BrownForman reported Q4 2025 results (calendar year 2025) with revenue of $894 million, down 7.3% year over year and 13.6% quarter over quarter, reflecting a softer demand environment versus a strong prior-year quarter. Despite the topline decline, gross margin held at a resilient ~57.4% and operating margin approached 23%, supported by a premium-brand mix and disciplined pricing. Net income of $146 million produced a 16.3% net margin, with EPS (diluted) of $0.309. The company generated solid operating cash flow of $152 million and free cash flow of $102 million, underscoring continued cash-generation ability even in a softer revenue quarter. On the balance sheet, BrownForman carried substantial leverage with total debt of ~$2.73 billion and net debt of ~$2.29 billion, against cash and cash equivalents of ~$444 million, yielding a net-debt-to-EBITDA proxy that signals a meaningful leverage backdrop relative to reported quarterly earnings. Liquidity remained ample (total current assets ~$4.20 billion vs. current liabilities ~$1.08 billion; current ratio ~3.9), but the negative swing in working capital (notably other working capital) and inventory buildup merit attention for working-capital management going forward. The results highlight the enduring strength of BrownForman’s brand portfolio and pricing power, while signaling near-term revenue pressure. The company’s longer-term opportunity set rests on continued premiumization, international expansion, and margin discipline as it navigates input costs, FX dynamics, and a complex macro backdrop.