Keurig Dr Pepper (KDP) delivered a solid QQ3 2025 performance with notable topline growth and durable profitability. Revenue totaled USD 4.306 billion, up 10.7% year over year and 3.44% quarter over quarter, supported by favorable mix and pricing actions across the portfolio. Gross profit stood at USD 2.34 billion, yielding a gross margin of approximately 54.3%, while EBITDA reached USD 0.995 billion and operating income was USD 0.995 billion, indicating healthy operating leverage even as input costs and SG&A remained in check. Net income of USD 0.662 billion produced a net margin of roughly 15.4%, with diluted EPS of USD 0.49, up 8.9% YoY and 22.5% QoQ.
Management commentary (as reflected by the quarterly figures) points to sustained momentum in the Packaged Beverages and Coffee Systems segments, supported by pricing actions and mix optimization. The company reported a negative cash conversion cycle of approximately -21.5 days, underscoring favorable working capital dynamics (long payable terms and efficient inventory management). However, liquidity indicators show a tighter balance sheet footprint by conventional standards (current ratio 0.63; quick ratio 0.38; cash ratio 0.07), suggesting ongoing attention to short-term liquidity and cash deployment as the business funds growth initiatives and dividend commitments. The quarter demonstrated improving profitability metrics on both YoY and QoQ bases, with net income up 7.5% YoY and 21.0% QoQ, and EPS up 8.9% YoY and 22.5% QoQ. Valuation remains reasonable, with a P/E around 13x and a P/S near 8x, complemented by a dividend payout of ~47% and a modest yield around 0.9%. While cash flow per share metrics in the dataset are reported as zero, the negative CCC and ongoing cash deployment considerations merit close monitoring of free cash flow generation going forward.