Costco Wholesale (COST.NE) Q1 2025 Earnings Report

Costco’s QQ1 2025 results reflect a durable value proposition and continued cash generation from the company’s membership model. Revenue reached USD 62.15 billion, up 6.35% year over year, supported by steady demand across core categories and disciplined expense management. Gross profit of USD 8.042 billion yielded a gross margin of 12.94%, while operating income of USD 2.196 billion produced an operating margin of 3.53%. Net income was USD 1.798 billion, equating to a net margin of 2.89%, with EBITDA of USD 2.891 billion and an EBITDA margin of 4.65%. Free cash flow stood at USD 1.996 billion, aided by operating cash flow of USD 3.26 billion and capital expenditures of USD 1.264 billion. The balance sheet remains robust, with USD 11.827 billion in cash and short-term investments and a net debt position of USD -2.874 billion, signaling substantial liquidity and financial flexibility. Cost structure and working capital management produced a current ratio of 0.98, quick ratio of 0.432, and a cash ratio of 0.285, reflecting a measured liquidity posture as Costco continues to optimize inventory and invest in international expansion.