Ross Stores delivered a Q3 2025 performance that underscores the durability of the off-price model even in a softer top-line environment. Revenue for the quarter was $5.600946 billion, down 5.27% year over year, while gross profit reached $1.5685 billion for a gross margin of 28.00%. Operating income was $648.5 million (operating margin of 11.58%), and net income was $511.9 million, equating to a diluted EPS of $1.58. EBITDA stood at $977.3 million, with an EBITDAR ratio of approximately 17.45% of revenue. On a sequential basis, revenue rose 1.30% quarter over quarter, and earnings metrics generally improved modestly QoQ (EPS up 1.27% QoQ). The company demonstrated solid cash generation and balance-sheet discipline, supported by operating cash flow per share of $2.56 and free cash flow per share of $1.91. Payout remains modest at roughly 25.7% of net income, and liquidity metrics show healthy coverage with a current ratio of 1.52 and a cash balance per share of $12.57. Despite a softer top line, the combination of earnings quality, strong cash generation, and conservative capital structure supports a constructive stance toward sustainable profitability and potential upside from operating efficiency initiatives. Absent explicit guidance in the provided data, investors should monitor consumer demand dynamics, competitive intensity in off-price retail, and the company’s ability to translate cash flow strength into shareholder value through ongoing returns and potential buyback activity.