Instacart's net income dropped sharply to $81 million, or 30 cents a share, in the latest quarter, down from $148 million, or 53 cents a share, a year earlier. The decline follows the company's $60 million settlement with the Federal Trade Commission, which investigated its data practices and advertising disclosures. The food-delivery platform, also known as Maplebear, now faces increased scrutiny over its business practices.

The FTC settlement marks a significant setback for Instacart, which had been expanding its advertising business and grocery delivery services. The company's revenue growth has been strong, but rising operational costs and regulatory challenges are impacting profitability. The settlement requires Instacart to enhance its data privacy measures and provide clearer disclosures to consumers about its advertising practices.

Instacart's stock performance has been volatile amid these developments, with investors concerned about the long-term impact of regulatory oversight on the company's growth trajectory. The food-delivery sector faces intense competition and margin pressure, making regulatory compliance an increasingly important factor in business strategy.