Instacart announced that its white‑label e‑commerce platform, Storefront and Storefront Pro, will now serve the Associated Food Stores cooperative. The rollout covers five AFS‑owned banners—Fresh Market, Lin’s, and Macey’s—plus more than 40 member‑owned banners, including Broulim’s, Davis Food & Drug, Kent’s, and Lee’s, giving the cooperative a turnkey online shopping experience that mirrors Instacart’s marketplace while unlocking retail‑media revenue through Carrot Ads.
The partnership follows Instacart’s Q3 2025 earnings release, which reported earnings per share of $0.51 versus consensus of $0.50—a $0.01 or 2% beat—and revenue of $939 million versus $934.4 million—a $4.6 million or 0.5% beat. The earnings beat was driven by disciplined cost management and operational leverage, while the revenue gain reflected a 10.2% year‑over‑year increase in total sales, supported by higher gross transaction value (GTV) and order volume.
Total revenue rose 10.2% to $939 million, driven by a 10% increase in GTV to $9.17 billion and a 14% jump in orders to 83.4 million. The growth was largely fueled by the expansion of the enterprise platform and the introduction of AI‑powered tools that improved customer engagement and operational efficiency. The mix shift toward higher‑margin enterprise and advertising revenue helped lift the operating margin to 17.7% from 16.2% YoY, while adjusted EBITDA climbed 22% to $278 million.
Management guided for Q4 2025 GTV of $9.45 billion to $9.60 billion, representing 9%–11% year‑over‑year growth, and advertising revenue growth of 6%–9% YoY. Adjusted EBITDA guidance for the quarter is $285 million to $295 million. The guidance signals confidence in continued demand for enterprise solutions and retail‑media, but also reflects caution around rising labor costs and competitive pressure in the online grocery space.
CEO Chris Rogers emphasized that Instacart is a “clear leader” in online grocery delivery and a technology partner for the industry, while CFO Emily Maher highlighted the role of AI‑powered tools and enterprise partnerships in driving long‑term expansion. The company also increased its share repurchase program by $1.5 billion, underscoring management’s confidence in the business’s value.
Investors reacted positively to the earnings beat and strong operational metrics, with pre‑market activity up around 7% and morning trading up about 2%. The market’s enthusiasm was driven by the earnings beat, robust order and GTV growth, and the share‑buyback announcement, even as guidance for Q4 remained cautiously optimistic.
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