Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: USD 62.15B; YoY +6.35%; QoQ +0.00%. Gross Profit: USD 8.042B; YoY +10.13%; Gross Margin 12.94%. Operating Income: USD 2.196B; YoY +6.50%; Operating Margin 3.53%. Net Income: USD 1.798B; YoY +3.16%; Net Margin 2.89%. EBITDA: USD 2.891B; EBITDA Margin 4.65%. Earnings per Share: EPS (basic) ~USD 4.05; EPS (diluted) ~USD 4.04; YoY EPS growth ~+3.05%. Free Cash Flow: USD 1.996B; Operating Cash Flow: USD 3.26B; Capital Expenditures: USD -1.264B. Cash at End of Period: USD 10.907B; Net Debt: U...
Financial Highlights
Revenue: USD 62.15B; YoY +6.35%; QoQ +0.00%. Gross Profit: USD 8.042B; YoY +10.13%; Gross Margin 12.94%. Operating Income: USD 2.196B; YoY +6.50%; Operating Margin 3.53%. Net Income: USD 1.798B; YoY +3.16%; Net Margin 2.89%. EBITDA: USD 2.891B; EBITDA Margin 4.65%. Earnings per Share: EPS (basic) ~USD 4.05; EPS (diluted) ~USD 4.04; YoY EPS growth ~+3.05%. Free Cash Flow: USD 1.996B; Operating Cash Flow: USD 3.26B; Capital Expenditures: USD -1.264B. Cash at End of Period: USD 10.907B; Net Debt: USD -2.874B (net cash). Balance Sheet highlights: Total Assets USD 73.386B; Total Liabilities USD 48.935B; Total Equity USD 24.451B. Liquidity and efficiency: Current Ratio 0.980; Quick Ratio 0.432; Cash Ratio 0.285; Inventory USD 20.979B; Days Inventory Outstanding ~34.9; Days Sales Outstanding ~4.29; Days Payables Outstanding ~36.25; Cash Conversion Cycle ~2.94.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
62.15B |
6.35% |
0.00% |
| Gross Profit |
8.04B |
10.13% |
0.00% |
| Operating Income |
2.20B |
6.50% |
0.00% |
| Net Income |
1.80B |
3.16% |
0.00% |
Key Financial Ratios
operatingProfitMargin
3.53%
dividendPayoutRatio
28.6%
Management Commentary
Note: The earnings call transcript was not provided in the data set. A qualitative synthesis is drawn from the disclosed results and typical Costco commentary. Key themes likely emphasized by management include: (1) the resilience of the membership model as a core driver of stable cash flow and repeat purchases; (2) ongoing investments in international markets and e-commerce integration to sustain long-run growth; (3) continued emphasis on price leadership and Kirkland private-label strength to protect margin while sustaining value for members; (4) disciplined cost control and capital allocation, including share repurchases and capex to support store expansion and digital capabilities. Absent direct quotes, these impressions reflect common Costco management priorities observed in prior quarters.
Forward Guidance
The provided data does not include formal numeric guidance for the remainder of fiscal year 2025. Based on the QQ1 results and typical Costco playbook, the forward-looking view centers on: (i) continued membership renewal strength and potential value-add from price-positioning and Kirkland private label growth; (ii) international expansion delivering incremental same-store sales and margin expansion as supply chains normalize; (iii) ongoing investment in e-commerce, omnichannel fulfillment, and services to broaden non-grocery penetration; and (iv) a continued focus on cost discipline amid macro volatility. Investors should monitor membership trends, international margin trajectory, fuel mix and pricing, supplier costs, and capital allocation decisions (capex vs. buybacks) as inputs to earnings sensitivity and margin progression. Overall, a constructive but rate-limited growth trajectory is anticipated unless international expansion accelerates materially or membership economics improve more rapidly than anticipated.