Starbucks QQ2 2025 results show a notable deceleration in top-line growth with a negative YoY and QoQ trajectory, accompanied by margin compression. Revenue reached USD 8.7616 billion, down 3.44% YoY and 6.77% QoQ, while gross profit declined to USD 1.848 billion and gross margin hovered around 21.1%. Operating income was USD 0.601 billion (operating margin ~6.86%), and net income was USD 0.384 billion (net margin ~4.39%), yielding an EPS of USD 0.338 (diluted USD 0.337). The quarter reflected substantial cost pressures and mix effects, with EBITDA at USD 1.0647 billion and an EBITDAR of ~12.15%. Cash flow from operations was USD 292 million, but free cash flow remained negative at USD -297.2 million due to continued capital investments. Free cash flow per share registered at -0.262, and the company finished the period with USD 2.671 billion in cash and equivalents. Total liabilities of USD 39.2485 billion exceeded total assets of USD 31.6331 billion, resulting in negative stockholders’ equity of USD -7.6225 billion, signaling meaningful balance sheet leverage and equity impairment pressures. Management commentary (not provided in the supplied transcript) would be key to clarifying store-level dynamics, pricing/mix actions, and international growth plans. Investors should focus on liquidity management, deleveraging opportunities, and progress in international expansion and digital channel monetization as catalysts for a potential re-rating.