The Gap Inc reported a solid QQ2 2025 for a challenged consumer environment, delivering USD 3.725 billion in revenue, up 7.6% QoQ but down 2.7% YoY. Gross profit reached USD 1.536 billion with a gross margin of 41.2%, while operating income was USD 292 million and net income USD 216 million, yielding an EPS of USD 0.58 (diluted USD 0.57). Despite a softer year-on-year top line, the company generated meaningful operating cash flow of USD 448 million and free cash flow of USD 350 million, supported by an improved working capital stance (inventory declined by approximately USD 196 million) and disciplined capital expenditure of USD 98 million. The balance sheet shows robust liquidity with USD 2.19â2.22 billion in cash and cash equivalents and a total debt load of USD 5.59 billion, resulting in a net debt position around USD 3.40 billion. This combination generated a conservative debt-to-capitalization profile (~0.62) and an interest coverage of ~12.7x, underpinning ongoing deleveraging possibilities and buyback capacity.