Maplebear Inc.

Good day, and thank you for standing by. Welcome to the Instacart fourth quarter 2025 financial results 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 11 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, please press star 11 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. 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. 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.

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. 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 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. 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 services. 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. 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. 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. 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 Carat 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. 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. 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 Carat 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 cards. Early engagement has been encouraging. For example, a simple got everything you need prompt is driving a nearly one 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. Finally, I want to spend a few minutes on AI because it's no longer 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. 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. 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 four 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. 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 SmartShop technology to our white label AI assistant, known as Card Assistant, to building physical AI capabilities in-store with CaperCard 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. 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. 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 omnichannel transformation of grocery. Instacart's earned the right to lead it, and I'm determined to make that happen. With that, I'll turn it over to Emily to walk through the financials.