Executive Summary
Best Buy’s QQ4 2025 results reflect a pronounced seasonal uplift with revenue of USD 13.95 billion, delivering substantial YoY growth (57.66%) and QoQ expansion (47.68%). The quarter benefited from elevated demand for consumer electronics and related services, but profitability faced margin compression as price promotions and mix shifts weighed on operating income, which came in at USD 217 million (1.56% of revenue) and net income of USD 117 million (0.84% net margin). Cash flow remained robust, with operating cash flow of USD 1.54 billion and free cash flow of USD 1.36 billion, underscoring continued cash generation despite margin pressures. The balance sheet shows meaningful leverage with total debt of USD 4.05 billion and net debt of USD 2.48 billion, but liquidity is solid given cash balances of USD 1.58 billion and a current ratio near 1.03. Looking ahead, the company appears well-positioned to sustain investment in services and omnichannel capabilities, though earnings resilience will hinge on promotions intensity, macro consumer demand, and supply chain dynamics. Investor takeaway: BBY demonstrates strong cash generation and strategic optionality in services and logistics, but near-term profitability remains challenged by promotional activity and mix, requiring disciplined cost control and continued digital/channel investments to improve long-run margins.
Key Performance Indicators
QoQ: -38.00% | YoY:-33.64%
QoQ: -57.14% | YoY:-52.44%
QoQ: -56.69% | YoY:-51.75%
Key Insights
Revenue: USD 13.948B (YoY +57.66%, QoQ +47.68%); Gross Profit: USD 2.918B (YoY +41.79%, QoQ +31.62%); Gross Margin: 20.92% (0.2092056209); Operating Income: USD 217M (YoY -33.64%, QoQ -38.00%); Operating Margin: 1.56%; Net Income: USD 117M (YoY -52.44%, QoQ -57.14%); Net Margin: 0.84%; EPS: USD 0.55 (Diluted USD 0.54, YoY -51.75%, QoQ -56.69%); EBITDA: USD 452M; EBITDA Margin: 3.24%; Operating Cash Flow: USD 1.537B; Free Cash Flow: USD 1.359B; Cash and Cash Equivalents: USD 1.578B; Cash at End o...
Financial Highlights
Revenue: USD 13.948B (YoY +57.66%, QoQ +47.68%); Gross Profit: USD 2.918B (YoY +41.79%, QoQ +31.62%); Gross Margin: 20.92% (0.2092056209); Operating Income: USD 217M (YoY -33.64%, QoQ -38.00%); Operating Margin: 1.56%; Net Income: USD 117M (YoY -52.44%, QoQ -57.14%); Net Margin: 0.84%; EPS: USD 0.55 (Diluted USD 0.54, YoY -51.75%, QoQ -56.69%); EBITDA: USD 452M; EBITDA Margin: 3.24%; Operating Cash Flow: USD 1.537B; Free Cash Flow: USD 1.359B; Cash and Cash Equivalents: USD 1.578B; Cash at End of Period: USD 1.868B; Total Debt: USD 4.053B; Net Debt: USD 2.475B; Current Ratio: 1.026; Quick Ratio: 0.392; Cash Ratio: 0.197; Inventory: USD 5.085B; Accounts Receivable: USD 1.044B; Accounts Payable: USD 4.980B; Total Assets: USD 14.782B; Total Liabilities: USD 11.974B; Shareholders’ Equity: USD 2.808B; Return on Assets: 0.79%; Return on Equity: 4.17%; Return on Capital Employed: 3.21%; Asset Turnover: 0.944; Inventory Turnover: 2.17; DSO: 6.74 days; DIO: 41.49 days; DPO: 40.63 days; Price/Earnings: 39.19x; EV/EBITDA: 46.05x; Dividend Yield: 1.09%; Dividend Payout Ratio: 170.9% (as reported) with notable buyback activity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.95B |
57.66% |
47.68% |
| Gross Profit |
2.92B |
41.79% |
31.62% |
| Operating Income |
217.00M |
-33.64% |
-38.00% |
| Net Income |
117.00M |
-52.44% |
-57.14% |
| EPS |
0.55 |
-51.75% |
-56.69% |
Key Financial Ratios
operatingProfitMargin
1.56%
operatingCashFlowPerShare
$7.2
freeCashFlowPerShare
$6.36
dividendPayoutRatio
170.9%
Management Commentary
No earnings transcript data provided in the supplied dataset. Therefore, no management quotes or thematic highlights from the QQ4 2025 earnings call can be cited here.
Forward Guidance
No explicit forward guidance was included in the provided data. In the context of ongoing macro uncertainty and channel mix pressures, investors should monitor: (1) trajectory of same-store sales and online penetration, (2) promotional intensity and its impact on gross margin, (3) services and membership-driven revenue growth (e.g., Totaltech, Geek Squad), (4) working capital efficiency and inventory levels, (5) capital allocation including buybacks versus debt reduction, and (6) supply chain resilience and cost-to-service efficiency. Absent formal guidance, the implied view is modest near-term revenue growth with continued emphasis on leveraging services and digital capabilities to support margin recovery over time.