Intuit's QQ1 2025 quarter delivered a solid top-line gain driven by continued strength in its subscription-based software businesses, notably QuickBooks Online and related SMB solutions, alongside contributions from Credit Karma and ProConnect. Revenue reached $3.283 billion, up 10.2% year over year (YoY) and 3.1% quarter over quarter (QoQ), while gross profit rose 10.9% YoY to $2.46 billion and gross margin held at roughly 74.9%. Operating income totaled $271 million, yielding an operating margin of about 8.25%, with net income of $197 million and earnings per share (EPS) of $0.70. Despite a dip in year-over-year profitability, the quarter demonstrated meaningful sequential improvement from Q4 2024, supported by a favorable mix and disciplined operating cost management. Free cash flow (FCF) for the period was $329 million on FCF per share of roughly $1.18, and cash flow from operations stood at $362 million, underpinning a robust balance sheet and ample liquidity.
The company maintained a strong liquidity position with cash and cash equivalents/short-term investments of approximately $3.36 billion and total cash at period end of $8.03 billion, while net debt stood around $3.91 billion on $6.78 billion of gross debt. Management continued to allocate capital to buybacks and dividends, signaling confidence in cash generation and an attractive long-term equity value proposition, albeit with a still-elevated SG&A footprint and ongoing investment in growth initiatives.
Looking ahead, Intuit’s growth trajectory hinges on its SMB software ecosystem expansion (QuickBooks Online and adjacent services), the monetization of Credit Karma, and ProConnect adoption, balanced against macro softness in certain small-business segments and regulatory/tax season dynamics. Investors should monitor revenue mix shifts, R&D and SG&A efficiency, leverage on growth initiatives, and the pace of cash-generative contributions from core platforms.