Best Buy Co Inc (0R18.L) Q3 2025 Earnings Report

Revenue: $9.445B; YoY: -35.51%; QoQ: +1.69%
Gross Profit: $2.217B; Gross Margin: 23.47%; YoY Gross Profit: -26.12%; QoQ: +1.42%
Operating Income: $0.350B; Operating Margin: 3.71%; YoY: -52.05%; QoQ: -8.62%
Net Income: $0.273B; Net Margin: 2.89%; YoY: -40.65%; QoQ: -6.19%
EPS: $1.27; Diluted EPS: $1.26; YoY: -40.38%; QoQ: -5.93%
EBITDA: $0.582B; EBITDA Margin (EBITDARatio): 6.16%
Cash Flow: Operating cash flow -$0.256B; Capex -$0.193B; Free cash flow -$0.449B
Balance Sheet: Cash & equivalents $0.643B; Inventory $7.806B; Total assets $17.018B; Total liabilities $13.936B; Total equity $3.082B; Net debt $3.422B; Long-term debt $3.437B; Debt to capitalisation ~0.569; Interest coverage ~26.9x
Liquidity & Ratios: Current ratio 1.001; Quick ratio 0.216; Cash ratio 0.0646; DSO 8.88 days; DIO 97.20 days; Inventory turnover 0.926; Asset turnover 0.555; P/E 17.9x; Price/Book 6.34x; EV/EBITDA 39.43x; Dividend yield 1.03%; Dividend payout ratio 74%; FCF per share -$2.09; OCF per share -$1.19

Transcript data not provided in the input. Unable to extract management themes or quotes for QQ3 2025. If available, would summarize themes by category (strategy/operations/market conditions) with context and significance.

The QQ3 2025 results depict a challenging near term: revenue declines persist YoY, margins remain under pressure, and free cash flow is negative amid a substantial inventory position. Balance sheet leverage remains a key risk, though the company maintains a solid interest coverage buffer. The stock could re-rate if Best Buy demonstrates a clear path to operating margin stabilization and meaningful free cash flow generation, supported by inventory normalization, SG&A discipline, and continued growth in high-margin services. In the absence of explicit forward targets, the investment stance is cautious-to-neutral with a focus on deleveraging progress, cash flow normalization, and evidence of sustained demand stabilization. Key catalysts to watch include inventory levels, gross margin resilience, and improvements in working capital efficiency.