By Anshi Sancheti

(Reuters) -DoorDash reported third-quarter profit that missed Wall Street estimates as the delivery firm grapples with rising expenses and said that it would invest several hundred million dollars more in 2026 on new initiatives.

Shares of the San Francisco-based company, which have risen about 43% this year, were down about 16% in extended trading on Wednesday.

“We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works,” the company said in a statement.

DoorDash has been investing heavily in building partnerships, including with robotics firm Serve Robotics, and companies like Domino’s Pizza and Kroger, as it looks to expand its services to cater a broader range of customers seeking last-mile delivery services.

These partnerships helped DoorDash beat quarterly revenue estimates and forecast fourth-quarter gross merchandise value above Wall Street expectations.

The company’s total costs and expenses for the third quarter rose about 23% to $3.19 billion from $2.60 billion a year ago.

“DoorDash may have delivered strong results, but its big spending plans are stealing the spotlight,” said eMarketer analyst Zak Stambor. “That’s a risky bet, but one that could pay strong returns,” he added.

The company expects gross merchandise value, the total dollar value of orders placed through its platform, in the fourth quarter to range between $28.9 billion and $29.5 billion, surpassing estimates of $25.36 billion, according to data compiled by LSEG.

Gross merchandise value rose 25% to $25.02 billion in the third quarter ended September 30, beating estimates of $24.09 billion, with total orders climbing 21% year-over-year. Revenue increased to $3.45 billion, above expectations of $3.36 billion.

DoorDash reported earnings of 55 cents per share, missing estimates of 69 cents.

(Reporting by Anshi Sancheti in Bengaluru; Editing by Tasim Zahid and Alan Barona)