity benefit. So maybe how those um, discussions are are progressing and then you obviously shared a lot, um, about agentic, which I felt very helpful. How do you think about the Tailwind to your business with respect to maybe on platforms? So maybe easing the creation of large baskets and then how do you think about perhaps the economics uh and opportunity on a platform? I would assume there's a potentially much larger pool of customers. Uh, just would really like to kind of hear your your, your thoughts on, on those topics.

Speaker #5: So yes, we do have a sales presence in the market. We are talking to net new retailers, and it's a big part of our strategy.

Josh Beck: How do you think about the tailwinds to your business with respect to maybe on platform, so maybe easing the creation of large baskets? And then how do you think about perhaps the economics and opportunity off platform? I would assume there's a potentially much larger pool of customers. Just would really like to kind of hear your thoughts on those topics.

Speaker #3: Thank you. Our next question comes from the line of Josh Beck. With Raymond James, please proceed.

Operator: Thank you. Our next question comes from the line of Josh Beck with Raymond James. Please proceed.

Speaker #7: Thank you for taking the question. I wanted to ask a little bit about price parity initiatives. Certainly, it seems like when grocers have adopted this pricing philosophy, you've seen a real nice elasticity benefit.

Josh Beck: Thank you for taking the question. I wanted to ask a little bit about price parity initiatives. Certainly, it seems like when grocers have adopted this pricing philosophy, you've seen a real nice elasticity benefit. So maybe how those discussions are progressing. And then you obviously shared a lot about the GenAI, which I found very helpful. How do you think about the tailwinds to your business with respect to maybe on platform, so maybe easing the creation of large baskets? And then how do you think about perhaps the economics and opportunity off platform? I would assume there's a potentially much larger pool of customers. Just would really like to kind of hear your thoughts on those topics.

Chris Rogers: Thank you for the questions, Josh. I'll start with price parity. So, you know, we work closely with retailers on all strategies, including on their pricing strategies. In the case of price parities or not applying a markup, we do work with retailers on that because we believe it's in their best interest, and there's a positive short and long-term ROI for them. We consistently see price parity retailers outperform marked up retailers on Instacart. We see better retention of price parity retailers. And this is important not just because, you know, we have a very large platform. Retailers obviously want to win share on Instacart, but also because, you know, they don't want to lose share to some of the largest digital players who are increasingly vying for market share.

Speaker #7: So maybe how those discussions are progressing. And then you obviously shared a lot about Syngentic, which I found very helpful. How do you think about the tailwinds to your business with respect to maybe on-platform, so maybe easing the creation of large baskets, and then how do you think about perhaps the economics and opportunity off-platform, I would assume there's a potentially much larger pool of customers?

Chris Rogers: We consistently see price parity retailers outperform marked up retailers on Instacart. We see better retention of price parity retailers. And this is important not just because, you know, we have a very large platform. Retailers obviously want to win share on Instacart, but also because, you know, they don't want to lose share to some of the largest digital players who are increasingly vying for market share.

Speaker #7: I just would really like to kind of hear your thoughts on those topics.

There's obviously want to win share on instacart, but also because, you know, they don't want to lose share to some of the largest digital players who are increasingly vying for market share. So we, we talked to our Retail Partners about, you know, about the full strategic approach when it comes to digital pricing is 1 of those. Uh, we think it's strategically wise for retailers to consider this. We've seen some movement, uh, so far this year high V just went to price. Parity raies just went to no markups as well on the platform. So we have seen traction you're going to see us continue to focus on that going forward.

Speaker #5: Thank you for the questions, Josh. I'll start with price parity. So, we work closely with retailers on all strategies, including on their pricing strategies.

Fidji Simo: Thank you for the questions, Josh. I'll start with price parity. So, you know, we work closely with retailers on all strategies, including on their pricing strategies. In the case of price parities or not applying a markup, we do work with retailers on that because we believe it's in their best interest, and there's a positive short and long-term ROI for them. We consistently see price parity retailers outperform marked up retailers on Instacart. We see better retention of price parity retailers. And this is important not just because, you know, we have a very large platform. Retailers obviously want to win share on Instacart, but also because, you know, they don't want to lose share to some of the largest digital players who are increasingly vying for market share.

Chris Rogers: So we talk to our retail partners about, you know, about the full strategic approach when it comes to digital. Pricing is one of those. We think it's strategically wise for retailers to consider this. We've seen some movement so far this year. Hy-Vee just went to price parity. Raley's just went to no markups as well on the platform. So we have seen traction. You're gonna see us continue to focus on that going forward. When it comes to AI and the influence of agentic consumers. So we are innovating here when it comes to agentic experiences. We're focused on building agentic experiences directly on Instacart in a seamless way that's very additive. We're designing agentic shopping experiences and deeper personalization that's driving better end-to-end outcomes for customers.

Speaker #5: In the case of price parities or not applying a markup, we do work with retailers on that because we believe it's in their best interest and there's a positive short and long-term ROI for them.

Speaker #5: We consistently see price parity retailers outperform marked-up retailers on Instacart. We see better retention at price parity retailers. And this is important not just because we have a very large win share on Instacart, but also because they don't want to lose share to some of the largest digital players who are increasingly vying for market share.

Chris Rogers: When it comes to AI and the influence of agentic consumers. So we are innovating here when it comes to agentic experiences. We're focused on building agentic experiences directly on Instacart in a seamless way that's very additive. We're designing agentic shopping experiences and deeper personalization that's driving better end-to-end outcomes for customers.

Speaker #5: So we talk to our retail partners about the full strategic approach when it comes to digital. Pricing is one of those. We think it's strategically wise for retailers to consider this.

Fidji Simo: So we talk to our retail partners about, you know, about the full strategic approach when it comes to digital. Pricing is one of those. We think it's strategically wise for retailers to consider this. We've seen some movement so far this year. Hy-Vee just went to price parity. Raley's just went to no markups as well on the platform. So we have seen traction. You're gonna see us continue to focus on that going forward. When it comes to AI and the influence of the agentic consumers, so we're innovating here when it comes to agentic experiences. We're focused on building agentic experiences directly on Instacart in a seamless way that's very additive. We're designing agentic shopping experiences and deeper personalization that's driving better end-to-end outcomes for customers.

Of um, a gentic consumer. So we are, we're innovating here. When it comes to a gentic experiences. We're focused on building. Agentic experiences directly on instacart in a seamless way, that's very additive we're designing. Agentic shopping experiences in deeper personalization, that's driving better, end-to-end outcomes for customers. In fact, we think that we can build the best and most relevant, agentic experience because of our the unique data advantage that I talked about up front. Uh, you know, and it's not easy grocery is extremely complex as a catalog category. It is highly personal, you know, especially for the big weekly basket. You can imagine, you know, how many preferences or dietary restrictions, you know, come into play when you're working on a family's weekly shop, but we continue to believe that we're in the best position.

Speaker #5: We've seen some movement so far this year. Hy-Vee just went to price parity. Rayleigh's just went to no markups as well on the platform.

Chris Rogers: In fact, we think that we can build the best and most relevant agentic experience because of our unique data advantage that I talked about upfront. You know, and it's not easy. Grocery is extremely complex as a category. It is highly personal, you know, especially for the big weekly basket. You can imagine, you know, how many preferences or dietary restrictions, you know, come into play when you're working on a family's weekly shop. But we continue to believe that we're in the best position to solve for that complexity directly on Instacart and with our first-party data from 1.6 billion lifetime orders and our understanding of the grocery consumer. So you'll see us continue to do that. We're also partnering off platform with third-party platforms like OpenAI and Google and Microsoft to be wherever customers want to shop.

Speaker #5: So we have seen traction. You're going to see us continue to focus on that going forward. When it comes to AI and the influence of agentic consumers, we are innovating here.

Speaker #5: When it comes to agentic experiences, we're focused on building agentic experiences directly on Instacart in a seamless way that's very additive. We're designing agentic shopping experiences in deeper personalization that's driving better end-to-end outcomes for customers.

Chris Rogers: But we continue to believe that we're in the best position to solve for that complexity directly on Instacart and with our first-party data from 1.6 billion lifetime orders and our understanding of the grocery consumer. So you'll see us continue to do that. We're also partnering off platform with third-party platforms like OpenAI and Google and Microsoft to be wherever customers want to shop.

Into solve for that complexity directly on instacart. And with our first party data from 1.6 billion lifetime orders and our understanding of the grocery consumer. So, you'll see us continue to do that. We're also partnering, you know, off platform of a third party platforms, like, open Ai, and Google and Microsoft to be wherever customers want to shop. So, the example was with openai, we were the first grocery partner to launch native checkout directly on chat gbt, and we see this chat as a channel to, you know, attract incremental demand, and make it easy for customers to find instacart land on instacart transact with instacart. That's our approach. Their

Speaker #5: In fact, we think that we can build the best and most relevant agentic experience because of our unique data advantage that I talked about upfront.

Fidji Simo: In fact, we think that we can build the best and most relevant agentic experience because of our, the unique data advantage that I talked about upfront. You know, and it's not easy. Grocery is extremely complex as a category. It is highly personal, you know, especially for the big weekly basket. You can imagine, you know, how many preferences or dietary restrictions, you know, come into play when you're working on a family's weekly shop. But we continue to believe that we're in the best position to solve for that complexity directly on Instacart and with our first-party data from 1.6 billion lifetime orders and our understanding of the grocery consumer. So you'll see us continue to do that. We're also partnering, off platform with third-party platforms like OpenAI, Google, and Microsoft to be wherever customers want to shop.

Thank you. Our next question comes from the line of Eric Sheridan with Goldman Sachs, please proceed.

Speaker #5: And it's not easy. Grocery is extremely complex as a category. It is highly personal, especially for the big weekly basket. You can imagine how many preferences or dietary restrictions come into play when you're working on a family's weekly shop.

Chris Rogers: So the example was, with OpenAI, we were the first grocery partner to launch native checkout directly on ChatGPT, and we see this as a channel to, you know, attract incremental demand and make it easy for customers to find Instacart, land on Instacart, transact with Instacart. That's our approach there.

Speaker #5: But we continue to believe that we're in the best position to solve for that complexity directly on Instacart. And with our first-party data from 1.6 billion lifetime orders and our understanding of the grocery consumer.

Thanks so much for taking the question, maybe a few just on instacart plus, um, any update on the adoption rate? You're seeing in terms of people coming into the program, how do you think about investing incrementally in growing instacart plus and any differences you're starting to see or that are wide big in terms of frequency engagement or cross-platform usage. From instacart plus users. Thanks so much.

Operator: Thank you. Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed.

Eric Sheridan: Thanks so much for taking the question. Maybe a few just on Instacart Plus. Any update on the adoption rate you're seeing in terms of people coming into the program? How do you think about investing incrementally in growing Instacart Plus? And any differences you're starting to see or that are widening in terms of frequency, engagement, or cross-platform usage from Instacart Plus users? Thanks so much.

Speaker #5: So you'll see us continue to do that. We're also partnering off-platform with third-party platforms like OpenAI and Google and Microsoft to be wherever customers want to shop.

Speaker #5: So the example was with OpenAI—we were the first grocery partner to launch native checkout directly on ChatGPT. And we see this as a channel to attract incremental demand and make it easy for customers to find Instacart, land on Instacart, and transact with Instacart.

Yeah thank you for the question Eric. Um yeah we continue to be pleased with the results of instacart plus instacart plus continues to represent the majority of GTV in orders on our platform. Paid instacart Plus members continue to grow and instacart, plus customers are more engaged and they retain better than non-members and all of that.

Fidji Simo: So the example was, with OpenAI, we were the first grocery partner to launch native checkout directly on ChatGPT, and we see this as a channel to, you know, attract incremental demand and make it easy for customers to find Instacart, land on Instacart, transact with Instacart. That's our approach there.

Chris Rogers: Yeah, thank you for the question, Eric. Yeah, we continue to be pleased with the results of Instacart Plus. Instacart Plus continues to represent the majority of GTV and orders on our platform. Paid Instacart Plus members continue to grow, and Instacart Plus customers are more engaged, and they retain better than non-members. And all of that strength we reflected in our overall operating fundamentals that we shared, you know, where we're seeing user growth and strong new customer retention metrics and deeper engagement with existing customers. From a strategy perspective, to the second part of your question, you know, Instacart Plus is designed to unlock customer value and drive engagement, anchored by the $0 delivery, but as well as several additional benefits like the $0 delivery minimum, which we lowered to $10 for grocery and $25 for restaurants.

Speaker #5: That's our approach there.

Speaker #3: Thank you. Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed.

Operator: Thank you. Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed.

Speaker #7: Thanks so much for taking the question. Maybe a few just on Instacart Plus. Any update on the adoption rate you're seeing in terms of people coming into the program?

Speaker #7: How do you think about investing incrementally in growing Instacart Plus? And any differences you’re starting to see or that are emerging in terms of frequency, engagement, or cross-platform usage from Instacart Plus users?

Chris Rogers: From a strategy perspective, to the second part of your question, you know, Instacart Plus is designed to unlock customer value and drive engagement, anchored by the $0 delivery, but as well as several additional benefits like the $0 delivery minimum, which we lowered to $10 for grocery and $25 for restaurants.

Speaker #7: Thanks so much.

Strength, uh, we reflected in our overall operating fundamentals that we shared, uh, you know, where we're seeing user growth and strong, new customer retention metrics and deeper engagement with existing customers from a strategy perspective. Uh, to the second part of your question, you know, instacart plus is designed to unlock customer value and driving engagement anchored by the 0 delivery, but as well as several additional benefits like the 0, uh, delivery minimum, which we lower to ten dollars for grocery and 25 dollars for restaurants. Um, also access to new use cases and services like uh restaurants with our Uber Eats integration New York Times cooking. Peacock premium, we expanded family accounts to 3 members. We also have in-app, uh, credits through. Select Chase Partnerships.

Speaker #5: Yeah, thank you for the question, Eric. Yeah, we continue to be pleased with the results of Instacart Plus. Instacart Plus continues to represent the majority of GTV and orders on our platform.

Fidji Simo: Yeah, thank you for the question, Eric. Yeah, we continue to be pleased with the results of Instacart Plus. Instacart Plus continues to represent the majority of GTV and orders on our platform. Paid Instacart Plus members continue to grow, and Instacart Plus customers are more engaged, and they retain better than non-members. All of that strength we reflected in our overall operating fundamentals that we shared, you know, where we're seeing user growth and strong new customer retention metrics and deeper engagement with existing customers. From a strategy perspective, to the second part of your question, you know, Instacart Plus is designed to unlock customer value and drive engagement, anchored by the zero dollar delivery, but as well as several additional benefits like the zero dollar delivery minimum, which we lowered to $10 for grocery and $25 for restaurants.

Speaker #5: Paid Instacart Plus members continue to grow. And Instacart Plus customers are more engaged and they retain better than non-members. And all of that strength, we reflected in our overall operating fundamentals that we shared.

Chris Rogers: Also access to new use cases and services like restaurants with our Uber Eats integration, New York Times Cooking, Peacock Premium. We expanded family accounts to three members. We also have in-app credits through select Chase partnerships. I'll also mention, which is relatively unknown, that the value of Instacart Plus member extends beyond just our marketplace, with the majority of our storefront retailers also using Instacart Plus and offering, you know, zero-dollar delivery there as well. So overall, Eric, we're pleased with the performance of the program, and yeah.

Um I'll also mention which is relatively unknown um that the value of instacart plus member extends Beyond just our marketplace with the majority of our, our storefront retailers also using instacart plus and offering you know, 0 delivery there as well. So overall Eric we are we're pleased with the performance of the program and um, yeah.

Thank you. 1 moment for our next question.

Speaker #5: We're seeing user growth and strong new customer retention metrics, as well as deeper engagement with existing customers. From a strategy perspective—to the second part of your question—Instacart Plus is designed to unlock customer value and drive engagement, anchored by the $0 delivery, but also by several additional benefits, like the $0 delivery minimum, which we lower to $10 for grocery and $25 for restaurants.

Comes from the line of calling Sebastian with beard, please proceed.

Fidji Simo: Also access to new use cases and services like restaurants with our Uber Eats integration, New York Times Cooking, Peacock Premium. We expanded family accounts to three members. We also have in-app credits through select Chase partnerships. I'll also mention, which is relatively unknown, that the value of Instacart Plus member extends beyond just our marketplace, with the majority of our Storefront retailers also using Instacart Plus and offering, you know, zero-dollar delivery there as well. So overall, Eric, we're pleased with the performance of the program, and yeah.

Speaker #5: Also, access to new use cases and services like restaurants with our Uber Eats integration, New York Times Cooking, and Peacock Premium. We expanded family accounts to three members.

Operator: Thank you. One moment for our next question. Comes from the line of Colin Sebastian with Baird. Please proceed.

Speaker #5: We also have in-app credits through select Chase partnerships. I'll also mention which is relatively unknown that the value of Instacart Plus member extends beyond just our marketplace.

Colin Sebastian: Great. Good afternoon, and thanks for taking my questions. I guess first, maybe just to follow up on competition. I know you said that you studied this in a lot of detail, so I guess, are you seeing that there are distinct use cases for consumers on Instacart compared to how they may be using, you know, the traditional retailers or e-commerce platforms for grocery? Or is it just that the market's so large and online penetration is so low that there's just room for multiple players? And then, my second question is actually on Caper Carts and sort of in-store monetization and maybe ultimately how that ties as well to enterprise.

Speaker #5: With the majority of our storefront retailers also using Instacart Plus and offering $0 delivery there as well. So overall, Eric, we are pleased with the performance of the program, and yeah.

Monetization and maybe ultimately how that ties as well, the Enterprise. But, you know, given the lift and basket size from from the prompts on Caper carts. And and even beyond that, I mean what what is the appetite you're seeing for advertising? Um, you know within the carts for demand for the carts and and ultimately the pipeline for that? Thank you.

Speaker #3: Thank you. One moment for our next question. It comes from the line of Sebastian with Baird. Please proceed.

Operator: Thank you. One moment for our next question. Comes from the line of Colin Sebastian with Baird. Please proceed.

Speaker #8: Great. Good afternoon and thanks for taking my questions. I guess first, maybe just a follow-up on competition. I know you said that you study this in a lot of detail.

Colin Sebastian: Great. Good afternoon, and thanks for taking my questions. I guess first, maybe just to follow up on competition. I know you said that you studied this in a lot of detail, so I guess, are you seeing that there are distinct use cases for consumers on Instacart compared to how they may be using, you know, the traditional retailers or e-commerce platforms for grocery? Or is it just that the market's so large and online penetration so low that there's just room for multiple players? And then, my second question is actually on Caper Carts and sort of in-store monetization and maybe ultimately how that ties as well to enterprise.

Colin Sebastian: But, you know, given the lift in basket size from the prompts on Caper Carts and even beyond that, I mean, what is the appetite you're seeing for advertising, you know, within the carts, for demand for the carts and ultimately the pipeline for that? Thank you.

Speaker #8: So I guess, are you seeing that there are distinct use cases for consumers on Instacart compared to how they may be using the traditional retailers or e-commerce platforms for grocery?

Chris Rogers: Yeah. Thank you, Colin. On the competition point, yeah, we... I do think that some of the competition is pulling in incremental use cases, small basket use cases. We continue to perform well in small baskets and large baskets, but we do continue to win where it matters most, which is big baskets. Baskets over $75 represent 75% of the digital market. Given the nature of some of the other offerings that we're seeing out there from Amazon and others, I mean, Amazon, as an example, in their same-day experience, there's a few thousand SKUs and 4- to 5-hour delivery windows. You know, to me, their experience is inherently geared towards smaller fill-in orders and not the weekly shop with over, you know, 12 items. We see that play out in the data that we see.

Speaker #8: Or is it just that the market's so large and online penetration is so low that there's just room for multiple players? And then my second question is actually on CaperCarts and sort of in-store monetization.

Speaker #8: And maybe ultimately how that ties as well to enterprise. But given the lift in basket size from the prompts on CaperCarts and even beyond that, I mean, what is the appetite you're seeing for advertising?

Colin Sebastian: You know, given the lift in basket size from the prompts on Caper Carts and even beyond that, I mean, what is the appetite you're seeing for advertising, you know, within the carts, for demand for the carts, and ultimately the pipeline for that? Thank you.

Yeah. Thank you Colin. Um, on on the competition Point. Um, yeah, yeah, we I do think that some of the competition is pulling in incremental. Use cases small basket. Use cases. We continue to perform well in small baskets and large baskets, but we do continue to win uh where it matters most which is Big baskets, big baskets over 75 represent, 75% of the the digital market and given the nature of some of the other offerings that we're seeing out there from Amazon, and others. I mean, Amazon is an example in their same day, uh, experience. There's a few thousand skus and 4 to 5 hour delivery Windows. Uh, you know, to me they're experiences inherently geared towards smaller fill-in orders and not the weekly shop with over, you know, a dozen items. And we see that play out in the data that we see, you know, some of the the same day grocery baskets appear to be well below $50. And also you we are seeing that that as Amazon's ramped up their their same day perishable expansion, you know the biggest source of their grocery.

Speaker #8: Within the carts, for demand for the carts and ultimately the pipeline for that? Thank you.

Customers are coming from in store and it's not a share ship from us.

Speaker #5: Yeah, thank you, Colin. On the competition point, yeah, I do think that some of the competition is pulling in incremental use cases—small basket use cases.

Fidji Simo: Yeah. Thank you, Colin. On the competition point, yeah, I do think that some of the competition is pulling in incremental use cases, small basket use cases. We continue to perform well in small baskets and large baskets, but we do continue to win where it matters most, which is big baskets. Baskets over $75 represent 75% of the digital market. And given the nature of some of the other offerings that we're seeing out there from Amazon and others, I mean, Amazon, as an example, in their same-day experience, there's a few thousand SKUs and 4- to 5-hour delivery windows. You know, to me, their experience is inherently geared towards smaller fill-in orders and not the weekly shop with over 12 items. And we see that play out in the data that we see.

Chris Rogers: You know, some of the same-day grocery baskets appear to be well below $50. And also, you know, we are seeing that as Amazon's ramped up their same-day perishable expansion, you know, the biggest source of their grocery customers are coming from in-store, and it's not a share shift from us. And on that point, I do want... I don't want to underestimate what that means for our business, because as a company that works with hundreds of retailers that compete with some of these large players, it's the ultimate rallying cry for the rest of our partners. The rest of the market, it needs a technology partner to help them compete and win, and we are that, we are that trusted partner.

Speaker #5: We continue to perform well in small baskets and large baskets, but we do continue to win where it matters most, which is big baskets.

Um, and on that point, I I do want, um, I don't want to underestimate what that means for our business because as companies, you know, who were as a company that works with hundreds of retailers that compete with some of these large players, it's the ultimate routing cry for the rest of our partners. The rest of these, the rest of the market, it needs a technology partner to help them compete and win. And we are that we are that trusted partner.

Speaker #5: Big baskets over $75 represent 75% of the digital market. And given the nature of some of the other offerings that we're seeing out there from Amazon and others—I mean, Amazon as an example, and their same-day experiences—there are a few thousand SKUs and four- to five-hour delivery windows.

Speaker #5: To me, their experience is inherently geared towards smaller fill-in orders and not the weekly shop with over a dozen items. And we see that play out in the data that we see.

Um, from an in-store perspective, at the highest level, we we believe deeply in the opportunity for technology in the physical store. You know with e-commerce at low double digits, the vast majority of transactions are still happening in store for the foreseeable future and there's a massive opportunity, you know, to monitor modernize and digitize that experience with seamless operations and advanced personalization weight, finding advertising to help customers discover products and to help customers save money while they're shopping.

Fidji Simo: You know, some of the same-day grocery baskets appear to be well below $50. And also, you know, we are seeing that as Amazon's ramped up their same-day perishable expansion, you know, the biggest source of their grocery customers are coming from in-store, and it's not a share shift from us. And on that point, I don't want to underestimate what that means for our business, because as a company that works with hundreds of retailers that compete with some of these large players, it's the ultimate rallying cry for the rest of our partners. The rest of the market, it needs a technology partner to help them compete and win, and we are that, we are that trusted partner....

Speaker #5: Some of the same-day grocery baskets appear to be well below $50. And also, we are seeing that as Amazon has ramped up their same-day perishable expansion, the biggest source of their grocery customers is coming from in-store.

Chris Rogers: From an in-store perspective, at the highest level, we believe deeply in the opportunity for technology in the physical store. You know, with e-commerce at low double digits, the vast majority of transactions are still happening in store for the foreseeable future, and there's a massive opportunity, you know, to modernize and digitize that experience with seamless operations and advanced personalization, wayfinding, advertising, to help customers discover products and to help customers save money while they're shopping. From a Caper perspective, we think Caper is an ideal solution to this, and it's an ideal way to engage the consumer. We're seeing great momentum. We have thousands of cart commitments with retailers, big and small. We're now live in nearly 100 cities across 15 states.

Speaker #5: And it's not a share shift from us. And on that point, I do want I don't want to underestimate what that means for our business because as companies, as a company that works with hundreds of retailers that compete with some of these large players, it's the ultimate rallying cry for the rest of our partners, the rest of the market.

Speaker #5: It needs a technology partner to help them compete and win. And we are that trusted partner. From an in-store perspective, at the highest level, we believe deeply in the opportunity for technology in the physical store.

From a caper perspective. We think, we think Caper is an ideal solution to this. And it's, it's an ideal way to engage the consumer. We're seeing great momentum. We have thousands of cart commitments with retailers big and small. Uh, we we're now live in nearly 100 cities across 15 states. We launched new pilots in the second half of 2025, with sprouts, and Wegman's, and globally with, with coals and Australia. And as I mentioned with Morrisons, in the UK, um, from a scale perspective, we're also continuing to expand with Wakefern, where we're now live at about.

Fidji Simo: From an in-store perspective, at the highest level, we believe deeply in the opportunity for technology in the physical store. You know, with e-commerce at low double digits, the vast majority of transactions are still happening in store for the foreseeable future, and there's a massive opportunity, you know, to modernize and digitize that experience with seamless operations, advanced personalization, wayfinding, advertising, to help customers discover products and to help customers save money while they're shopping. From a Caper perspective, we think Caper is an ideal solution to this, and it's an ideal way to engage the consumer. We're seeing great momentum. We have thousands of cart commitments with retailers, big and small. We're now live in nearly 100 cities across 15 states.

20% of their stores and where we've recently launched shoppable display ads which is our first foray into the ads business. So overall, you know,

Speaker #5: With e-commerce at low, double digits, the vast majority of transactions are still happening in-store. For the foreseeable future. And there's a massive opportunity to monitor, modernize, and digitize that experience with seamless operations and advanced personalization, wayfinding, advertising to help customers discover products and to help customers save money while they're shopping.

Chris Rogers: We launched new pilots in the second half of 2025 with Sprouts and Wegmans, and globally with, with Coles in Australia, and as I mentioned, with Morrisons in the UK. From a scale perspective, we're also continuing to expand with Wakefern, where we're now live at about 20% of their stores, and where we've recently launched shoppable display ads, which is our first foray into the ads business. So overall, you know, our learnings are that customers love the experience, retailers love it for the operational benefits and the potential to digitize their customers, and turn them into omnichannel customers. And then, of course, we're all encouraged by the early signals we're getting from an ad revenue perspective. So I remain optimistic about the future of Caper and incredibly focused on accelerating our momentum here.

Our learning there, that customers love the experience retailers, love it for the operational benefits, and the potential to digitize their customers, uh, and turn them into Omni Channel customers. And then, of course, we're all encouraged by the early signals. We're getting from an ad Revenue perspective. So I remain optimistic about the future of Caper and Incredibly focused on accelerating our momentum here.

Speaker #5: From a Caper perspective, we think Caper is an ideal solution to this, and it's an ideal way to engage the consumer. We're seeing great momentum.

Thank you. Our next question comes from the line of Andrew bun with citizens, please proceed.

Chris Rogers: So overall, you know, our learnings are that customers love the experience, retailers love it for the operational benefits and the potential to digitize their customers, and turn them into omnichannel customers. And then, of course, we're all encouraged by the early signals we're getting from an ad revenue perspective. So I remain optimistic about the future of Caper and incredibly focused on accelerating our momentum here.

Speaker #5: We have thousands of cart commitments with retailers, big and small. We're now live in nearly 100 cities across 15 states. We launched new pilots in the second half of 2025 with Sprouts and Wegmans, and globally with Coles in Australia and, as I mentioned, with Morrisons in the UK.

Fidji Simo: We launched new pilots in the second half of 2025 with Sprouts and Wegmans, and globally with Coles in Australia and, as I mentioned, with Morrisons in the UK. From a scale perspective, we're also continuing to expand with Wakefern, where we're now live at about 20% of their stores, and where we've recently launched shoppable display ads, which is our first foray into the ads business. So overall, you know, our learnings are that customers love the experience. Retailers love it for the operational benefits and the potential to digitize their customers, and turn them into omni-channel customers. And then, of course, we're all encouraged by the early signals we're getting from an ad revenue perspective. So I remain optimistic about the future of Caper and incredibly focused on accelerating our momentum here.

Thanks so much for taking the question. Um, I wanted to ask about your chat, you can view partnership now, that instant checkout is live, can you talk about the advertising intensity that you're seeing with those orders? Is there anything that we should think about? As we think about the evolution of retail media now is those channels. Start to mature. Thank you.

Speaker #5: From a scale perspective, we're also continuing to expand with Wakefern, where we're now live at about 20% of their stores, and where we've recently launched shoppable display ads, which is our first foray into the ads business.

Operator: Thank you. Our next question comes from the line of Andrew Boone with Citizens. Please proceed.

Andrew Boone: Thanks so much for taking the question. I wanted to ask about your ChatGPT partnership. Now that Instacart checkout is live, can you talk about the advertising intensity that you're seeing with those orders? Is there anything that we should think about as we think about the evolution of retail media now as those channels start to mature? Thank you.

Speaker #5: So overall, our learnings are that customers love the experience. Retailers love it for the operational benefits and the potential to digitize their customers. And turn them into omnichannel customers.

Sure. Um, so when it comes to to chat gbt, uh, maybe I'll just back up and say, uh, you know, our approach with with the AI platforms right now is to ensure that we are served up in a high quality way in a way that respects our data. But we are anywhere where a consumer wants to shop. And so, our, in fact, our goal is to help Define what grocery shopping looks like across the next generation of digital agents including all these forms. So we want to show up while we want to help kind of, co-create experience the The Experience. Um,

Speaker #5: And then, of course, we're all encouraged by the early signals we're getting from an ad revenue perspective. So I remain optimistic about the future of Caper and incredibly focused on accelerating our momentum here.

Chris Rogers: Sure. So when it comes to ChatGPT, maybe I'll just back up and say, you know, our approach with the AI platforms right now is to ensure that we're served up in a high-quality way, in a way that respects our data, but we are anywhere where a consumer wants to shop. And so our... In fact, our goal is to help define what grocery shopping looks like across the next generation of digital agents, including audio form. So we want to show up well, we want to help kind of co-create the experience. On OpenAI, our partnership with OpenAI allows for consumers to shop, pay, and now, transact directly inside ChatGPT's app experience, so no switching or additional steps are required. We were the first company to do that, but we're also partnering with others.

Speaker #3: Thank you. Our next question comes from the line of Andrew Boone with Citizens. Please proceed.

Operator: Thank you. Our next question comes from the line of Andrew Boone with Citizens. Please proceed.

Speaker #9: Thanks so much for taking the question. I wanted to ask about your ChatGPT partnership. Now that Instant Checkout is live, can you talk about the advertising intensity that you're seeing with those orders?

[Analyst] (Citizens JMP): Thanks so much for taking the question. I wanted to ask about your ChatGPT partnership. Now that instant checkout is live, can you talk about the advertising intensity that you're seeing with those orders? Is there anything that we should think about as we think about the evolution of retail media now as those channels start to mature? Thank you.

Andrew Boone: Thanks so much for taking the question. I wanted to ask about your ChatGPT partnership. Now that instant checkout is live, can you talk about the advertising intensity that you're seeing with those orders? Is there anything that we should think about as we think about the evolution of retail media now as those channels start to mature? Thank you.

Chris Rogers: So we want to show up well, we want to help kind of co-create the experience. On OpenAI, our partnership with OpenAI allows for consumers to shop, pay, and now, transact directly inside ChatGPT's app experience, so no switching or additional steps are required. We were the first company to do that, but we're also partnering with others.

Speaker #9: Is there anything that we should think about as we think about the evolution of retail media now, as those channels start to mature? Thank you.

On open AI. Our partnership with openai allows for consumers to shop pay, and now, um, transact directly inside chat chat gbt's app experience. So no, switching or additional steps are required. Uh, we were the first company to do that, but we're also partnering with, with others, we're partnering with Google and Microsoft. In fact, we expect, you know, every generative AI company will Connect into our grocery engine to drive demand for our retailers, um, from a, from an ads perspective,

Speaker #5: Sure. So, when it comes to ChatGPT, maybe I'll just back up and say our approach with the AI platforms right now is to ensure that we're served up in a high-quality way, in a way that respects our data.

Fidji Simo: Sure. So when it comes to ChatGPT, maybe I'll just back up and say, you know, our approach with the AI platforms right now is to ensure that we're served up in a high-quality way, in a way that respects our data, but we are anywhere where a consumer wants to shop. And so our... In fact, our goal is to help define what grocery shopping looks like across the next generation of digital agents, including audio form. So we want to show up well. We want to help kind of co-create experience, the, the experience. On OpenAI, our partnership with OpenAI allows for consumers to shop, pay, and now, transact directly inside ChatGPT's app experience, so no switching or additional steps are required. We were the first company to do that, but we're also partnering with others.

Chris Rogers: We're partnering with Google and Microsoft. In fact, we expect, you know, every generative AI company will connect into our grocery engine to drive demand for our retailers. From an ads perspective, I think, you know, like, our immediate priority here is going to be to make sure that we're discoverable wherever customers choose to shop, and that that experience is incredible and that we're able to drive more users to our platform. And we think if we nail that, there will be lots of opportunities to monetize that down the road. But more broadly, we are very excited about the opportunity of AI and ads together. That intersection, we think long term, is going to be a benefit to our business, and there's a few reasons for that. One is on Instacart.

Speaker #5: But we are anywhere where a consumer wants to shop. And so in fact, our goal is to help define what grocery shopping looks like across the next generation of digital agents, including body form.

Speaker #5: So we want to show up well. We want to help kind of co-create the experience. On OpenAI, our partnership with OpenAI allows for consumers to shop, pay.

Speaker #5: And now transact directly inside ChatGPT's app experience. So no switching or additional steps are required. We were the first company to do that. But we're also partnering with others.

Speaker #5: We're partnering with Google and Microsoft. In fact, we expect every generative AI company will connect into our grocery engine to drive demand for our retailers.

Fidji Simo: We're partnering with Google and Microsoft. In fact, we expect, you know, every generative AI company will connect into our grocery engine to drive demand for our retailers. From an ads perspective, I think, you know, like, our immediate priority here is gonna be to make sure that we're discoverable wherever customers choose to shop, and that that experience is incredible, and that we're able to drive more users to our platform. And we think if we nail that, there will be lots of opportunities to monetize that down the road. But more broadly, we are very excited about the opportunity of AI and ads together. That intersection, we think long term, is gonna be a benefit to our business, and there's a few reasons for that. One is on Instacart.

You know, like our immediate priority here is going to be to make sure that we're discoverable wherever customers choose to shop. And that, that experience is incredible. And that we're able to drive more users to our platform. And we think if we nail that there will be lots of opportunities to monetize that down the road but more broadly, we are very excited about the opportunity of AI and adds together. That intersection, we think long term is going to be a benefit to our business and and there's a few there's a few reasons for that 1 is is on instacart. So as you know we're building conversational Commerce in a magentic experiences at the exact same time. The ads team is innovating alongside our consumer team who are building those agentic experiences and our ads will be directly informed by how consumers engage in a magentic shopping. So our overall agentic ad strategy here is to build trust and utility with consumers. That leverage, everything that we've already learned from online in store and in store. And the other thing that we're doing is we're using AI to improve all aspects of

Chris Rogers: So as you know, we're building conversational commerce and agentic experiences. At the exact same, same time, the ads team is innovating alongside our consumer team, who are building those agentic experiences, and our ads will be directly informed by how consumers engage in agentic shopping. So our overall agentic ad strategy here is to build trust and utility with consumers that leverage everything that we've already learned from online, in-store, and in-store. And the other thing that we're doing is we're using AI to improve all aspects of our ad technology, including behind the scenes with ranking, relevance, and personalization. We're making all sponsored product ads more relevant, driving stronger engagement and more items added to the cart. We're improving advertising tooling and efficiency, making it easy for advertisers to manage and drive performance of campaigns, especially when it comes to emerging brands.

Speaker #5: From an ads perspective, I think our immediate priority here is going to be to make sure that we're discoverable wherever customers choose to shop and that that experience is incredible and that we're able to drive more users to our platform.

Speaker #5: And we think if we nail that, there will be lots of opportunities to monetize that down the road. But more broadly, we are very excited about the opportunity of AI and ads together, that intersection.

Our technology, including behind the scenes with ranking and relevance and personalization. We're making all sponsored product ads, more relevant driving, stronger engagement, and more items added to the cart that we're improving advertising, tools, tooling and efficiency making it easy for advertisers to manage and drive performance of campaigns especially when it comes to emerging Brands. Uh most notably we've expanded our set of AI powered recommendations for advertisers. So for example,

Chris Rogers: And the other thing that we're doing is we're using AI to improve all aspects of our ad technology, including behind the scenes with ranking, relevance, and personalization. We're making all sponsored product ads more relevant, driving stronger engagement and more items added to the cart. We're improving advertising tooling and efficiency, making it easy for advertisers to manage and drive performance of campaigns, especially when it comes to emerging brands.

Speaker #5: We think long-term is going to be a benefit to our business. And there's a few reasons for that. One is on Instacart. So as you know, we're building conversational commerce and agentic experiences.

Fidji Simo: So, as you know, we're building conversational commerce and agentic experiences. At the exact same, same time, the ads team is innovating alongside our consumer team, who are building those agentic experiences, and our ads will be directly informed by how consumers engage in agentic shopping. So our overall agentic ad strategy here is to build trust and utility with consumers that leverage everything that we've already learned from online, in-store, and in-store. And the other thing that we're doing is we're using AI to improve all aspects of our ad technology, including behind the scenes with ranking, relevance, and personalization. We're making all sponsored product ads more relevant, driving stronger engagement and more items added to the cart. We're improving advertising tooling and efficiency, making it easy for advertisers to manage and drive performance of campaigns, especially when it comes to emerging brands.

Speaker #5: At the exact same time, the ads team is innovating alongside our consumer team, who are building those agentic experiences, and our ads will be directly informed by how consumers engage in agentic shopping.

Where where in a campaign is their head room to raise your roas target while delivering your campaign goals, or where can you increase new to Brand coverage within the within the campaign? So we are highly engaged. We think, you know, we can be a leader here and we look forward to uh the role that AI can play broadly in our advertising product and down the road.

Thank you.

Speaker #5: So our overall agentic ads strategy here is to build trust and utility with consumers that leverage everything that we've already learned from online, in-store, and in-store.

Chris Rogers: Most notably, we've expanded our set of AI-powered recommendations for advertisers. So for example, where in a campaign is there headroom to raise your ROAS target while delivering your campaign goals? Or where can you increase new-to-brand coverage within the campaign? So we are highly engaged. We think, you know, we can be a leader here, and we look forward to the role that AI can play broadly in our advertising product and down the road.

Our next question comes from the line of Deepak Madan with Cantor. Fitzgerald, please proceed.

Speaker #5: And the other thing that we're doing is we're using AI to improve all aspects of our ad technology, including behind relevance and personalization. We're making all sponsored product ads more relevant, driving stronger engagement and more items added to the cart.

Speaker #5: We're improving advertising for advertisers to manage and drive performance of campaigns, especially when it comes to emerging brands. And most notably, we've expanded our set of AI-powered recommendations for advertisers.

Operator: Thank you. Our next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Please proceed.

Fidji Simo: And most notably, we've expanded on our set of AI-powered recommendations for advertisers. So for example, where in a campaign is there headroom to raise your rollout target while delivering your campaign goals? Or where can you increase new-to-brand coverage within the campaign? So we are highly engaged. We think, you know, we can be a leader here, and we look forward to the role that AI can play broadly in our advertising product and down the road.

Deepak Mathivanan: Great. Thanks for taking the question. Chris, obviously, I think grocery is one area where, you know, the way consumers shop can have a meaningful change with all the AI tools. I know you launched Cart Assistant, basically for cart planning and things like that, and you also have integrations with ChatGPT and others. Are you seeing meaningful change in how consumers are doing grocery shopping, maybe starting with what they need for the week or for a specific recipe, instead of kind of, like, staying with their typical routine for grocery shopping? And when do you expect some of the cart assistants and other AI experiences to, you know, be more broadly available? And then perhaps one more question on competition: What are you seeing, specifically on retailers where Uber and DoorDash rolled out in the last few months? Are you seeing any consumer behavior changes?

Speaker #5: So, for example, where in a campaign is there headroom to raise your ROAS target while delivering your campaign goals? Or, where can you increase new-to-brand coverage within the campaign?

Great. Thanks for taking the question. Chris, obviously. I think Gary is 1 area where, you know, the way consumers shop can have a meaningful change with all the AI tools. I know you launched. Carter assistant, basically for, uh, C planning and things like that. And I also have Integrations with Chad, GPT and others. Are you seeing meaningful change in how consumers are doing grocery shopping? Maybe starting with what they need for the week, or for a specific recipe instead of kind of like a staying with their typical routine for grocery shopping. And when do you expect some of the cart assistance and other AI experiences to, uh, you know, be more broadly available and then perhaps 1 more question on competition, what are you seeing, uh, specifically on retailers where Uber and door Dash rolled out in the last few months? Are you seeing any consumer Behavior changes? Thanks so much.

Speaker #5: So, we are highly engaged. We think we can be a leader here, and we look forward to the role that AI can play broadly in our advertising product down the road.

Speaker #3: Thank you. Our next question comes from the line of Deepak Madhivanan with Kantor Fitzgerald. Please proceed.

Operator: Thank you. Our next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Please proceed.

Deepak Mathivanan: And when do you expect some of the cart assistants and other AI experiences to, you know, be more broadly available? And then perhaps one more question on competition: What are you seeing, specifically on retailers where Uber and DoorDash rolled out in the last few months? Are you seeing any consumer behavior changes? Thanks so much.

Deepak Mathivanan: Great. Thanks for taking the question. Chris, obviously, I think grocery is one area where, you know, the way consumers shop can have a meaningful change with all the AI tools. I know you launched Cart Assistant, basically for cart planning and things like that, and you also have integrations with ChatGPT and others. Are you seeing meaningful change in how consumers are doing grocery shopping, maybe starting with what they need for the week or for a specific recipe, instead of kind of, like, staying with their typical routine for grocery shopping? And when do you expect some of the Cart Assistants and other AI experiences to, you know, be more broadly available? And then perhaps one more question on competition: What are you seeing, specifically on retailers where Uber and DoorDash rolled out in the last few months? Are you seeing any consumer behavior changes?

Deepak Mathivanan: Great. Thanks for taking the question. Chris, obviously, I think grocery is one area where, you know, the way consumers shop can have a meaningful change with all the AI tools. I know you launched Cart Assistant, basically for cart planning and things like that, and you also have integrations with ChatGPT and others. Are you seeing meaningful change in how consumers are doing grocery shopping, maybe starting with what they need for the week or for a specific recipe, instead of kind of, like, staying with their typical routine for grocery shopping? And when do you expect some of the Cart Assistants and other AI experiences to, you know, be more broadly available? And then perhaps one more question on competition: What are you seeing, specifically on retailers where Uber and DoorDash rolled out in the last few months? Are you seeing any consumer behavior changes? Thanks so much.

Speaker #5: Great. Thanks for taking the question. Chris, obviously, I think grocery is one area where the way consumers shop can have a meaningful change with all the AI tools.

Speaker #5: I know you launched Cart Assistant basically for cart planning and things like that. And we also have integrations with ChatGPT and others. Are you seeing meaningful change in how consumers are doing grocery shopping—maybe starting with what they need for the week or for a specific recipe—instead of kind of staying with their typical routine for grocery shopping?

Deepak Mathivanan: Thanks so much.

Chris Rogers: Yeah, thank you for the question. What I would say on all grocery-engaged agentic experiences is, first of all, I'm a believer that consumer behavior is going to shift over time, but it's still very, very early here. You know, if we look at some of the referral traffic that we get from outside platforms, it's all kind of like, not material at this point in time. We're investing because we do believe that consumer trends are going to change, you know, over time, so we want to make sure that we're there. However, you know, it's still very early days and very, you know, very relatively small, relative to the size of our overall business.

Speaker #5: And when do you expect some of the Cart Assistants and other AI experiences to be more broadly available? And then, perhaps, one more question on competition.

Yeah, thank you for the question. What I would say on all grocery engaged, agentic experiences, is, uh, first of all, I am a, I'm a believer that consumer, uh, behavior is going to shift over time, but it's still very, very early here. You know, if we look at some of the referral uh traffic that we get from outside platforms, it's all very it's all kind of like not Material at this point in time. We are investing because we do believe that consumer Trends are going to change, um, you know, over over time. So we want to make sure that we're there. However, you know, it's still very early days and very, um, you know, very relatively small relative to the size of our overall business. Uh, we are extremely excited about card assistant which uh is being built on top of our, our kind of very large and proprietary data set uh which is key here. Um we're making progress, significant progress. We we're not racing to get this out the door, our goal is to make our card assistance, the absolute best, the most relevant experience for consumers, you know, especially since we're going to be extending.

Speaker #5: What are you seeing specifically on retailers where Uber and DoorDash rolled out in the last few months? Are you seeing any consumer behavior changes?

Speaker #5: Thanks so much.

Deepak Mathivanan: Thanks so much.

Speaker #4: Yeah. Thank you for the question. What I would say on all grocery-engaged agentic experiences is, first of all, I'm a believer that consumer behavior is going to shift over time.

Fidji Simo: ... Yeah, thank you for the question. What I would say on all grocery-engaged agentic experiences is, first of all, I'm a believer that consumer behavior is gonna shift over time, but it's still very, very early here. You know, if we look at some of the referral traffic that we get from outside platforms, it's all very, it's all kind of like, not material at this point in time. We're investing because we do believe that consumer trends are gonna change, you know, over time, so we wanna make sure that we're there. However, you know, it's still very early days and very, you know, very relatively small, relative to the size of our overall business.

Fidji Simo: Yeah, thank you for the question. What I would say on all grocery-engaged agentic experiences is, first of all, I'm a believer that consumer behavior is gonna shift over time, but it's still very, very early here. You know, if we look at some of the referral traffic that we get from outside platforms, it's all very, it's all kind of like, not material at this point in time. We're investing because we do believe that consumer trends are gonna change, you know, over time, so we wanna make sure that we're there. However, you know, it's still very early days and very, you know, very relatively small, relative to the size of our overall business.

Chris Rogers: We are extremely excited about Cart Assistant, which is being built on top of our kind of very large and proprietary data set, which is key here. We're making progress, significant progress. We're not racing to get this out the door. Our goal is to make our Cart Assistant the absolute best, the most relevant experience for consumers, you know, especially since we're going to be extending this onto partners like Sprouts and Kroger. So in our view, you know, many early agentic experiences are going to be limited in scope, operate as single-step interactions, which can potentially create friction. Our goal is to have a comprehensive agent out in market. We're in beta testing now, Deepak. We're moving quickly. We're learning a lot. We have plans to roll out on Instacart Marketplace by the end of Q1.

Speaker #4: But it's still very early here. If we look at some of the referral traffic that we get from outside platforms, it's all kind of not material.

This on to Partners, like sprouts and and Kroger. So, in our view, you know, many early, agentic experiences are going to be limited in scope operate, a single step interactions, uh, which can potentially create friction. Our goal is to have a comprehensive agent out in Market. Uh, we're in beta testing now. Deepak, we were moving quickly. We're learning a lot. We have plans to roll out, um, on instacart Marketplace. By the end of

Of q1.

Speaker #4: At this point in time, we're investing because we do believe that consumer trends are going to change over time, so we want to make sure that we're there.

Speaker #4: However, it's still very early days and is still relatively small relative to the size of our overall business. We are extremely excited about Cart Assistant, which is being built on top of our very large and proprietary data set, which is key here.

Fidji Simo: We are extremely excited about Cart Assistant, which is being built on top of our kind of very large and proprietary data set, which is key here. We're making progress, significant progress. We're not racing to get this out the door. Our goal is to make our Cart Assistant the absolute best, the most relevant experience for consumers, you know, especially since we're gonna be extending this onto partners like Sprouts and Kroger. So in our view, you know, many early agentic experiences are gonna be limited in scope, operate as single-step interactions, which can potentially create friction. Our goal is to have a comprehensive agent out in market. We're beta testing now, Deepak. We're moving quickly, we're learning a lot. We have plans to roll out on Instacart Marketplace by the end of Q1.

Speaker #4: We're making progress, significant progress. We're not racing to get this out the door. Our goal is to make our Cart Assistants the absolute best, the most relevant experience for consumers, especially since we're going to be extending this onto partners like Sprouts and Kroger.

Chris Rogers: To the second part of your question on DoorDash and Uber specifically. So look, when it comes to retailers sitting on other marketplaces. You know, marketplace expansion, first of all, is not unexpected at all. And again, we grew despite, you know, to use the DoorDash example, DoorDash and Kroger launched at the beginning of Q4. We just had our best quarterly growth in 3 years. And these launches to us really reinforce, you know, what I've been saying all along, which is when a retailer goes non-exclusive, at steady state, we see other platforms' growth plateaus and, you know, their basket size stays small, it's under $75. We remain the share of sales leader versus digital-first players at these retailers.

Speaker #4: So in our view, many early agentic experiences are going to be limited in scope and operate as single-step interactions, which can potentially create friction. Our goal is to have a comprehensive agent out in market.

Speaker #4: We're in beta testing now, Deepak. We're moving quickly. We're learning a lot. We have plans to roll out on Instacart Marketplace by the end of Q1.

Fidji Simo: To the second part of your question on DoorDash and Uber specifically. So look, when it comes to retailers sitting on other marketplaces, you know, marketplace expansion, first of all, is not unexpected at all. And again, we grew despite, you know, to use the DoorDash example, DoorDash and Kroger launched at the beginning of Q4. We just had our best quarter, yearly quarterly growth in three years. And these launches to us really reinforce, you know, what I've been saying all along, which is when a retailer goes non-exclusive, at steady state, we see other platforms' growth plateaus, and, you know, their basket size stays small, it's under $75. We remain the share of sales leader versus digital-first players at these retailers.

Speaker #4: To the second part of your question on specifically, so look, when it comes to retailers sitting on other marketplaces, marketplace expansion, first of all, is not unexpected at all.

Chris Rogers: And we're also now seeing that as other marketplaces add retailers, the incremental growth that they see from each additional retailer diminishes. Their growth is increasingly coming from other retailers on their own platform. So at the end of the day, I don't lose sleep over any of this because our marketplace is strong, our enterprise platform makes us even more resilient, and it gives us a seat at the table with retailers that a standalone marketplace does not have. And if you look ahead, you know, although I mentioned last earnings, that 80% of our GTV already comes from non-exclusive retailers, I just want to be clear that our model has always assumed that retailers would sit on multiple marketplaces. That dynamic is fully embedded into our guidance and into our long-term strategy.

Speaker #4: And again, we grew despite to use the DoorDash example. DoorDash and Kroger launched at the beginning of Q4. We just had our best quarter quarterly growth in three years.

See other platforms growth plateaus and you know their basket size uh size stays small. It's under 75 dollars, we Remain the sheriff sales leader versus digital first, players at these retailers. And we're also now seeing that as other marketplaces add retailers, the incremental growth that they see from each additional retailer. Diminishes, their growth is increasingly coming from other retailers on their own platform. So at the end of the day I don't lose sleep over any of this because our Marketplace is strong. Our Enterprise platform. Makes it even more resilient and it gives us a seat at the table with retailers at a a standalone Marketplace does not have. Um and if you look at ahead, you know, although I mentioned last earnings that 80% of our GTV already comes from non-exclusive retailers. I just want to be clear that our model has always assumed that retailers would sit on multiple marketplaces that Dynamic is fully embedded into our guidance and into our long-term strategy.

Speaker #4: And these launches to us really reinforce what I've been saying all along, which is when a retailer goes non-exclusive, that's steady state. We see other platforms' growth plateaus.

Thank you. Our next question comes from the line of Ross Sandler with Barkley's, please proceed.

Speaker #4: And their basket size stays small; it's under $75. We remain this share-of-sales leader versus digital-first players at these retailers. And we're also now seeing that as other marketplaces add retailers, the incremental growth that they see from each additional retailer diminishes.

Great going back to advertising. Um, you guys, I think said that for 1 Q ads you're going to grow 11 to 14% which is a nice acceleration off of a 4-point tougher comp. So could you just talk about

Fidji Simo: We're also now seeing that as other marketplaces add retailers, the incremental growth that they see from each additional retailer diminishes. Their growth is increasingly coming from other retailers on their own platform. So at the end of the day, I don't lose sleep over any of this because our marketplace is strong, our enterprise platform makes us even more resilient, and it gives us a seat at the table with retailers that a standalone marketplace does not have. And if you look ahead, you know, although I mentioned last earnings that 80% of our GTV already comes from non-exclusive retailers, I just wanna be clear that our model has always assumed that retailers would sit on multiple marketplaces. That dynamic is fully embedded into our guidance and into our long-term strategy.

Speaker #4: Their growth is increasingly coming from other retailers on their own platform. So at the end of the day, I don't lose sleep over any of this because our marketplace is strong.

Operator: Thank you. Our next question comes from the line of Ross Sandler with Barclays. Please proceed.

what you're seeing thus far in the quarter and then the pipeline are we finally through the rough patch with uh large cpg and then Emily to bring you in um

Ross Sandler: Great. Going back to advertising, you guys, I think, said that for Q1, ads are going to grow 11% to 14%, which is a nice acceleration off of a 4-point tougher comp. So could you just talk about what you're seeing thus far in the quarter and in the pipeline? Are we finally through the rough patch with large CPG? And then, Emily, to bring you in, you mentioned that COGS might leverage in 2026 on the publisher fees. So could you just talk about that, elaborate there? And then, you know, is that material enough to have an impact on overall incremental margins in 2026? Thank you.

Speaker #4: Our enterprise platform makes us even more resilient. And it gives us a seat at the table with retailers at a standalone marketplace does not have.

You mentioned that cogs might leverage in 26 on, on the publisher fees. So could you just talk about that elaborate there and then, you know,

Speaker #4: And if you look ahead, although I mentioned last earnings that 80% of our GTV already comes from non-exclusive retailers, I just want to be clear that our model has always assumed that retailers would sit on multiple marketplaces.

Is that material enough to have an impact on overall incremental margins in 26. Thank you.

Yeah, thanks. Thanks Ross. Um, I'll address advertising and then we can pass it over to Emily. Um, so yeah, we are, we are

Speaker #4: That dynamic is fully embedded into our guidance and into our long-term strategy.

very happy. We're off to a very strong start in 2026. As you pointed out, we just got it to 11 to 14% for q1.

Speaker #3: Thank you. Our next question comes from the line of Ross Sandler with Barclays. Please proceed.

Operator: Thank you. Our next question comes from the line of Ross Sandler with Barclays. Please proceed.

[Analyst] (Barclays): Great. Going back to advertising, you guys, I think, said that for Q1, ads are gonna grow 11% to 14%, which is a nice acceleration off of a 4-point tougher comp. So could you just talk about what you're seeing thus far in the quarter and in the pipeline? Are we finally through the rough patch with large CPG? And then, Emily, to bring you in, you mentioned that COGS might leverage in 2026 on the publisher fees. So could you just talk about that, elaborate there, and then, you know, is that material enough to have an impact on overall incremental margins in 2026? Thank you.

Ross Sandler: Great. Going back to advertising, you guys, I think, said that for Q1, ads are gonna grow 11% to 14%, which is a nice acceleration off of a 4-point tougher comp. So could you just talk about what you're seeing thus far in the quarter and in the pipeline? Are we finally through the rough patch with large CPG? And then, Emily, to bring you in, you mentioned that COGS might leverage in 2026 on the publisher fees. So could you just talk about that, elaborate there, and then, you know, is that material enough to have an impact on overall incremental margins in 2026? Thank you.

Speaker #5: Great. Going back to advertising, you guys, I think, said that for one quarter, ads are going to grow 11 to 14 percent, which is a nice acceleration off of a four-point tougher comp.

Chris Rogers: Yeah, thanks. Thanks, Ross. I'll address advertising, and then we can pass it over to Emily. So yeah, we are very happy. We're off to a very strong start in 2026. As you pointed out, we just guided to 11 to 14% for Q1. What I'll say is that, you know, we believe we have the right strategy here, and we're executing well against it. We're already a top five retail media network, and we're continuing to expand our scale and our reach across our growing marketplace, across our expanding Carrot's footprints, off platform, and with our data solution. So our strategy is sound. Looking ahead, you know, we're not providing guidance beyond Q1, and there's still some macro uncertainty that we're seeing in the market and some ongoing changes in consumer preferences, as an example.

Speaker #5: So, could you just talk about what you're seeing thus far in the quarter and in the pipeline? Are we finally through the rough patch with large CPG?

Speaker #5: And then Emily, to bring you in, you mentioned that Cogs might leverage in '26 on the publisher fees. So could you just talk about that, elaborate there, and then is that material enough to have an impact on overall incremental margins in '26?

What I'll say is that you know, we believe we have the right strategy here and we're executing well against it. We're already at top 5, retail media Network and we're continuing to expand our scale and our reach across our growing Marketplace, across our expanding care ads, Footprints off platform and with our Data Solutions, so our our strategy is sound looking ahead. You know, we're not providing guidance Beyond q1, and there's still some macro uncertainty that we're seeing in the market and in some ongoing changes in, in consumer profess preferences as an example. Um, but overall, our plan and our approach is to focus on driving strong year-on-year growth by continuing to diversify, in terms of supply and demand and ensuring that we're building the largest and most effective ads, ecosystem. We have a very clear set of building blocks which in

Speaker #5: Thank you.

Speaker #4: Yeah. Thanks, Ross. I'll address advertising, and then we can pass it over to Emily. So yeah, we are very happy. We're off to a very strong start in 2026, as you pointed out.

Fidji Simo: Yeah, thanks. Thanks, Ross. I'll address advertising, and then we can pass it over to Emily. So yeah, we are very happy. We're off to a very strong start in 2026. As you pointed out, we just guided to 11 to 14% for Q1. What I'll say is that, you know, we believe we have the right strategy here, and we're executing well against it. We're already a top five retail media network, and we're continuing to expand our scale and our reach across our growing marketplace, across our expanding Carrot Ads footprints, off-platform, and with our data solutions. So our strategy is sound. Looking ahead, you know, we're not providing guidance beyond Q1, and there's still some macro uncertainty that we're seeing in the market, and some ongoing changes in consumer preferences, as an example.

Chris Rogers: But overall, our plan and our approach is to focus on driving strong year-on-year growth by continuing to diversify in terms of supply and demand, and ensuring that we're building the largest and most effective ads ecosystem. We have a very clear set of building blocks, which involves, you know, continuing to innovate on platform with advanced personalization and relevancy, and all of the AI tooling I described. You know, driving exceptional performance and measurement for brands is our goal, and then extend all of that innovation to Carrot Ads, which is, you know, again, we're at 310 Carrot Ads partners now, which gives us real scale. And then extend in-store on Caper Carts, which we just launched, and I continue to believe that this is going to be one of the most interesting in-store advertising opportunities out there.

Speaker #4: We just got it to 11 to 14 percent for Q1. What I'll say is that we believe we have the right strategy here, and we're executing well against it.

Speaker #4: We're already a top five retail media network, and we're continuing to expand our scale and our reach across our growing marketplace, across our expanding Care Ads footprints, off-platform, and with our data solutions.

Speaker #4: So our strategy is sound. Looking ahead, we're not providing good guidance beyond Q1. And there's still some macro uncertainty that we're seeing in the market, and some ongoing changes in consumer preferences, as an example.

Chris Rogers: You know, driving exceptional performance and measurement for brands is our goal, and then extend all of that innovation to Carrot Ads, which is, you know, again, we're at 310 Carrot Ads partners now, which gives us real scale. And then extend in-store on Caper Carts, which we just launched, and I continue to believe that this is going to be one of the most interesting in-store advertising opportunities out there.

Calls, you know, continuing to innovate on platform with Advanced personalization and relevancy. And all of the AI tooling I described, you know, driving exceptional performance and measurement for Brands, is our goal and then extend all of that Innovation to cared ads which is you know. Again we're at 310 carat Partners now which gives us real scale and then extend in store on Caper carts, which we just launched. Uh and I continue to believe that this is going to be 1 of the most interesting in-store advertising opportunities out there. And then, you know, we're going to use our first party data to extend off platform. We're still early with off platform but we've built a strong Foundation. Here, we have the right set of Partners and we're excited to scale that further. So with the strategy like we're confident in the in the space and our ability to deliver our long-term targets here. Um, but we do believe that we're I, I am optimistic about what we can achieve in ads.

Speaker #4: But overall, our plan and our approach is to focus on driving strong year-on-year growth by continuing to diversify in terms of supply and demand, and ensuring that we're building the largest and most effective ads ecosystem.

Fidji Simo: But overall, our plan and our approach is to focus on driving strong year-on-year growth by continuing to diversify in terms of supply and demand, and ensuring that we're building the largest and most effective ads ecosystem. We have a very clear set of building blocks, which involves, you know, continuing to innovate on platform with advanced personalization and relevancy, and all of the AI tooling I described. You know, driving exceptional performance and measurement for brands is our goal, and then extend all of that innovation to Carrot Ads, which is, you know, again, we're at 310 Carrot Ads partners now, which gives us real scale, and then extend in-store on Caper Carts, which we just launched. And I continue to believe that this is gonna be one of the most interesting in-store advertising opportunities out there.

Yeah, hey Ross, thanks for the question. Um, so

Chris Rogers: And then, you know, we're going to use our first-party data to extend off platform. We're still early with off platform, but we've built a strong foundation here. We have the right set of partners, and we're excited to scale that further. So with the strategy, like, we're confident in the, in this space and our ability to deliver our long-term targets here, but we do believe that we're... I, I am optimistic about what we can achieve in ads.

Speaker #4: We have a very clear set of building blocks, which involves continuing to innovate on-platform with advanced personalization and relevancy, and all of the AI tooling I described.

Speaker #4: Driving exceptional performance and measurement for brands is our goal. And then extend all of that innovation to care ads, which is, again, we're at 310 care ad partners now, which gives us real scale.

Emily Reuter: Yeah. Hey, Ross, thanks for the question. So just to get a little more specific on what I was trying to call out is that, you know, if you look at adjusted cost of revenue through the course of last year, you did see a little bit of a modest step up in Q4 related to cost of revenue. And so I wanted to call that out because, while the majority of cost of revenue is going to be from credit card transaction payments that do sort of scale relatively with GTV, there is a component of cost of revenue that we do call out in our filings, which is payments to publishers. And so I wanted to specifically give some context of what that includes. It's effectively two things.

Speaker #4: And then extend in-store on CaperCarts, which we just launched. And I continue to believe that this is going to be one of the most interesting in-store advertising opportunities out there.

Just to get a little more specific on on what I was trying to call out. Is that, you know, if you look at adjusted cost of Revenue through the course of last year, you did see a little bit of a, a modest step up in in Q4 related to cost of Revenue. And so wanted to call that out because, uh, while the majority of cost of Revenue is going to be from credit card, transaction payments that do sort of scale relatively with uh with GTV uh there is a component of cost of Revenue uh that we do call out in our in our filings which is payments to Publishers and so I wanted to specifically give some context of what that includes. Um, it's

Speaker #4: And then we're going to use our first-party data to extend off-platform. We're still early with off-platform, but we've built a strong foundation here. We have the right set of partners, and we're excited to scale that further.

Fidji Simo: Then, you know, we're gonna use our first-party data to extend off platform. We're still early with off platform, but we've built a strong foundation here. We have the right set of partners, and we're excited to scale that further. So with the strategy, like, we're confident in the, in this space and our ability to deliver our long-term targets here, but we do believe that we're... I am optimistic about what we can achieve in ads.

Speaker #4: So with the strategy, we're confident in this space and our ability to deliver our long-term targets here. But we do believe that we're—I am optimistic about what we can achieve in ads.

Speaker #6: Yeah. Hey, Ross. Thanks for the question. So just to get a little more specific on what I was trying to call out, if you look at adjusted cost of revenue through the course of last year, you did see a little bit of a modest step up in Q4 related to cost of revenue.

Emily Reuter: ... Yeah. Hey, Ross, thanks for the question. So just to get a little more specific on what I was trying to call out is that, you know, if you look at adjusted cost of revenue through the course of last year, you did see a little bit of a modest step up in Q4 related to cost of revenue. And so I wanted to call that out because, while the majority of cost of revenue is going to be from credit card transaction payments that do sort of scale relatively with GTV, there is a component of cost of revenue that we do call out in our filings, which is payments to publishers. And so I wanted to specifically give some context of what that includes. It's effectively two things.

Emily Reuter: One is what we pay certain of our Carrot Ads partners for the benefit of advertising on their surfaces, as well as the budgets that we get, where we're optimizing and deploying ads dollars on behalf of brands for certain of our off-platform partnerships. So it's not all of our off-platform partnerships. Now, to your question around is this going to cause sort of overall impact to margins, you know, writ large? What I'd say is that, you know, first of all, what I wanted to highlight is that while payments to publishers specifically did scale throughout 2025, we do expect that year-over-year growth to moderate in 2026. Now, when I think about the P&L as a whole, I would say two things.

Speaker #6: And so I wanted to call that out because, while the majority of cost of revenue is going to be from credit card transaction payments that do sort of scale relatively with GTV, there is a component of cost of revenue that we do call out in our filings, which is payments to publishers.

Speaker #6: And so I wanted to specifically give some context of what that includes. It's effectively two things. One is what we pay certain of our Care Ads partners for the benefit of advertising on their services.

Emily Reuter: One is what we pay certain of our Carrot Ads partners for the benefit of advertising on their services, as well as the budgets that we get where we're optimizing and deploying ads dollars on behalf of brands for certain of our off-platform partnerships. So it's not all of our off-platform partnerships. Now, to your question around is this going to cause sort of overall impact to margins, you know, writ large? What I'd say is that, you know, first of all, what I wanted to highlight is that while payments to publishers specifically did scale throughout 2025, we do expect that year-over-year growth to moderate in 2026. Now, when I think about the P&L as a whole, I would say two things. But first of all, you know, that was a relatively modest impact.

Emily Reuter: But first of all, you know, that was a relatively modest impact, and, you know, we think that we have multiple levers across the P&L to drive profitability over time, and you'd see us - you've seen us drive that, you know, pretty effectively over time. Now, we did say that our expectation is that the expansion of EBITDA, while we, you know, look to continue to expand EBITDA, grow EBITDA faster than GTV through the course of 2026, that rate of expansion, we do expect to moderate. And that is because you've seen quite a lot of OpEx leverage, as one example, over the course of the last couple of years. We do have a number of great opportunities to reinvest in growth that we're seeing in terms of both short, medium, and long-term bets.

Speaker #6: As well as the budgets that we get where we're optimizing and deploying ad dollars on behalf of brands for certain of our off-platform partnerships.

Speaker #6: So, it's not all of our off-platform partnerships. Now, to your question around, is this going to cause sort of overall impact to margins writ large?

Your growth to moderate in 2026. Now, when I think about the p&l as a whole, um, I would say 2 things. The first of all, you know, that was a relatively modest impact. And, you know, we think that we have multiple levels across the p&l to drive, uh, profitability over time. And you'd see you've seen us drive that, you know, pretty effectively over time. Now, we did say that our expectation is that, uh, the expansion of ibida while we you know look to continue to expand ibida, uh grow ibida, faster than GTV through the course of 2026. The that rate of expansion, we do expect to moderate and that is uh because you've seen quite a lot of Opex, leverage as 1 example over the course of the last couple of years. We, we do have a number of great opportunities to reinvest in growth that we're seeing in terms of both short, medium and long-term bets. So, um, I I, I wouldn't necessarily tie those 2 thoughts together. I think we have great opportunities to, to drive growth. Uh, and continue to have many levers at our disposal to turn that into, uh, profitable growth over time.

Speaker #6: What I'd say is that, first of all, what I wanted to highlight is that while payments to publishers specifically did scale throughout 2025, we do expect that year-over-year growth to moderate in 2026.

Thank you. Our next question comes from the line of Michael Morton with Moffett Nathanson, please proceed.

Speaker #6: Now, when I think about the P&L as a whole, I would say two things. First of all, that was a relatively modest impact, and we think that we have multiple levers across the P&L to drive profitability over time.

Emily Reuter: You know, we think that we have multiple levers across the P&L to drive profitability over time, and you'd see, you've seen us drive that, you know, pretty effectively over time. Now, we did say that our expectation is that the expansion of EBITDA, while we, you know, look to continue to expand EBITDA, grow EBITDA faster than GTV through the course of 2026, that rate of expansion we do expect to moderate, and that is because you've seen quite a lot of OpEx leverage as one example, over the course of the last couple of years. We do have a number of great opportunities to reinvest in growth that we're seeing in terms of both short, medium, and long-term bets. I wouldn't necessarily tie those two thoughts together.

Emily Reuter: I wouldn't necessarily tie those two thoughts together. I think we have great opportunities to drive growth, and continue to have many levers at our disposal to turn that into profitable growth over time.

Speaker #6: And you'd see us drive that pretty effectively over time. Now, we did say that our expectation is that the expansion of EBITDA—while we look to continue to expand EBITDA, grow EBITDA faster than GTV through the course of 2026—that rate of expansion, we do expect to moderate.

Right. Thank you. Uh, maybe I'm afraid to just follow up what we were just talking about, uh, and I really appreciate the detail, uh, on the cost of Revenue. Could you maybe speak a little bit about the contributors to advertising growth between on-site and off-site? In the guide? Does that imply? Maybe some improvement in the on-site growth rate. Uh, because we

Operator: Thank you. Our next question comes from the line of Michael Morton with MoffettNathanson. Please proceed.

Michael Morton: Hi, thank you. Maybe, Emily, if I could just follow up what we were just talking about, and I really appreciate the detail on the cost of revenue. Could you maybe speak a little bit about the contributors to advertising growth between on-site and off-site in the guide? Does that imply maybe some improvement in the on-site growth rate? Because we were trying to do some of that math that you talked about with the publisher payments as well. And then also, I think probably for Emily, could you quantify the contribution that you're seeing from Kroger's decision to change some of their fulfillment kind of business models, I would say, and what will then flow to Cart, and maybe how much of that is included in your guidance? Thank you.

Speaker #6: And that is because you've seen quite a lot of OPEX leverage, as one example, over the course of the last couple of years. We do have a number of great opportunities to reinvest in growth that we're seeing in terms of both short-, medium-, and long-term bets.

We are trying to do some of that math that you talked about with the publisher payments as well. And then also I think probably for Emily. Could you quantify the contribution that you're seeing from Kroger's decision to change some of their fulfillment uh because business models I would say and and what will then flow to cart and maybe how much of that is included in your guidance. Thank you.

Speaker #6: So, I wouldn't necessarily tie those two thoughts together. I think we have great opportunities to drive growth and continue to have many levers at our disposal to turn that into profitable growth over time.

Emily Reuter: I think we have great opportunities to drive growth, and continue to have many levers at our disposal to turn that into profitable growth over time.

Speaker #3: Thank you. Our next question comes from the line of Michael Morton with MoffettNathanson. Please proceed.

Operator: Thank you. Our next question comes from the line of Michael Morton with MoffettNathanson. Please proceed.

Speaker #5: Hi. Thank you. Maybe I'm going to actually just follow up on what we were just talking about. And I really appreciate the detail on the cost of revenue.

[Analyst] (MoffettNathanson): Hey, thank you. Maybe, Emma, if I could just follow up what we were just talking about, and I really appreciate the detail on the cost of revenue. Could you maybe speak a little bit about the contributors to advertising growth between on-site and off-site in the guide? Does that imply maybe some improvement in the on-site growth rate? Because we, we were trying to do some of that math that you talked about with the publisher payments as well. And then also, I think probably for Emily, could you quantify the contribution that you're seeing from Kroger's decision to change some of their fulfillment kind of business models, I would say, and what will then flow to cart, and maybe how much of that is included in your guidance? Thank you.

Michael Morton: Hey, thank you. Maybe, Emma, if I could just follow up what we were just talking about, and I really appreciate the detail on the cost of revenue. Could you maybe speak a little bit about the contributors to advertising growth between on-site and off-site in the guide? Does that imply maybe some improvement in the on-site growth rate? Because we, we were trying to do some of that math that you talked about with the publisher payments as well. And then also, I think probably for Emily, could you quantify the contribution that you're seeing from Kroger's decision to change some of their fulfillment kind of business models, I would say, and what will then flow to cart, and maybe how much of that is included in your guidance? Thank you.

Speaker #5: Could you maybe speak a little bit about the contributors to advertising growth between on-site and off-site and the guide? Does that imply maybe some improvement in the on-site growth rate?

Emily Reuter: Sure. I can jump in, and Chris, feel free to add any detail. So in terms of, you know, contribution to ads from on-site versus off-site. So we think of on-site, just to clarify, as a combination of the ads that we serve on our marketplace as well as through Carrot Ads. If you come to Instacart to advertise, and you deploy dollars, those are deployed across that full suite of surfaces. And so, you know, just to be clear, while we talk about off-platform, because, you know, there is something that stands out specifically in the cost of revenue line. Really, what we're talking about is an ads business that is primarily comprised of that on-site or off-- we call it on-platform internally, ads revenue, and we're continuing to see growth driven by on-platform.

Speaker #5: Because we were trying to do some of that math that you talked about with the publisher payments as well. And then also, I think probably for Emily, could you quantify the contribution that you're seeing from Kroger's decision to change some of their fulfillment kind of business models, I would say, and what will then flow to cart, and maybe how much of that is included in your guidance?

Sure, uh, I, I can, uh, I can jump in and Chris feel free to add any details. So in terms of, uh, you know, contribution to ads from on-site versus off-site. So we think of on-site just to clarify as a combination of the ads that we serve on our Marketplace as well as through care ads. Uh, if you come to instacart to advertise, uh, you deploy dollars, those are deployed across that full Suite of of surfaces. And so, you know, just to be clear while we've talked about off platform. Because, you know, there is something that stands out specifically in the cost of Revenue line. Um, really what we're talking about is an ads business that is, primarily comprised of that on-site or we call it on platform internally, uh, ads revenue, and we're continuing to see growth driven by on platform. So off platform is a smaller, contributor overall, um, but it is something that is starting to see some, uh, some growth and some benefits. So, definitely worth, uh, worth calling out. Um, in terms of, uh, specifically quantifying contribution from Kroger,

Speaker #5: Thank you.

Speaker #6: Sure, I can jump in, and Chris, feel free to add any detail. So in terms of contribution to ads from on-site versus off-site, we think of on-site, just to clarify, as a combination of the ads that we serve on our marketplace as well as through Care Ads.

Emily Reuter: Sure. I can jump in, and, Chris, feel free to add any detail. So in terms of, you know, contribution to ads from on-site versus off-site. So we think of on-site, just to clarify, as a combination of the ads that we serve on our marketplace as well as through Carrot Ads. If you come to Instacart to advertise and you deploy dollars, those are deployed across that full suite of services. And so, you know, just to be clear, while we talk about off-platform, because, you know, there is something that stands out specifically in the cost of revenue line, really what we're talking about is an ads business that is primarily comprised of that on-site or off-platform, we call it on-platform internally, ads revenue, and we're continuing to see growth driven by on-platform.

Emily Reuter: So off-platform is a smaller contributor overall, but it is something that is starting to see some growth and some benefits, so definitely worth calling out. In terms of specifically quantifying contribution from Kroger, we don't call out sort of specific retailers, but we're definitely happy to see that, you know, what we're able to provide in terms of same-day logistics, something that we thought was always a really critical benefit in terms of understanding the desire from consumers to, you know, get their groceries when they want it, when they need it, which in the majority of cases is on demand, that we're able to step in and provide that service for our partner.

Um, we don't call out sort of specific retailers, but, um, we're definitely happy to, uh, see that, you know what, we're able to provide in terms of same day Logistics. Uh, something that we thought was always a really critical benefit in terms of understanding the desire from consumers to, you know, get their groceries when they want it when they need it. Which in in the majority of cases is on demand uh, that we're able to step in and provide that service for for our partner.

Speaker #6: If you come to Instacart to advertise, and you deploy dollars, those are deployed across that full suite of surfaces. And so, just to be clear, while we've talked about off-platform because there is something that stands out specifically in the cost of revenue line, really what we're talking about is an ads business that is primarily comprised of that on-site, or we call it on-platform internally, ads revenue.

Thank you. 1 moment for our next question.

Comes from the line of marks. Go to Wix with the Benchmark, please proceed.

Speaker #6: And we're continuing to see growth driven by on-platform. So, off-platform is a smaller contributor overall, but it is something that is starting to see some growth and some benefits.

Emily Reuter: So off-platform is a smaller contributor overall, but it is something that is starting to see some growth and some benefits. So definitely worth calling out. In terms of specifically quantifying contribution from Kroger, we don't call out sort of specific retailers, but we're definitely happy to see that, you know, what we're able to provide in terms of same-day logistics, something that we thought was always a really critical benefit in terms of understanding the desire from consumers to, you know, get their groceries when they want it, when they need it, which in the majority of cases is on demand, that we're able to step in and provide that service for our partner.

Thank you. Um, just curious how you see the timeline for the ads opportunity in Europe, developing given the lack of 1 P data in the region. And do you anticipate the incremental adds benefit here to come largely from net new brands or your existing Global Partners. Thank you.

Speaker #6: So definitely worth calling out. In terms of specifically quantifying contribution from Kroger, we don't call out sort of specific retailers, but we're definitely happy to see that what we're able to provide in terms of something that we thought was always a really critical benefit in terms of understanding the desire from consumers to get their groceries when they want it, when they need it, which in the majority of cases is on demand.

Operator: Thank you. One moment for our next question. Comes from the line of Mark Zgutowicz with Benchmark. Please proceed.

Mark Zgutowicz: Thank you. I was just curious how you see the timeline for the ads opportunity in Europe developing, given a lack of 1P data in the region, and do you anticipate the incremental ads benefit here to come largely from net new brands or your existing global partners? Thank you.

Thank you for the question mark. Uh, our approach to your when we take a step back and we look at which Technologies, we're taking to Europe for primarily focused on storefront Pro, which often times has ads embedded directly into it. So we'll have ads capabilities over time. Um, keep our cart which is you know, also has an advertising surface area that we think is going to be monetizable oversized time and then and then food store which is our our catering software. So our approach is going to be take our technology work.

Speaker #6: That we're able to step in and provide that service for our partner.

Chris Rogers: Thank you for the question, Mark. Our approach to Europe, when we take a step back and we look at which technologies we're taking to Europe, we're primarily focused on Storefront Pro, which oftentimes has ads embedded directly into it, so we'll have ads capabilities over time. Caper Cart, which is, you know, also has an advertising surface area that we think is going to be monetizable over time, and then FoodStorm, which is our catering software. So our approach is going to be take our technology, work with retailers, start to solve complex problems and start to build new relationships with retailers abroad, and then advertising will be a like a fast follow-up, follow on when we once we have surface areas that are at scale to advertise in, in those markets.

Speaker #3: Thank you. One moment for our next question. It comes from the line of Mark Gotowicks with Benchmark. Please proceed.

With retailers start to solve, complex problems and start to, to build new relationships with retailers abroad. And then advertising will be a like a fast follow-up, follow-up.

Operator: Thank you. One moment for our next question. Comes from the line of Mark Gutowicz with Benchmark. Please proceed.

when we uh, once we have a, a surface areas that are at scale to advertising in those markets,

Speaker #7: Thank you. I was just curious how you see the timeline for the ads opportunity in Europe developing, given a lack of 1P data in the region.

Mark Zgutowicz: Thank you. I was just curious how you see the timeline for the ads opportunity in Europe developing, given a lack of 1P data in the region. And do you anticipate the incremental ads benefit here to come largely from net new brands or your existing global partners? Thank you.

may now disconnect

Speaker #7: And do you anticipate the incremental ads benefit here to come largely from net new brands, or your existing global partners? Thank you.

Speaker #5: Thank you for the question, Mark. Our approach to Europe, when we take a step back and we look at which technologies we're taking to Europe, we're primarily focused on Storefront Pro, which oftentimes has ads embedded directly into it.

Fidji Simo: Thank you for the question, Mark. Our approach to Europe, when we take a step back and we look at which technologies we're taking to Europe, we're primarily focused on Storefront Pro, which oftentimes has ads embedded directly into it, so we'll have ads capabilities over time. Caper Cart, which is, you know, also has an advertising surface area that we think is going to be monetizable over time, and then FoodStorm, which is our catering software. So our approach is going to be take our technology, work with retailers, start to solve complex problems, and start to build new relationships with retailers abroad. And then advertising will be a like a fast follow-up, follow-on once we have the service areas that are at scale to advertise in those markets.

Operator: Thank you. Ladies and gentlemen, this concludes our Q&A session and conference for today. Thank you all for participating. You may now disconnect.

Speaker #5: So, we'll have ads capabilities over time. CaperCart, which also has an advertising surface area that we think is going to be monetizable over time.

Speaker #5: And then FoodStorm, which is our catering software. So our approach is going to be take our technology, work with retailers, start to solve complex problems, and start to build new relationships. With follow-on, once we have a surface area that is at scale, to advertise it in those markets.

Operator: Thank you. Ladies and gentlemen, this concludes our Q&A session and conference for today. Thank you all for participating. You may now disconnect.

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