radar

DoorDash's $131.5 Million Settlement Hit Net Income, Not Adjusted EBITDA

DoorDash settled with New York City for $131.5 million — two-thirds of June-quarter GAAP net income, 14% of adjusted EBITDA, and reserved in the first half.

DoorDash settled with New York City's Department of Consumer and Worker Protection on 22 September for $131.5 million over the city's courier minimum-pay rule: $12.3 million for Dashers underpaid or paid late, $16.7 million of fines, the rest for on-call time.

About 264,000 Dashers get a payment. Net of fines, ($131.5m − $16.7m) ÷ 264,000 is $435 each, nine times the median DoorDash quotes of about $48, because most of it settles the on-call dispute, not the $12.3m of missing pay.

Against the June quarter that is 65.8% of $200m of GAAP net income and 14.4% of $914m of adjusted EBITDA. DoorDash says it "already set aside the full amount in prior quarters," and the 10-Q shows where: litigation reserves ran $263m at year-end and $406m in June, ($406m − $263m) = $143m built in the half, which the filing ties partly to "regulatory audits related to delivery worker pay requirements." DoorDash added back $45m then $98m of "certain legal, tax, and regulatory settlements, reserves, and expenses" across those quarters — $143m, the same number, none of which adjusted EBITDA carries by its own definition. Paid for already, out of the line that fell 30% while adjusted EBITDA rose 40%. A third-quarter charge rather than a drawdown would overturn that.

Making It Right: Our Settlement with the City of New York — 22 September 2026


Settlement and payment figures are DoorDash's, from its 22 September statement; profit and reserve figures are from its 5 August release and the June-quarter 10-Q. The city had published nothing by then. Percentages and the reserve reading are ours.

Related

Stocks in this article