HCA Healthcare reported a difficult QQ3 2025 quarter characterized by a negative gross profit and operating income despite a sizable revenue base. Revenue stood at USD 19.161 billion, but cost of revenue of USD 31.104 billion produced a gross loss of USD -5.822 billion and a gross margin of -30.38%. This, coupled with substantial depreciation (USD 0.889B) and interest expense (USD 0.561B), culminated in an EBITDA of USD -1.277B and an operating loss of USD -5.822B (EBITDA margin -6.66%, operating margin -30.38%). After other income of USD 2.642B, income before tax remained negative at USD -3.180B, with a net income of USD -3.243B and an EPS of -13.44 (diluted -13.20). The year-over-year and quarter-over-quarter metric set provided shows revenue decline and deteriorating profitability metrics, though there is a notable positive swing in Q2 2025 versus Q3 2024 on several lines of the income statement that warrants a discussion of volatility in the cost base and mix. Management commentary from the earnings call is not provided in the data set, so the synthesis relies on the disclosed numbers and standard sector considerations.
Key takeaways for investors:
- Profitability collapsed in QQ3 2025 as gross and operating margins turned negative despite a substantial revenue base; this implies a disproportionate rise in cost of revenue or unusual charges weighting the quarter.
- The company demonstrates pronounced margin compression with a negative EBITDA and a negative net income, underscoring elevated cost pressures and potential non-operating offset from other income sources. The operating cash flow profile is unclear in the data provided, and liquidity metrics show stress (current ratio below 1).
- The market context for hospital operators remains sensitive to payer mix, reimbursement changes, labor costs, and utilization trends. In this quarter, revenue growth versus prior periods is not clearly translating into bottom-line earnings power, which raises questions about sustainability of the cost base and the ability to convert volume into profits in the near term.